NVE Corporation Reports Second Quarter Fiscal 2005 Results
EDEN PRAIRIE, Minn.--October 20, 2004--NVE Corporation (NasdaqSC: NVEC) today
announced financial results for the three months ended September 30, 2004.
Net income for the second quarter was $423,298, or $0.09 per diluted share,
compared to $406,476, or $0.09 per diluted share for the prior-year quarter.
Total revenue was $3.10 million, compared to $2.86 million for the prior-year
quarter, an increase of 8 percent. Product sales increased 14 percent to $1.45
million, from $1.27 million in the prior-year quarter and contract research
and development revenue increased 3 percent to $1.65 million, from $1.60
million.
For the six months ended September 30, 2004, the company reported net income
of $906,969, or $0.18 per diluted share, compared to $740,894, or $0.16 per
share for the six months ended September 30, 2003. Total revenue for the first
six months of fiscal 2005 was $5.98 million, compared to $5.68 million
reported in the first six months of fiscal 2004, a 5-percent increase. Product
sales in the first half of fiscal 2005 increased 19 percent and contract
research and development revenue decreased 4 percent compared with the prior-
year period.
"We are pleased with our results for the second quarter," said Daniel A.
Baker, Ph.D., NVE president and chief executive officer. "Strong product sales
in our core industrial markets more than offset an anticipated decline in
product sales to St. Jude Medical, and we maintained solid profitability."
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, risks
in the enforcement of our patents, uncertainties related to the awarding of
future government contracts, risks related to competitive threats, risks
associated with our reliance on several large customers, and risks associated
with meeting stringent customer technical requirements, risks in continued
profitability, as well as the risk factors listed from time to time in our
filings with the SEC, including our Annual Report on Form 10-KSB and other
reports filed with the SEC.
###
NVE Corporation
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Three Months Ended Sept. 30, 2004 Sept. 30, 2003
Revenue:
Contract research and development $ 1,646 $ 1,596
Product sales 1,450 1,269
-------------- --------------
Total revenue 3,096 2,865
Cost of sales 1,961 1,739
-------------- --------------
Gross profit 1,135 1,126
Expenses:
Research and development 306 303
Selling, general & administrative 482 476
-------------- --------------
Total expenses 788 779
-------------- --------------
Income from operations 347 347
Interest income 58 44
Interest expense (4) (7)
Other income 22 22
-------------- --------------
Net income $ 423 $ 406
============== ==============
Weighted average shares outstanding 4,933 4,679
Net income per share - diluted $ 0.09 $ 0.09
Six Months Ended Sept. 30, 2004 Sept. 30, 2003
Revenue:
Contract research and development $ 3,172 $ 3,317
Product sales 2,813 2,367
-------------- --------------
Total revenue 5,985 5,684
Cost of sales 3,587 3,648
-------------- --------------
Gross profit 2,398 2,036
Expenses:
Research and development 668 481
Selling, general & administrative 966 926
-------------- --------------
Total expenses 1,634 1,407
-------------- --------------
Income from operations 764 629
Interest income 113 93
Interest expense (8) (15)
Other income 38 34
-------------- --------------
Net income $ 907 $ 741
============== ==============
Weighted average shares outstanding 4,929 4,646
Net income per share - diluted $ 0.18 $ 0.16
NVE Corporation
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 2004 AND MARCH 31, 2004
(IN THOUSANDS)
(UNAUDITED)
Sept. 30, March 31,
2004 2004
ASSETS
Current assets:
Cash $ 809 $ 1,056
Investment securities 6,416 6,489
Accounts receivable, net 2,548 1,739
Inventories 1,090 1,150
Other current assets 429 547
----------- -----------
Total current assets 11,292 10,981
Fixed assets 1,872 1,439
----------- -----------
Total assets $ 13,164 $ 12,420
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 447 327
Accrued payroll and other 593 712
Other current liabilities 422 547
----------- -----------
Total current liabilities 1,462 1,586
Long-term liabilities 68 101
----------- -----------
Total liabilities 1,530 1,687
Shareholders' equity:
Common stock 45 45
Additional paid-in capital 13,377 13,298
Accumulated other comprehensive income 5 90
Accumulated deficit (1,793) (2,700)
----------- -----------
Total shareholders' equity 11,634 10,733
----------- -----------
Total liabilities and shareholders' equity $ 13,164 $ 12,420
=========== ===========