NVE Corporation Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended December 31, 2014
January 21, 2015 at 09:05 pm
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NVE Corporation reported unaudited earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company reported total revenue of $6,291,748 compared to $6,473,697 a year ago. Income from operations was $3,589,640 against $3,575,357 a year ago. Income before taxes was $4,147,483 against $4,105,740 a year ago. Net income was $2,792,906 or $0.57 per basic and diluted share against $2,777,174 or $0.57 per basic and diluted share a year ago. The revenue decrease was due to a 9% decrease in product sales, partially offset by a 16-fold increase in contract research and development revenue. The increase in net income was despite a 3% decrease in total revenue to $6.29 million from $6.47 million in the prior year quarter.
For the nine months, the company reported total revenue of $23,012,156 compared to $19,951,810 a year ago. Income from operations was $14,296,114 against $11,119,315 a year ago. Income before taxes was $15,965,434 against $12,696,839 a year ago. Net income was $10,705,638 or $2.20 per diluted share against $8,573,650 or $1.76 per diluted share a year ago. The increase in revenue was due to a 14% increase in product sales and a 124% increase in contract research and development revenue. The increase in net income was due to increased product sales, increased contract research and development revenue, increased gross margin, decreased R&D expense and increased interest income. Operating cash flow or net cash provided by operating activities increased 10% to $10.8 million compared to $9.82 million in the prior year. Purchases of fixed assets were $114,139 compared to $33,893 in the first 9 months of fiscal 2014.
NVE Corporation develops and sells devices that use spintronics, which is a nanotechnology that relies on electron spin to acquire, store, and transmit information. The Company manufactures spintronic products, including sensors and couplers that are used to acquire and transmit data. The Company has also licensed its spintronic magnetoresistive random access memory technology (MRAM). Its parts are primarily used in industrial, scientific, and medical applications, as well as the Industrial Internet of things. The Company's products include sensors, couplers, DC-to-DC Convertors and MRAM products. Its sensor products detect the strength or gradient of magnetic fields and are often used to determine position or speed. Its spintronic couplers combine a giant magnetoresistance (GMR) sensor element and a microscopic coil. MRAM uses spintronics to store data. Its isolated direct current (DC)-to-DC convertors transfer energy between systems without direct electrical connections.