| Earnings Report | April 28, 2004 |
| NVE Reports
Fiscal Year Results EDEN PRAIRIE, Minn.--April 28, 2004--NVE Corporation (NasdaqSC: NVEC) today announced financial results for the fourth quarter and fiscal year ended March 31, 2004. Total revenue for fiscal 2004 was $12.01 million compared to $9.45 million the prior year, an increase of 27%. Product sales increased 115% over the prior year. For fiscal 2004 the company reported net income of $2.11 million, including a net income tax benefit of $233,022 from reduction of the valuation allowance relating to deferred tax assets. This compares to net income of $646,850 in fiscal 2003. Earnings per share were $0.45 per diluted share compared to $0.15 per share for the prior year. The impact of the tax benefit in fiscal 2004 was $0.05 per share. Total revenue for the fourth quarter of fiscal 2004 was $3.21 million compared to $2.60 million for the prior-year quarter, an increase of 23%. Product sales for the fourth quarter increased 94% over the prior-year quarter. Net income for the fourth quarter was $789,670 or $0.16 per diluted share compared $160,164 or $0.04 per share for the prior-year quarter. Net income for the fourth quarter included a net income tax benefit of $236,500 or $0.05 per share. The company exceeded its previously issued guidance of net income of $0.30 to $0.37 per diluted share and revenue of between $11.5 and $12.0 million for fiscal 2004. "We are very pleased with our results for the past year," commented President and Chief Executive Officer Daniel A. Baker, Ph.D. "Product sales grew very rapidly and our partners made significant strides toward production-ready MRAM." NVE is a leader in the practical commercialization of spintronics, a nanotechnology which many experts believe represents the next generation of microelectronics. NVE licenses its MRAM intellectual property and sells spintronic products including sensors and couplers to revolutionize data sensing and transmission. 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 uncertainties relating to MRAM production
by our licensees, our dependence on Cypress for potential supply
of MRAM devices, risks relating to making commercially viable MRAMs,
risks in the enforcement of our patents, as well as the risk factors
listed from time to time in the company's filings with the SEC,
including our Annual Report on Form 10-KSB and other reports filed
with the SEC. |
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NVE Corporation
CONDENSED STATEMENTS OF OPERATIONS
QUARTER AND YEAR ENDED MARCH 31, 2004 AND 2003
(IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Quarter ended March 31, 2004 March 31, 2003
Revenue:
Contract research and development $ 1,667 $ 1,709
Product sales 1,541 795
License revenue - 98
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Total revenue 3,208 2,602
Cost of sales 1,890 1,638
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Gross profit 1,318 964
Expenses
Research and development 391 364
Selling, general and administrative 441 513
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Total expenses 832 877
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Income from operations 486 87
Interest Income 49 57
Interest expense (5) (8)
Other Income 23 24
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Income from operations before income taxes 533 160
Income tax (benefit) (237) -
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Net income $ 790 $ 160
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Weighted average shares outstanding 4,877 4,366
Net income per share - diluted $ 0.16 $ 0.04
Year ended March 31, 2004 March 31, 2003
Revenue:
Contract research and development $ 6,617 $ 6,553
Product sales 5,393 2,503
License revenue - 391
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Total revenue 12,010 9,447
Cost of sales 7,445 5,911
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Gross profit 4,565 3,536
Expenses
Research and development 1,103 1,308
Selling, general and administrative 1,831 1,838
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Total expenses 2,934 3,146
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Income from operations 1,631 390
Interest Income 189 211
Interest expense (25) (40)
Other Income 80 86
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Income from operations before income taxes 1,875 647
Income tax (benefit) (233) -
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Net income $ 2,108 $ 647
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