EDEN PRAIRIE, Minn., Oct. 21, 2009 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2009.
Total revenue for the second quarter of fiscal 2010 increased 14% to $6.51 million from $5.73 million in the prior-year quarter. The revenue increase was due to a 6% increase in product sales and a 55% increase in contract research and development revenue. Net income for the second quarter of fiscal 2010 increased 17% to $2.69 million, or $0.55 per diluted share, compared to $2.30 million, or $0.48 per diluted share, for the prior-year quarter.
For the first six months of fiscal 2010, total revenue increased 26% to $13.3 million from $10.6 million for the first six months of the prior year. The increase was due to a 14% increase in product sales and a 124% increase in contract research and development revenue. Net income for the first half of fiscal 2010 was $5.63 million, or $1.16 per diluted share, compared to $4.20 million, or $0.88 per diluted share, for the first half of fiscal 2009.
"We are pleased to report solid revenue and earnings growth for the quarter," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "We continue to strengthen our balance sheet as cash plus marketable securities increased $9.30 million in the first half of fiscal 2010."
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 SIX MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (Unaudited)
Quarter Ended Sept. 30
2009 2008
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Revenue
Product sales $ 5,177,445 $ 4,871,381
Contract research and development 1,331,056 856,409
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Total revenue 6,508,501 5,727,790
Cost of sales 1,985,100 1,747,618
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Gross profit 4,523,401 3,980,172
Expenses
Selling, general, and administrative 622,354 585,373
Research and development 291,540 280,863
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Total expenses 913,894 866,236
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Income from operations 3,609,507 3,113,936
Interest income 393,198 277,074
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Income before taxes 4,002,705 3,391,010
Provision for income taxes 1,308,522 1,090,629
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Net income $ 2,694,183 $ 2,300,381
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Net income per share - basic $ 0.57 $ 0.49
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Net income per share - diluted $ 0.55 $ 0.48
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Weighted average shares outstanding
Basic 4,692,607 4,661,396
Diluted 4,871,387 4,788,614
Six Months Ended Sept. 30
2009 2008
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Revenue
Product sales $10,711,482 $ 9,418,703
Contract research and development 2,631,551 1,172,873
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Total revenue 13,343,033 10,591,576
Cost of sales 3,876,523 3,155,050
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Gross profit 9,466,510 7,436,526
Expenses
Selling, general, and administrative 1,258,077 1,114,857
Research and development 558,861 666,895
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Total expenses 1,816,938 1,781,752
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Income from operations 7,649,572 5,654,774
Interest income 763,223 531,509
Other income -- 3,400
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Income before taxes 8,412,795 6,189,683
Provision for income taxes 2,779,680 1,986,686
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Net income $ 5,633,115 $ 4,202,997
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Net income per share - basic $ 1.20 $ 0.90
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Net income per share - diluted $ 1.16 $ 0.88
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Weighted average shares outstanding
Basic 4,684,453 4,652,448
Diluted 4,863,199 4,779,606
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2009
(Unaudited)
Sept. 30, March 31,
2009 2009
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ASSETS
Current assets
Cash and cash equivalents $ 2,590,186 $ 1,875,063
Marketable securities, short term 1,653,026 --
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 2,953,027 3,366,698
Inventories 1,864,989 2,247,621
Deferred tax assets -- 667,729
Prepaid expenses and other assets 838,130 669,307
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Total current assets 9,899,358 8,826,418
Fixed assets
Machinery and equipment 5,495,846 5,328,237
Leasehold improvements 450,546 450,546
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5,946,392 5,778,783
Less accumulated depreciation 4,667,319 4,485,509
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Net fixed assets 1,279,073 1,293,274
Marketable securities, long term 39,383,468 32,446,748
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Total assets $50,561,899 $42,566,440
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 423,552 $ 257,239
Accrued payroll and other 597,655 637,463
Deferred taxes 23,971 --
Deferred revenue 62,500 104,167
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Total current liabilities 1,107,678 998,869
Shareholders' equity
Common stock 47,006 46,693
Additional paid-in capital 20,169,924 19,166,524
Accumulated other comprehensive income
(loss) 996,882 (252,940)
Retained earnings 28,240,409 22,607,294
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Total shareholders' equity 49,454,221 41,567,571
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Total liabilities and shareholders'
equity $50,561,899 $42,566,440
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