EDEN PRAIRIE, Minn., May 2, 2007 (PRIME NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2007.
Product sales for the fourth quarter of fiscal 2007 increased 50% over the prior-year quarter to $4.19 million from $2.80 million. Total revenue, consisting of product sales and contract research and development revenue, increased 31% to $4.57 million for the fourth quarter of fiscal 2007 from $3.48 million in the prior-year quarter. Net income for the fourth quarter of fiscal 2007 increased 151% to $1.55 million, or $0.33 per diluted share, compared to $619,744, or $0.13 per share, for the prior-year quarter.
For fiscal 2007, product sales increased 73% to $14.4 million from $8.35 million for fiscal 2006. Total revenue increased 35% to $16.5 million for fiscal 2007 from $12.2 million for the prior year. Net income for fiscal 2007 increased 166% to $4.78 million, or $1.00 per diluted share, compared to $1.80 million, or $0.39 per share, for fiscal 2006.
"We are pleased to report record revenue and net income for the fourth quarter and fiscal year," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Net income for the quarter more than doubled, driven by strong product sales and increased gross profit margins. We enter fiscal 2008 with a solid balance sheet, products that are in demand, and an excellent intellectual property portfolio."
NVE is a leader in the practical commercialization of spintronics, a nanotechnology that many experts believe represents the next generation of microelectronics. NVE licenses its MRAM intellectual property and sells spintronic sensors and couplers to revolutionize data sensing and transmission.
The NVE Corporation logo is available at http://www.primenewswire.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 profitability, risks associated with our reliance on several large customers, 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 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2007 AND 2006 (Unaudited)
Quarter Ended March 31
2007 2006
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Revenue
Product sales $ 4,192,307 $ 2,797,882
Contract research and development 372,911 684,892
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Total revenue 4,565,218 3,482,774
Cost of sales 1,563,493 1,600,990
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Gross profit 3,001,725 1,881,784
Expenses
Research and development 534,967 487,470
Selling, general, and administrative 529,667 517,385
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Total expenses 1,064,634 1,004,855
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Income from operations 1,937,091 876,929
Interest income 202,894 99,178
Interest expense -- (967)
Other income -- 3,353
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Income before taxes 2,139,985 978,493
Provision for income taxes 586,032 358,749
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Net income $ 1,553,953 $ 619,744
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Net income per share - basic $ 0.34 $ 0.13
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Net income per share - diluted $ 0.33 $ 0.13
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Weighted average shares outstanding
Basic 4,627,383 4,603,634
Diluted 4,778,309 4,690,943
Supplemental financial data
Stock-based compensation $ 8,167 $ --
Cash paid for income taxes $ -- $ 37,000
Year Ended March 31
2007 2006
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Revenue
Product sales $14,425,632 $ 8,345,967
Contract research and development 2,035,198 3,824,559
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Total revenue 16,460,830 12,170,526
Cost of sales 5,787,658 6,218,533
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Gross profit 10,673,172 5,951,993
Expenses
Research and development 2,176,604 1,724,825
Selling, general, and administrative 1,950,999 1,756,142
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Total expenses 4,127,603 3,480,967
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Income from operations 6,545,569 2,471,026
Interest income 621,577 332,784
Interest expense (589) (6,051)
Other income 25,246 43,020
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Income before taxes 7,191,803 2,840,779
Provision for income taxes 2,411,020 1,043,033
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Net income $ 4,780,783 $ 1,797,746
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Net income per share - basic $ 1.03 $ 0.39
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Net income per share - diluted $ 1.00 $ 0.39
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Weighted average shares outstanding
Basic 4,620,371 4,580,684
Diluted 4,771,297 4,667,994
Supplemental financial data
Stock-based compensation $ 136,370 $ --
Cash paid for income taxes $ 44,300 $ 52,950
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2007 AND 2006
(Unaudited)
March 31, March 31,
2007 2006
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ASSETS
Current assets
Cash and cash equivalents $ 397,423 $ 1,288,362
Marketable securities 982,415 1,248,103
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,005,005 1,667,029
Inventories 2,016,858 2,149,769
Deferred tax assets 1,328,106 1,576,472
Prepaid expenses and other assets 333,587 231,412
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Total current assets 7,063,394 8,161,147
Fixed assets
Machinery and equipment 4,458,948 4,149,080
Leasehold improvements 413,482 413,482
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4,872,430 4,562,562
Less accumulated depreciation 3,834,683 3,319,651
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Net fixed assets 1,037,747 1,242,911
Marketable securities, long term 16,909,353 8,354,861
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Total assets $25,010,494 $17,758,919
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 502,595 $ 399,762
Accrued payroll and other 590,287 470,392
Deferred revenue 29,357 77,373
Capital lease obligations -- 33,281
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Total current liabilities 1,122,239 980,808
Shareholders' equity
Common stock 46,274 46,150
Additional paid-in capital 18,289,248 16,042,637
Accumulated other comprehensive loss (84,282) (166,908)
Retained earnings 5,637,015 856,232
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Total shareholders' equity 23,888,255 16,778,111
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Total liabilities and shareholders' equity $25,010,494 $17,758,919
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