NVE Corporation Reports Third Quarter Results


EDEN PRAIRIE, Minn., Jan. 23, 2013 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2012.

Total revenue for the third quarter of fiscal 2013 increased 6% to $6.53 million from $6.16 million in the prior-year quarter. The revenue increase was due to a 7% increase in product sales. Net income for the third quarter of fiscal 2013 increased 27% to $2.90 million, or $0.60 per diluted share, compared to $2.29 million, or $0.47 per diluted share, for the prior-year quarter.

For the first nine months of fiscal 2013, total revenue decreased 6% to $19.8 million from $21.0 million for the first nine months of the prior year. The decrease was due to a 40% decrease in contract research and development revenue. Net income for the first nine months of fiscal 2013 was $8.72 million, or $1.80 per diluted share, compared to $8.28 million, or $1.71 per diluted share, for the first nine months of fiscal 2012.

"We are pleased to report a 27% increase in net income for the quarter driven by increased product sales and increased gross margin as a percentage of 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 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, 2012 and other reports filed with the SEC.

                                                     
                   NVE CORPORATION                   
                 STATEMENTS OF INCOME                
   QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2012  
                  AND 2011 (Unaudited)               
                                                     
                         Quarter Ended December 31   
                                                     
                             2012           2011     
                        -------------  ------------- 
  Revenue                                            
   Product sales          $ 5,762,925    $ 5,394,758 
   Contract research                                 
    and development           762,296        763,768 
                        -------------  ------------- 
  Total revenue             6,525,221      6,158,526 
                                                     
  Cost of sales             1,738,618      2,174,878 
                        -------------  ------------- 
  Gross profit              4,786,603      3,983,648 
  Expenses                                           
   Selling, general,                                 
    and administrative        570,741        520,044 
   Research and                                      
    development               501,325        718,688 
                        -------------  ------------- 
                                                     
  Total expenses            1,072,066      1,238,732 
                        -------------  ------------- 
  Income from                                        
   operations               3,714,537      2,744,916 
                                                     
  Interest income             600,395        591,694 
                        -------------  ------------- 
  Income before taxes       4,314,932      3,336,610 
  Provision for income                               
   taxes                    1,415,590      1,047,519 
                        -------------  ------------- 
                                                     
  Net income              $ 2,899,342    $ 2,289,091 
                        =============  ============= 
  Net income per share                               
   -- basic                    $ 0.60         $ 0.48 
                        =============  ============= 
  Net income per share                               
   -- diluted                  $ 0.60         $ 0.47 
                        =============  ============= 
  Weighted average                                   
   shares outstanding                                
   Basic                    4,847,619      4,807,859 
   Diluted                  4,872,019      4,873,429 
                                                     
                         Nine Months Ended December  
                                     31              
                                                     
                             2012           2011     
                        -------------  ------------- 
  Revenue                                            
   Product sales         $ 18,025,002   $ 17,975,331 
   Contract research                                 
    and development         1,785,920      2,995,590 
                        -------------  ------------- 
  Total revenue            19,810,922     20,970,921 
                                                     
  Cost of sales             5,147,884      7,048,396 
                        -------------  ------------- 
  Gross profit             14,663,038     13,922,525 
  Expenses                                           
   Selling, general,                                 
    and administrative      1,714,545      1,742,721 
   Research and                                      
    development             1,801,609      1,825,159 
                        -------------  ------------- 
                                                     
  Total expenses            3,516,154      3,567,880 
                        -------------  ------------- 
  Income from                                        
   operations              11,146,884     10,354,645 
                                                     
  Interest income           1,784,963      1,754,586 
                        -------------  ------------- 
  Income before taxes      12,931,847     12,109,231 
  Provision for income                               
   taxes                    4,211,964      3,825,819 
                        -------------  ------------- 
                                                     
  Net income              $ 8,719,883    $ 8,283,412 
                        =============  ============= 
  Net income per share                               
   -- basic                    $ 1.80         $ 1.73 
                        =============  ============= 
  Net income per share                               
   -- diluted                  $ 1.80         $ 1.71 
                        =============  ============= 
  Weighted average                                   
   shares outstanding                                
   Basic                    4,832,630      4,786,790 
   Diluted                  4,856,851      4,852,360 
                                                     
                                                             
                       NVE CORPORATION                       
                        BALANCE SHEETS                       
                DECEMBER 31 AND MARCH 31, 2012               
                                                             
                                                             
                                                 March 31,   
                                Dec. 31, 2012       2012     
                                -------------  ------------- 
  ASSETS                                                     
  Current assets                                             
   Cash and cash equivalents        $ 843,023    $ 1,544,536 
   Marketable securities,                                    
    short term                     15,610,697     17,551,629 
   Accounts receivable, net of                               
    allowance for                                            
    uncollectible accounts of                                
    $15,000                         2,621,780      2,684,840 
   Inventories                      3,755,523      3,229,376 
   Prepaid expenses and other                                
    assets                          1,333,019      1,159,852 
                                -------------  ------------- 
  Total current assets             24,164,042     26,170,233 
  Fixed assets                                               
   Machinery and equipment          8,343,525      7,488,211 
                                                             
   Leasehold improvements           1,416,971        720,882 
                                -------------  ------------- 
                                    9,760,496      8,209,093 
   Less accumulated                                          
    depreciation                    6,100,071      5,697,861 
                                -------------  ------------- 
  Net fixed assets                  3,660,425      2,511,232 
  Marketable securities, long                                
   term                            64,774,808     54,445,298 
                                -------------  ------------- 
                                                             
  Total assets                   $ 92,599,275   $ 83,126,763 
                                =============  ============= 
                                                             
  LIABILITIES AND                                            
   SHAREHOLDERS' EQUITY                                      
  Current liabilities                                        
   Accounts payable                 $ 558,935      $ 663,702 
   Accrued payroll and other          760,955        867,331 
                                                             
   Deferred taxes                     452,560        136,872 
                                -------------  ------------- 
  Total current liabilities         1,772,450      1,667,905 
                                                             
  Shareholders' equity                                       
   Common stock                        48,604         48,247 
   Additional paid-in capital      21,112,651     20,974,477 
   Accumulated other                                         
    comprehensive income            1,597,009      1,087,456 
                                                             
   Retained earnings               68,068,561     59,348,678 
                                -------------  ------------- 
                                                             
  Total shareholders' equity       90,826,825     81,458,858 
                                -------------  ------------- 
  Total liabilities and                                      
   shareholders' equity          $ 92,599,275   $ 83,126,763 
                                =============  ============= 
                                                             


            

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