NVEC
PERIOD ENDING ....31-Dec-07 .30-Sep-07 30-Jun-07 31-Mar-07
Retained Earnings ..10,571 ....8,869 ...7,224 ....5,637 <---
Total Revenue....... 4,766 ....5,005 ...4,709.... 4,565 <---
..
Sale (buy) Stock ......3 ...... 2 ....... 42 .......0
Net Borrowings ........0........0..........0........0 <------
..
Qtrly Revenue Growth (yoy):. 23.40% <---good
Qtrly Earnings Growth (yoy): 61.90% <---xlnt
Total Debt (mrq): 0 <---xlnt
..
Shares Short (feb08): 478.06K
Shares Short (as of 26-Mar-08): 468.43K
Short % of Float (as of 26-Mar-08): 10.10% <-------------shorts
..
Trailing P/E (ttm, intraday): 22.98
Price/Sales (ttm): 7.40
Price/Cash Flow (TTM): 20.10
..
NVE Cor****ation engages in the development and sale of devices using
spintronics, a nanotechnology, which utilizes electron spin rather than
electron charge to acquire, store, and transmit information. The company
provides standard sensors that detect the presence of a magnet or metal
to
determine position or speed; custom sensors primarily for medical
devices;
and couplers that use semiconductor input stages, primarily for factory
and
industrial networks. NVE Cor****ation also licenses the spintronic
magnetoresistive random access memory technology, commonly known as MRAM.
It sells its products through distributors primarily in the United
States,
Europe, and Asia. The company was founded in 1982 and is headquartered in
Eden Prairie, Minnesota.
-------------
FROM THE 10-Q QUARTERLY RE****T:
Total revenue for the quarter ended December 31, 2007 (the third
quarter of fiscal 2008) increased 23% to $4,765,525 compared to
$3,862,049 for the quarter ended December 31, 2006 (the third quarter of
fiscal 2007). The increase was due to a 25% increase in product sales and
a 12% increase in research and development revenue.
Gross profit margin increased to 65% of revenue for the third
quarter of fiscal 2008 compared to 64% for the third quarter of fiscal
2007. The increase was primarily due to a more favorable revenue mix
consisting of a higher percentage of product sales.
Total expenses decreased 18% for the third quarter of fiscal 2008
due to a 36% decrease in research and development expense, partially
offset by a 3% increase in selling, general, and administrative expense.
The decrease in research and development expense was due to the
completion of certain research and development projects.
Net interest and other income increased 105% to $322,795 for the
third quarter of fiscal 2008 compared to $157,337 for the third quarter
of fiscal 2007. The increase was primarily due to an increase in
interest-bearing marketable securities and an increase in other income.
Other income for the third quarter of fiscal 2008 consisted primarily of
a $61,430 net gain on maturities and sales of federally-taxable
marketable securities. The proceeds of such sales were reinvested in
federally tax-exempt securities as part of a strategy to reduce taxes
since we began paying higher cash income taxes in fiscal 2008.
The provision for income taxes was $882,867 or 34.2% of income
before taxes for the third quarter of fiscal 2008 compared to $558,504 or
34.7% of income before taxes for the third quarter of fiscal 2007. The
decrease in the effective tax rate was principally due to the investment
of some of our long-term marketable securities in federally tax-exempt
securities as part of a strategy to reduce taxes since we began paying
more cash income taxes in fiscal 2008.
The 62% increase in net income in the third quarter of fiscal 2008
compared to the third quarter of fiscal 2007 was primarily due to
increases in product sales and interest income, and a decrease in
research and development expense.
.................................
FROM THE 10K ANNUAL RE****T:
WWW.SEC.GOV/NVEC = http://tinyurl.com/3p9oa9
NVE is a Minnesota cor****ation headquartered in a suburb of Minneapolis.
We were founded in 1989 primarily as a government contract research
company. Our stock became publicly traded in 2000 through a reverse
merger and became NASDAQ listed in 2003. Since our founding, we have been
awarded more than $50 million in government research contracts, including
more than 30 MRAM development contracts. These contracts have helped us
build our intellectual property ****tfolio. Over the years our product
sales have increased and we have reduced our dependence on research
contracts.
..
Total revenue for fiscal 2007 increased 35% to $16,460,830 compared
to $12,170,526 in fiscal 2006, and increased 5% for fiscal 2006 compared
to $11,615,570 in fiscal 2005. The increases in both fiscal years were
due to increases in product sales partially offset by decreases in
research and development revenue.
Product sales increased 73% to $14,425,632 in fiscal 2007 from
$8,345,967 in fiscal 2006. Fiscal 2006 product sales increased 51% from
$5,522,250 in fiscal 2005. The increases in both years were due to
increased sales of both spintronic sensors and spintronic couplers.
Contract research and development revenue decreased 47% for fiscal
2007 compared to fiscal 2006, and decreased 37% for fiscal 2006 compared
to fiscal 2005. Both decreases were due to ****fts to company-funded
research from contract-funded research and decreases in U.S. Government
contract awards to us.
Gross profit margin increased to 65% of revenue for fiscal 2007
compared to 49% for fiscal 2006 and 40% for fiscal 2005. The increase in
gross profit margin in fiscal 2007 from fiscal 2006 was due to a more
profitable revenue mix consisting of a higher percentage of product
sales, and increased product margins. The increased product margins in
fiscal 2007 were due to price increases and deployment of lower-cost
coupler designs. Increased gross profit margin in fiscal 2006 from fiscal
2005 was due to a more profitable revenue mix consisting of a higher
percentage of product sales and higher product margins due primarily to
lower-cost coupler designs.
Research and development expense increased 26% for fiscal 2007
compared to fiscal 2006 and 24% for fiscal 2006 compared to fiscal 2005.
The increases in both years were due to efforts to develop new and
improved products and a ****ft to company-funded research from contract-
funded research. Company-funded research and development programs
included new spintronic sensor and spintronic coupler products.
Selling, general, and administrative expense for fiscal 2007
increased 11% to $1,950,999 compared to $1,756,142 for fiscal 2006. The
increase was primarily due to $136,370 in non-cash effects of stock-based
compensation under SFAS No. 123(R), expenses related to preparation for a
Sarbanes-Oxley Act Section 404 controls-based audit, and increased legal
expenses. Increased legal expenses were primarily related to class-action
lawsuits. Of the $136,370 effect of SFAS No. 123(R) in fiscal 2007,
$126,094 was attributable to the automatic award of options to our
directors on their initial election or reelection at our Annual Meeting
of Shareholders in August 2006. Selling, general, and administrative
expense for fiscal 2006 decreased 6% from fiscal 2005 due to a strategic
****ft to distributors selling our products rather than manufacturers’
representatives. This ****ft reduced commissions we paid and expenses
associated with sup****ting manufacturers’ representatives.
Interest income net of interest expense plus other income
increased 75% to $646,234 for fiscal 2007 compared to $369,753 for fiscal
2006 and 34% for fiscal 2006 compared to $276,073 for fiscal 2005. Both
yearly increases were due to increases in interest-bearing marketable
securities, increases in interest rates, and decreases in interest
expense due to the reduction and then elimination of our debt.
Income before taxes increased 153% for fiscal 2007 compared to
fiscal 2006 and 75% for fiscal 2006 compared to fiscal 2005. Both
increases were primarily due to increases in product revenue and gross
profit margin.
The effective income tax rate in fiscal 2007 declined to 34% of
income before taxes from 37% in fiscal 2006 due to our *****sment that it
was more likely than not that we would realize certain tax credits.
Provisions for income tax for fiscal 2007 and 2006 were due to the
exhaustion of our net operating losses during fiscal 2005, although we
did not pay significant cash taxes for fiscal 2007 and 2006 because of
stock-based compensation deductions. The income tax benefit for fiscal
2005 was from the reduction of our valuation allowances relating to
deferred tax assets for tax return purposes.
The 156% increase in net income in fiscal 2007 compared to fiscal
2006 was due to an increase in income before taxes. The 2% increase in
fiscal 2006 compared to fiscal 2005 was due to an increase in income
before taxes, partially offset by a provision for income tax in fiscal
2006 rather than an income tax benefit in fiscal 2005.
The increase in weighted-average diluted shares for fiscal 2007
compared to fiscal 2006 was primarily due to a higher share price at
March 31, 2007 compared to March 31, 2006, which increased the dilutive
effect of options. The decrease in weighted-average diluted shares for
fiscal 2006 compared to fiscal 2005 was due to the expiration of a
warrant issued to Cypress Semiconductor Cor****ation for the purchase of
up to 400,000 shares of our Common Stock, partially offset by an increase
in shares from stock options issued and exercised.
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http://stockcharts.com/charts/gallery.html?NVEC
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CURRENTLY: NVEC is in rally mode from it's most recent quarterly re****t
of nearly tripling it's earnings yoy
it's busted through it's 1yMA resistance. There is firm sup****t at $29,
$26.50. and the line in the sand $24
part of the rally can be attributed to short sellers covering
Short % of Float (as of 26-Mar-08): 10.10% <-------------shorts
I see 12%-19% upside from this level and percentage ratios could only
improve with judicious buys on dips
ENTRY:$26.75
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