EDEN PRAIRIE, Minn., July 23, 2008 (PRIME NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2008.
Total revenue for the first quarter of fiscal 2009 increased 3% to $4.86 million from $4.71 million in the prior-year quarter. The revenue increase was due to a 7% increase in product sales to $4.55 million for the first quarter of fiscal 2009 from $4.27 million in the prior-year quarter. Net income for the first quarter of fiscal 2009 increased 20% to $1.90 million, or $0.40 per diluted share, compared to $1.59 million, or $0.33 per diluted share, for the prior-year quarter.
"Product sales drove strong profits," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Gross margin was 71% of revenue, operating margin 52%, pretax margin 58%, and net margin 39%."
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.
The NVE Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3120
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 in continued growth in revenue and profitability, risks associated with our reliance on several large customers, 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 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2008 AND 2007 (Unaudited)
Quarter Ended June 30
2008 2007
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Revenue
Product sales $ 4,547,322 $ 4,269,100
Contract research and development 316,464 440,183
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Total revenue 4,863,786 4,709,283
Cost of sales 1,407,432 1,442,968
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Gross profit 3,456,354 3,266,315
Expenses
Selling, general, and administrative 529,484 563,743
Research and development 386,032 507,637
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Total expenses 915,516 1,071,380
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Income from operations 2,540,838 2,194,935
Interest income 254,435 224,521
Other income 3,400 --
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Income before taxes 2,798,673 2,419,456
Provision for income taxes 896,057 832,121
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Net income $ 1,902,616 $ 1,587,335
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Net income per share - basic $ 0.41 $ 0.34
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Net income per share - diluted $ 0.40 $ 0.33
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Weighted average shares outstanding
Basic 4,643,402 4,630,570
Diluted 4,788,460 4,809,915
Supplemental financial data
Stock-based compensation $ 5,598 $ 7,292
Cash paid for income taxes $ -- $ 79,313
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2008
(Unaudited)
June 30, 2008 March 31, 2008
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ASSETS
Current assets
Cash and cash equivalents $ 1,838,391 $ 1,885,867
Marketable securities, short term 795,778 795,728
Accounts receivable, net of
allowance for uncollectible
accounts of $15,000 2,051,301 3,226,027
Inventories 2,532,476 2,456,804
Deferred tax assets 633,406 453,405
Prepaid expenses and other assets 585,227 529,616
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Total current assets 8,436,579 9,347,447
Fixed assets
Machinery and equipment 5,206,786 5,205,288
Leasehold improvements 436,794 436,794
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5,643,580 5,642,082
Less accumulated depreciation 4,349,535 4,276,680
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Net fixed assets 1,294,045 1,365,402
Marketable securities, long term 25,522,348 22,055,279
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Total assets $ 35,252,972 $ 32,768,128
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 350,521 $ 434,808
Accrued payroll and other 1,157,714 632,338
Deferred revenue 166,667 187,500
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Total current liabilities 1,674,902 1,254,646
Shareholders' equity
Common stock 46,601 46,387
Additional paid-in capital 18,993,596 18,539,538
Accumulated other comprehensive
(loss) income (189,142) 103,158
Retained earnings 14,727,015 12,824,399
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Total shareholders' equity 33,578,070 31,513,482
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Total liabilities and shareholders'
equity $ 35,252,972 $ 32,768,128
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