EDEN PRAIRIE, Minn., Jan. 23, 2008 (PRIME NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2007.
Product sales for the quarter increased 25% over the prior-year quarter to $4.25 million from $3.40 million. Total revenue, consisting of product sales and contract research and development revenue, increased 23% to $4.77 million for the third quarter of fiscal 2008 from $3.86 million in the prior-year quarter. Net income for the third quarter of fiscal 2008 increased 62% to $1.70 million, or $0.36 per diluted share, compared to $1.05 million, or $0.22 per share, for the prior-year quarter.
For the first nine months of fiscal 2008, product sales increased 25% to $12.83 million from $10.23 million for the first nine months of fiscal 2007. Total revenue increased 22% to $14.48 million for the first nine months of fiscal 2008 from $11.90 million for the prior-year period. Net income for the nine months of fiscal 2008 was $4.93 million, or $1.04 per diluted share compared to $3.23 million, or $0.67 per diluted share, for the first nine months of fiscal 2007.
"We are pleased to report our best third quarter ever," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Increases in product sales and operating margins drove record earnings."
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 in continued growth in revenue and profitability, risks associated with our reliance on several large customers, 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 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2007 AND 2006 (Unaudited)
Quarter Ended December 31
2007 2006
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Revenue
Product sales $ 4,249,809 $ 3,402,937
Contract research and
development 515,716 459,112
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Total revenue 4,765,525 3,862,049
Cost of sales 1,663,045 1,385,163
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Gross profit 3,102,480 2,476,886
Expenses
Selling, general, and
administrative 492,771 479,387
Research and development 347,344 544,779
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Total expenses 840,115 1,024,166
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Income from operations 2,262,365 1,452,720
Interest income 259,865 157,337
Other income 62,930 --
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Income before taxes 2,585,160 1,610,057
Provision for income taxes 882,867 558,504
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Net income $ 1,702,293 $ 1,051,553
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Net income per share - basic $ 0.37 $ 0.23
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Net income per share - diluted $ 0.36 $ 0.22
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Weighted average shares outstanding
Basic 4,637,275 4,620,835
Diluted 4,764,430 4,786,868
Supplemental financial data
Stock-based compensation $ 5,598 $ 8,167
Cash paid for income taxes $ 725,000 $ --
Nine Months Ended Dec. 31
2007 2006
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Revenue
Product sales $12,830,771 $10,233,325
Contract research and
development 1,648,657 1,662,287
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Total revenue 14,479,428 11,895,612
Cost of sales 4,956,973 4,224,165
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Gross profit 9,522,455 7,671,447
Expenses
Selling, general,
and administrative 1,631,936 1,421,332
Research and development 1,169,018 1,641,637
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Total expenses 2,800,954 3,062,969
----------- -----------
Income from operations 6,721,501 4,608,478
Interest income 731,243 418,683
Interest expense -- (589)
Other income 62,930 25,246
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Income before taxes 7,515,674 5,051,818
Provision for income taxes 2,581,272 1,824,988
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Net income $ 4,934,402 $ 3,226,830
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Net income per share - basic $ 1.06 $ 0.70
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Net income per share - diluted $ 1.04 $ 0.67
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Weighted average shares
outstanding
Basic 4,634,102 4,618,086
Diluted 4,761,112 4,784,118
Supplemental financial data
Stock-based compensation $ 164,008 $ 128,203
Cash paid for income taxes $ 2,209,313 $ 44,300
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2007
(Unaudited)
Dec. 31, March 31,
2007 2007
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ASSETS
Current assets
Cash and cash
equivalents $ 1,251,701 $ 397,423
Marketable securities,
short term 1,693,149 982,415
Accounts receivable,
net of allowance for
uncollectible accounts
of $15,000 2,182,762 2,005,005
Inventories 2,493,812 2,016,858
Deferred tax assets 473,289 1,328,106
Prepaid expenses and
other assets 839,037 333,587
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Total current assets 8,933,750 7,063,394
Fixed assets
Machinery and equipment 5,061,407 4,458,948
Leasehold improvements 436,794 413,482
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5,498,201 4,872,430
Less accumulated
depreciation 4,173,394 3,834,683
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Net fixed assets 1,324,807 1,037,747
Marketable securities,
long term 20,109,098 16,909,353
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Total assets $ 30,367,655 $ 25,010,494
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 435,175 $ 502,595
Accrued payroll and other 550,276 590,287
Deferred revenue 237,101 29,357
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Total current liabilities 1,222,552 1,122,239
Shareholders' equity
Common stock 46,387 46,274
Additional paid-in capital 18,533,940 18,289,248
Accumulated other
comprehensive loss (6,641) (84,282)
Retained earnings 10,571,417 5,637,015
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Total shareholders' equity 29,145,103 23,888,255
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Total liabilities and
shareholders' equity $ 30,367,655 $ 25,010,494
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