EDEN PRAIRIE, Minn., May 6, 2009 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2009.
Total revenue for the fourth quarter of fiscal 2009 increased 14% to $6.90 million from $6.05 million in the prior-year quarter. Product sales increased less than 1% and contract research and development revenue increased 220%. Net income for the fourth quarter of fiscal 2009 increased 38% to $3.11 million, or $0.65 per diluted share, compared to $2.25 million, or $0.47 per diluted share, for the prior-year quarter.
For fiscal 2009, total revenue increased 14% to $23.4 million from $20.5 million for the prior year. The increase was due to a 7% increase in product sales and an 81% increase in contract research and development revenue. Net income for fiscal 2009 increased 36% to $9.78 million, or $2.04 per diluted share, compared to $7.19 million, or $1.51 per diluted share, for fiscal 2008.
"We are pleased to report record revenue and net income for both the fourth quarter and full fiscal year despite a challenging economy," 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 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, 2009 AND 2008 (Unaudited)
Quarter Ended March 31
2009 2008
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Revenue
Product sales $ 5,699,660 $ 5,674,879
Contract research and development 1,196,920 374,505
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Total revenue 6,896,580 6,049,384
Cost of sales 1,806,102 1,876,335
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Gross profit 5,090,478 4,173,049
Expenses
Selling, general, and administrative 554,055 526,882
Research and development 292,679 318,889
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Total expenses 846,734 845,771
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Income from operations 4,243,744 3,327,278
Interest income 333,487 243,747
Other income (loss) -- (6,695)
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Income before taxes 4,577,231 3,564,330
Provision for income taxes 1,465,737 1,311,348
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Net income $ 3,111,494 $ 2,252,982
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Net income per share - basic $ 0.67 $ 0.49
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Net income per share - diluted $ 0.65 $ 0.47
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Weighted average shares outstanding
Basic 4,667,822 4,638,683
Diluted 4,794,084 4,766,529
Supplemental financial data
Stock-based compensation $ 5,598 $ 5,598
Cash paid for income taxes $ 1,550,000 $ 1,045,000
Year Ended March 31
2009 2008
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Revenue
Product sales $ 19,715,311 $ 18,505,650
Contract research and development 3,656,958 2,023,162
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Total revenue 23,372,269 20,528,812
Cost of sales 6,724,242 6,833,308
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Gross profit 16,648,027 13,695,504
Expenses
Selling, general, and administrative 2,177,865 2,158,818
Research and development 1,218,572 1,487,907
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Total expenses 3,396,437 3,646,725
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Income from operations 13,251,590 10,048,779
Interest income 1,171,810 974,990
Other income 4,200 56,235
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Income before taxes 14,427,600 11,080,004
Provision for income taxes 4,644,705 3,892,620
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Net income $ 9,782,895 $ 7,187,384
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Net income per share - basic $ 2.10 $ 1.55
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Net income per share - diluted $ 2.04 $ 1.51
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Weighted average shares outstanding
Basic 4,659,486 4,635,470
Diluted 4,785,565 4,763,101
Supplemental financial data
Stock-based compensation $ 86,672 $ 169,606
Cash paid for income taxes $ 4,356,000 $ 3,254,313
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2009 AND 2008
(Unaudited)
March 31, 2009 March 31, 2008
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ASSETS
Current assets
Cash and cash equivalents $ 1,875,063 $ 1,885,867
Marketable securities, short term -- 795,728
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,366,698 3,226,027
Inventories 2,247,621 2,456,804
Deferred tax assets 667,729 453,405
Prepaid expenses and other assets 669,307 529,616
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Total current assets 8,826,418 9,347,447
Fixed assets
Machinery and equipment 5,328,237 5,205,288
Leasehold improvements 450,546 436,794
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5,778,783 5,642,082
Less accumulated depreciation 4,485,509 4,276,680
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Net fixed assets 1,293,274 1,365,402
Marketable securities, long term 32,446,748 22,055,279
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Total assets $ 42,566,440 $ 32,768,128
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 257,239 $ 434,808
Accrued payroll and other 637,463 632,338
Deferred revenue 104,167 187,500
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Total current liabilities 998,869 1,254,646
Shareholders' equity
Common stock 46,693 46,387
Additional paid-in capital 19,166,524 18,539,538
Accumulated other comprehensive (loss)
income (252,940) 103,158
Retained earnings 22,607,294 12,824,399
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Total shareholders' equity 41,567,571 31,513,482
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Total liabilities and shareholders'
equity $ 42,566,440 $ 32,768,128
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