EDEN PRAIRIE, Minn., Oct. 19, 2016 (GLOBE NEWSWIRE) — NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and six months ended September 30, 2016.
Total revenue for the second quarter of fiscal 2017 increased slightly to $7.30 million from $7.28 million in the prior-year quarter. The increase was due to a 6% increase in product sales, partially offset by a 42% decrease in contract research and development revenue. Net income for the second quarter of fiscal 2017 was $3.31 million, or $0.68 per diluted share, the same as the prior-year quarter.
For the first six months of fiscal 2017, total revenue decreased 10% to $14.0 million from $15.6 million for the first six months of the prior year. The decrease was due to an 11% decrease in product sales and a 6% decrease in contract research and development revenue. Net income decreased 10% to $6.44 million, or $1.33 per diluted share, for the first half of fiscal 2017 compared to $7.11 million, or $1.46 per share, for the first half of fiscal 2016.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable November 30, 2016 to shareholders of record as of October 31, 2016.
”We are pleased to report a solid increase in product sales for the quarter, and our third consecutive sequential quarterly increases in product sales, total revenue, and net income,” 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, 2016 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2016 AND 2015 (Unaudited)
Quarter Ended September 30
2016 2015
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Revenue
Product sales $ 6,814,384 $ 6,436,672
Contract research and development 488,155 843,085
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Total revenue 7,302,539 7,279,757
Cost of sales 1,740,814 1,644,514
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Gross profit 5,561,725 5,635,243
Expenses
Selling, general, and administrative 343,688 524,631
Research and development 768,188 628,962
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Total expenses 1,111,876 1,153,593
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Income from operations 4,449,849 4,481,650
Interest income 430,983 468,531
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Income before taxes 4,880,832 4,950,181
Provision for income taxes 1,575,635 1,639,386
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Net income $ 3,305,197 $ 3,310,795
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Net income per share - basic $ 0.68 $ 0.68
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Net income per share - diluted $ 0.68 $ 0.68
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Weighted average shares outstanding
Basic 4,835,564 4,855,398
Diluted 4,837,819 4,858,133
Six Months Ended September 30
2016 2015
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Revenue
Product sales $ 12,665,598 $ 14,172,537
Contract research and development 1,344,713 1,428,139
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Total revenue 14,010,311 15,600,676
Cost of sales 3,125,992 3,638,442
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Gross profit 10,884,319 11,962,234
Expenses
Selling, general, and administrative 733,603 1,009,395
Research and development 1,526,556 1,309,963
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Total expenses 2,260,159 2,319,358
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Income from operations 8,624,160 9,642,876
Interest income 868,717 954,329
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Income before taxes 9,492,877 10,597,205
Provision for income taxes 3,055,135 3,483,184
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Net income $ 6,437,742 $ 7,114,021
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Net income per share - basic $ 1.33 $ 1.46
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Net income per share - diluted $ 1.33 $ 1.46
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Weighted average shares outstanding
Basic 4,835,289 4,858,557
Diluted 4,837,293 4,862,431
NVE CORPORATION
BALANCE SHEETS
SEPTEMBER 30 AND MARCH 31, 2016
(Unaudited)
Sept. 30, 2016 March 31, 2016
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ASSETS
Current assets
Cash and cash equivalents $ 5,690,673 $ 7,534,593
Marketable securities, short term 22,318,903 19,697,384
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 3,368,170 2,244,086
Inventories 2,908,881 3,205,233
Prepaid expenses and other assets 697,788 734,524
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Total current assets 34,984,415 33,415,820
Fixed assets
Machinery and equipment 8,973,375 8,840,033
Leasehold improvements 1,559,719 1,539,965
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10,533,094 10,379,998
Less accumulated depreciation 9,080,831 8,688,285
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Net fixed assets 1,452,263 1,691,713
Long-term deferred tax assets 123,410 51,188
Marketable securities, long term 60,777,962 65,695,335
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Total assets $ 97,338,050 $ 100,854,056
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 310,030 $ 317,990
Accrued payroll and other 563,960 556,674
Deferred revenue 383,877 714,805
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Total current liabilities 1,257,867 1,589,469
Shareholders' equity
Common stock 48,360 48,350
Additional paid-in capital 19,268,752 19,205,682
Accumulated other comprehensive income 436,153 451,359
Retained earnings 76,326,918 79,559,196
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Total shareholders' equity 96,080,183 99,264,587
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Total liabilities and shareholders' equity $ 97,338,050 $ 100,854,056
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CONTACT: Curt Reynders, Chief Financial Officer 952-829-9217
Source: Manufacturing