NVE Corporation Reports First Quarter Results
and Announces Quarterly Dividend
EDEN PRAIRIE, Minn.—July 19, 2017—NVE Corporation (Nasdaq: NVEC) announced
today financial results for the quarter ended June 30, 2017.Total revenue for the first quarter of fiscal 2018 increased 13% to $7.61 million from $6.71 million in the prior-year quarter. The increase was due to an 18% increase in product sales, partially offset by a 15% decrease in contract research and development revenue. Net income for the first quarter of fiscal 2018 increased 5% to $3.30 million, or $0.68 per diluted share, compared to $3.13 million, or $0.65 per share, for the prior-year quarter. The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable August 31, 2017 to shareholders of record as of July 31, 2017. “We are pleased to report solid growth in total revenue and net income for the quarter, driven by an 18% increase in 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 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 related to our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future contract research and development revenue, uncertainties related to future stock repurchases and dividend payments, 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, 2017 and other reports filed with the SEC. ###
NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS ENDED JUNE 30, 2017 AND 2016 (Unaudited)
Quarter Ended June 30
2017 2016
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Revenue
Product sales $ 6,882,673 $ 5,851,214
Contract research and development 724,993 856,558
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Total revenue 7,607,666 6,707,772
Cost of sales 1,798,366 1,385,178
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Gross profit 5,809,300 5,322,594
Expenses
Selling, general, and administrative 399,361 389,915
Research and development 905,725 758,368
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Total expenses 1,305,086 1,148,283
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Income from operations 4,504,214 4,174,311
Interest income 361,778 437,734
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Income before taxes 4,865,992 4,612,045
Provision for income taxes 1,568,377 1,479,500
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Net income $ 3,297,615 $ 3,132,545
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Net income per share - basic $ 0.68 $ 0.65
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Net income per share - diluted $ 0.68 $ 0.65
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Weighted average shares outstanding
Basic 4,841,010 4,835,010
Diluted 4,846,251 4,837,095
NVE CORPORATION
BALANCE SHEETS
JUNE 30 AND MARCH 31, 2017
(Unaudited)
June 30, 2017 March 31, 2017
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ASSETS
Current assets
Cash and cash equivalents $ 4,377,913 $ 8,199,364
Marketable securities, short term 26,863,050 19,591,833
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 3,130,966 3,436,802
Inventories 3,248,745 3,358,298
Prepaid expenses and other assets 597,949 607,283
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Total current assets 38,218,623 35,193,580
Fixed assets
Machinery and equipment 9,354,253 9,007,455
Leasehold improvements 1,691,019 1,644,419
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11,045,272 10,651,874
Less accumulated
depreciation and amortization 9,392,814 9,238,626
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Net fixed assets 1,652,458 1,413,248
Long-term deferred tax assets 409,866 357,055
Marketable securities, long term 53,347,770 56,810,923
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Total assets $ 93,628,717 $ 93,774,806
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 344,391 $ 376,275
Accrued payroll and other 581,484 576,313
Income taxes payable 1,476,092 -
Deferred revenue 35,633 142,733
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Total current liabilities 2,437,600 1,095,321
Shareholders' equity
Common stock 48,410 48,410
Additional paid-in capital 19,507,348 19,507,348
Accumulated
other comprehensive income (loss) 16,729 (38,298)
Retained earnings 71,618,630 73,162,025
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Total shareholders' equity 91,191,117 92,679,485
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Total liabilities and shareholders' equity $ 93,628,717 $ 93,774,806
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