EDEN PRAIRIE, Minn., Jan. 20, 2016 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2015.
Total revenue for the third quarter of fiscal 2016 decreased 4% to $6.02 million from $6.29 million in the prior-year quarter. The decrease was due to a 15% decrease in product sales, partially offset by a 143% increase in contract research and development revenue. Net income for the third quarter of fiscal 2016 decreased 8% to $2.58 million, or $0.53 per diluted share, compared to $2.79 million, or $0.57 per share, for the prior-year quarter.
For the first nine months of fiscal 2016, total revenue decreased 6% to $21.6 million from $23.0 million for the first nine months of the prior year. The decrease was due to a 14% decrease in product sales, partially offset by a 263% increase in contract research and development revenue. Net income decreased 9% to $9.69 million, or $2.00 per diluted share, for the first nine months of fiscal 2016 compared to $10.7 million, or $2.20 per share, for the prior-year period.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 29, 2016 to shareholders of record as of February 1, 2016.
“We are pleased to report solid results for the quarter despite decreased product sales,” 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, 2015 and other reports filed with the SEC.
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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2015 AND 2014 (Unaudited) Quarter Ended Dec. 31 2015 2014 ------------------------- Revenue Product sales $ 5,025,041 $ 5,883,690 Contract research and development 990,974 408,058 ------------------------- Total revenue 6,016,015 6,291,748 Cost of sales 1,508,361 1,473,655 ------------------------- Gross profit 4,507,654 4,818,093 Expenses Selling, general, and administrative 406,676 533,695 Research and development 738,657 694,758 ------------------------- Total expenses 1,145,333 1,228,453 ------------------------- Income from operations 3,362,321 3,589,640 Interest income 468,367 557,843 ------------------------- Income before taxes 3,830,688 4,147,483 Provision for income taxes 1,253,237 1,354,577 ------------------------- Net income $ 2,577,451 $ 2,792,906 ========================= Net income per share - basic $ 0.53 $ 0.57 ========================= Net income per share - diluted $ 0.53 $ 0.57 ========================= Weighted average shares outstanding Basic 4,844,845 4,857,953 Diluted 4,846,970 4,876,074 Nine Months Ended Dec. 31 2015 2014 ------------------------- Revenue Product sales $19,197,578 $22,345,577 Contract research and development 2,419,113 666,579 ------------------------- Total revenue 21,616,691 23,012,156 Cost of sales 5,146,803 4,641,633 ------------------------- Gross profit 16,469,888 18,370,523 Expenses Selling, general, and administrative 1,416,071 1,788,944 Research and development 2,048,620 2,285,465 ------------------------- Total expenses 3,464,691 4,074,409 ------------------------- Income from operations 13,005,197 14,296,114 Interest income 1,422,696 1,669,320 ------------------------- Income before taxes 14,427,893 15,965,434 Provision for income taxes 4,736,421 5,259,796 ------------------------- Net income $ 9,691,472 $10,705,638 ========================= Net income per share - basic $ 2.00 $ 2.21 ========================= Net income per share - diluted $ 2.00 $ 2.20 ========================= Weighted average shares outstanding Basic 4,853,970 4,854,702 Diluted 4,857,103 4,871,270 NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2015 Dec. 31, 2015 March 31, 2015 ------------------------------- ASSETS Current assets Cash and cash equivalents $ 3,594,164 $ 9,437,262 Marketable securities, short term 23,629,484 20,099,288 Accounts receivable, net of allowance for uncollectible accounts of $15,000 1,753,689 2,963,974 Inventories 3,108,911 3,742,492 Deferred tax assets 152,789 102,052 Prepaid expenses and other assets 903,568 574,913 ------------------------------ Total current assets 33,142,605 36,919,981 Fixed assets Machinery and equipment 8,766,708 8,604,926 Leasehold improvements 1,539,965 1,524,298 ------------------------------ 10,306,673 10,129,224 Less accumulated depreciation and amortization 8,502,002 7,873,816 ------------------------------ Net fixed assets 1,804,671 2,255,408 Long-term deferred tax assets 99,958 - Marketable securities, long term 68,127,073 70,913,807 ------------------------------ Total assets $ 103,174,307 $ 110,089,196 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 209,686 $ 358,818 Accrued payroll and other 650,846 1,127,136 Deferred revenue 714,805 - ------------------------------ Total current liabilities 1,575,337 1,485,954 Long-term deferred tax liabilities - 275,708 Shareholders' equity Common stock 48,449 48,580 Additional paid-in capital 19,665,966 20,850,762 Accumulated other comprehensive income 81,357 746,447 Retained earnings 81,803,198 86,681,745 ------------------------------ Total shareholders' equity 101,598,970 108,327,534 ------------------------------ Total liabilities and shareholders' equity $ 103,174,307 $ 110,089,196 ==============================
Curt A. Reynders, CFO (952) 829-9217
