NVE Corporation Reports Second Quarter Fiscal 2006 Results Product Sales Increase 39%; Pretax Income Up 40%



    EDEN PRAIRIE, Minn., Oct. 19 /PRNewswire-FirstCall/ -- NVE Corporation
 (Nasdaq:   NVEC) today announced financial results for the quarter and six
 months ended September 30, 2005.
     Product sales for the quarter increased 39% over the prior-year to
 $2.02 million from $1.45 million. Total revenue, consisting of product sales
 and contract research and development revenue, declined 1% to $3.05 million
 for the second quarter of fiscal 2006 compared to $3.10 million in the prior-
 year quarter. Income before taxes for the quarter was $592,505 or $0.13 per
 diluted share, compared to $423,298 or $0.09 per diluted share for the prior-
 year quarter. After the effect of a provision for income taxes of $228,537,
 net income for the second quarter of fiscal 2006 was $363,968 or $0.08 per
 diluted share.
     Product sales in the first half of fiscal 2006 increased 35% to
 $3.81 million from $2.81 million for the first half of fiscal 2005. Total
 revenue was $6.08 million for the first half of fiscal 2006 compared to
 $5.98 million for the first half of fiscal 2005. Income before taxes for the
 first half of fiscal 2006 was $1.25 million or $0.27 per diluted share,
 compared to $906,969 or $0.18 per diluted share for the prior-year period.
 After the effect of a provision for income taxes of $471,005, net income for
 the first half of fiscal 2006 was $776,617 or $0.17 per diluted share.
     "We are pleased to report another quarter of solid product sales and
 profits," said NVE President and Chief Executive Officer Daniel A. Baker,
 Ph.D. "Gross margins increased to 47% from 37% due to a more profitable
 revenue mix and higher product margins. Pretax margin improved to 19%. Our
 cash plus investments increased to $9.39 million as we continue to build
 liquidity."
     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
 related to our dependence on certain suppliers, 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
                               STATEMENTS OF INCOME
             QUARTERS AND SIX MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
                                    (Unaudited)
 
                                                   Quarter Ended September 30
                                                     2005              2004
     Revenue
        Product sales                            $2,021,672        $1,450,052
        Contract research and development         1,030,250         1,645,662
     Total revenue                                3,051,922         3,095,714
     Cost of sales                                1,627,673         1,960,797
     Gross profit                                 1,424,249         1,134,917
     Expenses
        Research and development                    517,939           306,593
        Selling, general, and administrative        394,980           481,648
     Total expenses                                 912,919           788,241
     Income from operations                         511,330           346,676
     Interest income                                 77,119            58,497
     Interest expense                                (1,695)           (3,605)
     Other income                                     5,751            21,730
     Income before taxes                            592,505           423,298
     Provision for income taxes                     228,537               -
     Net income                                    $363,968          $423,298
 
     Net income per share - basic                     $0.08             $0.09
     Net income per share - diluted                   $0.08             $0.09
     Weighted average shares outstanding
        Basic                                     4,573,168         4,499,180
        Diluted                                   4,679,335         4,932,500
 
 
 
                                                 Six Months Ended September 30
                                                     2005              2004
     Revenue
        Product sales                            $3,805,922        $2,813,192
        Contract research and development         2,271,548         3,171,749
     Total revenue                                6,077,470         5,984,941
     Cost of sales                                3,308,791         3,586,678
     Gross profit                                 2,768,679         2,398,263
     Expenses
        Research and development                    894,739           667,852
        Selling, general, and administrative        804,574           966,244
     Total expenses                               1,699,313         1,634,096
     Income from operations                       1,069,366           764,167
     Interest income                                145,438           113,366
     Interest expense                                (3,748)           (8,062)
     Other income                                    36,566            37,498
     Income before taxes                          1,247,622           906,969
     Provision for income taxes                     471,005               -
     Net income                                    $776,617          $906,969
 
     Net income per share - basic                     $0.17             $0.20
     Net income per share - diluted                   $0.17             $0.18
     Weighted average shares outstanding
        Basic                                     4,571,524         4,495,442
        Diluted                                   4,677,691         4,928,762
 
 
 
                                  NVE CORPORATION
                                  BALANCE SHEETS
                       SEPTEMBER 30, 2005 AND MARCH 31, 2005
 
                                                 (Unaudited)
                                                 September 30        March 31
                                                     2005              2005
     ASSETS
     Current assets
        Cash and cash equivalents                $1,696,519        $1,240,205
        Short-term investments                    1,000,145           252,775
        Accounts receivable, net of
         allowance for uncollectible
         accounts of $15,000                      1,974,299         2,285,472
        Inventories                               1,681,660         1,572,759
        Deferred tax assets                         810,038           756,074
        Prepaid expenses and other assets           117,791           130,873
     Total current assets                         7,280,452         6,238,158
     Fixed assets
        Machinery and equipment                   4,102,089         4,140,307
        Leasehold improvements                      413,482           413,482
                                                  4,515,571         4,553,789
        Less accumulated depreciation             3,066,060         2,826,227
     Net fixed assets                             1,449,511         1,727,562
     Long-term investments                        6,695,794         6,224,284
     Total assets                               $15,425,757       $14,190,004
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities
        Accounts payable                           $386,481          $319,427
        Accrued payroll and other                   505,063           465,930
        Deferred revenue                            139,504           267,355
        Capital lease obligations                    67,719            67,430
     Total current liabilities                    1,098,767         1,120,142
     Capital lease obligations, less
      current portion                                   -              33,281
     Total liabilities                            1,098,767         1,153,423
 
     Shareholders' equity
        Common stock                                 45,765            45,698
        Additional paid-in capital               14,550,876        14,064,625
        Accumulated other comprehensive loss       (104,754)         (132,228)
        Accumulated deficit                        (164,897)         (941,514)
     Total shareholders' equity                  14,326,990        13,036,581
     Total liabilities and shareholders'
      equity                                    $15,425,757       $14,190,004
 
 

SOURCE NVE Corporation

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.