EDEN PRAIRIE, Minn., July 21, 2010 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2010.
Total revenue for the first quarter of fiscal 2011 increased 6% to $7.24 million from $6.83 million in the prior-year quarter. The revenue increase was due to a 12% increase in product sales, partially offset by a 20% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2011 increased 6% to $3.10 million, or $0.64 per diluted share, compared to $2.94 million, or $0.61 per diluted share, for the prior-year quarter.
"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 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, risks related to our ability to renew agreements with large customers, uncertainties related to research and development contract funding, risks of losses on our marketable securities, 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 Report on Form 10-Q for the period ended June 30, 2010 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2010 AND 2009 (Unaudited)
Quarter Ended June 30
2010 2009
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Revenue
Product sales $6,193,876 $5,534,037
Contract research and development 1,047,418 1,300,495
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Total revenue 7,241,294 6,834,532
Cost of sales 2,075,804 1,891,423
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Gross profit 5,165,490 4,943,109
Expenses
Selling, general, and administrative 628,386 635,723
Research and development 341,663 267,321
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Total expenses 970,049 903,044
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Income from operations 4,195,441 4,040,065
Interest income 475,730 370,025
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Income before taxes 4,671,171 4,410,090
Provision for income taxes 1,570,074 1,471,158
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Net income $3,101,097 $2,938,932
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Net income per share - basic $ 0.66 $ 0.63
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Net income per share - diluted $ 0.64 $ 0.61
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Weighted average shares outstanding
Basic 4,700,583 4,676,209
Diluted 4,861,331 4,855,525
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2010
(Unaudited)
June 30, March 31,
2010 2010
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ASSETS
Current assets
Cash and cash equivalents $ 1,654,293 $ 1,389,288
Marketable securities, short term 1,836,026 1,566,666
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,178,771 4,221,564
Inventories 1,848,177 1,706,427
Prepaid expenses and other assets 848,649 781,294
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Total current assets 9,365,916 9,665,239
Fixed assets
Machinery and equipment 5,679,090 5,617,136
Leasehold improvements 450,546 450,546
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6,129,636 6,067,682
Less accumulated depreciation 4,947,296 4,857,819
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Net fixed assets 1,182,340 1,209,863
Marketable securities, long term 51,185,164 46,587,812
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Total assets $61,733,420 $57,462,914
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 500,120 $ 665,782
Accrued payroll and other 742,957 720,867
Income taxes payable 1,543,822 --
Deferred taxes 53,631 102,138
Deferred revenue -- 20,833
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Total current liabilities 2,840,530 1,509,620
Shareholders' equity
Common stock 47,006 47,006
Additional paid-in capital 20,169,924 20,169,924
Accumulated other comprehensive income 968,225 1,129,726
Retained earnings 37,707,735 34,606,638
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Total shareholders' equity 58,892,890 55,953,294
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Total liabilities and shareholders' equity $61,733,420 $57,462,914
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