NVE Corp (NVEC), a manufacturer of devices that use spintronics and nanotechnology, has recorded a 57.28 percent surge in profit for the quarter ended Jun. 30, 2014, helped by strong sales growth and expansion in margins.
The company earned $4.04 million or $0.83 a share in the first-quarter compared with $2.57 million or $0.53 a share a year ago. Analysts on average had predicted net income of $0.58 a share.
Revenue during the first-quarter jumped 36.85 percent to $8.45 million from $6.18 million in the last year period.
Gross margin expanded by 388 basis points over the previous year period to 81.56 percent. Total expenses as a percentage of revenues decreased to 35.39 percent from 46.85 percent in the same period last year. That has resulted in improvement of 1146 basis points in operating margins to 64.61 percent.
The company disclosed operating income of $5.46 million, compared with $3.28 million in the last year period.
"We are pleased to report record total revenue, product sales, and earnings for the quarter," said NVE president and CEO Daniel A. Baker, Ph.D.
Cash Flow
NVE Corp has generated cash of $4.48 million from operating activities during the quarter, up 23.89 percent or $0.86 million when compared with the last year period.
The company has generated 53.04 cents of operating cash flow in every sales dollar for the quarter, down from 58.58 cents in the same period last year.
The company has spent $2.43 million cash to meet investing activities during the quarter, as against cash outgo of $3.86 million in the last year period.
As on Jun. 30, 2014, the company's cash balance stood at $3.31 million, up 45.89 percent or $1.04 million from Jun. 30, 2013.
Working Capital
NVE Corp has witnessed an increase in the working capital over the last one year. The company's working capital stood at $19.28 million as at Jun. 30, 2014, up $2.20 million or 12.88 percent from $17.08 million on Jun. 30, 2013. It registered a decrease in current ratio to 7.35 as at Jun. 30, 2014 from 9.07 on Jun. 30, 2013.
Shares of the company gained 193 cents or 3.19 percent to close at $62.37 on Monday.