NVE Corporation Reports Second Quarter Results

EDEN PRAIRIE, Minn., Oct. 23, 2013 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2013.

Total revenue for the second quarter of fiscal 2014 increased 25% to $7.30 million from $5.82 million in the prior-year quarter. The increase was due to a 38% increase in product sales partially offset by an 88% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2014 increased 32% to $3.23 million, or $0.66 per diluted share, compared to $2.44 million, or $0.50 per share, for the prior-year quarter.

For the first six months of fiscal 2014, total revenue increased 1% to $13.5 million from $13.3 million for the first six months of the prior year. The increase was due to an 8% increase in product sales partially offset by a 73% decrease in contract research and development revenue. Net income was $5.80 million, or $1.19 per diluted share, for the first half of fiscal 2014 compared to $5.82 million, or $1.19 per diluted share, for the first half of fiscal 2013.

"We are pleased to report record product sales and record gross margin as a percentage of revenue for the quarter," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D.

NVE is a leader in the practical commercialization of spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store and transmit information. The company manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data. NVE has also licensed its spintronic magnetoresistive random access memory technology, commonly known as MRAM.

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 risks of decreased revenues, risks related to interruptions in the Government funding process, risks in the enforcement of our patents, litigation risks, as well as the risk factors listed from time to time in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2013.

NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 (Unaudited) Quarter Ended September 30 2013 2012 ------------- ------------- Revenue Product sales $ 7,231,149 $ 5,231,332 Contract research and development 70,031 591,464 ------------- ------------- Total revenue 7,301,180 5,822,796 Cost of sales 1,503,546 1,606,913 ------------- ------------- Gross profit 5,797,634 4,215,883 Expenses Selling, general, and administrative 660,076 607,694 Research and development 876,463 612,258 ------------- ------------- Total expenses 1,536,539 1,219,952 ------------- ------------- Income from operations 4,261,095 2,995,931 Interest income 520,802 621,950 ------------- ------------- Income before taxes 4,781,897 3,617,881 Provision for income taxes 1,552,246 1,174,998 ------------- ------------- Net income $ 3,229,651 $ 2,442,883 ============= ============= Net income per share -- basic $ 0.67 $ 0.51 ============= ============= Net income per share -- diluted $ 0.66 $ 0.50 ============= ============= Weighted average shares outstanding Basic 4,852,178 4,825,441 Diluted 4,873,106 4,884,656 Six Months Ended September 30 2013 2012 ------------- ------------- Revenue Product sales $ 13,205,755 $ 12,262,077 Contract research and development 272,358 1,023,624 ------------- ------------- Total revenue 13,478,113 13,285,701 Cost of sales 2,881,901 3,409,266 ------------- ------------- Gross profit 10,596,212 9,876,435 Expenses Selling, general, and administrative 1,212,880 1,143,804 Research and development 1,839,374 1,300,284 ------------- ------------- Total expenses 3,052,254 2,444,088 ------------- ------------- Income from operations 7,543,958 7,432,347 Interest income 1,047,141 1,184,568 ------------- ------------- Income before taxes 8,591,099 8,616,915 Provision for income taxes 2,794,623 2,796,374 ------------- ------------- Net income $ 5,796,476 $ 5,820,541 ============= ============= Net income per share -- basic $ 1.19 $ 1.21 ============= ============= Net income per share -- diluted $ 1.19 $ 1.19 ============= ============= Weighted average shares outstanding Basic 4,857,279 4,825,095 Diluted 4,878,599 4,882,524 NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2013 Sept. 30, March 31, 2013 2013 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 1,561,571 $ 2,509,683 Marketable securities, short term 8,330,034 9,711,029 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,031,027 2,521,395 Inventories 3,100,445 3,336,592 Deferred tax assets 256,472 -- Prepaid expenses and other assets 894,806 958,147 ------------- ------------- Total current assets 17,174,355 19,036,846 Fixed assets Machinery and equipment 8,417,061 8,417,061 Leasehold improvements 1,499,454 1,499,454 ------------- ------------- 9,916,515 9,916,515 Less accumulated depreciation 6,608,394 6,228,122 ------------- ------------- Net fixed assets 3,308,121 3,688,393 Marketable securities, long term 79,140,911 73,040,257 ------------- ------------- Total assets $ 99,623,387 $ 95,765,496 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 391,640 $ 422,092 Accrued payroll and other 894,282 918,060 Deferred taxes -- 440,736 ------------- ------------- Total current liabilities 1,285,922 1,780,888 Long-term deferred tax liabilities 377,232 -- Shareholders' equity Common stock 48,370 48,624 Additional paid-in capital 19,990,791 21,200,742 Accumulated other comprehensive income 947,080 1,557,726 Retained earnings 76,973,992 71,177,516 ------------- ------------- Total shareholders' equity 97,960,233 93,984,608 ------------- ------------- Total liabilities and shareholders' equity $ 99,623,387 $ 95,765,496 ============= ============= CONTACT: Curt A. Reynders, CFO (952) 829-9217

Source:NVE Corporation