EDEN PRAIRIE, Minn., May 7, 2014 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC ) announced today financial results for the quarter and fiscal year ended March 31, 2014.
Total revenue for the fourth quarter of fiscal 2014 decreased 17% to $5.98 million from $7.22 million in the prior-year quarter. The decrease was due to a 9% decrease in product sales and an 85% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2014 decreased 18% to $2.56 million, or $0.53 per diluted share, compared to $3.11 million, or $0.64 per diluted share, for the prior-year quarter.
For fiscal 2014, total revenue decreased 4% to $25.9 million from $27.0 million for the prior fiscal year. Product sales increased 4% to $25.5 million and contract research and development revenue decreased 84% to $423,000. Net income for fiscal 2014 decreased 6% to $11.1 million, or $2.29 per diluted share, compared to $11.8 million, or $2.43 per diluted share, for fiscal 2013.
"We are pleased to report an increase in product sales and record gross margins for the year," 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, 2014 and other reports filed with the SEC.
NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2014 AND 2013 (Unaudited) Quarter Ended March 31 2014 2013 --------------------------- Revenue Product sales $ 5,857,866 $ 6,409,821 Contract research and development 125,231 812,676 --------------------------- Total revenue 5,983,097 7,222,497 Cost of sales 1,388,980 1,877,297 --------------------------- Gross profit 4,594,117 5,345,200 Expenses Selling, general, and administrative 478,897 526,018 Research and development 840,719 769,212 --------------------------- Total expenses 1,319,616 1,295,230 --------------------------- Income from operations 3,274,501 4,049,970 Interest income 544,609 574,640 --------------------------- Income before taxes 3,819,110 4,624,610 Provision for income taxes 1,256,885 1,515,655 --------------------------- Net income $ 2,562,225 $ 3,108,955 =========================== Net income per share - basic $ 0.53 $ 0.64 =========================== Net income per share - diluted $ 0.53 $ 0.64 =========================== Weighted average shares outstanding Basic 4,848,721 4,861,747 Diluted 4,866,382 4,885,865 Year Ended March 31 2014 2013 --------------------------- Revenue Product sales $ 25,512,028 $ 24,434,823 Contract research and development 422,879 2,598,596 --------------------------- Total revenue 25,934,907 27,033,419 Cost of sales 5,720,277 7,025,181 --------------------------- Gross profit 20,214,630 20,008,238 Expenses Selling, general, and administrative 2,235,475 2,240,563 Research and development 3,585,339 2,570,821 --------------------------- Total expenses 5,820,814 4,811,384 --------------------------- Income from operations 14,393,816 15,196,854 Interest income 2,122,133 2,359,603 --------------------------- Income before taxes 16,515,949 17,556,457 Provision for income taxes 5,380,074 5,727,619 --------------------------- Net income $ 11,135,875 $ 11,828,838 =========================== Net income per share - basic $ 2.30 $ 2.44 =========================== Net income per share - diluted $ 2.29 $ 2.43 =========================== Weighted average shares outstanding Basic 4,851,460 4,839,810 Diluted 4,867,691 4,863,546
NVE CORPORATION BALANCE SHEETS MARCH 31, 2014 AND 2013 March 31, March 31, 2014 2013 --------------------------- ASSETS Current assets Cash and cash equivalents $ 1,262,300 $ 2,509,683 Marketable securities, short term 12,360,091 9,711,029 Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,331,574 2,521,395 Inventories 3,207,333 3,336,592 Deferred tax assets 237,387 -- Prepaid expenses and other assets 816,276 958,147 --------------------------- Total current assets 20,214,961 19,036,846 Fixed assets Machinery and equipment 8,536,010 8,417,061 Leasehold improvements 1,499,454 1,499,454 --------------------------- 10,035,464 9,916,515 Less accumulated depreciation 7,030,692 6,228,122 --------------------------- Net fixed assets 3,004,772 3,688,393 Marketable securities, long term 82,022,310 73,040,257 --------------------------- Total assets $ 105,242,043 $ 95,765,496 =========================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 374,127 $ 422,092 Accrued payroll and other 808,675 918,060 Deferred taxes -- 440,736 --------------------------- Total current liabilities 1,182,802 1,780,888 Long-term deferred tax liabilities 354,600 -- Shareholders' equity Common stock 48,510 48,624 Additional paid-in capital 20,464,883 21,200,742 Accumulated other comprehensive income 877,857 1,557,726 Retained earnings 82,313,391 71,177,516 --------------------------- Total shareholders' equity 103,704,641 93,984,608 --------------------------- Total liabilities and shareholders' equity $ 105,242,043 $ 95,765,496 ===========================
Curt A. Reynders, CFO (952) 829-9217
