NVE Corporation Reports Record Revenue and Earnings

EDEN PRAIRIE, Minn., July 23, 2014 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2014.

Total revenue for the first quarter of fiscal 2015 increased 37% to $8.45 million from $6.18 million in the prior-year quarter. The increase was due to a 40% increase in product sales, partially offset by a 48% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2015 increased 57% to $4.04 million, or $0.83 per diluted share, compared to $2.57 million, or $0.53 per share, for the prior-year quarter.

"We are pleased to report record total revenue, product sales, and earnings 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, uncertainties related to direct and indirect U.S. Government funding, risks related to material weaknesses in our internal control over financial reporting, 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, 2014.

NVE CORPORATION STATEMENTS OF INCOME QUARTERS ENDED JUNE 30, 2014 AND 2013 (Unaudited) Quarter Ended June 30 2014 2013 ------------------------- Revenue Product sales $ 8,348,081 $ 5,974,606 Contract research and development 104,954 202,327 ------------------------- Total revenue 8,453,035 6,176,933 Cost of sales 1,558,346 1,378,355 ------------------------- Gross profit 6,894,689 4,798,578 Expenses Selling, general, and administrative 629,650 552,804 Research and development 803,428 962,911 ------------------------- Total expenses 1,433,078 1,515,715 ------------------------- Income from operations 5,461,611 3,282,863 Interest income 548,554 526,339 ------------------------- Income before taxes 6,010,165 3,809,202 Provision for income taxes 1,973,055 1,242,377 ------------------------- Net income $ 4,037,110 $ 2,566,825 ========================= Net income per share - basic $ 0.83 $ 0.53 ========================= Net income per share - diluted $ 0.83 $ 0.53 ========================= Weighted average shares outstanding Basic 4,851,043 4,862,436 Diluted 4,867,459 4,884,902 NVE CORPORATION BALANCE SHEETS JUNE 30 AND MARCH 31, 2014 June 30, 2014 March 31, 2014 ------------------------------ ASSETS Current assets Cash and cash equivalents $ 3,313,049 $ 1,262,300 Marketable securities, short term 10,743,412 12,360,091 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,791,253 2,331,574 Inventories 3,292,756 3,207,333 Deferred tax assets 210,532 237,387 Prepaid expenses and other assets 965,549 816,276 ------------------------------ Total current assets 22,316,551 20,214,961 Fixed assets Machinery and equipment 8,563,720 8,536,010 Leasehold improvements 1,499,454 1,499,454 ------------------------------ 10,063,174 10,035,464 Less accumulated depreciation 7,261,607 7,030,692 ------------------------------ Net fixed assets 2,801,567 3,004,772 Marketable securities, long term 86,192,766 82,022,310 ------------------------------ Total assets $ 111,310,884 $ 105,242,043 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 513,239 $ 374,127 Accrued payroll and other 778,181 808,675 Income taxes payable 1,744,427 -- ------------------------------ Total current liabilities 3,035,847 1,182,802 Long-term deferred tax liabilities 438,438 354,600 Shareholders' equity Common stock 48,510 48,510 Additional paid-in capital 20,464,883 20,464,883 Accumulated other comprehensive income 972,705 877,857 Retained earnings 86,350,501 82,313,391 ------------------------------ Total shareholders' equity 107,836,599 103,704,641 ------------------------------ Total liabilities and shareholders' equity $ 111,310,884 $ 105,242,043 ============================== CONTACT: Curt A. Reynders, CFO (952) 829-9217

Source:NVE Corporation