 |
EARNINGS REPORT |
NVE Corporation Reports Third Quarter Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—January 18, 2017—NVE
Corporation (Nasdaq: NVEC) announced today financial results for the quarter and
nine months ended December 31, 2016.
Total revenue for the third quarter of fiscal 2017 increased 24% to $7.46 million
from $6.02 million in the prior-year quarter. The increase was due to a 42%
increase in product sales, partially offset by a 65% decrease in contract research
and development revenue. Net income for the third quarter of fiscal 2017 increased
35% to $3.48 million, or $0.72 per diluted share, compared to $2.58 million,
or $0.53 per share, for the prior-year quarter.
For the first nine months of fiscal 2017, total revenue decreased 1% to $21.5 million
from $21.6 million for the first nine months of the prior year. The decrease
was due to a 30% decrease in contract research and development revenue, partially
offset by a 3% increase in product sales. Net income increased 2% to $9.92 million,
or $2.05 per diluted share, for the first nine months of fiscal 2017 compared
to $9.69 million, or $2.00 per share, for the first nine months of fiscal
2016.
The company also announced a quarterly cash dividend to shareholders of $1.00
per share of common stock, payable February 28, 2017 to shareholders of record
as of January 30, 2017.
“We are pleased to report strong increases in product sales, total revenue,
and net income 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, 2016 and other reports filed with the SEC.
|
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2016 AND 2015 (Unaudited)
|
|
Quarter Ended Dec. 31 |
| 2016 |
|
2015 |
| Revenue |
|
Product sales
|
$ |
7,116,931 |
|
|
$ |
5,025,041 |
|
|
Contract research and development
|
345,748 |
|
|
990,974
|
|
| Total revenue |
|
7,462,679 |
|
|
|
6,016,015 |
|
| Cost of sales |
1,502,848 |
|
|
1,508,361 |
|
| Gross profit |
|
5,959,831 |
|
|
|
4,507,654 |
|
| Expenses |
|
Selling, general, and administrative
|
|
384,322 |
|
|
|
406,676 |
|
|
Research and development
|
826,816 |
|
|
738,657 |
|
| Total expenses |
1,211,138
|
|
|
1,145,333 |
|
| Income from operations |
|
4,748,693 |
|
|
|
3,362,321 |
|
| Interest income |
395,207 |
|
|
468,367 |
|
| Income before taxes |
|
5,143,900 |
|
|
|
3,830,688 |
|
| Provision for income taxes |
1,660,156 |
|
|
1,253,237 |
|
| Net income |
$ |
3,483,744 |
|
|
$ |
2,577,451 |
|
| Net income per share – basic |
$ |
0.72 |
|
|
$ |
0.53 |
|
| Net income per share – diluted |
$ |
0.72 |
|
|
$ |
0.53 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,836,336 |
|
|
|
4,844,845 |
|
|
Diluted
|
|
4,839,777 |
|
|
|
4,846,970 |
|
| |
Nine Months Ended Dec. 31 |
| 2016 |
|
2015 |
| Revenue |
|
Product sales
|
$ |
19,782,529 |
|
|
$ |
19,197,578 |
|
|
Contract research and development
|
1,690,461 |
|
|
2,419,113 |
|
| Total revenue |
|
21,472,990 |
|
|
|
21,616,691 |
|
| Cost of sales |
4,628,840
|
|
|
5,146,803 |
|
| Gross profit |
|
16,844,150 |
|
|
|
16,469,888 |
|
| Expenses |
|
Selling, general, and administrative
|
|
1,117,925 |
|
|
|
1,416,071 |
|
|
Research and development
|
2,353,372 |
|
|
2,048,620 |
|
| Total expenses |
3,471,297 |
|
|
3,464,691 |
|
| Income from operations |
|
13,372,853 |
|
|
|
13,005,197 |
|
| Interest income |
1,263,924 |
|
|
1,422,696 |
|
| Income before taxes |
|
14,636,777 |
|
|
|
14,427,893 |
|
| Provision for income taxes |
4,715,291 |
|
|
4,736,421 |
|
| Net income |
$ |
9,921,486 |
|
|
$ |
9,691,472 |
|
| Net income per share – basic |
$ |
2.05 |
|
|
$ |
2.00 |
|
| Net income per share – diluted |
$ |
2.05 |
|
|
$ |
2.00 |
|
| Weighted average shares outstanding |
|
Basic
|
|
4,835,639 |
|
|
|
4,853,970 |
|
|
Diluted
|
|
4,837,815 |
|
|
|
4,857,103 |
|
|
NVE CORPORATION
BALANCE SHEETS
DECEMBER 31 AND MARCH 31, 2016
|
| |
(Unaudited)
December 31, 2016 |
|
March
31, 2016 |
| ASSETS |
| Current assets |
|
Cash and cash equivalents
|
$ |
3,799,188 |
|
|
$ |
7,534,593 |
|
|
Marketable securities, short-term
|
|
24,655,206 |
|
|
|
19,697,384 |
|
|
Accounts receivable, net of allowance for uncollectible
accounts of $15,000
|
|
1,461,659 |
|
|
|
2,244,086 |
|
|
Inventories
|
|
3,162,478 |
|
|
|
3,205,233 |
|
|
Prepaid expenses and other assets
|
751,433
|
|
|
734,524 |
|
| Total current assets |
|
33,829,964 |
|
|
|
33,415,820 |
|
| Fixed assets |
|
Machinery and equipment
|
|
9,020,726 |
|
|
|
8,840,033 |
|
|
Leasehold improvements
|
1,559,719 |
|
|
1,539,965 |
|
| |
|
10,580,445 |
|
|
|
10,379,998 |
|
|
Less accumulated depreciation and amortization
|
9,281,531 |
|
|
8,688,285 |
|
| Net fixed assets |
|
1,298,914 |
|
|
|
1,691,713 |
|
| Long-term deferred tax assets |
446,949 |
|
|
51,188 |
|
| Marketable securities, long-term |
59,668,735 |
|
|
65,695,335 |
|
| Total assets |
$ |
95,244,562 |
|
|
$ |
100,854,056 |
|
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities |
|
Accounts payable
|
$ |
358,530 |
|
|
$ |
317,990 |
|
|
Accrued payroll and other
|
679,040 |
|
|
556,674 |
|
|
Deferred revenue
|
- |
|
|
714,805 |
|
| Total current liabilities |
|
1,037,570 |
|
|
|
1,589,469 |
|
| |
| Shareholders’ equity |
|
Common stock
|
|
48,370 |
|
|
|
48,350 |
|
|
Additional paid-in capital
|
|
19,319,679
|
|
|
|
19,205,682 |
|
|
Accumulated other comprehensive (loss) income
|
|
(135,709 |
) |
|
|
451,359 |
|
|
Retained earnings
|
74,974,652 |
|
|
79,559,196 |
|
| Total shareholders’ equity |
94,206,992
|
|
|
99,264,587 |
|
| Total liabilities and shareholders’ equity |
$ |
95,244,562 |
|
|
$ |
100,854,056 |
|
|
