NVE Corporation Reports Quarterly Results
Commercial product revenues increase 162%
EDEN PRAIRIE, Minn.--January 20, 2004--NVE Corporation (NasdaqSC: NVEC) today
announced financial results for its third fiscal quarter ended December 31,
2003.
Total revenue for the quarter ended December 31, 2003 was $3.12 million
compared to $2.34 million for the prior-year quarter, an increase of 33%.
Commercial product sales for the current quarter increased 162% over the
prior-year quarter to $1.48 million from $566,000. Net income increased 146%
to $577,156 or $0.12 per diluted share compared to $234,161 or $0.05 per
share for the prior-year quarter.
Revenue for the first nine months of fiscal 2004 was $8.80 million, compared
to revenue of $6.84 million reported in the first nine months of fiscal 2003,
a 29% increase. For the first nine months of fiscal 2004, the company
reported net income of $1,318,050 or $0.28 per diluted share, compared to
$486,686 or $0.11 per share for the first nine months of fiscal 2003.
"We continue to be extremely pleased with our quarterly results," commented
President and Chief Executive Officer Daniel A. Baker, Ph.D. "We notched our
third consecutive quarter of triple-digit year-over-year growth in product
sales. Furthermore, together with our licensees we made remarkable progress
toward the commercialization of our MRAM intellectual property."
The company narrowed its guidance to a range of $0.30 to $0.37 per diluted
share net income for the fiscal year ending March 31, 2004 compared to $0.15
for the fiscal year ending March 31, 2003. The company had previously issued
guidance of a range of $0.17 to $0.35 per diluted share net income. The lower
end of the earnings guidance range allows for possible start-up expenditures
associated with the commercialization, marketing, and selling of Cypress-
built MRAMs. The company expects to make such expenditures, however, only if
Cypress is successful in producing commercial MRAM. The company expects total
revenues of $11.5 to $12 million compared to $9.45 million in the prior year.
NVE is a leader in the practical commercialization of spintronics, a
nanotechnology which many experts believe represents the next generation of
microelectronics. NVE licenses its MRAM intellectual property and sells
spintronic products including sensors and couplers to revolutionize data
sensing and transmission.
Statements used in this press release that relate to future plans, events,
financial results or performance are forward-looking statements that are
subject to certain risks and uncertainties including, among others, such
factors as uncertainties relating to MRAM production by our licensees, our
dependence on Cypress for potential supply of MRAM devices, risks relating to
making commercially viable MRAMs, as well as the risk factors listed from
time to time in the company's filings with the SEC, including our Annual
Report on Form 10-KSB and other reports filed with the SEC.
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NVE Corporation
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Three months ended Dec. 31, 2003 Dec. 31, 2002
Revenue:
Contract research and development $ 1,633 $ 1,673
Product sales 1,485 566
License revenue - 98
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Total revenue 3,118 2,337
Total expenses 2,541 2,103
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Net income $ 577 $ 234
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Weighted average shares outstanding 4,832 4,466
Net income per share - diluted $ 0.12 $ 0.05
NVE Corporation
CONDENSED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Nine months ended Dec. 31, 2003 Dec. 31, 2002
Revenue:
Contract research and development $ 4,950 $ 4,843
Product sales 3,852 1,708
License revenue - 294
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Total revenue 8,802 6,845
Total expenses 7,484 6,358
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Net income $ 1,318 $ 487
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Weighted average shares outstanding 4,739 4,425
Net income per share - diluted $ 0.28 $ 0.11
NVE Corporation
CONDENSED BALANCE SHEETS
DECEMBER 31, 2003 AND MARCH 31, 2003
(IN THOUSANDS)
(UNAUDITED)
Dec. 31, March 31,
2003 2003
ASSETS
Current assets:
Cash $ 1,339 $ 596
Investment securities 5,361 5,880
Other current assets 2,450 2,039
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Total current assets 9,150 8,515
Fixed assets 1,578 1,167
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Total assets $ 10,728 $ 9,682
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 1,592 1,980
Other long-term liabilities 117 223
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Total liabilities 1,709 2,203
Shareholders' equity:
Common stock 43 42
Additional paid-in capital 12,415 12,171
Accumulated other comprehensive income 50 73
Accumulated deficit (3,489) (4,807)
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Total shareholders' equity 9,019 7,479
----------- -----------
Total liabilities and shareholders' equity $ 10,728 $ 9,682
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