EDEN PRAIRIE, Minn., May 04, 2016 (GLOBE NEWSWIRE) — NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2016.
Total revenue for the fourth quarter of fiscal 2016 decreased 19% to $6.10 million from $7.57 million in the prior-year quarter. The decrease was due to a 31% decrease in product sales partially offset by a 3,684% increase in contract research and development revenue. Product sales increased 4% sequentially to $5.21 million in the fourth quarter of fiscal 2016 from $5.03 million in the third quarter. Net income for the fourth quarter of fiscal 2016 decreased 29% to $2.60 million, or $0.54 per diluted share, compared to $3.66 million, or $0.75 per share, for the prior-year quarter.
For fiscal 2016, total revenue decreased 9% to $27.7 million from $30.6 million for the prior fiscal year. Product sales decreased 18% to $24.4 million and contract research and development revenue increased 379% to $3.31 million. Net income for fiscal 2016 decreased 14% to $12.3 million, or $2.53 per diluted share, compared to $14.4 million, or $2.95 per share, for fiscal 2015.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2016 to shareholders of record as of May 16, 2016.
“We are pleased to report sequential increases in product sales and total revenue in the fourth fiscal quarter,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. “We returned more than $21 million to shareholders in dividends and Common Stock repurchases in the fiscal year,” continued Baker.
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.
###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2016 AND 2015 (Unaudited)
Quarter Ended March 31
2016 2015
---------------------------
Revenue
Product sales $ 5,212,813 $ 7,548,468
Contract research and development 887,774 23,464
---------------------------
Total revenue 6,100,587 7,571,932
Cost of sales 1,470,049 1,378,235
---------------------------
Gross profit 4,630,538 6,193,697
Expenses
Selling, general, and administrative 336,891 523,132
Research and development 1,012,564 714,728
---------------------------
Total expenses 1,349,455 1,237,860
---------------------------
Income from operations 3,281,083 4,955,837
Interest income 468,121 518,403
---------------------------
Income before taxes 3,749,204 5,474,240
Provision for income taxes 1,148,361 1,811,524
---------------------------
Net income $ 2,600,843 $ 3,662,716
===========================
Net income per share - basic $ 0.54 $ 0.75
===========================
Net income per share - diluted $ 0.54 $ 0.75
===========================
Weighted average shares outstanding
Basic 4,838,843 4,857,953
Diluted 4,840,275 4,875,295
Year Ended March 31
2016 2015
---------------------------
Revenue
Product sales $ 24,410,391 $ 29,894,045
Contract research and development 3,306,887 690,043
---------------------------
Total revenue 27,717,278 30,584,088
Cost of sales 6,616,852 6,019,868
---------------------------
Gross profit 21,100,426 24,564,220
Expenses
Selling, general, and administrative 1,752,962 2,312,076
Research and development 3,061,184 3,000,193
---------------------------
Total expenses 4,814,146 5,312,269
---------------------------
Income from operations 16,286,280 19,251,951
Interest income 1,890,817 2,187,723
---------------------------
Income before taxes 18,177,097 21,439,674
Provision for income taxes 5,884,782 7,071,320
---------------------------
Net income $ 12,292,315 $ 14,368,354
===========================
Net income per share - basic $ 2.53 $ 2.96
===========================
Net income per share - diluted $ 2.53 $ 2.95
===========================
Weighted average shares outstanding
Basic 4,850,209 4,855,504
Diluted 4,852,602 4,871,935
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2016 AND 2015
March 31, 2016 March 31, 2015
-------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 7,534,593 $ 9,437,262
Marketable securities, short term 19,697,384 20,099,288
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,244,086 2,963,974
Inventories 3,205,233 3,742,492
Deferred tax assets - 102,052
Prepaid expenses and other assets 734,524 574,913
------------------------------
Total current assets 33,415,820 36,919,981
Fixed assets
Machinery and equipment 8,840,033 8,604,926
Leasehold improvements 1,539,965 1,524,298
------------------------------
10,379,998 10,129,224
Less accumulated
depreciation and amortization 8,688,285 7,873,816
------------------------------
Net fixed assets 1,691,713 2,255,408
Long-term deferred tax assets 51,188 -
Marketable securities, long term 65,695,335 70,913,807
------------------------------
Total assets $ 100,854,056 $ 110,089,196
==============================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 317,990 $ 358,818
Accrued payroll and other 556,674 1,127,136
Deferred revenue 714,805 -
------------------------------
Total current liabilities 1,589,469 1,485,954
Long-term deferred tax liabilities - 275,708
Shareholders' equity
Common stock 48,350 48,580
Additional paid-in capital 19,205,682 20,850,762
Accumulated other comprehensive income 451,359 746,447
Retained earnings 79,559,196 86,681,745
------------------------------
Total shareholders' equity 99,264,587 108,327,534
------------------------------
Total liabilities and shareholders' equity $ 100,854,056 $ 110,089,196
==============================
CONTACT: Curt A. Reynders, CFO (952) 829-9217
Source: Globewire-Electronics