EDEN PRAIRIE, Minn., Oct. 19, 2011 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2011.
Total revenue for the second quarter of fiscal 2012 decreased 16% to $6.60 million from $7.81 million in the prior-year quarter. The revenue decrease was due to a 13% decrease in product sales and a 26% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2012 decreased 20% to $2.56 million, or $0.52 per diluted share, compared to $3.21 million, or $0.66 per diluted share, for the prior-year quarter.
For the first six months of fiscal 2012, total revenue decreased 2% to $14.8 million from $15.1 million for the first six months of the prior year. Product sales were flat and contract research and development revenue decreased 9%. Net income for the first half of fiscal 2012 was $5.99 million, or $1.22 per diluted share, compared to $6.31 million, or $1.30 per diluted share, for the first half of fiscal 2011.
"We are able to report solid earnings for the quarter despite decreases in product sales and total revenue," 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 of decreased sales, risks related to loss of supply from our packaging vendors, 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, 2011 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 (Unaudited)
Quarter Ended September 30
2011 2010
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Revenue
Product sales $ 5,557,299 $ 6,410,512
Contract research and development 1,041,334 1,398,648
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Total revenue 6,598,633 7,809,160
Cost of sales 2,277,926 2,604,926
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Gross profit 4,320,707 5,204,234
Expenses
Selling, general, and administrative 606,847 634,547
Research and development 611,595 309,873
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Total expenses 1,218,442 944,420
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Income from operations 3,102,265 4,259,814
Interest income 597,363 497,731
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Income before taxes 3,699,628 4,757,545
Provision for income taxes 1,144,535 1,551,535
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Net income $ 2,555,093 $ 3,206,010
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Net income per share - basic $ 0.53 $ 0.68
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Net income per share - diluted $ 0.52 $ 0.66
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Weighted average shares outstanding
Basic 4,776,198 4,700,583
Diluted 4,896,525 4,860,237
Six Months Ended
September 30
2011 2010
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Revenue
Product sales $ 12,580,573 $ 12,604,388
Contract research and development 2,231,822 2,446,066
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Total revenue 14,812,395 15,050,454
Cost of sales 4,873,518 4,680,730
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Gross profit 9,938,877 10,369,724
Expenses
Selling, general, and administrative 1,222,677 1,262,933
Research and development 1,106,471 651,536
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Total expenses 2,329,148 1,914,469
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Income from operations 7,609,729 8,455,255
Interest income 1,162,892 973,461
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Income before taxes 8,772,621 9,428,716
Provision for income taxes 2,778,300 3,121,609
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Net income $ 5,994,321 $ 6,307,107
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Net income per share - basic $ 1.26 $ 1.34
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Net income per share - diluted $ 1.22 $ 1.30
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Weighted average shares outstanding
Basic 4,776,198 4,700,583
Diluted 4,896,525 4,860,237
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2011
(Unaudited)
Sept. 30, March 31,
2011 2011
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ASSETS
Current assets
Cash and cash equivalents $ 1,324,236 $ 952,209
Marketable securities, short term 11,122,455 7,970,358
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,971,539 3,596,239
Inventories 3,382,028 3,343,857
Deferred tax assets 119,603 -
Prepaid expenses and other assets 1,354,995 1,185,306
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Total current assets 20,274,856 17,047,969
Fixed assets
Machinery and equipment 6,471,536 6,178,207
Leasehold improvements 612,682 612,682
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7,084,218 6,790,889
Less accumulated depreciation 5,494,150 5,259,773
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Net fixed assets 1,590,068 1,531,116
Marketable securities, long term 55,149,907 53,257,140
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Total assets $ 77,014,831 $ 71,836,225
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 545,408 $ 731,580
Accrued payroll and other 849,335 987,403
Deferred taxes - 146,693
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Total current liabilities 1,394,743 1,865,676
Shareholders' equity
Common stock 47,762 47,762
Additional paid-in capital 20,974,926 20,894,766
Accumulated other comprehensive income 635,496 1,060,438
Retained earnings 53,961,904 47,967,583
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Total shareholders' equity 75,620,088 69,970,549
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Total liabilities and shareholders'
equity $ 77,014,831 $ 71,836,225
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