EDEN PRAIRIE, Minn., Jan. 21, 2009 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2008.
Total revenue for the third quarter of fiscal 2009 increased 23% to $5.88 million from $4.77 million in the prior-year quarter. The revenue increase was due to an 8% increase in product sales and a 150% increase in contract research and development revenue. Net income for the third quarter of fiscal 2009 increased 45% to $2.47 million, or $0.52 per diluted share, compared to $1.70 million, or $0.36 per diluted share, for the prior-year quarter.
For the first nine months of fiscal 2009, total revenue increased 14% to $16.5 million from $14.5 million for the first nine months of fiscal 2008. The revenue increase for the first nine months of fiscal 2009 was due to a 9% increase in product sales and a 49% increase in contract research and development revenue. Net income for the first nine months of fiscal 2009 was $6.67 million, or $1.40 per diluted share compared to $4.93 million, or $1.04 per diluted share, for the first nine months of fiscal 2008.
"Despite a challenging economic environment, increases in product sales and contract research and development revenue drove record net income in the third quarter," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D.
The company also announced today that its Board of Directors authorized the repurchase of up to $2.5 million of the company's common stock from time to time in open market, block, or privately negotiated transactions. The timing and extent of any repurchases will depend on market conditions, the trading price of the company's stock, and other factors, and subject to the restrictions relating to volume, price, and timing under applicable law. The repurchase program may be modified or discontinued at any time without notice. The company intends to finance any stock repurchases through cash provided by operating activities.
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 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 NINE MONTHS ENDED DECEMBER 31, 2008 AND 2007 (Unaudited)
Quarter Ended December 31
2008 2007
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Revenue
Product sales $ 4,596,948 $ 4,249,809
Contract research and development 1,287,165 515,716
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Total revenue 5,884,113 4,765,525
Cost of sales 1,763,090 1,663,045
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Gross profit 4,121,023 3,102,480
Expenses
Selling, general, and administrative 508,953 492,771
Research and development 258,998 347,344
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Total expenses 767,951 840,115
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Income from operations 3,353,072 2,262,365
Interest income 306,814 259,865
Other income 800 62,930
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Income before taxes 3,660,686 2,585,160
Provision for income taxes 1,192,282 882,867
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Net income $ 2,468,404 $ 1,702,293
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Net income per share - basic $ 0.53 $ 0.37
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Net income per share - diluted $ 0.52 $ 0.36
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Weighted average shares outstanding
Basic 4,665,333 4,637,275
Diluted 4,783,633 4,764,430
Supplemental financial data
Stock-based compensation $ 5,598 $ 5,598
Cash paid for income taxes $ 1,175,000 $ 725,000
Nine Months Ended
December 31
2008 2007
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Revenue
Product sales $ 14,015,651 $ 12,830,771
Contract research and development 2,460,038 1,648,657
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Total revenue 16,475,689 14,479,428
Cost of sales 4,918,140 4,956,973
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Gross profit 11,557,549 9,522,455
Expenses
Selling, general, and administrative 1,623,810 1,631,936
Research and development 925,893 1,169,018
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Total expenses 2,549,703 2,800,954
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Income from operations 9,007,846 6,721,501
Interest income 838,323 731,243
Other income 4,200 62,930
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Income before taxes 9,850,369 7,515,674
Provision for income taxes 3,178,968 2,581,272
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Net income $ 6,671,401 $ 4,934,402
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Net income per share - basic $ 1.43 $ 1.06
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Net income per share - diluted $ 1.40 $ 1.04
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Weighted average shares outstanding
Basic 4,656,758 4,634,102
Diluted 4,774,925 4,761,112
Supplemental financial data
Stock-based compensation $ 81,074 $ 164,008
Cash paid for income taxes $ 2,806,000 $ 2,209,313
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2008
(Unaudited)
Dec. 31, March 31,
2008 2008
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ASSETS
Current assets
Cash and cash equivalents $ 2,438,109 $ 1,885,867
Marketable securities, short term 498,835 795,728
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,699,346 3,226,027
Inventories 2,462,098 2,456,804
Deferred tax assets 509,271 453,405
Prepaid expenses and other assets 614,516 529,616
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Total current assets 9,222,175 9,347,447
Fixed assets
Machinery and equipment 5,328,531 5,205,288
Leasehold improvements 450,546 436,794
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5,779,077 5,642,082
Less accumulated depreciation 4,356,826 4,276,680
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Net fixed assets 1,422,251 1,365,402
Marketable securities, long term 29,179,003 22,055,279
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Total assets $ 39,823,429 $ 32,768,128
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 405,815 $ 434,808
Accrued payroll and other 612,011 632,338
Deferred revenue 125,000 187,500
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Total current liabilities 1,142,826 1,254,646
Shareholders' equity
Common stock 46,653 46,387
Additional paid-in capital 19,100,787 18,539,538
Accumulated other comprehensive income 37,363 103,158
Retained earnings 19,495,800 12,824,399
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Total shareholders' equity 38,680,603 31,513,482
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Total liabilities and shareholders' equity $ 39,823,429 $ 32,768,128
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