EDEN PRAIRIE, Minn., May 02, 2018 (GLOBE NEWSWIRE) -- NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2018.
Total revenue for the fourth quarter of fiscal 2018 increased 15% to $7.90 million from $6.85 million in the prior-year quarter. The increase was due to a 19% increase in product sales partially offset by a 35% decrease in contract research and development revenue. Net income for the fourth quarter of fiscal 2018 increased 28% to $3.88 million, or $0.80 per diluted share, compared to $3.03 million, or $0.62 per share, for the prior-year quarter. The effective tax rate was 30% of net income before taxes for the quarter, compared to 32% in the prior-year quarter. The decreased rate for the quarter was due to a decrease in the Federal tax rate with the enactment of the Tax Reform Act in December 2017.
For fiscal 2018, total revenue increased 5% to $29.9 million from $28.3 million for the prior fiscal year. The increase was due to a 4% increase in product sales and a 19% increase in contract research and development revenue. Net income for fiscal 2018 increased 7% to $13.9 million, or $2.87 per diluted share, compared to $12.9 million, or $2.68 per share, for fiscal 2017. The effective tax rate was approximately 30% of net income before taxes for fiscal 2018, compared to 32% in the prior-year. The decreased rate for the year was due to a decrease in the Federal tax rate with the enactment of the Tax Reform Act in December 2017, partially offset by a one-time $206,693 increase in the provision for income taxes from the effect of the new rate on deferred tax assets.
The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable May 31, 2018 to shareholders of record as of May 14, 2018.
“We are pleased to report solid increases in product sales, total revenue, and net income for the quarter and fiscal year, driven by a 19% increase in product sales in the quarter,” 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 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, uncertainties related to the future impact of Federal tax reform, 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, 2018 and other reports filed with the SEC.
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NVE CORPORATION
STATEMENTS OF INCOME
QUARTERS AND YEARS ENDED MARCH 31, 2018 AND 2017 (Unaudited)
Quarter Ended March 31
2018 2017
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Revenue
Product sales $ 7,603,226 $ 6,399,924
Contract research and development 295,966 453,282
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Total revenue 7,899,192 6,853,206
Cost of sales 1,465,509 1,449,454
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Gross profit 6,433,683 5,403,752
Expenses
Selling, general, and administrative 374,835 340,673
Research and development 913,950 990,729
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Total expenses 1,288,785 1,331,402
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Income from operations 5,144,898 4,072,350
Interest income 403,894 386,884
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Income before taxes 5,548,792 4,459,234
Provision for income taxes 1,666,372 1,431,851
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Net income $ 3,882,420 $ 3,027,383
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Net income per share - basic $ 0.80 $ 0.63
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Net income per share - diluted $ 0.80 $ 0.62
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Weighted average shares outstanding
Basic 4,842,010 4,839,543
Diluted 4,847,349 4,844,410
Year Ended March 31
2018 2017
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Revenue
Product sales $ 27,321,810 26,182,453
Contract research and development 2,542,071 2,143,743
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Total revenue 29,863,881 28,326,196
Cost of sales 6,274,744 6,078,294
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Gross profit 23,589,137 22,247,902
Expenses
Selling, general, and administrative 1,435,592 1,458,598
Research and development 3,702,918 3,344,101
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Total expenses 5,138,510 4,802,699
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Income from operations 18,450,627 17,445,203
Interest income 1,558,197 1,650,808
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Income before taxes 20,008,824 19,096,011
Provision for income taxes 6,096,152 6,147,142
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Net income $ 13,912,672 $ 12,948,869
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Net income per share - basic $ 2.87 $ 2.68
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Net income per share - diluted $ 2.87 $ 2.68
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Weighted average shares outstanding
Basic 4,841,347 4,836,602
Diluted 4,846,212 4,838,389
NVE CORPORATION
BALANCE SHEETS
MARCH 31, 2017 AND 2018
March 31, 2018 March 31, 2017
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ASSETS
Current assets
Cash and cash equivalents $ 4,755,082 $ 8,199,364
Marketable securities, short term 20,765,809 19,591,833
Accounts receivable, net of allowance
for uncollectible accounts of $15,000 2,888,779 3,436,802
Inventories 3,650,439 3,358,298
Prepaid expenses and other assets 635,160 607,283
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Total current assets 32,695,269 35,193,580
Fixed assets
Machinery and equipment 9,395,987 9,007,455
Leasehold improvements 1,749,284 1,644,419
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11,145,271 10,651,874
Less accumulated
depreciation and amortization 9,819,888 9,238,626
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Net fixed assets 1,325,383 1,413,248
Deferred tax assets 572,655 357,055
Marketable securities, long term 52,838,158 56,810,923
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Total assets $ 87,431,465 $ 93,774,806
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 414,970 $ 376,275
Accrued payroll and other 574,755 576,313
Deferred revenue - 142,733
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Total current liabilities 989,725 1,095,321
Shareholders' equity
Common stock 48,420 48,410
Additional paid-in capital 19,599,298 19,507,348
Accumulated
other comprehensive loss (915,635) (38,298)
Retained earnings 67,709,657 73,162,025
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Total shareholders' equity 86,441,740 92,679,485
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Total liabilities and shareholders' equity $ 87,431,465 $ 93,774,806
============================== Curt A. Reynders, CFO (952) 829-9217