NVE Corporation Reports Fiscal Year Results
EDEN PRAIRIE, Minn.--April 28, 2004--NVE Corporation (NasdaqSC: NVEC) today
announced financial results for the quarter and fiscal year ended March 31,
2004.
Total revenue for fiscal 2004 was $12.01 million compared to $9.45 million the
prior year, an increase of 27%. Product sales increased 115% over the prior
year. For fiscal 2004 the company reported net income of $2.11 million,
including a net income tax benefit of $233,022 from reduction of the valuation
allowance relating to deferred tax assets. This compares to net income of
$646,850 in fiscal 2003. Earnings per share were $0.45 per diluted share
compared to $0.15 per share for the prior year. The impact of the tax benefit
in fiscal 2004 was $0.05 per share.
Total revenue for the fourth quarter of fiscal 2004 was $3.21 million compared
to $2.60 million for the prior-year quarter, an increase of 23%. Product sales
for the fourth quarter increased 94% over the prior-year quarter. Net income
for the fourth quarter was $789,670 or $0.16 per diluted share compared
$160,164 or $0.04 per share for the prior-year quarter. Net income for the
fourth quarter included a net income tax benefit of $236,500 or $0.05 per
share.
The company exceeded its previously issued guidance of net income of $0.30 to
$0.37 per diluted share and revenue of between $11.5 and $12.0 million for
fiscal 2004.
"We are very pleased with our results for the past year," commented President
and Chief Executive Officer Daniel A. Baker, Ph.D. "Product sales grew very
rapidly and our partners made significant strides toward production-ready
MRAM."
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, risks in the enforcement of our patents, 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
QUARTER AND YEAR ENDED MARCH 31, 2004 AND 2003
(IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Quarter ended March 31, 2004 March 31, 2003
Revenue:
Contract research and development $ 1,667 $ 1,709
Product sales 1,541 795
License revenue - 98
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Total revenue 3,208 2,602
Total expenses 2,655 2,442
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Pretax income 533 160
Income tax (benefit) (237) -
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Net income $ 790 $ 160
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Weighted average shares outstanding 4,877 4,366
Net income per share - diluted $ 0.16 $ 0.04
Year ended March 31, 2004 March 31, 2003
Revenue:
Contract research and development $ 6,617 $ 6,553
Product sales 5,393 2,503
License revenue - 391
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Total revenue 12,010 9,447
Total expenses 10,135 8,800
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Pretax income 1,875 647
Income tax (benefit) (233) -
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Net income $ 2,108 $ 647
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Weighted average shares outstanding 4,727 4,324
Net income per share - diluted $ 0.45 $ 0.15
NVE Corporation
CONDENSED BALANCE SHEETS
MARCH 31, 2004 AND MARCH 31, 2003
(IN THOUSANDS)
(UNAUDITED)
March 31, March 31,
2004 2003
ASSETS
Current assets:
Cash $ 1,056 $ 596
Investment securities 6,489 5,880
Other current assets 3,436 2,039
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Total current assets 10,981 8,515
Fixed assets 1,439 1,167
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Total assets $ 12,420 $ 9,682
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 1,586 1,980
Other long-term liabilities 101 223
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Total liabilities 1,687 2,203
Shareholders' equity:
Common stock 45 42
Additional paid-in capital 13,298 12,171
Accumulated other comprehensive income 90 73
Accumulated deficit (2,700) (4,807)
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Total shareholders' equity 10,733 7,479
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Total liabilities and shareholders' equity $ 12,420 $ 9,682
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