NVE Corporation Reports First Quarter Results
Product sales increase 40 percent; net income increases 78 percent
EDEN PRAIRIE, Minn.--July 18, 2007--NVE Corporation (Nasdaq: NVEC)
announced today financial results for the quarter ended June 30, 2007.
Product sales for the quarter increased 40% over the prior-year
quarter to $4.27 million from $3.05 million. Total revenue, consisting
of product sales and contract research and development revenue,
increased 30% to $4.71 million for the first quarter of fiscal 2008
from $3.64 million in the prior-year quarter. Net income for the
first quarter of fiscal 2008 increased 78% to $1.59 million, or
$0.33 per diluted share, compared to $891,806, or $0.19 per share,
for the prior-year quarter.
“We are pleased to report record net income for the quarter driven by strong
product sales,” 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 many experts believe represents the next generation of microelectronics.
NVE licenses its MRAM intellectual property and sells spintronic 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
risks in continued growth in revenue and profitability, risks associated with
our reliance on several large customers, 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 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2007 AND 2006
(Unaudited)
Quarter Ended June 30
2007 2006
------------ ------------
Revenue
Product sales $ 4,269,100 $ 3,053,328
Contract research and development 440,183 581,867
------------ ------------
Total revenue 4,709,283 3,635,195
Cost of sales 1,442,968 1,399,821
------------ ------------
Gross profit 3,266,315 2,235,374
Expenses
Research and development 507,637 530,612
Selling, general, and administrative 563,743 406,732
------------ ------------
Total expenses 1,071,380 937,344
------------ ------------
Income from operations 2,194,935 1,298,030
Interest income 224,521 111,906
Interest expense - (589)
------------ ------------
Income before taxes 2,419,456 1,409,347
Provision for income taxes 832,121 517,541
------------ ------------
Net income $ 1,587,335 $ 891,806
============ ============
Net income per share basic $ 0.34 $ 0.19
============ ============
Net income per share diluted $ 0.33 $ 0.19
============ ============
Weighted average shares outstanding
Basic 4,630,570 4,616,588
Diluted 4,809,915 4,693,075
Supplemental financial data
Stock-based compensation $ 7,292 $ 2,569
Cash paid for income taxes $ 79,313 $ 44,300
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NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2007
(Unaudited)
June 30, 2007 March 31, 2007
-------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 932,140 $ 397,423
Marketable securities 1,176,845 982,415
Accounts receivable, net of allowance for
uncollectible accounts of $15,000 2,295,019 2,005,005
Inventories 2,072,500 2,016,858
Deferred tax assets 554,773 1,328,106
Prepaid expenses and other assets 368,555 333,587
-------------- --------------
Total current assets 7,399,832 7,063,394
Fixed assets
Machinery and equipment 4,660,914 4,458,948
Leasehold improvements 436,794 413,482
-------------- --------------
5,097,708 4,872,430
Less accumulated depreciation 3,940,292 3,834,683
-------------- --------------
Net fixed assets 1,157,416 1,037,747
Marketable securities, long term 17,721,650 16,909,353
-------------- --------------
Total assets $ 26,278,898 $ 25,010,494
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LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Accounts payable $ 311,248 $ 502,595
Accrued payroll and other 497,233 590,287
Deferred revenue 35,099 29,357
-------------- --------------
Total current liabilities 843,580 1,122,239
Shareholders equity
Common stock 46,324 46,274
Additional paid-in capital 18,338,115 18,289,248
Accumulated other comprehensive loss (173,471) (84,282)
Retained earnings 7,224,350 5,637,015
-------------- --------------
Total shareholders equity 25,435,318 23,888,255
-------------- --------------
Total liabilities and shareholders equity $ 26,278,898 $ 25,010,494
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