EDEN PRAIRIE, Minn., Jan. 18, 2017 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and nine months ended December 31, 2016.
Total revenue for the third quarter of fiscal 2017 increased 24% to $7.46 million from $6.02 million in the prior-year quarter. The increase was due to a 42% increase in product sales, partially offset by a 65% decrease in contract research and development revenue. Net income for the third quarter of fiscal 2017 increased 35% to $3.48 million, or $0.72 per diluted share, compared to $2.58 million, or $0.53 per share, for the prior-year quarter.
For the first nine months of fiscal 2017, total revenue decreased 1% to $21.5 million from $21.6 million for the first nine months of the prior year. The decrease was due to a 30% decrease in contract research and development revenue, partially offset by a 3% increase in product sales. Net income increased 2% to $9.92 million, or $2.05 per diluted share, for the first nine months of fiscal 2017 compared to $9.69 million, or $2.00 per share, for the first nine months of fiscal 2016.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 28, 2017 to shareholders of record as of January 30, 2017.
“We are pleased to report strong increases in product sales, total revenue, and net income for the quarter,” 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 NINE MONTHS ENDED DECEMBER 31, 2016 AND 2015 (Unaudited) Quarter Ended Dec. 31 ------------------------------- 2016 2015 ------------------------------- Revenue Product sales $ 7,116,931 $ 5,025,041 Contract research and development 345,748 990,974 ------------------------------- Total revenue 7,462,679 6,016,015 Cost of sales 1,502,848 1,508,361 ------------------------------- Gross profit 5,959,831 4,507,654 Expenses Selling, general, and administrative 384,322 406,676 Research and development 826,816 738,657 ------------------------------- Total expenses 1,211,138 1,145,333 ------------------------------- Income from operations 4,748,693 3,362,321 Interest income 395,207 468,367 ------------------------------- Income before taxes 5,143,900 3,830,688 Provision for income taxes 1,660,156 1,253,237 ------------------------------- Net income $ 3,483,744 $ 2,577,451 =============================== Net income per share – basic $ 0.72 $ 0.53 =============================== Net income per share – diluted $ 0.72 $ 0.53 =============================== Weighted average shares outstanding Basic 4,836,336 4,844,845 Diluted 4,839,777 4,846,970 Nine Months Ended Dec. 31 ------------------------------- 2016 2015 ------------------------------- Revenue Product sales $ 19,782,529 $ 19,197,578 Contract research and development 1,690,461 2,419,113 ------------------------------- Total revenue 21,472,990 21,616,691 Cost of sales 4,628,840 5,146,803 ------------------------------- Gross profit 16,844,150 16,469,888 Expenses Selling, general, and administrative 1,117,925 1,416,071 Research and development 2,353,372 2,048,620 ------------------------------- Total expenses 3,471,297 3,464,691 ------------------------------- Income from operations 13,372,853 13,005,197 Interest income 1,263,924 1,422,696 ------------------------------- Income before taxes 14,636,777 14,427,893 Provision for income taxes 4,715,291 4,736,421 ------------------------------- Net income $ 9,921,486 $ 9,691,472 =============================== Net income per share – basic $ 2.05 $ 2.00 =============================== Net income per share – diluted $ 2.05 $ 2.00 =============================== Basic 4,835,639 4,853,970 Diluted 4,837,815 4,857,103 NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2016 (Unaudited) December 31, 2016 March 31, 2016 --------------------------------- ASSETS Current assets Cash and cash equivalents $ 3,799,188 $ 7,534,593 Marketable securities, short-term 24,655,206 19,697,384 Accounts receivable, net of allowance for uncollectible accounts of $15,000 1,461,659 2,244,086 Inventories 3,162,478 3,205,233 Prepaid expenses and other assets 751,433 734,524 ------------------------------- Total current assets 33,829,964 33,415,820 ------------------------------- Fixed assets Machinery and equipment 9,020,726 8,840,033 Leasehold improvements 1,559,719 1,539,965 ------------------------------- 10,580,445 10,379,998 Less accumulated depreciation and amortization 9,281,531 8,688,285 ------------------------------- Net fixed assets 1,298,914 1,691,713 Long-term deferred tax assets 446,949 51,188 Marketable securities, long-term 59,668,735 65,695,335 ------------------------------- Total assets $ 95,244,562 $ 100,854,056 =============================== LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable $ 358,530 $ 317,990 Accrued payroll and other 679,040 556,674 Deferred revenue - 714,805 ------------------------------- Total current liabilities 1,037,570 1,589,469 Shareholders’ equity Common stock 48,370 48,350 Additional paid-in capital 19,319,679 19,205,682 Accumulated other comprehensive (loss) income (135,709) 451,359 Retained earnings 74,974,652 79,559,196 ------------------------------- Total shareholders’ equity 94,206,992 99,264,587 ------------------------------- Total liabilities and shareholders’ equity $ 95,244,562 $ 100,854,056 ===============================
Curt Reynders, Chief Financial Officer 952-829-9217
