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NVE Corporation Reports Fourth Quarter and Fiscal Year Results

EDEN PRAIRIE, Minn., May 1, 2013 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2013.

Total revenue for the fourth quarter of fiscal 2013 decreased 5% to $7.22 million from $7.61 million in the prior-year quarter. Product sales decreased 11% and contract research and development revenue increased 88%. Net income for the fourth quarter of fiscal 2013 increased to $3.11 million, or $0.64 per diluted share, compared to $3.10 million, or $0.63 per diluted share, for the prior-year quarter.

For fiscal 2013, total revenue decreased 5% to $27.0 million from $28.6 million for the prior fiscal year. Product sales decreased 3% and contract research and development revenue decreased 24%. Net income for fiscal 2013 increased 4% to $11.8 million, or $2.43 per diluted share, compared to $11.4 million, or $2.34 per diluted share, for fiscal 2012.

"We are pleased to report growth in net income for the quarter and the year, and record gross and net margins for the year," 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 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 YEARS ENDED MARCH 31, 2013 AND 2012 (Unaudited) Quarter Ended March 31 2013 2012 ------------- ------------- Revenue Product sales $ 6,409,821 $ 7,176,491 Contract research and development 812,676 431,808 ------------- ------------- Total revenue 7,222,497 7,608,299 Cost of sales 1,877,297 2,277,115 ------------- ------------- Gross profit 5,345,200 5,331,184 Expenses Selling, general, and administrative 526,018 637,882 Research and development 769,212 774,899 ------------- ------------- Total expenses 1,295,230 1,412,781 ------------- ------------- Income from operations 4,049,970 3,918,403 Interest income 574,640 595,605 ------------- ------------- Income before taxes 4,624,610 4,514,008 Provision for income taxes 1,515,655 1,416,325 ------------- ------------- Net income $ 3,108,955 $ 3,097,683 ============= ============= Net income per share -- basic $ 0.64 $ 0.64 ============= ============= Net income per share -- diluted $ 0.64 $ 0.63 ============= ============= Weighted average shares outstanding Basic 4,861,747 4,824,745 Diluted 4,885,865 4,889,291 Year Ended March 31 2013 2012 ------------- ------------- Revenue Product sales $ 24,434,823 $ 25,151,822 Contract research and development 2,598,596 3,427,398 ------------- ------------- Total revenue 27,033,419 28,579,220 Cost of sales 7,025,181 9,325,511 ------------- ------------- Gross profit 20,008,238 19,253,709 Expenses Selling, general, and administrative 2,240,563 2,380,603 Research and development 2,570,821 2,600,058 ------------- ------------- Total expenses 4,811,384 4,980,661 ------------- ------------- Income from operations 15,196,854 14,273,048 Interest income 2,359,603 2,350,191 ------------- ------------- Income before taxes 17,556,457 16,623,239 Provision for income taxes 5,727,619 5,242,144 ------------- ------------- Net income $ 11,828,838 $ 11,381,095 ============= ============= Net income per share -- basic $ 2.44 $ 2.37 ============= ============= Net income per share -- diluted $ 2.43 $ 2.34 ============= ============= Weighted average shares outstanding Basic 4,839,810 4,796,227 Diluted 4,863,546 4,863,471 NVE CORPORATION BALANCE SHEETS MARCH 31, 2013 AND 2012 March 31, March 31, 2013 2012 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 2,509,683 $ 1,544,536 Marketable securities, short term 9,711,029 17,551,629 Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,521,395 2,684,840 Inventories 3,336,592 3,229,376 Prepaid expenses and other assets 958,147 1,159,852 ------------- ------------- Total current assets 19,036,846 26,170,233 Fixed assets Machinery and equipment 8,417,061 7,488,211 Leasehold improvements 1,499,454 720,882 ------------- ------------- 9,916,515 8,209,093 Less accumulated depreciation 6,228,122 5,697,861 ------------- ------------- Net fixed assets 3,688,393 2,511,232 Marketable securities, long term 73,040,257 54,445,298 ------------- ------------- Total assets $ 95,765,496 $ 83,126,763 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 422,092 $ 663,702 Accrued payroll and other 918,060 867,331 Deferred taxes 440,736 136,872 ------------- ------------- Total current liabilities 1,780,888 1,667,905 Shareholders' equity Common stock 48,624 48,247 Additional paid-in capital 21,200,742 20,974,477 Accumulated other comprehensive income 1,557,726 1,087,456 Retained earnings 71,177,516 59,348,678 ------------- ------------- Total shareholders' equity 93,984,608 81,458,858 ------------- ------------- Total liabilities and shareholders' equity $ 95,765,496 $ 83,126,763 ============= ============= CONTACT: Curt A. Reynders, CFO (952) 829-9217

Source:NVE Corporation