EDEN PRAIRIE, Minn., Oct. 19, 2016 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2016. Total revenue for the second quarter of fiscal 2017 increased slightly to $7.30 million from $7.28 million in the prior-year quarter. The increase was due to a 6% increase in product sales, partially offset by a 42% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2017 was $3.31 million, or $0.68 per diluted share, the same as the prior-year quarter. For the first six months of fiscal 2017, total revenue decreased 10% to $14.0 million from $15.6 million for the first six months of the prior year. The decrease was due to an 11% decrease in product sales and a 6% decrease in contract research and development revenue. Net income decreased 10% to $6.44 million, or $1.33 per diluted share, for the first half of fiscal 2017 compared to $7.11 million, or $1.46 per share, for the first half of fiscal 2016. The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2016 to shareholders of record as of October 31, 2016. "We are pleased to report a solid increase in product sales for the quarter, and our third consecutive sequential quarterly increases in product sales, total revenue, and net income," 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, 2016 and other reports filed with the SEC.
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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2016 AND 2015 (Unaudited) Quarter Ended September 30 2016 2015 ------------------------------ Revenue Product sales $ 6,814,384 $ 6,436,672 Contract research and development 488,155 843,085 ------------------------------ Total revenue 7,302,539 7,279,757 Cost of sales 1,740,814 1,644,514 ------------------------------ Gross profit 5,561,725 5,635,243 Expenses Selling, general, and administrative 343,688 524,631 Research and development 768,188 628,962 ------------------------------ Total expenses 1,111,876 1,153,593 ------------------------------ Income from operations 4,449,849 4,481,650 Interest income 430,983 468,531 ------------------------------ Income before taxes 4,880,832 4,950,181 Provision for income taxes 1,575,635 1,639,386 ------------------------------ Net income $ 3,305,197 $ 3,310,795 ============================== Net income per share - basic $ 0.68 $ 0.68 ============================== Net income per share - diluted $ 0.68 $ 0.68 ============================== Weighted average shares outstanding Basic 4,835,564 4,855,398 Diluted 4,837,819 4,858,133 Six Months Ended September 30 2016 2015 ------------------------------ Revenue Product sales $ 12,665,598 $ 14,172,537 Contract research and development 1,344,713 1,428,139 ------------------------------ Total revenue 14,010,311 15,600,676 Cost of sales 3,125,992 3,638,442 ------------------------------ Gross profit 10,884,319 11,962,234 Expenses Selling, general, and administrative 733,603 1,009,395 Research and development 1,526,556 1,309,963 ------------------------------ Total expenses 2,260,159 2,319,358 ------------------------------ Income from operations 8,624,160 9,642,876 Interest income 868,717 954,329 ------------------------------ Income before taxes 9,492,877 10,597,205 Provision for income taxes 3,055,135 3,483,184 ------------------------------ Net income $ 6,437,742 $ 7,114,021 ============================== Net income per share - basic $ 1.33 $ 1.46 ============================== Net income per share - diluted $ 1.33 $ 1.46 ============================== Weighted average shares outstanding Basic 4,835,289 4,858,557 Diluted 4,837,293 4,862,431
NVE CORPORATION BALANCE SHEETS SEPTEMBER 30 AND MARCH 31, 2016 (Unaudited) Sept. 30, 2016 March 31, 2016 ------------------------------ ASSETS Current assets Cash and cash equivalents $ 5,690,673 $ 7,534,593 Marketable securities, short term 22,318,903 19,697,384 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,368,170 2,244,086 Inventories 2,908,881 3,205,233 Prepaid expenses and other assets 697,788 734,524 ------------------------------ Total current assets 34,984,415 33,415,820 Fixed assets Machinery and equipment 8,973,375 8,840,033 Leasehold improvements 1,559,719 1,539,965 ------------------------------ 10,533,094 10,379,998 Less accumulated depreciation 9,080,831 8,688,285 ------------------------------ Net fixed assets 1,452,263 1,691,713 Long-term deferred tax assets 123,410 51,188 Marketable securities, long term 60,777,962 65,695,335 ------------------------------ Total assets $ 97,338,050 $ 100,854,056 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 310,030 $ 317,990 Accrued payroll and other 563,960 556,674 Deferred revenue 383,877 714,805 ------------------------------ Total current liabilities 1,257,867 1,589,469 Shareholders' equity Common stock 48,360 48,350 Additional paid-in capital 19,268,752 19,205,682 Accumulated other comprehensive income 436,153 451,359 Retained earnings 76,326,918 79,559,196 ------------------------------ Total shareholders' equity 96,080,183 99,264,587 ------------------------------ Total liabilities and shareholders' equity $ 97,338,050 $ 100,854,056 ==============================
Curt Reynders, Chief Financial Officer 952-829-9217
