EDEN PRAIRIE, Minn., July 24, 2013 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2013.
Total revenue for the first quarter of fiscal 2014 decreased 17% to $6.18 million from $7.46 million in the prior-year quarter. The decrease was primarily due to a 15% decrease in product sales. Net income for the first quarter of fiscal 2014 decreased 24% to $2.57 million, or $0.53 per diluted share, compared to $3.38 million, or $0.69 per share, for the prior-year quarter.
"We are reporting strong earnings for the quarter and record gross margin as a percentage of revenue, despite revenue decreases," 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.
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 revenues, risks in the enforcement of our patents, litigation risks, 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, 2013.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2013 AND 2012 (Unaudited)
Quarter Ended June 30
2013 2012
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Revenue
Product sales $ 5,974,606 $ 7,030,745
Contract research and development 202,327 432,160
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Total revenue 6,176,933 7,462,905
Cost of sales 1,378,355 1,802,353
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Gross profit 4,798,578 5,660,552
Expenses
Selling, general, and administrative 552,804 536,110
Research and development 962,911 688,026
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Total expenses 1,515,715 1,224,136
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Income from operations 3,282,863 4,436,416
Interest income 526,339 562,618
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Income before taxes 3,809,202 4,999,034
Provision for income taxes 1,242,377 1,621,376
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Net income $ 2,566,825 $ 3,377,658
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Net income per share -- basic $ 0.53 $ 0.70
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Net income per share -- diluted $ 0.53 $ 0.69
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Weighted average shares outstanding
Basic 4,862,436 4,824,745
Diluted 4,884,902 4,886,873
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2013
June 30, March 31,
2013 2013
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ASSETS
Current assets
Cash and cash equivalents $ 2,270,943 $ 2,509,683
Marketable securities, short term 9,913,371 9,711,029
Accounts receivable, net of
allowance for uncollectible
accounts of $15,000 2,470,003 2,521,395
Inventories 3,231,940 3,336,592
Deferred tax assets 250,809 --
Prepaid expenses and other assets 1,060,094 958,147
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Total current assets 19,197,160 19,036,846
Fixed assets
Machinery and equipment 8,417,061 8,417,061
Leasehold improvements 1,499,454 1,499,454
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9,916,515 9,916,515
Less accumulated depreciation 6,418,258 6,228,122
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Net fixed assets 3,498,257 3,688,393
Marketable securities, long term 75,352,422 73,040,257
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Total assets $ 98,047,839 $ 95,765,496
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 338,633 $ 422,092
Accrued payroll and other 733,982 918,060
Income taxes payable 1,044,404 --
Deferred taxes -- 440,736
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Total current liabilities 2,117,019 1,780,888
Long-term deferred tax liabilities 234,422 --
Shareholders' equity
Common stock 48,624 48,624
Additional paid-in capital 21,200,742 21,200,742
Accumulated other comprehensive
income 702,691 1,557,726
Retained earnings 73,744,341 71,177,516
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Total shareholders' equity 95,696,398 93,984,608
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Total liabilities and shareholders'
equity $ 98,047,839 $ 95,765,496
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