EDEN PRAIRIE, Minn., Oct. 20, 2010 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2010.
Total revenue for the second quarter of fiscal 2011 increased 20% to $7.81 million from $6.51 million in the prior-year quarter. The revenue increase was due to a 24% increase in product sales and a 5% increase in contract research and development revenue. Net income for the second quarter of fiscal 2011 increased 19% to $3.21 million, or $0.66 per diluted share, compared to $2.69 million, or $0.55 per diluted share, for the prior-year quarter.
For the first six months of fiscal 2011, total revenue increased 13% to $15.1 million from $13.3 million for the first six months of the prior year. The increase was due to an 18% increase in product sales, partially offset by a 7% decrease in contract research and development revenue. Net income for the first half of fiscal 2011 was $6.31 million, or $1.30 per diluted share, compared to $5.63 million, or $1.16 per diluted share, for the first half of fiscal 2010.
"We are pleased to report strong product sales and earnings growth for the quarter," 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 profits 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 as updated in our Quarterly Reports on Form 10-Q.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 (Unaudited)
Quarter Ended September 30
2010 2009
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Revenue
Product sales $ 6,410,512 $ 5,177,445
Contract research and development 1,398,648 1,331,056
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Total revenue 7,809,160 6,508,501
Cost of sales 2,604,926 1,985,100
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Gross profit 5,204,234 4,523,401
Expenses
Selling, general, and administrative 634,547 622,354
Research and development 309,873 291,540
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Total expenses 944,420 913,894
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Income from operations 4,259,814 3,609,507
Interest income 497,731 393,198
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Income before taxes 4,757,545 4,002,705
Provision for income taxes 1,551,535 1,308,522
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Net income $ 3,206,010 $ 2,694,183
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Net income per share - basic $ 0.68 $ 0.57
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Net income per share - diluted $ 0.66 $ 0.55
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Weighted average shares outstanding
Basic 4,700,583 4,692,607
Diluted 4,860,237 4,871,387
Six Months Ended September 30
2010 2009
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Revenue
Product sales $ 12,604,388 $ 10,711,482
Contract research and development 2,446,066 2,631,551
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Total revenue 15,050,454 13,343,033
Cost of sales 4,680,730 3,876,523
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Gross profit 10,369,724 9,466,510
Expenses
Selling, general, and administrative 1,262,933 1,258,077
Research and development 651,536 558,861
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Total expenses 1,914,469 1,816,938
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Income from operations 8,455,255 7,649,572
Interest income 973,461 763,223
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Income before taxes 9,428,716 8,412,795
Provision for income taxes 3,121,609 2,779,680
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Net income $ 6,307,107 $ 5,633,115
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Net income per share - basic $ 1.34 $ 1.20
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Net income per share - diluted $ 1.30 $ 1.16
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Weighted average shares outstanding
Basic 4,700,583 4,684,453
Diluted 4,860,237 4,863,199
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2010
(Unaudited)
Sept. 30, 2010 March 31, 2010
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ASSETS
Current assets
Cash and cash equivalents $ 690,841 $ 1,389,288
Marketable securities, short term 2,489,580 1,566,666
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 4,138,418 4,221,564
Inventories 2,371,727 1,706,427
Prepaid expenses and other assets 1,073,176 781,294
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Total current assets 10,763,742 9,665,239
Fixed assets
Machinery and equipment 5,821,555 5,617,136
Leasehold improvements 450,546 450,546
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6,272,101 6,067,682
Less accumulated depreciation 5,038,657 4,857,819
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Net fixed assets 1,233,444 1,209,863
Marketable securities, long term 52,720,248 46,587,812
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Total assets $ 64,717,434 $ 57,462,914
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 712,396 $ 665,782
Accrued payroll and other 716,079 720,867
Deferred taxes 434,739 102,138
Deferred revenue -- 20,833
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Total current liabilities 1,863,214 1,509,620
Shareholders' equity
Common stock 47,006 47,006
Additional paid-in capital 20,246,644 20,169,924
Accumulated other comprehensive income 1,646,825 1,129,726
Retained earnings 40,913,745 34,606,638
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Total shareholders' equity 62,854,220 55,953,294
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Total liabilities and shareholders'
equity $ 64,717,434 $ 57,462,914
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