EDEN PRAIRIE, Minn., Oct. 22, 2008 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2008.
Total revenue for the second quarter of fiscal 2009 increased 14% to $5.73 million from $5.00 million in the prior-year quarter. The revenue increase was due to a 13% increase in product sales and a 24% increase in contract research and development revenue. Net income for the second quarter of fiscal 2009 increased 40% to $2.30 million, or $0.48 per diluted share, compared to $1.64 million, or $0.34 per diluted share, for the prior-year quarter.
For the first six months of fiscal 2009, total revenue increased 9% to $10.6 million from $9.71 million for the first six months of fiscal 2008. The revenue increase was primarily due to a 10% increase in product sales to $9.42 million for the first half of fiscal 2009 from $8.58 million for the prior-year period. Net income for the first half of fiscal 2009 was $4.20 million, or $0.88 per diluted share compared to $3.23 million, or $0.67 per diluted share, for the first half of fiscal 2008.
"We are pleased with our strong quarterly results," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Increases in product sales and contract research and development revenue drove record earnings."
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.globenewswire.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 AND SIX MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (Unaudited)
Quarter Ended
September 30
2008 2007
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Revenue
Product sales $ 4,871,381 $ 4,311,862
Contract research and development 856,409 692,758
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Total revenue 5,727,790 5,004,620
Cost of sales 1,747,618 1,850,960
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Gross profit 3,980,172 3,153,660
Expenses
Selling, general, and administrative 585,373 575,422
Research and development 280,863 314,037
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Total expenses 866,236 889,459
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Income from operations 3,113,936 2,264,201
Interest income 277,074 246,857
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Income before taxes 3,391,010 2,511,058
Provision for income taxes 1,090,629 866,284
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Net income $ 2,300,381 $ 1,644,774
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Net income per share - basic $ 0.49 $ 0.35
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Net income per share - diluted $ 0.48 $ 0.34
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Weighted average shares outstanding
Basic 4,661,396 4,634,442
Diluted 4,788,614 4,794,855
Supplemental financial data
Stock-based compensation $ 69,878 $ 151,118
Cash paid for income taxes $ 1,631,000 $ 1,405,000
Six Months Ended
September 30
2008 2007
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Revenue
Product sales $ 9,418,703 $ 8,580,962
Contract research and development 1,172,873 1,132,941
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Total revenue 10,591,576 9,713,903
Cost of sales 3,155,050 3,293,928
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Gross profit 7,436,526 6,419,975
Expenses
Selling, general, and administrative 1,114,857 1,139,165
Research and development 666,895 821,674
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Total expenses 1,781,752 1,960,839
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Income from operations 5,654,774 4,459,136
Interest income 531,509 471,378
Other income 3,400 --
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Income before taxes 6,189,683 4,930,514
Provision for income taxes 1,986,686 1,698,405
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Net income $ 4,202,997 $ 3,232,109
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Net income per share - basic $ 0.90 $ 0.70
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Net income per share - diluted $ 0.88 $ 0.67
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Weighted average shares outstanding
Basic 4,652,448 4,632,506
Diluted 4,779,606 4,792,882
Supplemental financial data
Stock-based compensation $ 75,476 $ 158,410
Cash paid for income taxes $ 1,631,000 $ 1,484,313
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2008
(Unaudited)
Sept. 30, March 31,
2008 2008
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ASSETS
Current assets
Cash and cash equivalents $ 1,719,313 $ 1,885,867
Marketable securities, short term 1,285,392 795,728
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,868,179 3,226,027
Inventories 2,443,199 2,456,804
Deferred tax assets 732,115 453,405
Prepaid expenses and other assets 513,331 529,616
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Total current assets 9,561,529 9,347,447
Fixed assets
Machinery and equipment 5,278,895 5,205,288
Leasehold improvements 436,794 436,794
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5,715,689 5,642,082
Less accumulated depreciation 4,457,873 4,276,680
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Net fixed assets 1,257,816 1,365,402
Marketable securities, long term 26,036,482 22,055,279
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Total assets $36,855,827 $32,768,128
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 338,377 $ 434,808
Accrued payroll and other 558,133 632,338
Deferred revenue 145,833 187,500
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Total current liabilities 1,042,343 1,254,646
Shareholders' equity
Common stock 46,653 46,387
Additional paid-in capital 19,095,189 18,539,538
Accumulated other comprehensive (loss)
income (355,754) 103,158
Retained earnings 17,027,396 12,824,399
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Total shareholders' equity 35,813,484 31,513,482
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Total liabilities and shareholders' equity $36,855,827 $32,768,128
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