NVE Corporation Reports Third Quarter Fiscal 2005 Results

    EDEN PRAIRIE, Minn., Jan. 19 /PRNewswire-FirstCall/ -- NVE Corporation
 (Nasdaq:   NVEC) today announced financial results for the three months ended
 December 31, 2004.
     Net income for the third quarter was $375,172, compared with net income of
 $577,156 for the prior-year quarter.  Earnings per share were $0.08 per share,
 compared to $0.12 per share for the prior year quarter.  Revenue was
 $2.56 million, compared to $3.12 million for the prior-year quarter, a
 decrease of 18 percent.
     For the nine months ended December 31, 2004, net income was $1,282,141,
 compared to net income of $1,318,050 for the nine months ended December 31,
 2003.  Earnings per share were $0.26 per share compared to $0.28 per share in
 the prior year period.  Revenue for the first nine months of fiscal 2005 was
 $8.54 million, compared to $8.80 million reported in the first nine months of
 fiscal 2004, a 3 percent decrease.
     "We are satisfied with our financial results in light of industry
 conditions," said Daniel A. Baker, Ph.D., NVE's president and chief executive
 officer.  "We reported a solid profit in the third quarter despite a decline
 in revenues due to an anticipated sales reduction with St. Jude Medical and an
 industry-wide inventory glut.  We expect new sensors and couplers, as well as
 MRAM devices and royalties, to drive future growth."
     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
         THREE MONTHS AND NINE MONTHS ENDED DECEMBER 31, 2004 AND 2003
                   (IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
 
        Three Months Ended                 December 31, 2004  December 31, 2003
        Revenue:
          Contract research and development          $1,441             $1,633
          Product sales                               1,118              1,485
        Total revenue                                 2,559              3,118
 
        Cost of sales                                 1,571              1,907
        Gross profit                                    988              1,211
 
        Expenses:
          Research and development                      257                231
          Selling, general & administrative             438                464
        Total expenses                                  695                695
 
        Income from operations                          293                516
 
        Interest income                                  60                 47
        Interest expense                                 (3)                (6)
        Other income                                     25                 20
 
        Net Income                                     $375               $577
 
        Weighted average shares outstanding           4,883              4,832
        Net income per share - diluted                $0.08              $0.12
 
 
        Nine Months Ended                  December 31, 2004  December 31, 2003
        Revenue:
          Contract research and development          $4,612             $4,950
          Product sales                               3,931              3,852
        Total revenue                                 8,543              8,802
 
        Cost of sales                                 5,157              5,554
        Gross profit                                  3,386              3,248
 
        Expenses:
          Research and development                      925                712
          Selling, general & administrative           1,404              1,391
        Total expenses                                2,329              2,103
 
        Income from operations                        1,057              1,145
 
        Interest income                                 174                140
        Interest expense                                (11)               (21)
        Other income                                     62                 54
 
        Net Income                                   $1,282             $1,318
 
        Weighted average shares outstanding           4,880              4,739
        Net income per share - diluted                $0.26              $0.28
 
 
 
                                NVE Corporation
                            CONDENSED BALANCE SHEETS
                      DECEMBER 31, 2004 AND MARCH 31, 2004
                                 (IN THOUSANDS)
 
                                               (UNAUDITED)
                                            December 31, 2004    March 31, 2004
        ASSETS
        Current assets:
          Cash                                         $671            $1,056
          Investment securities                       6,577             6,489
          Accounts receivable, net                    2,266             1,739
          Inventories                                 1,751             1,150
          Other current assets                          382               547
        Total current assets                         11,647            10,981
        Fixed assets                                  1,846             1,439
        Total assets                                $13,493           $12,420
 
        LIABILITIES AND SHAREHOLDERS' EQUITY
        Current liabilities:
          Accounts payable                              410               327
          Accrued payroll and other                     682               712
          Other current liabilities                     382               547
        Total current liabilities                     1,474             1,586
        Long-term liabilities                            51               101
        Total liabilities                             1,525             1,687
 
        Shareholders' equity:
          Common stock                                   45                45
          Additional paid-in capital                 13,377            13,298
          Accumulated other comprehensive
           (loss) income                                (37)               90
          Accumulated deficit                        (1,417)           (2,700)
        Total shareholders' equity                   11,968            10,733
        Total liabilities and
         shareholders' equity                       $13,493           $12,420
 
 

SOURCE NVE Corporation

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