×

NVE Corporation Reports Second Quarter Results

EDEN PRAIRIE, Minn., Oct. 17, 2012 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2012.

Total revenue for the second quarter of fiscal 2013 decreased 12% to $5.82 million from $6.60 million in the prior-year quarter. The revenue decrease was due to a 6% decrease in product sales and a 43% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2013 decreased 4% to $2.44 million, or $0.50 per diluted share, compared to $2.56 million, or $0.52 per diluted share, for the prior-year quarter.

For the first six months of fiscal 2013, total revenue decreased 10% to $13.3 million from $14.8 million for the first six months of the prior year. The decrease was due primarily to a 54% decrease in contract research and development revenue. Net income for the first half of fiscal 2013 was $5.82 million, or $1.19 per diluted share, compared to $5.99 million, or $1.22 per diluted share, for the first half of fiscal 2012.

"We are able to report solid earnings for the quarter and first half despite decreases in total revenue due primarily to decreases in contract research and development revenue," 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.

The NVE Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3120

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 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, 2012 and other reports filed with the SEC.

NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2012 AND 2011 (Unaudited) Quarter Ended September 30 2012 2011 ------------- ------------- Revenue Product sales $ 5,231,332 $ 5,557,299 Contract research and development 591,464 1,041,334 ------------- ------------- Total revenue 5,822,796 6,598,633 Cost of sales 1,606,913 2,277,926 ------------- ------------- Gross profit 4,215,883 4,320,707 Expenses Selling, general, and administrative 607,694 606,847 Research and development 612,258 611,595 ------------- ------------- Total expenses 1,219,952 1,218,442 ------------- ------------- Income from operations 2,995,931 3,102,265 Interest income 621,950 597,363 ------------- ------------- Income before taxes 3,617,881 3,699,628 Provision for income taxes 1,174,998 1,144,535 ------------- ------------- Net income $ 2,442,883 $ 2,555,093 ============= ============= Net income per share -- basic $ 0.51 $ 0.53 ============= ============= Net income per share -- diluted $ 0.50 $ 0.52 ============= ============= Weighted average shares outstanding Basic 4,825,441 4,776,198 Diluted 4,884,656 4,896,525 Six Months Ended September 30 2012 2011 ------------- ------------- Revenue Product sales $ 12,262,077 $ 12,580,573 Contract research and development 1,023,624 2,231,822 ------------- ------------- Total revenue 13,285,701 14,812,395 Cost of sales 3,409,266 4,873,518 ------------- ------------- Gross profit 9,876,435 9,938,877 Expenses Selling, general, and administrative 1,143,804 1,222,677 Research and development 1,300,284 1,106,471 ------------- ------------- Total expenses 2,444,088 2,329,148 ------------- ------------- Income from operations 7,432,347 7,609,729 Interest income 1,184,568 1,162,892 ------------- ------------- Income before taxes 8,616,915 8,772,621 Provision for income taxes 2,796,374 2,778,300 ------------- ------------- Net income $ 5,820,541 $ 5,994,321 ============= ============= Net income per share -- basic $ 1.21 $ 1.26 ============= ============= Net income per share -- diluted $ 1.19 $ 1.22 ============= ============= Weighted average shares outstanding Basic 4,825,095 4,776,198 Diluted 4,882,524 4,896,525 NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2012 Sept. 30, March 31, 2012 2012 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 1,934,562 $ 1,544,536 Marketable securities, short term 15,907,264 17,551,629 Accounts receivable, net of allowance for uncollectible accounts of $15,000 1,961,682 2,684,840 Inventories 3,522,488 3,229,376 Prepaid expenses and other assets 1,287,755 1,159,852 ------------- ------------- Total current assets 24,613,751 26,170,233 Fixed assets Machinery and equipment 8,211,475 7,488,211 Leasehold improvements 1,016,887 720,882 ------------- ------------- 9,228,362 8,209,093 Less accumulated depreciation 5,989,392 5,697,861 ------------- ------------- Net fixed assets 3,238,970 2,511,232 Marketable securities, long term 62,020,033 54,445,298 ------------- ------------- Total assets $ 89,872,754 $ 83,126,763 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 657,070 $ 663,702 Accrued payroll and other 813,407 867,331 Deferred taxes 452,328 136,872 ------------- ------------- Total current liabilities 1,922,805 1,667,905 Shareholders' equity Common stock 48,267 48,247 Additional paid-in capital 21,112,980 20,974,477 Accumulated other comprehensive income 1,619,483 1,087,456 Retained earnings 65,169,219 59,348,678 ------------- ------------- Total shareholders' equity 87,949,949 81,458,858 ------------- ------------- Total liabilities and shareholders' equity $ 89,872,754 $ 83,126,763 ============= ============= CONTACT: Curt A. Reynders, CFO (952) 829-9217

Source:NVE Corporation