NVE Corporation Reports Second Quarter Results

/ Source: GlobeNewswire

EDEN PRAIRIE, Minn., Oct. 20, 2010 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2010.

Total revenue for the second quarter of fiscal 2011 increased 20% to $7.81 million from $6.51 million in the prior-year quarter. The revenue increase was due to a 24% increase in product sales and a 5% increase in contract research and development revenue. Net income for the second quarter of fiscal 2011 increased 19% to $3.21 million, or $0.66 per diluted share, compared to $2.69 million, or $0.55 per diluted share, for the prior-year quarter.

For the first six months of fiscal 2011, total revenue increased 13% to $15.1 million from $13.3 million for the first six months of the prior year. The increase was due to an 18% increase in product sales, partially offset by a 7% decrease in contract research and development revenue. Net income for the first half of fiscal 2011 was $6.31 million, or $1.30 per diluted share, compared to $5.63 million, or $1.16 per diluted share, for the first half of fiscal 2010.

"We are pleased to report strong product sales and earnings growth 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.

The NVE Corporation logo is available at

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 in continued growth in revenue and profits and uncertainties related to economic environments, 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, 2010 as updated in our Quarterly Reports on Form 10-Q.

 NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 (Unaudited) Quarter Ended September 30 2010 2009 ------------- ------------- Revenue Product sales $ 6,410,512 $ 5,177,445 Contract research and development 1,398,648 1,331,056 ------------- ------------- Total revenue 7,809,160 6,508,501 Cost of sales 2,604,926 1,985,100 ------------- ------------- Gross profit 5,204,234 4,523,401 Expenses Selling, general, and administrative 634,547 622,354 Research and development 309,873 291,540 ------------- ------------- Total expenses 944,420 913,894 ------------- ------------- Income from operations 4,259,814 3,609,507 Interest income 497,731 393,198 ------------- ------------- Income before taxes 4,757,545 4,002,705 Provision for income taxes 1,551,535 1,308,522 ------------- ------------- Net income $ 3,206,010 $ 2,694,183 ============= ============= Net income per share - basic $ 0.68 $ 0.57 ============= ============= Net income per share - diluted $ 0.66 $ 0.55 ============= ============= Weighted average shares outstanding Basic 4,700,583 4,692,607 Diluted 4,860,237 4,871,387 Six Months Ended September 30 2010 2009 ------------- ------------- Revenue Product sales $ 12,604,388 $ 10,711,482 Contract research and development 2,446,066 2,631,551 ------------- ------------- Total revenue 15,050,454 13,343,033 Cost of sales 4,680,730 3,876,523 ------------- ------------- Gross profit 10,369,724 9,466,510 Expenses Selling, general, and administrative 1,262,933 1,258,077 Research and development 651,536 558,861 ------------- ------------- Total expenses 1,914,469 1,816,938 ------------- ------------- Income from operations 8,455,255 7,649,572 Interest income 973,461 763,223 ------------- ------------- Income before taxes 9,428,716 8,412,795 Provision for income taxes 3,121,609 2,779,680 ------------- ------------- Net income $ 6,307,107 $ 5,633,115 ============= ============= Net income per share - basic $ 1.34 $ 1.20 ============= ============= Net income per share - diluted $ 1.30 $ 1.16 ============= ============= Weighted average shares outstanding Basic 4,700,583 4,684,453 Diluted 4,860,237 4,863,199 NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2010 (Unaudited) Sept. 30, 2010 March 31, 2010 -------------- -------------- ASSETS Current assets Cash and cash equivalents $ 690,841 $ 1,389,288 Marketable securities, short term 2,489,580 1,566,666 Accounts receivable, net of allowance for uncollectible accounts of $15,000 4,138,418 4,221,564 Inventories 2,371,727 1,706,427 Prepaid expenses and other assets 1,073,176 781,294 -------------- -------------- Total current assets 10,763,742 9,665,239 Fixed assets Machinery and equipment 5,821,555 5,617,136 Leasehold improvements 450,546 450,546 -------------- -------------- 6,272,101 6,067,682 Less accumulated depreciation 5,038,657 4,857,819 -------------- -------------- Net fixed assets 1,233,444 1,209,863 Marketable securities, long term 52,720,248 46,587,812 -------------- -------------- Total assets $ 64,717,434 $ 57,462,914 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 712,396 $ 665,782 Accrued payroll and other 716,079 720,867 Deferred taxes 434,739 102,138 Deferred revenue -- 20,833 -------------- -------------- Total current liabilities 1,863,214 1,509,620 Shareholders' equity Common stock 47,006 47,006 Additional paid-in capital 20,246,644 20,169,924 Accumulated other comprehensive income 1,646,825 1,129,726 Retained earnings 40,913,745 34,606,638 -------------- -------------- Total shareholders' equity 62,854,220 55,953,294 -------------- -------------- Total liabilities and shareholders' equity $ 64,717,434 $ 57,462,914 ============== ============== 
CONTACT: NVE Corporation Curt A. Reynders, CFO (952) 829-9217