NVE Corporation (NVEC)

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NVE Corporation Reports Fourth Quarter and Fiscal Year Results

EDEN PRAIRIE, Minn., May 5, 2010
GLOBE NEWSWIRE

NVE Corporation (Nasdaq:NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2010.

Total revenue for the fourth quarter of fiscal 2010 increased 19% to $8.18 million from $6.90 million in the prior-year quarter.The revenue increase was due to a 17% increase in product sales and a 27% increase in contract research and development revenue. Net income for the fourth quarter of fiscal 2010 increased 16% to $3.60 million, or $0.74 per diluted share, compared to $3.11 million, or $0.65 per diluted share, for the prior-year quarter.[/n]

For fiscal 2010, total revenue increased 20% to $28.1 million from $23.4 million for the prior fiscal year. The increase was due to a 15% increase in product sales and a 50% increase in contract research and development revenue. Net income for fiscal 2010 increased 23% to $12.0 million, or $2.47 per diluted share, compared to $9.78 million, or $2.04 per diluted share, for fiscal 2009.

"We are pleased to report strong growth and record revenue and net income for both the fourth quarter and fiscal year, despite a challenging economy during the 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.

The NVE Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3120

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 in continued growth in revenue and profitability, risks associated with our reliance on several large customers, uncertainties related to research and development contract funding, uncertainties related to seasonal patterns to our business, and uncertainties related to economic environments, 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, 2010 and other reports filed with the SEC.

NVE CORPORATION

STATEMENTS OF INCOME

QUARTERS AND YEARS ENDED MARCH 31, 2010 AND 2009 (Unaudited)

Quarter Ended March 31

2010 2009

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Revenue

Product sales $ 6,662,150 $ 5,699,660

Contract research and development 1,517,145 1,196,920

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Total revenue 8,179,295 6,896,580

Cost of sales 2,333,637 1,806,102

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Gross profit 5,845,658 5,090,478

Expenses

Selling, general, and administrative 607,534 554,055

Research and development 310,564 292,679

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Total expenses 918,098 846,734

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Income from operations 4,927,560 4,243,744

Interest income 439,988 333,487

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Income before taxes 5,367,548 4,577,231

Provision for income taxes 1,768,802 1,465,737

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Net income $ 3,598,746 $ 3,111,494

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Net income per share - basic $ 0.77 $ 0.67

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Net income per share - diluted $ 0.74 $ 0.65

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Weighted average shares outstanding

Basic 4,700,583 4,667,822

Diluted 4,865,189 4,794,084

Year Ended March 31

2010 2009

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Revenue

Product sales $22,665,860 $19,715,311

Contract research and development 5,481,325 3,656,958

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Total revenue 28,147,185 23,372,269

Cost of sales 8,313,015 6,724,242

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Gross profit 19,834,170 16,648,027

Expenses

Selling, general, and administrative 2,414,584 2,177,865

Research and development 1,121,050 1,218,572

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Total expenses 3,535,634 3,396,437

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Income from operations 16,298,536 13,251,590

Interest income 1,617,880 1,171,810

Other income -- 4,200

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Income before taxes 17,916,416 14,427,600

Provision for income taxes 5,917,072 4,644,705

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Net income $11,999,344 $ 9,782,895

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Net income per share - basic $ 2.56 $ 2.10

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Net income per share - diluted $ 2.47 $ 2.04

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Weighted average shares outstanding

Basic 4,692,496 4,659,486

Diluted 4,857,044 4,785,565

NVE CORPORATION

BALANCE SHEETS

MARCH 31, 2010 AND 2009

(Unaudited)

March 31, March 31,

2010 2009

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ASSETS

Current assets

Cash and cash equivalents $ 1,389,288 $ 1,875,063

Marketable securities, short term 1,566,666 --

Accounts receivable, net of allowance

for uncollectible accounts of $15,000 4,221,564 3,366,698

Inventories 1,706,427 2,247,621

Deferred tax assets -- 667,729

Prepaid expenses and other assets 781,294 669,307

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Total current assets 9,665,239 8,826,418

Fixed assets

Machinery and equipment 5,617,136 5,328,237

Leasehold improvements 450,546 450,546

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6,067,682 5,778,783

Less accumulated depreciation 4,857,819 4,485,509

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Net fixed assets 1,209,863 1,293,274

Marketable securities, long term 46,587,812 32,446,748

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Total assets $57,462,914 $42,566,440

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LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable $ 665,782 $ 257,239

Accrued payroll and other 720,867 637,463

Deferred taxes 102,138 --

Deferred revenue 20,833 104,167

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Total current liabilities 1,509,620 998,869

Shareholders' equity

Common stock 47,006 46,693

Additional paid-in capital 20,169,924 19,166,524

Accumulated other comprehensive income

(loss) 1,129,726 (252,940)

Retained earnings 34,606,638 22,607,294

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Total shareholders' equity 55,953,294 41,567,571

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Total liabilities and shareholders' equity $57,462,914 $42,566,440

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CONTACT: NVE Corporation

Curt A. Reynders, CFO

[phone]