EDEN PRAIRIE, Minn., May 5, 2010 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2010.
Total revenue for the fourth quarter of fiscal 2010 increased 19% to $8.18 million from $6.90 million in the prior-year quarter. The revenue increase was due to a 17% increase in product sales and a 27% increase in contract research and development revenue. Net income for the fourth quarter of fiscal 2010 increased 16% to $3.60 million, or $0.74 per diluted share, compared to $3.11 million, or $0.65 per diluted share, for the prior-year quarter.
For fiscal 2010, total revenue increased 20% to $28.1 million from $23.4 million for the prior fiscal year. The increase was due to a 15% increase in product sales and a 50% increase in contract research and development revenue. Net income for fiscal 2010 increased 23% to $12.0 million, or $2.47 per diluted share, compared to $9.78 million, or $2.04 per diluted share, for fiscal 2009.
"We are pleased to report strong growth and record revenue and net income for both the fourth quarter and fiscal year, despite a challenging economy during the fiscal year," 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.
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, uncertainties related to research and development contract funding, uncertainties related to seasonal patterns to our business, and uncertainties related to economic environments, 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, 2010 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2010 AND 2009 (Unaudited)
Quarter Ended March 31
2010 2009
----------- -----------
Revenue
Product sales $ 6,662,150 $ 5,699,660
Contract research and development 1,517,145 1,196,920
----------- -----------
Total revenue 8,179,295 6,896,580
Cost of sales 2,333,637 1,806,102
----------- -----------
Gross profit 5,845,658 5,090,478
Expenses
Selling, general, and administrative 607,534 554,055
Research and development 310,564 292,679
----------- -----------
Total expenses 918,098 846,734
----------- -----------
Income from operations 4,927,560 4,243,744
Interest income 439,988 333,487
----------- -----------
Income before taxes 5,367,548 4,577,231
Provision for income taxes 1,768,802 1,465,737
----------- -----------
Net income $ 3,598,746 $ 3,111,494
=========== ===========
Net income per share - basic $ 0.77 $ 0.67
=========== ===========
Net income per share - diluted $ 0.74 $ 0.65
=========== ===========
Weighted average shares outstanding
Basic 4,700,583 4,667,822
Diluted 4,865,189 4,794,084
Year Ended March 31
2010 2009
----------- -----------
Revenue
Product sales $22,665,860 $19,715,311
Contract research and development 5,481,325 3,656,958
----------- -----------
Total revenue 28,147,185 23,372,269
Cost of sales 8,313,015 6,724,242
----------- -----------
Gross profit 19,834,170 16,648,027
Expenses
Selling, general, and administrative 2,414,584 2,177,865
Research and development 1,121,050 1,218,572
----------- -----------
Total expenses 3,535,634 3,396,437
----------- -----------
Income from operations 16,298,536 13,251,590
Interest income 1,617,880 1,171,810
Other income -- 4,200
----------- -----------
Income before taxes 17,916,416 14,427,600
Provision for income taxes 5,917,072 4,644,705
----------- -----------
Net income $11,999,344 $ 9,782,895
=========== ===========
Net income per share - basic $ 2.56 $ 2.10
=========== ===========
Net income per share - diluted $ 2.47 $ 2.04
=========== ===========
Weighted average shares outstanding
Basic 4,692,496 4,659,486
Diluted 4,857,044 4,785,565
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2010 AND 2009
(Unaudited)
March 31, March 31,
2010 2009
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 1,389,288 $ 1,875,063
Marketable securities, short term 1,566,666 --
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 4,221,564 3,366,698
Inventories 1,706,427 2,247,621
Deferred tax assets -- 667,729
Prepaid expenses and other assets 781,294 669,307
----------- -----------
Total current assets 9,665,239 8,826,418
Fixed assets
Machinery and equipment 5,617,136 5,328,237
Leasehold improvements 450,546 450,546
----------- -----------
6,067,682 5,778,783
Less accumulated depreciation 4,857,819 4,485,509
----------- -----------
Net fixed assets 1,209,863 1,293,274
Marketable securities, long term 46,587,812 32,446,748
----------- -----------
Total assets $57,462,914 $42,566,440
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 665,782 $ 257,239
Accrued payroll and other 720,867 637,463
Deferred taxes 102,138 --
Deferred revenue 20,833 104,167
----------- -----------
Total current liabilities 1,509,620 998,869
Shareholders' equity
Common stock 47,006 46,693
Additional paid-in capital 20,169,924 19,166,524
Accumulated other comprehensive income
(loss) 1,129,726 (252,940)
Retained earnings 34,606,638 22,607,294
----------- -----------
Total shareholders' equity 55,953,294 41,567,571
----------- -----------
Total liabilities and shareholders' equity $57,462,914 $42,566,440
=========== ===========