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NVE Corporation Reports Third Quarter Results

EDEN PRAIRIE, Minn., Jan. 23, 2013 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2012.

Total revenue for the third quarter of fiscal 2013 increased 6% to $6.53 million from $6.16 million in the prior-year quarter. The revenue increase was due to a 7% increase in product sales. Net income for the third quarter of fiscal 2013 increased 27% to $2.90 million, or $0.60 per diluted share, compared to $2.29 million, or $0.47 per diluted share, for the prior-year quarter.

For the first nine months of fiscal 2013, total revenue decreased 6% to $19.8 million from $21.0 million for the first nine months of the prior year. The decrease was due to a 40% decrease in contract research and development revenue. Net income for the first nine months of fiscal 2013 was $8.72 million, or $1.80 per diluted share, compared to $8.28 million, or $1.71 per diluted share, for the first nine months of fiscal 2012.

"We are pleased to report a 27% increase in net income for the quarter driven by increased product sales and increased gross margin as a percentage of 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 NINE MONTHS ENDED DECEMBER 31, 2012 AND 2011 (Unaudited) Quarter Ended December 31 2012 2011 ------------- ------------- Revenue Product sales $ 5,762,925 $ 5,394,758 Contract research and development 762,296 763,768 ------------- ------------- Total revenue 6,525,221 6,158,526 Cost of sales 1,738,618 2,174,878 ------------- ------------- Gross profit 4,786,603 3,983,648 Expenses Selling, general, and administrative 570,741 520,044 Research and development 501,325 718,688 ------------- ------------- Total expenses 1,072,066 1,238,732 ------------- ------------- Income from operations 3,714,537 2,744,916 Interest income 600,395 591,694 ------------- ------------- Income before taxes 4,314,932 3,336,610 Provision for income taxes 1,415,590 1,047,519 ------------- ------------- Net income $ 2,899,342 $ 2,289,091 ============= ============= Net income per share -- basic $ 0.60 $ 0.48 ============= ============= Net income per share -- diluted $ 0.60 $ 0.47 ============= ============= Weighted average shares outstanding Basic 4,847,619 4,807,859 Diluted 4,872,019 4,873,429 Nine Months Ended December 31 2012 2011 ------------- ------------- Revenue Product sales $ 18,025,002 $ 17,975,331 Contract research and development 1,785,920 2,995,590 ------------- ------------- Total revenue 19,810,922 20,970,921 Cost of sales 5,147,884 7,048,396 ------------- ------------- Gross profit 14,663,038 13,922,525 Expenses Selling, general, and administrative 1,714,545 1,742,721 Research and development 1,801,609 1,825,159 ------------- ------------- Total expenses 3,516,154 3,567,880 ------------- ------------- Income from operations 11,146,884 10,354,645 Interest income 1,784,963 1,754,586 ------------- ------------- Income before taxes 12,931,847 12,109,231 Provision for income taxes 4,211,964 3,825,819 ------------- ------------- Net income $ 8,719,883 $ 8,283,412 ============= ============= Net income per share -- basic $ 1.80 $ 1.73 ============= ============= Net income per share -- diluted $ 1.80 $ 1.71 ============= ============= Weighted average shares outstanding Basic 4,832,630 4,786,790 Diluted 4,856,851 4,852,360 NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2012 March 31, Dec. 31, 2012 2012 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 843,023 $ 1,544,536 Marketable securities, short term 15,610,697 17,551,629 Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,621,780 2,684,840 Inventories 3,755,523 3,229,376 Prepaid expenses and other assets 1,333,019 1,159,852 ------------- ------------- Total current assets 24,164,042 26,170,233 Fixed assets Machinery and equipment 8,343,525 7,488,211 Leasehold improvements 1,416,971 720,882 ------------- ------------- 9,760,496 8,209,093 Less accumulated depreciation 6,100,071 5,697,861 ------------- ------------- Net fixed assets 3,660,425 2,511,232 Marketable securities, long term 64,774,808 54,445,298 ------------- ------------- Total assets $ 92,599,275 $ 83,126,763 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 558,935 $ 663,702 Accrued payroll and other 760,955 867,331 Deferred taxes 452,560 136,872 ------------- ------------- Total current liabilities 1,772,450 1,667,905 Shareholders' equity Common stock 48,604 48,247 Additional paid-in capital 21,112,651 20,974,477 Accumulated other comprehensive income 1,597,009 1,087,456 Retained earnings 68,068,561 59,348,678 ------------- ------------- Total shareholders' equity 90,826,825 81,458,858 ------------- ------------- Total liabilities and shareholders' equity $ 92,599,275 $ 83,126,763 ============= ============= CONTACT: Curt A. Reynders, CFO (952) 829-9217

Source:NVE Corporation