EDEN PRAIRIE, Minn., Jan. 21, 2015 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2014.
Total revenue for the third quarter of fiscal 2015 decreased 3% to $6.29 million from $6.47 million in the prior-year quarter. The revenue decrease was due to a 9% decrease in product sales, partially offset by a 16-fold increase in contract research and development revenue. Net income for the third quarter of fiscal 2015 increased 1% to $2.79 million, or $0.57 per diluted share, compared to $2.78 million, or $0.57 per share, for the prior-year quarter.
For the first nine months of fiscal 2015, 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 14% increase in product sales and a 124% increase in contract research and development revenue. Net income for the first nine months of fiscal 2015 increased 25% to $10.7 million, or $2.20 per diluted share, compared to $8.57 million, or $1.76 per share, for the first nine months of fiscal 2014.
The company also announced today that its Board of Directors declared a cash dividend to shareholders in the aggregate amount of $10 million, payable February 27, 2015 to shareholders of record as of February 2, 2015. This represents a dividend of approximately $2.06 per share of common stock based on shares outstanding as of January 16, 2015. The company's Board also plans to declare cash dividends for future quarters significantly above the company's current free cash flow. All future dividends will be subject to Board approval and subject to the company's results of operations, cash and marketable security balances, the timing of securities maturations, estimates of future cash requirements, fixed asset requirements, and other factors the Board may deem relevant.
"We are pleased to report an increase in net income in the quarter despite a decrease in revenue," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Earnings helped increase our cash plus marketable securities to more than $106 million. Based on the strength of our balance sheet and our history of strong cash generation, we are pleased to announce a plan to return significant cash to our shareholders through quarterly dividends. Additionally we may repurchase the company's common stock from time to time under a previously-announced program."
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, uncertainties in dividend payments to our shareholders, risks related to material weaknesses in our internal control over financial reporting, 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, 2014 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2014 AND 2013 (Unaudited)
Quarter Ended December 31
2014 2013
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Revenue
Product sales $ 5,883,690 $ 6,448,407
Contract research and development 408,058 25,290
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Total revenue 6,291,748 6,473,697
Cost of sales 1,473,655 1,449,396
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Gross profit 4,818,093 5,024,301
Expenses
Selling, general, and administrative 533,695 543,698
Research and development 694,758 905,246
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Total expenses 1,228,453 1,448,944
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Income from operations 3,589,640 3,575,357
Interest income 557,843 530,383
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Income before taxes 4,147,483 4,105,740
Provision for income taxes 1,354,577 1,328,566
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Net income $ 2,792,906 $ 2,777,174
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Net income per share - basic $ 0.57 $ 0.57
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Net income per share - diluted $ 0.57 $ 0.57
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Weighted average shares outstanding
Basic 4,857,953 4,842,565
Diluted 4,876,074 4,859,601
Nine Months Ended December 31
2014 2013
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Revenue
Product sales $ 22,345,577 $ 19,654,162
Contract research and development 666,579 297,648
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Total revenue 23,012,156 19,951,810
Cost of sales 4,641,633 4,331,297
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Gross profit 18,370,523 15,620,513
Expenses
Selling, general, and administrative 1,788,944 1,756,578
Research and development 2,285,465 2,744,620
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Total expenses 4,074,409 4,501,198
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Income from operations 14,296,114 11,119,315
Interest income 1,669,320 1,577,524
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Income before taxes 15,965,434 12,696,839
Provision for income taxes 5,259,796 4,123,189
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Net income $ 10,705,638 $ 8,573,650
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Net income per share - basic $ 2.21 $ 1.77
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Net income per share - diluted $ 2.20 $ 1.76
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Weighted average shares outstanding
Basic 4,854,702 4,852,356
Diluted 4,871,270 4,868,040
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2014
Dec. 31, 2014 March 31, 2014
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ASSETS
Current assets
Cash and cash equivalents $ 11,796,943 $ 1,262,300
Marketable securities, short term 11,554,543 12,360,091
Accounts receivable, net of allowance for uncollectible accounts of $15,000 1,855,079 2,331,574
Inventories 3,686,124 3,207,333
Deferred tax assets 183,603 237,387
Prepaid expenses and other assets 1,525,778 816,276
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Total current assets 30,602,070 20,214,961
Fixed assets
Machinery and equipment 8,650,150 8,536,010
Leasehold improvements 1,499,454 1,499,454
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10,149,604 10,035,464
Less accumulated depreciation 7,729,513 7,030,692
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Net fixed assets 2,420,091 3,004,772
Marketable securities, long term 82,801,741 82,022,310
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Total assets $ 115,823,902 $ 105,242,043
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 360,991 $ 374,127
Accrued payroll and other 801,669 808,675
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Total current liabilities 1,162,660 1,182,802
Long-term deferred tax liabilities 216,838 354,600
Shareholders' equity
Common stock 48,580 48,510
Additional paid-in capital 20,850,762 20,464,883
Accumulated other comprehensive income 526,033 877,857
Retained earnings 93,019,029 82,313,391
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Total shareholders' equity 114,444,404 103,704,641
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Total liabilities and shareholders' equity $ 115,823,902 $ 105,242,043
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