EDEN PRAIRIE, Minn., Oct. 17, 2012 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2012.
Total revenue for the second quarter of fiscal 2013 decreased 12% to $5.82 million from $6.60 million in the prior-year quarter. The revenue decrease was due to a 6% decrease in product sales and a 43% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2013 decreased 4% to $2.44 million, or $0.50 per diluted share, compared to $2.56 million, or $0.52 per diluted share, for the prior-year quarter.
For the first six months of fiscal 2013, total revenue decreased 10% to $13.3 million from $14.8 million for the first six months of the prior year. The decrease was due primarily to a 54% decrease in contract research and development revenue. Net income for the first half of fiscal 2013 was $5.82 million, or $1.19 per diluted share, compared to $5.99 million, or $1.22 per diluted share, for the first half of fiscal 2012.
"We are able to report solid earnings for the quarter and first half despite decreases in total revenue due primarily to decreases in contract research and development revenue," 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.
The NVE Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3120
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 in the enforcement of our patents, litigation risks, 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, 2012 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2012
AND 2011 (Unaudited)
Quarter Ended September 30
2012 2011
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Revenue
Product sales $ 5,231,332 $ 5,557,299
Contract research
and development 591,464 1,041,334
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Total revenue 5,822,796 6,598,633
Cost of sales 1,606,913 2,277,926
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Gross profit 4,215,883 4,320,707
Expenses
Selling, general,
and administrative 607,694 606,847
Research and
development 612,258 611,595
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Total expenses 1,219,952 1,218,442
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Income from
operations 2,995,931 3,102,265
Interest income 621,950 597,363
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Income before taxes 3,617,881 3,699,628
Provision for income
taxes 1,174,998 1,144,535
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Net income $ 2,442,883 $ 2,555,093
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Net income per share
-- basic $ 0.51 $ 0.53
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Net income per share
-- diluted $ 0.50 $ 0.52
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Weighted average
shares outstanding
Basic 4,825,441 4,776,198
Diluted 4,884,656 4,896,525
Six Months Ended
September 30
2012 2011
------------- -------------
Revenue
Product sales $ 12,262,077 $ 12,580,573
Contract research
and development 1,023,624 2,231,822
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Total revenue 13,285,701 14,812,395
Cost of sales 3,409,266 4,873,518
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Gross profit 9,876,435 9,938,877
Expenses
Selling, general,
and administrative 1,143,804 1,222,677
Research and
development 1,300,284 1,106,471
------------- -------------
Total expenses 2,444,088 2,329,148
------------- -------------
Income from
operations 7,432,347 7,609,729
Interest income 1,184,568 1,162,892
------------- -------------
Income before taxes 8,616,915 8,772,621
Provision for income
taxes 2,796,374 2,778,300
------------- -------------
Net income $ 5,820,541 $ 5,994,321
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Net income per share
-- basic $ 1.21 $ 1.26
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Net income per share
-- diluted $ 1.19 $ 1.22
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Weighted average
shares outstanding
Basic 4,825,095 4,776,198
Diluted 4,882,524 4,896,525
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2012
Sept. 30, March 31,
2012 2012
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 1,934,562 $ 1,544,536
Marketable securities,
short term 15,907,264 17,551,629
Accounts receivable, net of
allowance for
uncollectible accounts of
$15,000 1,961,682 2,684,840
Inventories 3,522,488 3,229,376
Prepaid expenses and other
assets 1,287,755 1,159,852
------------- -------------
Total current assets 24,613,751 26,170,233
Fixed assets
Machinery and equipment 8,211,475 7,488,211
Leasehold improvements 1,016,887 720,882
------------- -------------
9,228,362 8,209,093
Less accumulated
depreciation 5,989,392 5,697,861
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Net fixed assets 3,238,970 2,511,232
Marketable securities, long
term 62,020,033 54,445,298
------------- -------------
Total assets $ 89,872,754 $ 83,126,763
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 657,070 $ 663,702
Accrued payroll and other 813,407 867,331
Deferred taxes 452,328 136,872
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Total current liabilities 1,922,805 1,667,905
Shareholders' equity
Common stock 48,267 48,247
Additional paid-in capital 21,112,980 20,974,477
Accumulated other
comprehensive income 1,619,483 1,087,456
Retained earnings 65,169,219 59,348,678
------------- -------------
Total shareholders' equity 87,949,949 81,458,858
------------- -------------
Total liabilities and
shareholders' equity $ 89,872,754 $ 83,126,763
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