Eden Prairie, Minn., Oct. 18, 2017 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2017.
Total revenue for the second quarter of fiscal 2018 decreased 4% to $7.00 million from $7.30 million in the prior-year quarter. The decrease was due to a 6% decrease in product sales, partially offset by a 25% increase in contract research and development revenue. Net income for the second quarter of fiscal 2018 decreased 4% to $3.16 million, or $0.65 per diluted share, compared to $3.31 million, or $0.68 per share, for the prior-year quarter.
For the first six months of fiscal 2018, total revenue increased 4% to $14.6 million from $14.0 million for the first six months of the prior year. The increase was primarily due to a 5% increase in product sales. Net income increased slightly to $6.46 million, or $1.33 per diluted share, for the first half of fiscal 2018 compared to $6.44 million, or $1.33 per share, for the first half of fiscal 2017.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2017 to shareholders of record as of October 30, 2017.
“We are pleased to report solid earnings 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 related to our reliance on several large customers for a significant percentage of revenue, 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, 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, 2017 and other reports filed with the SEC.
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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2017 AND 2016 (Unaudited) Quarter Ended September 30 2017 2016 ----------------------------- Revenue Product sales $ 6,387,080 $ 6,814,384 Contract research and development 609,154 488,155 ----------------------------- Total revenue 6,996,234 7,302,539 Cost of sales 1,353,169 1,740,814 ----------------------------- Gross profit 5,643,065 5,561,725 Expenses Selling, general, and administrative 348,363 343,688 Research and development 1,030,504 768,188 ----------------------------- Total expenses 1,378,867 1,111,876 ----------------------------- Income from operations 4,264,198 4,449,849 Interest income 387,860 430,983 ----------------------------- Income before taxes 4,652,058 4,880,832 Provision for income taxes 1,491,023 1,575,635 ----------------------------- Net income $ 3,161,035 $ 3,305,197 ============================= Net income per share - basic $ 0.65 $ 0.68 ============================= Net income per share - diluted $ 0.65 $ 0.68 ============================= Weighted average shares outstanding Basic 4,841,010 4,835,564 Diluted 4,845,632 4,837,819 Six Months Ended September 30 2017 2016 ------------------------------ Revenue Product sales $ 13,269,753 $ 12,665,598 Contract research and development 1,334,147 1,344,713 ------------------------------ Total revenue 14,603,900 14,010,311 Cost of sales 3,151,535 3,125,992 ------------------------------ Gross profit 11,452,365 10,884,319 Expenses Selling, general, and administrative 747,724 733,603 Research and development 1,936,229 1,526,556 ------------------------------ Total expenses 2,683,953 2,260,159 ------------------------------ Income from operations 8,768,412 8,624,160 Interest income 749,638 868,717 ------------------------------ Income before taxes 9,518,050 9,492,877 Provision for income taxes 3,059,400 3,055,135 ------------------------------ Net income $ 6,458,650 $ 6,437,742 ============================== Net income per share - basic $ 1.33 $ 1.33 ============================== Net income per share - diluted $ 1.33 $ 1.33 ============================== Weighted average shares outstanding Basic 4,841,010 4,835,289 Diluted 4,845,907 4,837,293 NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2017 (Unaudited) Sept. 30, 2017 March 31, 2017 ------------------------------ ASSETS Current assets Cash and cash equivalents $ 5,108,313 $ 8,199,364 Marketable securities, short term 16,921,738 19,591,833 Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,659,618 3,436,802 Inventories 3,504,478 3,358,298 Prepaid expenses and other assets 523,190 607,283 ------------------------------ Total current assets 28,717,337 35,193,580 Fixed assets Machinery and equipment 9,447,726 9,007,455 Leasehold improvements 1,730,525 1,644,419 ------------------------------ 11,178,251 10,651,874 Less accumulated depreciation and amortization 9,555,119 9,238,626 ------------------------------ Net fixed assets 1,623,132 1,413,248 Long-term deferred tax assets 432,106 357,055 Marketable securities, long term 59,622,760 56,810,923 ------------------------------ Total assets $ 90,395,335 $ 93,774,806 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 249,697 $ 376,275 Accrued payroll and other 580,838 576,313 Deferred revenue - 142,733 ----------------------------- Total current liabilities 830,535 1,095,321 Shareholders' equity Common stock 48,410 48,410 Additional paid-in capital 19,548,268 19,507,348 Accumulated other comprehensive income (loss) 29,467 (38,298) Retained earnings 69,938,655 73,162,025 ------------------------------ Total shareholders' equity 89,564,800 92,679,485 ------------------------------ Total liabilities and shareholders' equity $ 90,395,335 $ 93,774,806 ==============================