EDEN PRAIRIE, Minn., Jan. 18, 2012 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2011.
Total revenue for the third quarter of fiscal 2012 decreased 23% to $6.16 million from $7.96 million in the prior-year quarter. The revenue decrease was due to a 19% decrease in product sales and a 40% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2012 decreased 32% to $2.29 million, or $0.47 per diluted share, compared to $3.38 million, or $0.70 per diluted share, for the prior-year quarter.
For the first nine months of fiscal 2012, total revenue decreased 9% to $21.0 million from $23.0 million for the first nine months of the prior year. Product sales decreased 7% and contract research and development revenue decreased 20%. Net income for the first nine months of fiscal 2012 was $8.28 million, or $1.71 per diluted share, compared to $9.69 million, or $2.00 per diluted share, for the first nine months of fiscal 2011.
"We are able to report solid earnings for the quarter despite significant challenges the past two quarters," 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 NINE MONTHS ENDED DECEMBER 31, 2011 AND 2010
(Unaudited)
Quarter Ended December 31
2011 2010
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Revenue
Product sales $ 5,394,758 $ 6,686,451
Contract research and development 763,768 1,277,057
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Total revenue 6,158,526 7,963,508
Cost of sales 2,174,878 2,461,798
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Gross profit 3,983,648 5,501,710
Expenses
Selling, general, and administrative 520,044 638,223
Research and development 718,688 330,681
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Total expenses 1,238,732 968,904
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Income from operations 2,744,916 4,532,806
Interest income 591,694 512,203
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Income before taxes 3,336,610 5,045,009
Provision for income taxes 1,047,519 1,661,090
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Net income $ 2,289,091 $ 3,383,919
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Net income per share -- basic $ 0.48 $ 0.71
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Net income per share -- diluted $ 0.47 $ 0.70
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Weighted average shares outstanding
Basic 4,807,859 4,743,643
Diluted 4,873,429 4,866,617
Nine Months Ended December
31
2011 2010
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Revenue
Product sales $ 17,975,331 $ 19,290,839
Contract research and development 2,995,590 3,723,123
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Total revenue 20,970,921 23,013,962
Cost of sales 7,048,396 7,142,528
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Gross profit 13,922,525 15,871,434
Expenses
Selling, general, and administrative 1,742,721 1,901,156
Research and development 1,825,159 982,217
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Total expenses 3,567,880 2,883,373
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Income from operations 10,354,645 12,988,061
Interest income 1,754,586 1,485,664
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Income before taxes 12,109,231 14,473,725
Provision for income taxes 3,825,819 4,782,699
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Net income $ 8,283,412 $ 9,691,026
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Net income per share -- basic $ 1.73 $ 2.06
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Net income per share -- diluted $ 1.71 $ 2.00
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Weighted average shares outstanding
Basic 4,786,790 4,714,989
Diluted 4,852,360 4,837,963
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2011
(Unaudited)
Dec. 31, March 31,
2011 2011
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ASSETS
Current assets
Cash and cash equivalents $ 438,332 $ 952,209
Marketable securities, short term 12,090,093 7,970,358
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,456,042 3,596,239
Inventories 3,317,839 3,343,857
Deferred tax assets 282,144 --
Prepaid expenses and other assets 1,171,038 1,185,306
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Total current assets 20,755,488 17,047,969
Fixed assets
Machinery and equipment 6,797,274 6,178,207
Leasehold improvements 693,589 612,682
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7,490,863 6,790,889
Less accumulated depreciation 5,558,951 5,259,773
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Net fixed assets 1,931,912 1,531,116
Marketable securities, long term 56,384,111 53,257,140
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Total assets $ 79,071,511 $ 71,836,225
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 596,205 $ 731,580
Accrued payroll and other 805,687 987,403
Deferred taxes -- 146,693
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Total current liabilities 1,401,892 1,865,676
Shareholders' equity
Common stock 48,247 47,762
Additional paid-in capital 20,974,477 20,894,766
Accumulated other comprehensive income 395,900 1,060,438
Retained earnings 56,250,995 47,967,583
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Total shareholders' equity 77,669,619 69,970,549
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Total liabilities and shareholders'
equity $ 79,071,511 $ 71,836,225
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