EDEN PRAIRIE, Minn., Jan. 22, 2014 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2013.
Total revenue for the third quarter of fiscal 2014 decreased 1% to $6.47 million from $6.53 million in the prior-year quarter. The revenue decrease was due to 97% decrease in contract research and development revenue, partially offset by a 12% increase in product sales. Net income for the third quarter of fiscal 2014 decreased 4% to $2.78 million, or $0.57 per diluted share, compared to $2.90 million, or $0.60 per share, for the prior-year quarter.
For the first nine months of fiscal 2014, total revenue increased 1% to $20.0 million from $19.8 million for the first nine months of the prior year. The increase was due to a 9% increase in product sales, partially offset by an 83% decrease in contract research and development revenue. Net income for the first nine months of fiscal 2014 decreased 2% to $8.57 million, or $1.76 per diluted share, compared to $8.72 million, or $1.80 per share, for the first nine months of fiscal 2013.
"We are pleased to report a 12% increase in product sales and solid earnings for the quarter despite an 81% increase in our investment in research and development," 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.
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 of decreased revenues, uncertainties related to direct and indirect U.S. Government funding, risks in the enforcement of our patents, litigation risks, 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, 2013 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2013
AND 2012 (Unaudited)
Quarter Ended December 31
2013 2012
------------- -------------
Revenue
Product sales $ 6,448,407 $ 5,762,925
Contract research
and development 25,290 762,296
------------- -------------
Total revenue 6,473,697 6,525,221
Cost of sales 1,449,396 1,738,618
------------- -------------
Gross profit 5,024,301 4,786,603
Expenses
Selling, general,
and administrative 543,698 570,741
Research and
development 905,246 501,325
------------- -------------
Total expenses 1,448,944 1,072,066
------------- -------------
Income from
operations 3,575,357 3,714,537
Interest income 530,383 600,395
------------- -------------
Income before taxes 4,105,740 4,314,932
Provision for income
taxes 1,328,566 1,415,590
------------- -------------
Net income $ 2,777,174 $ 2,899,342
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Net income per share
-- basic $ 0.57 $ 0.60
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Net income per share
-- diluted $ 0.57 $ 0.60
============= =============
Weighted average
shares outstanding
Basic 4,842,565 4,847,619
Diluted 4,859,601 4,872,019
Nine Months Ended December
31
2013 2012
------------- -------------
Revenue
Product sales $ 19,654,162 $ 18,025,002
Contract research
and development 297,648 1,785,920
------------- -------------
Total revenue 19,951,810 19,810,922
Cost of sales 4,331,297 5,147,884
------------- -------------
Gross profit 15,620,513 14,663,038
Expenses
Selling, general,
and administrative 1,756,578 1,714,545
Research and
development 2,744,620 1,801,609
------------- -------------
Total expenses 4,501,198 3,516,154
------------- -------------
Income from
operations 11,119,315 11,146,884
Interest income 1,577,524 1,784,963
------------- -------------
Income before taxes 12,696,839 12,931,847
Provision for income
taxes 4,123,189 4,211,964
------------- -------------
Net income $ 8,573,650 $ 8,719,883
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Net income per share
-- basic $ 1.77 $ 1.80
============= =============
Net income per share
-- diluted $ 1.76 $ 1.80
============= =============
Weighted average
shares outstanding
Basic 4,852,356 4,832,630
Diluted 4,868,040 4,856,851
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2013
Dec. 31, March 31,
2013 2013
-------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 1,961,285 $ 2,509,683
Marketable securities,
short term 10,293,147 9,711,029
Accounts receivable, net of
allowance for
uncollectible accounts of
$15,000 1,789,490 2,521,395
Inventories 3,029,903 3,336,592
Deferred tax assets 241,599 --
Prepaid expenses and other
assets 1,220,833 958,147
-------------- -------------
Total current assets 18,536,257 19,036,846
Fixed assets
Machinery and equipment 8,450,954 8,417,061
Leasehold improvements 1,499,454 1,499,454
-------------- -------------
9,950,408 9,916,515
Less accumulated
depreciation 6,829,363 6,228,122
-------------- -------------
Net fixed assets 3,121,045 3,688,393
Marketable securities, long
term 80,584,799 73,040,257
-------------- -------------
Total assets $ 102,242,101 $ 95,765,496
============== =============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 285,777 $ 422,092
Accrued payroll and other 833,330 918,060
Deferred taxes -- 440,736
-------------- -------------
Total current liabilities 1,119,107 1,780,888
Long-term deferred tax
liabilities 282,342 --
Shareholders' equity
Common stock 48,460 48,624
Additional paid-in capital 20,245,775 21,200,742
Accumulated other
comprehensive income 795,251 1,557,726
Retained earnings 79,751,166 71,177,516
-------------- -------------
Total shareholders' equity 100,840,652 93,984,608
-------------- -------------
Total liabilities and
shareholders' equity $ 102,242,101 $ 95,765,496
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