NVE Corporation Reports Fiscal 2005 Results

    EDEN PRAIRIE, Minn., April 27 /PRNewswire-FirstCall/ -- NVE Corporation
 (Nasdaq:   NVEC) today announced financial results for the quarter and fiscal
 year ended March 31, 2005.
     Total revenue for the fourth quarter of fiscal 2005 was $3.07 million
 compared to $3.21 million for the prior-year quarter, a decrease of 4%.
 Product sales for the quarter increased 3% over the prior-year quarter and 42%
 compared to the third quarter of fiscal 2005. Net income for the fourth
 quarter was $476,114 or $0.10 per diluted share, compared to $789,670 or $0.16
 per diluted share for the prior-year quarter. Net income for the fourth
 quarter of fiscal 2005 included a net income tax benefit of $126,904 or $0.03
 per diluted share, compared to $236,500 or $0.05 per diluted share for the
 fiscal 2004 quarter, from reductions of valuation allowances relating to
 deferred tax assets.
     Total revenue for fiscal 2005 was $11.62 million compared to
 $12.01 million the prior year, a decrease of 3%. Product sales were
 $5.52 million compared to $5.39 million the prior year, an increase of 2%. For
 fiscal 2005 the company reported net income of $1.76 million or $0.37 per
 diluted share, compared to net income of $2.11 million or $0.45 per diluted
 share for fiscal 2004. Net income for fiscal 2005 included a net income tax
 benefit of $138,404, compared to $233,022 for fiscal 2004. The impact of the
 net income tax benefit was $0.03 per share for fiscal 2005 and $0.05 per share
 for fiscal 2004.
     "NVE reported record product sales and a solid profit in fiscal 2005. Our
 shift to company-funded research and development from contract R&D increased
 our expenses and reduced R&D revenue, but resulted in new product designs.
 Product sales rebounded from weak industry conditions in our third fiscal
 quarter. Product sales increased despite a reduction in sales to St. Jude
 Medical due to inventory builds associated with St. Jude's adoption of our
 products in fiscal 2004," 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 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 risks in continued profitability, uncertainties relating to MRAM
 production by our licensees, risks in the enforcement of our patents,
 uncertainties related to the awarding of future government contracts, 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-KSB and other reports filed with the SEC.
 
 
 
                                    NVE Corporation
                            CONDENSED STATEMENTS OF INCOME
                    QUARTER AND YEAR ENDED MARCH 31, 2005 AND 2004
                      (IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
 
        Quarter Ended                          March 31, 2005    March 31, 2004
        Revenue:
          Contract research and development          $1,481             $1,667
          Product sales                               1,591              1,541
        Total revenue                                 3,072              3,208
 
        Cost of sales                                 1,853              1,890
        Gross profit                                  1,219              1,318
 
        Expenses:
          Research and development                      468                391
          Selling, general & administrative             464                441
        Total expenses                                  932                832
        Income from operations                          287                486
 
        Interest income                                  62                 49
        Interest expense                                 (2)                (5)
        Other income                                      2                 23
        Income before income taxes                      349                553
        Income tax (benefit)                           (127)              (237)
        Net income                                     $476               $790
 
        Weighted average shares outstanding           4,778              4,877
        Net income per share - diluted                $0.10              $0.16
 
 
        Year Ended                            March 31, 2005     March 31, 2004
        Revenue:
          Contract research and development          $6,093             $6,617
          Product sales                               5,522              5,393
        Total revenue                                11,615             12,010
 
        Cost of sales                                 7,010              7,445
        Gross profit                                  4,605              4,565
 
        Expenses:
          Research and development                    1,393              1,103
          Selling, general & administrative           1,868              1,831
        Total expenses                                3,261              2,934
        Income from operations                        1,344              1,631
 
        Interest income                                 236                189
        Interest expense                                (13)               (25)
        Other income                                     53                 80
        Income before income taxes                    1,620              1,875
        Income tax (benefit)                           (138)              (233)
        Net income                                   $1,758             $2,108
 
        Weighted average shares outstanding           4,734              4,727
        Net income per share - diluted                $0.37              $0.45
 
 
 
                                NVE Corporation
                            CONDENSED BALANCE SHEETS
                       MARCH 31, 2005 AND MARCH 31, 2004
                                 (IN THOUSANDS)
 
                                                 (UNAUDITED)
                                               March 31, 2005    March 31, 2004
        ASSETS
        Current assets:
          Cash                                       $1,240            $1,056
          Investment securities                       6,477             6,489
          Accounts receivable, net                    2,285             1,739
          Inventories                                 1,573             1,150
          Deferred tax asset                            756               250
          Other current assets                          131               297
        Total current assets                         12,462            10,981
        Fixed assets                                  1,728             1,439
        Total assets                                $14,190           $12,420
 
        LIABILITIES AND SHAREHOLDERS'
         EQUITY
        Current liabilities:
          Accounts payable                              319               327
          Accrued payroll and other                     466               712
          Other current liabilities                     335               547
        Total current liabilities                     1,120             1,586
        Long-term liabilities                            33               101
        Total liabilities                             1,153             1,687
 
        Shareholders' equity:
          Common stock                                   46                45
          Additional paid-in capital                 14,065            13,298
          Accumulated other comprehensive
           (loss) income                               (132)               90
          Accumulated deficit                          (942)           (2,700)
        Total shareholders' equity                   13,037            10,733
        Total liabilities and shareholders' equity  $14,190           $12,420
 
 

SOURCE NVE Corporation

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