NVE Corporation Reports Fourth Quarter and Fiscal Year Results and Announces Quarterly Dividend
EDEN PRAIRIE, Minn., May 03, 2017 (GLOBE NEWSWIRE) — NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2017.
Total revenue for the fourth quarter of fiscal 2017 increased 12% to $6.85 million from $6.10 million in the prior-year quarter. The increase was due to a 23% increase in product sales partially offset by a 49% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2017 increased 16% to $3.03 million, or $0.62 per diluted share, compared to $2.60 million, or $0.54 per share, for the prior-year quarter.
For fiscal 2017, total revenue increased 2% to $28.3 million from $27.7 million for the prior fiscal year. The increase was due to a 7% increase in product sales partially offset by a 35% decrease in contract research and development revenue. Net income for fiscal 2017 increased 5% to $12.9 million, or $2.68 per diluted share, compared to $12.3 million, or $2.53 per share, for fiscal 2016.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2017 to shareholders of record as of May 15, 2017.
“We are pleased to report strong increases in product sales, total revenue, and net income for the quarter and fiscal year,” 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.
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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2017 AND 2016 (Unaudited) Quarter Ended March 31 2017 2016 ----------------------------- Revenue Product sales $ 6,399,924 $ 5,212,813 Contract research and development 453,282 887,774 ----------------------------- Total revenue 6,853,206 6,100,587 Cost of sales 1,449,454 1,470,049 ----------------------------- Gross profit 5,403,752 4,630,538 Expenses Selling, general, and administrative 340,673 336,891 Research and development 990,729 1,012,564 ----------------------------- Total expenses 1,331,402 1,349,455 ----------------------------- Income from operations 4,072,350 3,281,083 Interest income 386,884 468,121 ----------------------------- Income before taxes 4,459,234 3,749,204 Provision for income taxes 1,431,851 1,148,361 ----------------------------- Net income $ 3,027,383 $ 2,600,843 ============================= Net income per share - basic $ 0.63 $ 0.54 ============================= Net income per share - diluted $ 0.62 $ 0.54 ============================= Weighted average shares outstanding Basic 4,839,543 4,838,843 Diluted 4,844,410 4,840,275 Year Ended March 31 2017 2016 ----------------------------- Revenue Product sales $ 26,182,453 $ 24,410,391 Contract research and development 2,143,743 3,306,887 ----------------------------- Total revenue 28,326,196 27,717,278 Cost of sales 6,078,294 6,616,852 ----------------------------- Gross profit 22,247,902 21,100,426 Expenses Selling, general, and administrative 1,458,598 1,752,962 Research and development 3,344,101 3,061,184 ----------------------------- Total expenses 4,802,699 4,814,146 ----------------------------- Income from operations 17,445,203 16,286,280 Interest income 1,650,808 1,890,817 ----------------------------- Income before taxes 19,096,011 18,177,097 Provision for income taxes 6,147,142 5,884,782 ----------------------------- Net income $ 12,948,869 $ 12,292,315 ============================= Net income per share - basic $ 2.68 $ 2.53 ============================= Net income per share - diluted $ 2.68 $ 2.53 ============================= Weighted average shares outstanding Basic 4,836,602 4,850,209 Diluted 4,838,389 4,852,602 NVE CORPORATION BALANCE SHEETS MARCH 31, 2017 AND 2016 March 31, 2017 March 31, 2016 ------------------------------ ASSETS Current assets Cash and cash equivalents $ 8,199,364 $ 7,534,593 Marketable securities, short term 19,591,833 19,697,384 Accounts receivable, net of allowance for uncollectible accounts of $15,000 3,436,802 2,244,086 Inventories 3,358,298 3,205,233 Prepaid expenses and other assets 607,283 734,524 ------------------------------ Total current assets 35,193,580 33,415,820 Fixed assets Machinery and equipment 9,007,455 8,840,033 Leasehold improvements 1,644,419 1,539,965 ------------------------------ 10,651,874 10,379,998 Less accumulated depreciation 9,238,626 8,688,285 ------------------------------ Net fixed assets 1,413,248 1,691,713 Long-term deferred tax assets 357,055 51,188 Marketable securities, long term 56,810,923 65,695,335 ------------------------------ Total assets $ 93,774,806 $ 100,854,056 ============================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 376,275 $ 317,990 Accrued payroll and other 576,313 556,674 Deferred revenue 142,733 714,805 ----------------------------- Total current liabilities 1,095,321 1,589,469 Shareholders' equity Common stock 48,410 48,350 Additional paid-in capital 19,507,348 19,205,682 Accumulated other comprehensive (loss) income (38,298) 451,359 Retained earnings 73,162,025 79,559,196 ------------------------------ Total shareholders' equity 92,679,485 99,264,587 ------------------------------ Total liabilities and shareholders' equity $ 93,774,806 $ 100,854,056 ==============================
Curt Reynders, Chief Financial Officer 952-829-9217
