NVE CorporationEARNINGS REPORT

NVE Corporation Reports First Quarter Results

EDEN PRAIRIE, Minn.—July 24, 2013—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2013.

Total revenue for the first quarter of fiscal 2014 decreased 17% to $6.18 million from $7.46 million in the prior-year quarter. The decrease was primarily due to a 15% decrease in product sales. Net income for the first quarter of fiscal 2014 decreased 24% to $2.57 million, or $0.53 per diluted share, compared to $3.38 million, or $0.69 per share, for the prior-year quarter.

“We are reporting strong earnings for the quarter and record gross margin as a percentage of revenue, despite revenue decreases,” 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 in the enforcement of our patents, litigation risks, 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, 2013.

###


                          NVE CORPORATION                   
                       STATEMENTS OF INCOME                 
          QUARTERS ENDED JUNE 30, 2013 AND 2012 (Unaudited)   

                                            Quarter Ended June 30
                                             2013           2012     
                                         ------------   ------------ 
  Revenue                                              
    Product sales                        $  5,974,606   $  7,030,745 
    Contract research and development         202,327        432,160 
                                         ------------   ------------ 
  Total revenue                             6,176,933      7,462,905
  Cost of sales                             1,378,355      1,802,353 
                                         ------------   ------------ 
  Gross profit                              4,798,578      5,660,552 
  Expenses                                             
    Selling, general, and administrative      552,804        536,110 
    Research and development                  962,911        688,026 
                                         ------------   ------------ 
  Total expenses                            1,515,715      1,224,136 
                                         ------------   ------------ 
  Income from operations                    3,282,863      4,436,416
  Interest income                             526,339        562,618 
                                         ------------   ------------ 
  Income before taxes                       3,809,202      4,999,034 
  Provision for income taxes                1,242,377      1,621,376 
                                         ------------   ------------
  Net income                             $  2,566,825   $  3,377,658 
                                         ============   ============ 
  Net income per share -- basic          $       0.53   $       0.70 
                                         ============   ============ 
  Net income per share -- diluted        $       0.53   $       0.69 
                                         ============   ============ 
  Weighted average shares outstanding
    Basic                                   4,862,436      4,824,745 
    Diluted                                 4,884,902      4,886,873 


                          NVE CORPORATION
                           BALANCE SHEETS
                    JUNE 30 AND MARCH 31, 2013
                                                            
                                           June 30,       March 31,   
                                             2013           2013     
                                         ------------   ------------ 
  ASSETS                                                    
  Current assets                                            
    Cash and cash equivalents            $  2,270,943   $  2,509,683 
    Marketable securities, short term       9,913,371      9,711,029 
    Accounts receivable, net of 
     allowance for uncollectible 
     accounts of $15,000                    2,470,003      2,521,395 
   Inventories                              3,231,940      3,336,592 
   Deferred tax assets                        250,809             -- 
   Prepaid expenses and other assets        1,060,094        958,147 
                                         ------------   ------------ 
  Total current assets                     19,197,160     19,036,846 
  Fixed assets                                              
    Machinery and equipment                 8,417,061      8,417,061
    Leasehold improvements                  1,499,454      1,499,454 
                                         ------------   ------------ 
                                            9,916,515      9,916,515 
    Less accumulated depreciation           6,418,258      6,228,122 
                                         ------------   ------------ 
  Net fixed assets                          3,498,257      3,688,393 
  Marketable securities, long term         75,352,422     73,040,257 
                                         ------------   ------------
  Total assets                           $ 98,047,839   $ 95,765,496 
                                         ============   ============ 
                                                            
  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities                                       
    Accounts payable                     $    338,633   $    422,092 
    Accrued payroll and other                 733,982        918,060 
    Income taxes payable                    1,044,404             --
    Deferred taxes                                 --        440,736 
                                         ------------   ------------ 
  Total current liabilities                 2,117,019      1,780,888 
                                                            
  Long-term deferred tax liabilities          234,422             -- 
                                                            
  Shareholders' equity                                      
    Common stock                               48,624         48,624 
    Additional paid-in capital             21,200,742     21,200,742 
    Accumulated other comprehensive 
     income                                   702,691      1,557,726
    Retained earnings                      73,744,341     71,177,516 
                                         ------------   ------------
  Total shareholders' equity               95,696,398     93,984,608 
                                         ------------   ------------ 
  Total liabilities and shareholders' 
   equity                                $ 98,047,839   $ 95,765,496 
                                         ============   ============