EDEN PRAIRIE, Minn., July 22, 2015 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter ended June 30, 2015.
Total revenue for the first quarter of fiscal 2016 decreased 2% to $8.32 million from $8.45 million in the prior-year quarter. The decrease was due to a 7% decrease in product sales, partially offset by a 457% increase in contract research and development revenue. Net income for the first quarter of fiscal 2016 decreased 6% to $3.8 million, or $0.78 per diluted share, compared to $4.04 million, or $0.83 per share, for the prior-year quarter.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 31, 2015 to shareholders of record as of August 3, 2015.
"We are pleased to report solid total revenue driven by a large increase in contract research and development revenue, and solid earnings 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, 2015 and other reports filed with the SEC.
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2015 AND 2014 (Unaudited)
Quarter Ended June 30
2015 2014
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Revenue
Product sales $ 7,735,865 $ 8,348,081
Contract research and development 585,054 104,954
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Total revenue 8,320,919 8,453,035
Cost of sales 1,993,928 1,558,346
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Gross profit 6,326,991 6,894,689
Expenses
Selling, general, and administrative 484,764 629,650
Research and development 681,001 803,428
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Total expenses 1,165,765 1,433,078
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Income from operations 5,161,226 5,461,611
Interest income 485,798 548,554
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Income before taxes 5,647,024 6,010,165
Provision for income taxes 1,843,798 1,973,055
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Net income $ 3,803,226 $ 4,037,110
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Net income per share - basic $ 0.78 $ 0.83
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Net income per share - diluted $ 0.78 $ 0.83
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Weighted average shares outstanding
Basic 4,854,841 4,851,043
Diluted 4,860,848 4,867,459
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2015
June 30, 2015 March 31, 2015
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ASSETS
Current assets
Cash and cash equivalents $ 12,290,435 $ 9,437,262
Marketable securities, short term 17,559,217 20,099,288
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 3,039,738 2,963,974
Inventories 3,170,601 3,742,492
Deferred tax assets 147,219 102,052
Prepaid expenses and other assets 846,546 574,913
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Total current assets 37,053,756 36,919,981
Fixed assets
Machinery and equipment 8,629,333 8,604,926
Leasehold improvements 1,522,948 1,524,298
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10,152,281 10,129,224
Less accumulated depreciation 8,080,567 7,873,816
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Net fixed assets 2,071,714 2,255,408
Marketable securities, long term 70,432,372 70,913,807
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Total assets $ 109,557,842 $ 110,089,196
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 386,555 $ 358,818
Accrued payroll and other 568,821 1,127,136
Income taxes payable 1,475,474 --
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Total current liabilities 2,430,850 1,485,954
Long-term deferred tax liabilities 138,201 275,708
Shareholders' equity
Common stock 48,662 48,580
Additional paid-in capital 20,875,163 20,850,762
Accumulated other comprehensive income 437,948 746,447
Retained earnings 85,627,018 86,681,745
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Total shareholders' equity 106,988,791 108,327,534
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Total liabilities and shareholders' equity $ 109,557,842 $ 110,089,196
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