EDEN PRAIRIE, Minn., Oct. 21, 2015 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2015.
Total revenue for the second quarter of fiscal 2016 decreased 12% to $7.28 million from $8.27 million in the prior-year quarter. The decrease was due to a 21% decrease in product sales, partially offset by a 449% increase in contract research and development revenue. Net income for the second quarter of fiscal 2016 decreased 15% to $3.31 million, or $0.68 per diluted share, compared to $3.88 million, or $0.80 per share, for the prior-year quarter.
For the first six months of fiscal 2016, total revenue decreased 7% to $15.6 million from $16.7 million for the first six months of the prior year. The decrease was due to a 14% decrease in product sales, partially offset by a 452% increase in contract research and development revenue. Net income decreased 10% to $7.11 million, or $1.46 per diluted share, for the first half of fiscal 2016 compared to $7.91 million, or $1.63 per share, for the first half of fiscal 2015.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2015 to shareholders of record as of November 2, 2015.
"We are pleased to report solid results for the quarter despite decreased 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 SIX MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 (Unaudited)
Quarter Ended September 30
2015 2014
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Revenue
Product sales $ 6,436,672 $ 8,113,806
Contract research and development 843,085 153,567
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Total revenue 7,279,757 8,267,373
Cost of sales 1,644,514 1,609,632
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Gross profit 5,635,243 6,657,741
Expenses
Selling, general, and administrative 524,631 625,599
Research and development 628,962 787,279
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Total expenses 1,153,593 1,412,878
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Income from operations 4,481,650 5,244,863
Interest income 468,531 562,923
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Income before taxes 4,950,181 5,807,786
Provision for income taxes 1,639,386 1,932,164
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Net income $ 3,310,795 $ 3,875,622
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Net income per share - basic $ 0.68 $ 0.80
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Net income per share - diluted $ 0.68 $ 0.80
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Weighted average shares outstanding
Basic 4,855,398 4,855,071
Diluted 4,858,133 4,872,029
Six Months Ended September 30
2015 2014
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Revenue
Product sales $ 14,172,537 $ 16,461,887
Contract research and development 1,428,139 258,521
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Total revenue 15,600,676 16,720,408
Cost of sales 3,638,442 3,167,978
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Gross profit 11,962,234 13,552,430
Expenses
Selling, general, and administrative 1,009,395 1,255,249
Research and development 1,309,963 1,590,707
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Total expenses 2,319,358 2,845,956
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Income from operations 9,642,876 10,706,474
Interest income 954,329 1,111,477
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Income before taxes 10,597,205 11,817,951
Provision for income taxes 3,483,184 3,905,219
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Net income $ 7,114,021 $ 7,912,732
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Net income per share - basic $ 1.46 $ 1.63
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Net income per share - diluted $ 1.46 $ 1.63
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Weighted average shares outstanding
Basic 4,858,557 4,853,068
Diluted 4,862,431 4,868,769
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2015
Sept. 30, 2015 March 31, 2015
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ASSETS
Current assets
Cash and cash equivalents $ 12,716,318 $ 9,437,262
Marketable securities, short-term 23,175,666 20,099,288
Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,782,968 2,963,974
Inventories 3,147,868 3,742,492
Deferred tax assets 108,509 102,052
Prepaid expenses and other assets 635,323 574,913
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Total current assets 42,566,652 36,919,981
Fixed assets
Machinery and equipment 8,735,764 8,604,926
Leasehold improvements 1,539,965 1,524,298
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10,275,729 10,129,224
Less accumulated depreciation 8,288,450 7,873,816
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Net fixed assets 1,987,279 2,255,408
Marketable securities, long-term 60,781,110 70,913,807
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Total assets $ 105,335,041 $ 110,089,196
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 445,083 $ 358,818
Accrued payroll and other 628,104 1,127,136
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Total current liabilities 1,073,187 1,485,954
Long-term deferred tax liabilities 74,268 275,708
Shareholders' equity
Common stock 48,449 48,580
Additional paid-in capital 19,665,966 20,850,762
Accumulated other comprehensive income 402,579 746,447
Retained earnings 84,070,592 86,681,745
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Total shareholders' equity 104,187,586 108,327,534
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Total liabilities and shareholders' equity $ 105,335,041 $ 110,089,196
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