NVE Corporation Reports Third Quarter Results

/ Source: GlobeNewswire

EDEN PRAIRIE, Minn., Jan. 19, 2011 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2010.

Total revenue for the third quarter of fiscal 2011 increased 20% to $7.96 million from $6.62 million in the prior-year quarter. The revenue increase was due to a 26% increase in product sales, partially offset by a 4% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2011 increased 22% to $3.38 million, or $0.70 per diluted share, compared to $2.77 million, or $0.57 per diluted share, for the prior-year quarter.

For the first nine months of fiscal 2011, total revenue increased 15% to $23.0 million from $20.0 million for the first nine months of the prior year. The increase was due to a 21% increase in product sales, partially offset by a 6% decrease in contract research and development revenue. Net income for the first nine months of fiscal 2011 was $9.69 million, or $2.00 per diluted share, compared to $8.40 million, or $1.73 per diluted share, for the first nine months of fiscal 2010.

"We are pleased to report strong earnings for the quarter driven by record product sales," 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 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 NINE MONTHS ENDED DECEMBER 31, 2010 AND 2009 (Unaudited) Quarter Ended December 31 2010 2009 ----------- ----------- Revenue Product sales $ 6,686,451 $ 5,292,228 Contract research and development 1,277,057 1,332,629 ----------- ----------- Total revenue 7,963,508 6,624,857 Cost of sales 2,461,798 2,102,855 ----------- ----------- Gross profit 5,501,710 4,522,002 Expenses Selling, general, and administrative 638,223 548,973 Research and development 330,681 251,625 ----------- ----------- Total expenses 968,904 800,598 ----------- ----------- Income from operations 4,532,806 3,721,404 Interest income 512,203 414,669 ----------- ----------- Income before taxes 5,045,009 4,136,073 Provision for income taxes 1,661,090 1,368,590 ----------- ----------- Net income $ 3,383,919 $ 2,767,483 =========== =========== Net income per share - basic $ 0.71 $ 0.59 =========== =========== Net income per share - diluted $ 0.70 $ 0.57 =========== =========== Weighted average shares outstanding Basic 4,743,643 4,700,583 Diluted 4,866,617 4,855,948 Nine Months Ended December 31 2010 2009 ----------- ----------- Revenue Product sales $19,290,839 $16,003,710 Contract research and development 3,723,123 3,964,180 ----------- ----------- Total revenue 23,013,962 19,967,890 Cost of sales 7,142,528 5,979,378 ----------- ----------- Gross profit 15,871,434 13,988,512 Expenses Selling, general, and administrative 1,901,156 1,807,050 Research and development 982,217 810,486 ----------- ----------- Total expenses 2,883,373 2,617,536 ----------- ----------- Income from operations 12,988,061 11,370,976 Interest income 1,485,664 1,177,892 ----------- ----------- Income before taxes 14,473,725 12,548,868 Provision for income taxes 4,782,699 4,148,270 ----------- ----------- Net income $ 9,691,026 $ 8,400,598 =========== =========== Net income per share - basic $ 2.06 $ 1.79 =========== =========== Net income per share - diluted $ 2.00 $ 1.73 =========== =========== Weighted average shares outstanding Basic 4,714,989 4,689,849 Diluted 4,837,963 4,845,150 NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2010 (Unaudited) Dec. 31, March 31, 2010 2010 ----------- ----------- ASSETS Current assets Cash and cash equivalents $ 1,178,409 $ 1,389,288 Marketable securities, short term 4,455,249 1,566,666 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,471,435 4,221,564 Inventories 3,164,158 1,706,427 Prepaid expenses and other assets 1,102,838 781,294 ----------- ----------- Total current assets 13,372,089 9,665,239 Fixed assets Machinery and equipment 5,954,570 5,617,136 Leasehold improvements 612,682 450,546 ----------- ----------- 6,567,252 6,067,682 Less accumulated depreciation 5,146,230 4,857,819 ----------- ----------- Net fixed assets 1,421,022 1,209,863 Marketable securities, long term 52,677,162 46,587,812 ----------- ----------- Total assets $67,470,273 $57,462,914 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 482,412 $ 665,782 Accrued payroll and other 833,615 720,867 Deferred taxes 130,445 102,138 Deferred revenue -- 20,833 ----------- ----------- Total current liabilities 1,446,472 1,509,620 Shareholders' equity Common stock 47,662 47,006 Additional paid-in capital 20,565,148 20,169,924 Accumulated other comprehensive income 1,113,327 1,129,726 Retained earnings 44,297,664 34,606,638 ----------- ----------- Total shareholders' equity 66,023,801 55,953,294 ----------- ----------- Total liabilities and shareholders' equity $67,470,273 $57,462,914 =========== =========== 
 CONTACT: Curt A. Reynders, CFO (952) 829-9217