EDEN PRAIRIE, Minn., Jan. 22, 2014 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC ) announced today financial results for the quarter and nine months ended December 31, 2013.
Total revenue for the third quarter of fiscal 2014 decreased 1% to $6.47 million from $6.53 million in the prior-year quarter. The revenue decrease was due to 97% decrease in contract research and development revenue, partially offset by a 12% increase in product sales. Net income for the third quarter of fiscal 2014 decreased 4% to $2.78 million, or $0.57 per diluted share, compared to $2.90 million, or $0.60 per share, for the prior-year quarter.
For the first nine months of fiscal 2014, total revenue increased 1% to $20.0 million from $19.8 million for the first nine months of the prior year. The increase was due to a 9% increase in product sales, partially offset by an 83% decrease in contract research and development revenue. Net income for the first nine months of fiscal 2014 decreased 2% to $8.57 million, or $1.76 per diluted share, compared to $8.72 million, or $1.80 per share, for the first nine months of fiscal 2013.
"We are pleased to report a 12% increase in product sales and solid earnings for the quarter despite an 81% increase in our investment in research and development," 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, uncertainties related to direct and indirect U.S. Government funding, 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, 2013 and other reports filed with the SEC.
NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2013 AND 2012 (Unaudited) Quarter Ended December 31 2013 2012 ------------- ------------- Revenue Product sales $ 6,448,407 $ 5,762,925 Contract research and development 25,290 762,296 ------------- ------------- Total revenue 6,473,697 6,525,221 Cost of sales 1,449,396 1,738,618 ------------- ------------- Gross profit 5,024,301 4,786,603 Expenses Selling, general, and administrative 543,698 570,741 Research and development 905,246 501,325 ------------- ------------- Total expenses 1,448,944 1,072,066 ------------- ------------- Income from operations 3,575,357 3,714,537 Interest income 530,383 600,395 ------------- ------------- Income before taxes 4,105,740 4,314,932 Provision for income taxes 1,328,566 1,415,590 ------------- ------------- Net income $ 2,777,174 $ 2,899,342 ============= ============= Net income per share -- basic $ 0.57 $ 0.60 ============= ============= Net income per share -- diluted $ 0.57 $ 0.60 ============= ============= Weighted average shares outstanding Basic 4,842,565 4,847,619 Diluted 4,859,601 4,872,019 Nine Months Ended December 31 2013 2012 ------------- ------------- Revenue Product sales $ 19,654,162 $ 18,025,002 Contract research and development 297,648 1,785,920 ------------- ------------- Total revenue 19,951,810 19,810,922 Cost of sales 4,331,297 5,147,884 ------------- ------------- Gross profit 15,620,513 14,663,038 Expenses Selling, general, and administrative 1,756,578 1,714,545 Research and development 2,744,620 1,801,609 ------------- ------------- Total expenses 4,501,198 3,516,154 ------------- ------------- Income from operations 11,119,315 11,146,884 Interest income 1,577,524 1,784,963 ------------- ------------- Income before taxes 12,696,839 12,931,847 Provision for income taxes 4,123,189 4,211,964 ------------- ------------- Net income $ 8,573,650 $ 8,719,883 ============= ============= Net income per share -- basic $ 1.77 $ 1.80 ============= ============= Net income per share -- diluted $ 1.76 $ 1.80 ============= ============= Weighted average shares outstanding Basic 4,852,356 4,832,630 Diluted 4,868,040 4,856,851
NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2013 Dec. 31, March 31, 2013 2013 -------------- ------------- ASSETS Current assets Cash and cash equivalents $ 1,961,285 $ 2,509,683 Marketable securities, short term 10,293,147 9,711,029 Accounts receivable, net of allowance for uncollectible accounts of $15,000 1,789,490 2,521,395 Inventories 3,029,903 3,336,592 Deferred tax assets 241,599 -- Prepaid expenses and other assets 1,220,833 958,147 -------------- ------------- Total current assets 18,536,257 19,036,846 Fixed assets Machinery and equipment 8,450,954 8,417,061 Leasehold improvements 1,499,454 1,499,454 -------------- ------------- 9,950,408 9,916,515 Less accumulated depreciation 6,829,363 6,228,122 -------------- ------------- Net fixed assets 3,121,045 3,688,393 Marketable securities, long term 80,584,799 73,040,257 -------------- ------------- Total assets $ 102,242,101 $ 95,765,496 ============== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 285,777 $ 422,092 Accrued payroll and other 833,330 918,060 Deferred taxes -- 440,736 -------------- ------------- Total current liabilities 1,119,107 1,780,888 Long-term deferred tax liabilities 282,342 -- Shareholders' equity Common stock 48,460 48,624 Additional paid-in capital 20,245,775 21,200,742 Accumulated other comprehensive income 795,251 1,557,726 Retained earnings 79,751,166 71,177,516 -------------- ------------- Total shareholders' equity 100,840,652 93,984,608 -------------- ------------- Total liabilities and shareholders' equity $ 102,242,101 $ 95,765,496 ============== =============
Curt A. Reynders, CFO (952) 829-9217
