EDEN PRAIRIE, Minn., Oct. 21, 2009 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2009.
Total revenue for the second quarter of fiscal 2010 increased 14% to $6.51 million from $5.73 million in the prior-year quarter. The revenue increase was due to a 6% increase in product sales and a 55% increase in contract research and development revenue. Net income for the second quarter of fiscal 2010 increased 17% to $2.69 million, or $0.55 per diluted share, compared to $2.30 million, or $0.48 per diluted share, for the prior-year quarter.
For the first six months of fiscal 2010, total revenue increased 26% to $13.3 million from $10.6 million for the first six months of the prior year. The increase was due to a 14% increase in product sales and a 124% increase in contract research and development revenue. Net income for the first half of fiscal 2010 was $5.63 million, or $1.16 per diluted share, compared to $4.20 million, or $0.88 per diluted share, for the first half of fiscal 2009.
"We are pleased to report solid revenue and earnings growth for the quarter," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "We continue to strengthen our balance sheet as cash plus marketable securities increased $9.30 million in the first half of fiscal 2010."
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 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, 2009 AND 2008 (Unaudited) Quarter Ended Sept. 30 2009 2008 ----------- ----------- Revenue Product sales $ 5,177,445 $ 4,871,381 Contract research and development 1,331,056 856,409 ----------- ----------- Total revenue 6,508,501 5,727,790 Cost of sales 1,985,100 1,747,618 ----------- ----------- Gross profit 4,523,401 3,980,172 Expenses Selling, general, and administrative 622,354 585,373 Research and development 291,540 280,863 ----------- ----------- Total expenses 913,894 866,236 ----------- ----------- Income from operations 3,609,507 3,113,936 Interest income 393,198 277,074 ----------- ----------- Income before taxes 4,002,705 3,391,010 Provision for income taxes 1,308,522 1,090,629 ----------- ----------- Net income $ 2,694,183 $ 2,300,381 =========== =========== Net income per share - basic $ 0.57 $ 0.49 =========== =========== Net income per share - diluted $ 0.55 $ 0.48 =========== =========== Weighted average shares outstanding Basic 4,692,607 4,661,396 Diluted 4,871,387 4,788,614 Six Months Ended Sept. 30 2009 2008 ----------- ----------- Revenue Product sales $10,711,482 $ 9,418,703 Contract research and development 2,631,551 1,172,873 ----------- ----------- Total revenue 13,343,033 10,591,576 Cost of sales 3,876,523 3,155,050 ----------- ----------- Gross profit 9,466,510 7,436,526 Expenses Selling, general, and administrative 1,258,077 1,114,857 Research and development 558,861 666,895 ----------- ----------- Total expenses 1,816,938 1,781,752 ----------- ----------- Income from operations 7,649,572 5,654,774 Interest income 763,223 531,509 Other income -- 3,400 ----------- ----------- Income before taxes 8,412,795 6,189,683 Provision for income taxes 2,779,680 1,986,686 ----------- ----------- Net income $ 5,633,115 $ 4,202,997 =========== =========== Net income per share - basic $ 1.20 $ 0.90 =========== =========== Net income per share - diluted $ 1.16 $ 0.88 =========== =========== Weighted average shares outstanding Basic 4,684,453 4,652,448 Diluted 4,863,199 4,779,606
NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2009 (Unaudited) Sept. 30, March 31, 2009 2009 ----------- ----------- ASSETS Current assets Cash and cash equivalents $ 2,590,186 $ 1,875,063 Marketable securities, short term 1,653,026 -- Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,953,027 3,366,698 Inventories 1,864,989 2,247,621 Deferred tax assets -- 667,729 Prepaid expenses and other assets 838,130 669,307 ----------- ----------- Total current assets 9,899,358 8,826,418 Fixed assets Machinery and equipment 5,495,846 5,328,237 Leasehold improvements 450,546 450,546 ----------- ----------- 5,946,392 5,778,783 Less accumulated depreciation 4,667,319 4,485,509 ----------- ----------- Net fixed assets 1,279,073 1,293,274 Marketable securities, long term 39,383,468 32,446,748 ----------- ----------- Total assets $50,561,899 $42,566,440 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 423,552 $ 257,239 Accrued payroll and other 597,655 637,463 Deferred taxes 23,971 -- Deferred revenue 62,500 104,167 ----------- ----------- Total current liabilities 1,107,678 998,869 Shareholders' equity Common stock 47,006 46,693 Additional paid-in capital 20,169,924 19,166,524 Accumulated other comprehensive income (loss) 996,882 (252,940) Retained earnings 28,240,409 22,607,294 ----------- ----------- Total shareholders' equity 49,454,221 41,567,571 ----------- ----------- Total liabilities and shareholders' equity $50,561,899 $42,566,440 =========== ===========