NVE Corporation Reports First Quarter Fiscal 2005 Results
EDEN PRAIRIE, Minn.--July 20, 2004--NVE Corporation (NasdaqSC: NVEC) today
announced financial results for the three months ended June 30, 2004.
Net income for the first quarter was $483,671 or $0.10 per diluted share,
compared to $334,418 or $0.07 per share for the prior-year quarter. Total
revenue was $2.89 million, compared to $2.82 million for the prior-year
quarter, an increase of 2 percent. Product sales increased 24 percent to $1.36
million from $1.10 million in the prior-year quarter.
Research and development expenses increased 102 percent in the quarter while
contract research and development revenue decreased 11 percent as the company
shifted resources from government research contracts to company-funded
research in order to develop new and improved commercial products.
"We are pleased with our results for the first quarter," commented President
and Chief Executive Officer Daniel A. Baker, Ph.D. "Strong product sales in
our core industrial markets more than offset an anticipated decline in product
sales to St. Jude Medical and a decline in contract research revenue due to
stepped-up product development."
"We expect to be profitable in the upcoming quarters but we may post lower net
income compared to last year's quarters due to higher research and development
expenses; expenses associated with rolling out MRAM manufactured under our
technology agreement with Cypress Semiconductor; and expenses associated with
license procurement and enforcement in the current fiscal year," added Baker.
"These expenditures will enable NVE's continued growth and strengthen our
intellectual property position."
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,
risks in continued profitability, 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 INCOME
THREE MONTHS ENDED JUNE 30, 2004 AND 2003
(IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Three Months Ended June 30, 2004 June 30, 2003
Revenue:
Contract research and development $ 1,526 $ 1,721
Product sales 1,363 1,099
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Total revenue 2,889 2,820
Cost of sales 1,626 1,909
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Gross profit 1,263 911
Expenses:
Research and development 361 179
Selling, general & administrative 485 451
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Total expenses 846 630
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Income from operations 417 281
Interest income 55 49
Interest expense (4) (8)
Other income 16 12
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Net income $ 484 $ 334
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Weighted average shares outstanding 4,977 4,571
Net income per share - diluted $ 0.10 $ 0.07
NVE Corporation
CONDENSED BALANCE SHEETS
MARCH 31, 2004 AND MARCH 31, 2003
(IN THOUSANDS)
(UNAUDITED)
June 30, March 31,
2004 2004
ASSETS
Current assets:
Cash $ 1,098 $ 1,056
Investment securities 6,347 6,489
Accounts receivable, net 1,951 1,739
Inventories 1,120 1,150
Other current assets 573 547
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Total current assets 11,089 10,981
Fixed assets 1,558 1,439
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Total assets $ 12,647 $ 12,420
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 352 327
Accrued payroll and other 611 712
Other current liabilities 491 547
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Total current liabilities 1,454 1,586
Long-term liabilities 84 101
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Total liabilities 1,538 1,687
Shareholders' equity:
Common stock 45 45
Additional paid-in capital 13,348 13,298
Accumulated other comprehensive income (68) 90
Accumulated deficit (2,216) (2,700)
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Total shareholders' equity 11,109 10,733
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Total liabilities and shareholders' equity $ 12,647 $ 12,420
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