EDEN PRAIRIE, Minn., July 20, 2016 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2016.
Compared to the immediately-prior quarter ended March 31, 2016, product sales increased 12% sequentially, total revenue increased 10%, and net income increased 20%.
Compared to prior-year quarter ended June 30, 2015, total revenue for the first quarter of fiscal 2017 decreased 19% to $6.71 million from $8.32 million in the prior-year quarter. The decrease was due to a 24% decrease in product sales, partially offset by a 46% increase in contract research and development revenue. Net income for the first quarter of fiscal 2017 decreased 18% to $3.13 million, or $0.65 per diluted share, compared to $3.80 million, or $0.78 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, 2016 to shareholders of record as of August 1, 2016.
“We are pleased to report our second consecutive sequential quarterly increases in product sales, total revenue, and net income,” 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 ENDED JUNE 30, 2016 AND 2015 (Unaudited)
Quarter Ended June 30
2016 2015
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Revenue
Product sales $ 5,851,214 $ 7,735,865
Contract research and development 856,558 585,054
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Total revenue 6,707,772 8,320,919
Cost of sales 1,385,178 1,993,928
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Gross profit 5,322,594 6,326,991
Expenses
Selling, general, and administrative 389,915 484,764
Research and development 758,368 681,001
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Total expenses 1,148,283 1,165,765
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Income from operations 4,174,311 5,161,226
Interest income 437,734 485,798
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Income before taxes 4,612,045 5,647,024
Provision for income taxes 1,479,500 1,843,798
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Net income $ 3,132,545 $ 3,803,226
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Net income per share - basic $ 0.65 $ 0.78
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Net income per share - diluted $ 0.65 $ 0.78
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Weighted average shares outstanding
Basic 4,835,010 4,854,841
Diluted 4,837,095 4,860,848
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2016
(Unaudited)
June 30, 2016 March 31, 2016
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ASSETS
Current assets
Cash and cash equivalents $ 1,905,697 $ 7,534,593
Marketable securities, short term 19,559,795 19,697,384
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,651,926 2,244,086
Inventories 3,186,450 3,205,233
Prepaid expenses and other assets 701,867 734,524
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Total current assets 28,005,735 33,415,820
Fixed assets
Machinery and equipment 8,839,621 8,840,033
Leasehold improvements 1,539,965 1,539,965
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10,379,586 10,379,998
Less accumulated depreciation 8,882,264 8,688,285
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Net fixed assets 1,497,322 1,691,713
Long-term deferred tax assets - 51,188
Marketable securities, long term 71,170,799 65,695,335
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Total assets $ 100,673,856 $ 100,854,056
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 297,831 $ 317,990
Accrued payroll and other 591,821 556,674
Income taxes payable 1,281,154 -
Deferred revenue 714,805 714,805
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Total current liabilities 3,079,931 1,589,469
Long-term deferred tax liabilities 520 -
Shareholders' equity
Common stock 48,350 48,350
Additional paid-in capital 19,205,682 19,205,682
Accumulated other comprehensive income 676,962 451,359
Retained earnings 77,856,731 79,559,196
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Total shareholders' equity 97,787,725 99,264,587
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Total liabilities and shareholders' equity $ 100,673,856 $ 100,854,056
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