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NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and nine months ended December 31, 2014.
Total revenue for the third quarter of fiscal 2015 decreased 3% to $6.29 million from $6.47 million in the prior-year quarter. 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. Net income for the third quarter of fiscal 2015 increased 1% to $2.79 million, or $0.57 per diluted share, compared to $2.78 million, or $0.57 per share, for the prior-year quarter.
For the first nine months of fiscal 2015, total revenue increased 15% to $23.0 million from $20.0 million for the first nine months of the prior year. The increase was due to a 14% increase in product sales and a 124% increase in contract research and development revenue. Net income for the first nine months of fiscal 2015 increased 25% to $10.7 million, or $2.20 per diluted share, compared to $8.57 million, or $1.76 per share, for the first nine months of fiscal 2014.
The company also announced today that its Board of Directors declared a cash dividend to shareholders in the aggregate amount of $10 million, payable February 27, 2015 to shareholders of record as of February 2, 2015. This represents a dividend of approximately $2.06 per share of common stock based on shares outstanding as of January 16, 2015. The company’s Board also plans to declare cash dividends for future quarters significantly above the company’s current free cash flow. All future dividends will be subject to Board approval and subject to the company’s results of operations, cash and marketable security balances, the timing of securities maturations, estimates of future cash requirements, fixed asset requirements, and other factors the Board may deem relevant.
“We are pleased to report an increase in net income in the quarter despite a decrease in revenue,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. “Earnings helped increase our cash plus marketable securities to more than $106 million. Based on the strength of our balance sheet and our history of strong cash generation, we are pleased to announce a plan to return significant cash to our shareholders through quarterly dividends. Additionally we may repurchase the company’s common stock from time to time under a previously-announced program.”
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.
