EDEN PRAIRIE, Minn., July 23, 2014 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2014.
Total revenue for the first quarter of fiscal 2015 increased 37% to $8.45 million from $6.18 million in the prior-year quarter. The increase was due to a 40% increase in product sales, partially offset by a 48% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2015 increased 57% to $4.04 million, or $0.83 per diluted share, compared to $2.57 million, or $0.53 per share, for the prior-year quarter.
"We are pleased to report record total revenue, product sales, and earnings 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.
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 related to material weaknesses in our internal control over financial reporting, 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, 2014.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2014 AND 2013 (Unaudited)
Quarter Ended June 30
2014 2013
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Revenue
Product sales $ 8,348,081 $ 5,974,606
Contract research and development 104,954 202,327
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Total revenue 8,453,035 6,176,933
Cost of sales 1,558,346 1,378,355
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Gross profit 6,894,689 4,798,578
Expenses
Selling, general, and administrative 629,650 552,804
Research and development 803,428 962,911
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Total expenses 1,433,078 1,515,715
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Income from operations 5,461,611 3,282,863
Interest income 548,554 526,339
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Income before taxes 6,010,165 3,809,202
Provision for income taxes 1,973,055 1,242,377
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Net income $ 4,037,110 $ 2,566,825
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Net income per share - basic $ 0.83 $ 0.53
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Net income per share - diluted $ 0.83 $ 0.53
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Weighted average shares outstanding
Basic 4,851,043 4,862,436
Diluted 4,867,459 4,884,902
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2014
June 30, 2014 March 31, 2014
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ASSETS
Current assets
Cash and cash equivalents $ 3,313,049 $ 1,262,300
Marketable securities, short term 10,743,412 12,360,091
Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,791,253 2,331,574
Inventories 3,292,756 3,207,333
Deferred tax assets 210,532 237,387
Prepaid expenses and other assets 965,549 816,276
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Total current assets 22,316,551 20,214,961
Fixed assets
Machinery and equipment 8,563,720 8,536,010
Leasehold improvements 1,499,454 1,499,454
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10,063,174 10,035,464
Less accumulated depreciation 7,261,607 7,030,692
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Net fixed assets 2,801,567 3,004,772
Marketable securities, long term 86,192,766 82,022,310
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Total assets $ 111,310,884 $ 105,242,043
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 513,239 $ 374,127
Accrued payroll and other 778,181 808,675
Income taxes payable 1,744,427 --
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Total current liabilities 3,035,847 1,182,802
Long-term deferred tax liabilities 438,438 354,600
Shareholders' equity
Common stock 48,510 48,510
Additional paid-in capital 20,464,883 20,464,883
Accumulated other comprehensive income 972,705 877,857
Retained earnings 86,350,501 82,313,391
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Total shareholders' equity 107,836,599 103,704,641
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Total liabilities and shareholders' equity $ 111,310,884 $ 105,242,043
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