EX-99 2 nrfye04.txt PRESS RELEASE NVE Corporation Reports Fiscal Year Results EDEN PRAIRIE, Minn.--April 28, 2004--NVE Corporation (NasdaqSC: NVEC) today announced financial results for the quarter and fiscal year ended March 31, 2004. Total revenue for fiscal 2004 was $12.01 million compared to $9.45 million the prior year, an increase of 27%. Product sales increased 115% over the prior year. For fiscal 2004 the company reported net income of $2.11 million, including a net income tax benefit of $233,022 from reduction of the valuation allowance relating to deferred tax assets. This compares to net income of $646,850 in fiscal 2003. Earnings per share were $0.45 per diluted share compared to $0.15 per share for the prior year. The impact of the tax benefit in fiscal 2004 was $0.05 per share. Total revenue for the fourth quarter of fiscal 2004 was $3.21 million compared to $2.60 million for the prior-year quarter, an increase of 23%. Product sales for the fourth quarter increased 94% over the prior-year quarter. Net income for the fourth quarter was $789,670 or $0.16 per diluted share compared $160,164 or $0.04 per share for the prior-year quarter. Net income for the fourth quarter included a net income tax benefit of $236,500 or $0.05 per share. The company exceeded its previously issued guidance of net income of $0.30 to $0.37 per diluted share and revenue of between $11.5 and $12.0 million for fiscal 2004. "We are very pleased with our results for the past year," commented President and Chief Executive Officer Daniel A. Baker, Ph.D. "Product sales grew very rapidly and our partners made significant strides toward production-ready MRAM." NVE is a leader in the practical commercialization of spintronics, a nanotechnology which 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 uncertainties relating to MRAM production by our licensees, our dependence on Cypress for potential supply of MRAM devices, risks relating to making commercially viable MRAMs, risks in the enforcement of our patents, as well as the risk factors listed from time to time in the company's filings with the SEC, including our Annual Report on Form 10-KSB and other reports filed with the SEC. ### NVE Corporation CONDENSED STATEMENTS OF OPERATIONS QUARTER AND YEAR ENDED MARCH 31, 2004 AND 2003 (IN THOUSANDS EXCEPT PER SHARE; UNAUDITED)
Quarter ended March 31, 2004 March 31, 2003 Revenue: Contract research and development $ 1,667 $ 1,709 Product sales 1,541 795 License revenue - 98 -------------- -------------- Total revenue 3,208 2,602 Total expenses 2,655 2,442 -------------- -------------- Pretax income 533 160 Income tax (benefit) (237) - -------------- -------------- Net income $ 790 $ 160 ============== ============== Weighted average shares outstanding 4,877 4,366 Net income per share - diluted $ 0.16 $ 0.04 Year ended March 31, 2004 March 31, 2003 Revenue: Contract research and development $ 6,617 $ 6,553 Product sales 5,393 2,503 License revenue - 391 -------------- -------------- Total revenue 12,010 9,447 Total expenses 10,135 8,800 -------------- -------------- Pretax income 1,875 647 Income tax (benefit) (233) - -------------- -------------- Net income $ 2,108 $ 647 ============== ============== Weighted average shares outstanding 4,727 4,324 Net income per share - diluted $ 0.45 $ 0.15
NVE Corporation CONDENSED BALANCE SHEETS MARCH 31, 2004 AND MARCH 31, 2003 (IN THOUSANDS)
(UNAUDITED) March 31, March 31, 2004 2003 ASSETS Current assets: Cash $ 1,056 $ 596 Investment securities 6,489 5,880 Other current assets 3,436 2,039 ----------- ----------- Total current assets 10,981 8,515 Fixed assets 1,439 1,167 ----------- ----------- Total assets $ 12,420 $ 9,682 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 1,586 1,980 Other long-term liabilities 101 223 ----------- ----------- Total liabilities 1,687 2,203 Shareholders' equity: Common stock 45 42 Additional paid-in capital 13,298 12,171 Accumulated other comprehensive income 90 73 Accumulated deficit (2,700) (4,807) ----------- ----------- Total shareholders' equity 10,733 7,479 ----------- ----------- Total liabilities and shareholders' equity $ 12,420 $ 9,682 =========== ===========