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NVE Corporation Reports First Quarter Results

EDEN PRAIRIE, Minn., July 24, 2013 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2013.

Total revenue for the first quarter of fiscal 2014 decreased 17% to $6.18 million from $7.46 million in the prior-year quarter. The decrease was primarily due to a 15% decrease in product sales. Net income for the first quarter of fiscal 2014 decreased 24% to $2.57 million, or $0.53 per diluted share, compared to $3.38 million, or $0.69 per share, for the prior-year quarter.

"We are reporting strong earnings for the quarter and record gross margin as a percentage of revenue, despite revenue decreases," 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 ENDED JUNE 30, 2013 AND 2012 (Unaudited) Quarter Ended June 30 2013 2012 ------------ ------------ Revenue Product sales $ 5,974,606 $ 7,030,745 Contract research and development 202,327 432,160 ------------ ------------ Total revenue 6,176,933 7,462,905 Cost of sales 1,378,355 1,802,353 ------------ ------------ Gross profit 4,798,578 5,660,552 Expenses Selling, general, and administrative 552,804 536,110 Research and development 962,911 688,026 ------------ ------------ Total expenses 1,515,715 1,224,136 ------------ ------------ Income from operations 3,282,863 4,436,416 Interest income 526,339 562,618 ------------ ------------ Income before taxes 3,809,202 4,999,034 Provision for income taxes 1,242,377 1,621,376 ------------ ------------ Net income $ 2,566,825 $ 3,377,658 ============ ============ Net income per share -- basic $ 0.53 $ 0.70 ============ ============ Net income per share -- diluted $ 0.53 $ 0.69 ============ ============ Weighted average shares outstanding Basic 4,862,436 4,824,745 Diluted 4,884,902 4,886,873 NVE CORPORATION BALANCE SHEETS JUNE 30 AND MARCH 31, 2013 June 30, March 31, 2013 2013 ------------ ------------ ASSETS Current assets Cash and cash equivalents $ 2,270,943 $ 2,509,683 Marketable securities, short term 9,913,371 9,711,029 Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,470,003 2,521,395 Inventories 3,231,940 3,336,592 Deferred tax assets 250,809 -- Prepaid expenses and other assets 1,060,094 958,147 ------------ ------------ Total current assets 19,197,160 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 6,418,258 6,228,122 ------------ ------------ Net fixed assets 3,498,257 3,688,393 Marketable securities, long term 75,352,422 73,040,257 ------------ ------------ Total assets $ 98,047,839 $ 95,765,496 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 338,633 $ 422,092 Accrued payroll and other 733,982 918,060 Income taxes payable 1,044,404 -- Deferred taxes -- 440,736 ------------ ------------ Total current liabilities 2,117,019 1,780,888 Long-term deferred tax liabilities 234,422 -- Shareholders' equity Common stock 48,624 48,624 Additional paid-in capital 21,200,742 21,200,742 Accumulated other comprehensive income 702,691 1,557,726 Retained earnings 73,744,341 71,177,516 ------------ ------------ Total shareholders' equity 95,696,398 93,984,608 ------------ ------------ Total liabilities and shareholders' equity $ 98,047,839 $ 95,765,496 ============ ============ CONTACT: Curt A. Reynders, CFO (952) 829-9217

Source:NVE Corporation