EDEN PRAIRIE, Minn., Jan. 19, 2011 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2010.
Total revenue for the third quarter of fiscal 2011 increased 20% to $7.96 million from $6.62 million in the prior-year quarter. The revenue increase was due to a 26% increase in product sales, partially offset by a 4% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2011 increased 22% to $3.38 million, or $0.70 per diluted share, compared to $2.77 million, or $0.57 per diluted share, for the prior-year quarter.
For the first nine months of fiscal 2011, total revenue increased 15% to $23.0 million from $20.0 million for the first nine months of the prior year. The increase was due to a 21% increase in product sales, partially offset by a 6% decrease in contract research and development revenue. Net income for the first nine months of fiscal 2011 was $9.69 million, or $2.00 per diluted share, compared to $8.40 million, or $1.73 per diluted share, for the first nine months of fiscal 2010.
"We are pleased to report strong earnings for the quarter driven by record product sales," 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 NINE MONTHS ENDED DECEMBER 31, 2010 AND 2009 (Unaudited)
Quarter Ended December 31
2010 2009
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Revenue
Product sales $ 6,686,451 $ 5,292,228
Contract research and development 1,277,057 1,332,629
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Total revenue 7,963,508 6,624,857
Cost of sales 2,461,798 2,102,855
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Gross profit 5,501,710 4,522,002
Expenses
Selling, general, and administrative 638,223 548,973
Research and development 330,681 251,625
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Total expenses 968,904 800,598
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Income from operations 4,532,806 3,721,404
Interest income 512,203 414,669
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Income before taxes 5,045,009 4,136,073
Provision for income taxes 1,661,090 1,368,590
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Net income $ 3,383,919 $ 2,767,483
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Net income per share - basic $ 0.71 $ 0.59
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Net income per share - diluted $ 0.70 $ 0.57
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Weighted average shares outstanding
Basic 4,743,643 4,700,583
Diluted 4,866,617 4,855,948
Nine Months
Ended December 31
2010 2009
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Revenue
Product sales $19,290,839 $16,003,710
Contract research and development 3,723,123 3,964,180
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Total revenue 23,013,962 19,967,890
Cost of sales 7,142,528 5,979,378
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Gross profit 15,871,434 13,988,512
Expenses
Selling, general, and administrative 1,901,156 1,807,050
Research and development 982,217 810,486
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Total expenses 2,883,373 2,617,536
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Income from operations 12,988,061 11,370,976
Interest income 1,485,664 1,177,892
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Income before taxes 14,473,725 12,548,868
Provision for income taxes 4,782,699 4,148,270
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Net income $ 9,691,026 $ 8,400,598
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Net income per share - basic $ 2.06 $ 1.79
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Net income per share - diluted $ 2.00 $ 1.73
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Weighted average shares outstanding
Basic 4,714,989 4,689,849
Diluted 4,837,963 4,845,150
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2010
(Unaudited)
Dec. 31, March 31,
2010 2010
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ASSETS
Current assets
Cash and cash equivalents $ 1,178,409 $ 1,389,288
Marketable securities, short term 4,455,249 1,566,666
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 3,471,435 4,221,564
Inventories 3,164,158 1,706,427
Prepaid expenses and other assets 1,102,838 781,294
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Total current assets 13,372,089 9,665,239
Fixed assets
Machinery and equipment 5,954,570 5,617,136
Leasehold improvements 612,682 450,546
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6,567,252 6,067,682
Less accumulated depreciation 5,146,230 4,857,819
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Net fixed assets 1,421,022 1,209,863
Marketable securities, long term 52,677,162 46,587,812
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Total assets $67,470,273 $57,462,914
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 482,412 $ 665,782
Accrued payroll and other 833,615 720,867
Deferred taxes 130,445 102,138
Deferred revenue -- 20,833
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Total current liabilities 1,446,472 1,509,620
Shareholders' equity
Common stock 47,662 47,006
Additional paid-in capital 20,565,148 20,169,924
Accumulated other comprehensive income 1,113,327 1,129,726
Retained earnings 44,297,664 34,606,638
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Total shareholders' equity 66,023,801 55,953,294
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Total liabilities and shareholders' equity $67,470,273 $57,462,914
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