NVE Corporation Reports Third Quarter Results

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| Source: NVE Corporation

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 
                        =============  ============= 
  Net income per share                               
   -- basic                    $ 0.57         $ 0.60 
                        =============  ============= 
  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 
                        =============  ============= 
  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 
                                ==============  ============= 
Curt A. Reynders, CFO
(952) 829-9217