EDEN PRAIRIE, Minn., July 18, 2018 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2018.
Total revenue for the first quarter of fiscal 2019 decreased 7% to $7.11 million from $7.61 million in the prior-year quarter. The decrease was due to a 67% decrease in contract research and development revenue. Product sales decreased slightly to $6.87 million from $6.88 million in the prior-year quarter. Net income for the first quarter of fiscal 2019 increased 20% to $3.95 million, or $0.81 per diluted share, compared to $3.30 million, or $0.68 per share, for the prior-year quarter.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 31, 2018 to shareholders of record as of July 30, 2018.
“We are pleased to report solid growth in 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 uncertainties related to the economic environments in the industries we serve, uncertainties related to future contract research and development revenue, uncertainties related to future stock repurchases and dividend payments, uncertainties related to the future impact of Federal tax reform, 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, 2018 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2018 AND 2017 (Unaudited)
Quarter Ended June 30
2018 2017
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Revenue
Product sales $ 6,870,646 $ 6,882,673
Contract research and development 237,260 724,993
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Total revenue 7,107,906 7,607,666
Cost of sales 1,396,005 1,798,366
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Gross profit 5,711,901 5,809,300
Expenses
Research and development 989,026 905,725
Selling, general, and administrative 328,761 399,361
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Total expenses 1,317,787 1,305,086
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Income from operations 4,394,114 4,504,214
Interest income 424,770 361,778
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Income before taxes 4,818,884 4,865,992
Provision for income taxes 873,835 1,568,377
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Net income $ 3,945,049 $ 3,297,615
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Net income per share - basic $ 0.81 $ 0.68
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Net income per share - diluted $ 0.81 $ 0.68
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Weighted average shares outstanding
Basic 4,842,010 4,841,010
Diluted 4,850,479 4,846,251
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2018
June 30, 2018 March 31, 2018
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ASSETS
Current assets
Cash and cash equivalents $ 8,451,861 $ 4,755,082
Marketable securities, short term 22,924,176 20,765,809
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,120,773 2,888,779
Inventories 3,621,681 3,650,439
Prepaid expenses and other assets 532,107 635,160
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Total current assets 38,650,598 32,695,269
Fixed assets
Machinery and equipment 9,395,987 9,395,987
Leasehold improvements 1,787,269 1,749,284
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11,183,256 11,145,271
Less accumulated
depreciation and amortization 9,941,949 9,819,888
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Net fixed assets 1,241,307 1,325,383
Deferred tax assets 603,074 572,655
Marketable securities, long term 46,558,228 52,838,158
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Total assets $ 87,053,207 $ 87,431,465
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 388,413 $ 414,970
Accrued payroll and other 507,030 574,755
Income taxes payable 720,012 -
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Total current liabilities 1,615,455 989,725
Shareholders' equity
Common stock 48,420 48,420
Additional paid-in capital 19,599,298 19,599,298
Accumulated
other comprehensive loss (1,083,027) (915,635)
Retained earnings 66,873,061 67,709,657
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Total shareholders' equity 85,437,752 86,441,740
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Total liabilities and shareholders' equity $ 87,053,207 $ 87,431,465
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