EDEN PRAIRIE, Minn., Oct. 22, 2014 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and six months ended September 30, 2014.
Total revenue for the second quarter of fiscal 2015 increased 13% to $8.27 million from $7.30 million in the prior-year quarter. The increase was due to a 12% increase in product sales and a 119% increase in contract research and development revenue. Net income for the second quarter of fiscal 2015 increased 20% to $3.88 million, or $0.80 per diluted share, compared to $3.23 million, or $0.66 per share, for the prior-year quarter.
For the first six months of fiscal 2015, total revenue increased 24% to $16.7 million from $13.5 million for the first six months of the prior year. The increase was due to a 25% increase in product sales partially offset by a 5% decrease in contract research and development revenue. Net income increased 37% to $7.91 million, or $1.63 per diluted share, for the first half of fiscal 2015 compared to $5.80 million, or $1.19 per diluted share, for the first half of fiscal 2014.
"We are pleased to report a 20% increase in net income for the quarter, driven by increased revenue and increased margins," 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, uncertainties related to direct and indirect U.S. Government funding, risks related to material weaknesses in our internal control over financial reporting, 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, 2014.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2014 AND 2013 (Unaudited)
Quarter Ended September 30
2014 2013
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Revenue
Product sales $ 8,113,806 $ 7,231,149
Contract research and development 153,567 70,031
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Total revenue 8,267,373 7,301,180
Cost of sales 1,609,632 1,503,546
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Gross profit 6,657,741 5,797,634
Expenses
Selling, general, and administrative 625,599 660,076
Research and development 787,279 876,463
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Total expenses 1,412,878 1,536,539
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Income from operations 5,244,863 4,261,095
Interest income 562,923 520,802
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Income before taxes 5,807,786 4,781,897
Provision for income taxes 1,932,164 1,552,246
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Net income $ 3,875,622 $ 3,229,651
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Net income per share - basic $ 0.80 $ 0.67
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Net income per share - diluted $ 0.80 $ 0.66
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Weighted average shares outstanding
Basic 4,855,071 4,852,178
Diluted 4,872,029 4,873,106
Six Months Ended September 30
2014 2013
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Revenue
Product sales $ 16,461,887 $ 13,205,755
Contract research and development 258,521 272,358
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Total revenue 16,720,408 13,478,113
Cost of sales 3,167,978 2,881,901
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Gross profit 13,552,430 10,596,212
Expenses
Selling, general, and administrative 1,255,249 1,212,880
Research and development 1,590,707 1,839,374
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Total expenses 2,845,956 3,052,254
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Income from operations 10,706,474 7,543,958
Interest income 1,111,477 1,047,141
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Income before taxes 11,817,951 8,591,099
Provision for income taxes 3,905,219 2,794,623
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Net income $ 7,912,732 $ 5,796,476
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Net income per share - basic $ 1.63 $ 1.19
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Net income per share - diluted $ 1.63 $ 1.19
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Weighted average shares outstanding
Basic 4,853,068 4,857,279
Diluted 4,868,769 4,878,599
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2014
Sept. 30, 2014 March 31, 2014
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ASSETS
Current assets
Cash and cash equivalents $ 3,281,500 $ 1,262,300
Marketable securities, short term 14,624,615 12,360,091
Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,678,396 2,331,574
Inventories 3,389,393 3,207,333
Deferred tax assets 169,671 237,387
Prepaid expenses and other assets 848,528 816,276
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Total current assets 25,992,103 20,214,961
Fixed assets
Machinery and equipment 8,563,720 8,536,010
Leasehold improvements 1,499,454 1,499,454
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10,063,174 10,035,464
Less accumulated depreciation 7,495,209 7,030,692
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Net fixed assets 2,567,965 3,004,772
Marketable securities, long term 84,551,529 82,022,310
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Total assets $ 113,111,597 $ 105,242,043
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 337,462 $ 374,127
Accrued payroll and other 855,927 808,675
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Total current liabilities 1,193,389 1,182,802
Long-term deferred tax liabilities 224,769 354,600
Shareholders' equity
Common stock 48,580 48,510
Additional paid-in capital 20,850,762 20,464,883
Accumulated other comprehensive income 567,974 877,857
Retained earnings 90,226,123 82,313,391
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Total shareholders' equity 111,693,439 103,704,641
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Total liabilities and shareholders' equity $ 113,111,597 $ 105,242,043
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