EDEN PRAIRIE, Minn., Jan. 18, 2017 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2016.
Total revenue for the third quarter of fiscal 2017 increased 24% to $7.46 million from $6.02 million in the prior-year quarter. The increase was due to a 42% increase in product sales, partially offset by a 65% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2017 increased 35% to $3.48 million, or $0.72 per diluted share, compared to $2.58 million, or $0.53 per share, for the prior-year quarter.
For the first nine months of fiscal 2017, total revenue decreased 1% to $21.5 million from $21.6 million for the first nine months of the prior year. The decrease was due to a 30% decrease in contract research and development revenue, partially offset by a 3% increase in product sales. Net income increased 2% to $9.92 million, or $2.05 per diluted share, for the first nine months of fiscal 2017 compared to $9.69 million, or $2.00 per share, for the first nine months of fiscal 2016.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2017 to shareholders of record as of January 30, 2017.
“We are pleased to report strong increases in product sales, total revenue, and net income for the quarter,” 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 related to our reliance on several large customers for a significant percentage of revenue, uncertainties in dividend payments to our shareholders, 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, 2016 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2016 AND 2015
(Unaudited)
Quarter Ended Dec. 31
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2016 2015
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Revenue
Product sales $ 7,116,931 $ 5,025,041
Contract research and development 345,748 990,974
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Total revenue 7,462,679 6,016,015
Cost of sales 1,502,848 1,508,361
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Gross profit 5,959,831 4,507,654
Expenses
Selling, general, and administrative 384,322 406,676
Research and development 826,816 738,657
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Total expenses 1,211,138 1,145,333
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Income from operations 4,748,693 3,362,321
Interest income 395,207 468,367
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Income before taxes 5,143,900 3,830,688
Provision for income taxes 1,660,156 1,253,237
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Net income $ 3,483,744 $ 2,577,451
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Net income per share – basic $ 0.72 $ 0.53
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Net income per share – diluted $ 0.72 $ 0.53
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Weighted average shares outstanding
Basic 4,836,336 4,844,845
Diluted 4,839,777 4,846,970
Nine Months Ended Dec. 31
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2016 2015
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Revenue
Product sales $ 19,782,529 $ 19,197,578
Contract research and development 1,690,461 2,419,113
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Total revenue 21,472,990 21,616,691
Cost of sales 4,628,840 5,146,803
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Gross profit 16,844,150 16,469,888
Expenses
Selling, general, and administrative 1,117,925 1,416,071
Research and development 2,353,372 2,048,620
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Total expenses 3,471,297 3,464,691
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Income from operations 13,372,853 13,005,197
Interest income 1,263,924 1,422,696
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Income before taxes 14,636,777 14,427,893
Provision for income taxes 4,715,291 4,736,421
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Net income $ 9,921,486 $ 9,691,472
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Net income per share – basic $ 2.05 $ 2.00
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Net income per share – diluted $ 2.05 $ 2.00
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Basic 4,835,639 4,853,970
Diluted 4,837,815 4,857,103
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2016
(Unaudited)
December 31, 2016 March 31, 2016
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ASSETS
Current assets
Cash and cash equivalents $ 3,799,188 $ 7,534,593
Marketable securities, short-term 24,655,206 19,697,384
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 1,461,659 2,244,086
Inventories 3,162,478 3,205,233
Prepaid expenses and other assets 751,433 734,524
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Total current assets 33,829,964 33,415,820
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Fixed assets
Machinery and equipment 9,020,726 8,840,033
Leasehold improvements 1,559,719 1,539,965
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10,580,445 10,379,998
Less accumulated depreciation and amortization 9,281,531 8,688,285
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Net fixed assets 1,298,914 1,691,713
Long-term deferred tax assets 446,949 51,188
Marketable securities, long-term 59,668,735 65,695,335
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Total assets $ 95,244,562 $ 100,854,056
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LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 358,530 $ 317,990
Accrued payroll and other 679,040 556,674
Deferred revenue - 714,805
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Total current liabilities 1,037,570 1,589,469
Shareholders’ equity
Common stock 48,370 48,350
Additional paid-in capital 19,319,679 19,205,682
Accumulated other comprehensive (loss) income (135,709) 451,359
Retained earnings 74,974,652 79,559,196
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Total shareholders’ equity 94,206,992 99,264,587
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Total liabilities and shareholders’ equity $ 95,244,562 $ 100,854,056
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