EDEN PRAIRIE, Minn., Jan. 20, 2010 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2009.
Total revenue for the third quarter of fiscal 2010 increased 13% to $6.62 million from $5.88 million in the prior-year quarter. The revenue increase was due to a 15% increase in product sales and a 4% increase in contract research and development revenue. Net income for the third quarter of fiscal 2010 increased 12% to $2.77 million, or $0.57 per diluted share, compared to $2.47 million, or $0.52 per diluted share, for the prior-year quarter.
For the first nine months of fiscal 2010, total revenue increased 21% to $20.0 million from $16.5 million for the first nine months of the prior year. The increase was due to a 14% increase in product sales and a 61% increase in contract research and development revenue. Net income for the first nine months of fiscal 2010 increased 26% to $8.40 million, or $1.73 per diluted share, compared to $6.67 million, or $1.40 per diluted share, for the first nine months of fiscal 2009.
"We are pleased to report strong revenue and earnings growth for the quarter," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "The economic environment appears to be improving."
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 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2009 AND 2008 (Unaudited)
Quarter Ended December 31
2009 2008
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Revenue
Product sales $ 5,292,228 $ 4,596,948
Contract research and development 1,332,629 1,287,165
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Total revenue 6,624,857 5,884,113
Cost of sales 2,102,855 1,763,090
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Gross profit 4,522,002 4,121,023
Expenses
Selling, general, and administrative 548,973 508,953
Research and development 251,625 258,998
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Total expenses 800,598 767,951
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Income from operations 3,721,404 3,353,072
Interest income 414,669 306,814
Other income -- 800
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Income before taxes 4,136,073 3,660,686
Provision for income taxes 1,368,590 1,192,282
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Net income $ 2,767,483 $ 2,468,404
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Net income per share - basic $ 0.59 $ 0.53
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Net income per share - diluted $ 0.57 $ 0.52
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Weighted average shares outstanding
Basic 4,700,583 4,665,333
Diluted 4,855,948 4,783,633
Nine Months Ended
December 31
2009 2008
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Revenue
Product sales $16,003,710 $14,015,651
Contract research and development 3,964,180 2,460,038
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Total revenue 19,967,890 16,475,689
Cost of sales 5,979,378 4,918,140
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Gross profit 13,988,512 11,557,549
Expenses
Selling, general, and administrative 1,807,050 1,623,810
Research and development 810,486 925,893
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Total expenses 2,617,536 2,549,703
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Income from operations 11,370,976 9,007,846
Interest income 1,177,892 838,323
Other income -- 4,200
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Income before taxes 12,548,868 9,850,369
Provision for income taxes 4,148,270 3,178,968
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Net income $ 8,400,598 $ 6,671,401
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Net income per share - basic $ 1.79 $ 1.43
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Net income per share - diluted $ 1.73 $ 1.40
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Weighted average shares outstanding
Basic 4,689,849 4,656,758
Diluted 4,845,150 4,774,925
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2009
(Unaudited)
Dec. 31, March 31,
2009 2009
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ASSETS
Current assets
Cash and cash equivalents $ 1,164,219 $ 1,875,063
Marketable securities, short term 1,616,228 --
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,928,348 3,366,698
Inventories 1,792,217 2,247,621
Deferred tax assets -- 667,729
Prepaid expenses and other assets 988,192 669,307
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Total current assets 8,489,204 8,826,418
Fixed assets
Machinery and equipment 5,573,448 5,328,237
Leasehold improvements 450,546 450,546
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6,023,994 5,778,783
Less accumulated depreciation 4,746,905 4,485,509
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Net fixed assets 1,277,089 1,293,274
Marketable securities, long term 43,586,133 32,446,748
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Total assets $53,352,426 $42,566,440
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 428,344 $ 257,239
Accrued payroll and other 579,100 637,463
Deferred taxes 46,436 --
Deferred revenue 41,667 104,167
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Total current liabilities 1,095,547 998,869
Shareholders' equity
Common stock 47,006 46,693
Additional paid-in capital 20,169,924 19,166,524
Accumulated other comprehensive income (loss) 1,032,057 (252,940)
Retained earnings 31,007,892 22,607,294
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Total shareholders' equity 52,256,879 41,567,571
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Total liabilities and shareholders' equity $53,352,426 $42,566,440
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