EDEN PRAIRIE, Minn., May 6, 2015 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2015.
Total revenue for the fourth quarter of fiscal 2015 increased 27% to $7.57 million from $5.98 million in the prior-year quarter. The increase was due to a 29% increase in product sales partially offset by an 81% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2015 increased 43% to $3.66 million, or $0.75 per diluted share, compared to $2.56 million, or $0.53 per diluted share, for the prior-year quarter.
For fiscal 2015, total revenue increased 18% to $30.6 million from $25.9 million for the prior fiscal year. Product sales increased 17% to $29.9 million and contract research and development revenue increased 63% to $690,000. Net income for fiscal 2015 increased 29% to $14.4 million, or $2.95 per diluted share, compared to $11.1 million, or $2.29 per diluted share, for fiscal 2014.
The company also announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 29, 2015 to shareholders of record as of May 18, 2015. This represents an aggregate amount of $4.86 million based on shares outstanding as of May 1, 2015.
"We are pleased to report record net income for the year driven by record product sales," 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, risks related to our reliance on several large customers for a significant percentage of revenue, uncertainties in dividend payments to our shareholders, 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, 2015 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2015 AND 2014 (Unaudited)
Quarter Ended March 31
2015 2014
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Revenue
Product sales $ 7,548,468 $ 5,857,866
Contract research and development 23,464 125,231
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Total revenue 7,571,932 5,983,097
Cost of sales 1,378,235 1,388,980
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Gross profit 6,193,697 4,594,117
Expenses
Selling, general, and administrative 523,132 478,897
Research and development 714,728 840,719
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Total expenses 1,237,860 1,319,616
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Income from operations 4,955,837 3,274,501
Interest income 518,403 544,609
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Income before taxes 5,474,240 3,819,110
Provision for income taxes 1,811,524 1,256,885
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Net income $ 3,662,716 $ 2,562,225
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Net income per share - basic $ 0.75 $ 0.53
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Net income per share - diluted $ 0.75 $ 0.53
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Weighted average shares outstanding
Basic 4,857,953 4,848,721
Diluted 4,875,295 4,866,382
Year Ended March 31
2015 2014
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Revenue
Product sales $ 29,894,045 $ 25,512,028
Contract research and development 690,043 422,879
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Total revenue 30,584,088 25,934,907
Cost of sales 6,019,868 5,720,277
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Gross profit 24,564,220 20,214,630
Expenses
Selling, general, and administrative 2,312,076 2,235,475
Research and development 3,000,193 3,585,339
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Total expenses 5,312,269 5,820,814
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Income from operations 19,251,951 14,393,816
Interest income 2,187,723 2,122,133
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Income before taxes 21,439,674 16,515,949
Provision for income taxes 7,071,320 5,380,074
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Net income $ 14,368,354 $ 11,135,875
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Net income per share - basic $ 2.96 $ 2.30
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Net income per share - diluted $ 2.95 $ 2.29
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Weighted average shares outstanding
Basic 4,855,504 4,851,460
Diluted 4,871,935 4,867,691
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2015 AND 2014
March 31, 2015 March 31, 2014
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ASSETS
Current assets
Cash and cash equivalents $ 9,437,262 $ 1,262,300
Marketable securities, short term 20,099,288 12,360,091
Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,963,974 2,331,574
Inventories 3,742,492 3,207,333
Deferred tax assets 102,052 237,387
Prepaid expenses and other assets 574,913 816,276
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Total current assets 36,919,981 20,214,961
Fixed assets
Machinery and equipment 8,604,926 8,536,010
Leasehold improvements 1,524,298 1,499,454
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10,129,224 10,035,464
Less accumulated depreciation 7,873,816 7,030,692
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Net fixed assets 2,255,408 3,004,772
Marketable securities, long term 70,913,807 82,022,310
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Total assets $ 110,089,196 $ 105,242,043
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 358,818 $ 374,127
Accrued payroll and other 1,127,136 808,675
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Total current liabilities 1,485,954 1,182,802
Long-term deferred tax liabilities 275,708 354,600
Shareholders' equity
Common stock 48,580 48,510
Additional paid-in capital 20,850,762 20,464,883
Accumulated other comprehensive income 746,447 877,857
Retained earnings 86,681,745 82,313,391
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Total shareholders' equity 108,327,534 103,704,641
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Total liabilities and shareholders' equity $ 110,089,196 $ 105,242,043
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