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NVE Corp.'s Earnings & Revenues Miss Estimates in Q3 - Analyst Blog

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NVE Corporation ( NVEC ) reported third-quarter fiscal 2015 earnings of 57 cents per share, missing the Zacks Consensus Estimate of 71 cents by 19.7%. Quarterly earnings were flat compared with the prior-year figure.

NVE Corporation - Earnings Surprise | FindTheBest

Total Revenue

In the quarter under review, total revenue came in at $6.29 million, lagging the Zacks Consensus Estimate of $8 million by 21.4%. The reported top line decreased by 2.8% year over year primarily due to lower product sales. This was partially offset by strong contribution from contract research and development revenues.

Quarterly Highlights

NVE Corporation spent $1.47 million in the third quarter of fiscal 2015 as cost of sales, up 1.7% year over year.

The company's gross profit stood at $4.82 million compared with $5.02 million a year ago.

Total expenses decreased 15.2% year over year to $1.23 million, primarily on the back of lower selling, general and administrative, and research and development expenses.

Interest income in the reported quarter was $0.56 million, up 5.2% year over year mainly due to a rise in the interest-bearing marketable securities.

Dividend Update

During the third-quarter fiscal 2015 earnings call, the board of directors announced that NVE Corporation will distribute a cash dividend of total $10 million on Feb 27, 2015 to its shareholders of record as on Feb 2.

Financial Update

As of Dec 31, 2014, NVE Corporation had cash and cash equivalents of $11.8 million versus $1.26 million as of Mar 31, 2014.

Long-term deferred tax liabilities as of Dec 31, 2014 were $0.22 million compared with $0.35 million as of Mar 31, 2014.

Net cash from operating activities in the first nine months of fiscal 2015 was $10.85 million compared with $9.82 million in the prior-year period.

At its Peers

Avago Technologies Limited ( AVGO ) reported fourth-quarter fiscal 2014 earnings of $1.82 per share, surpassing the Zacks Consensus Estimate of $1.52 by 19.7%.

Ambarella, Inc. ( AMBA ) reported third-quarter fiscal 2015 earnings of 57 cents per share, surpassing the Zacks Consensus Estimate of 44 cents by 29.6%.

Mellanox Technologies, Ltd. ( MLNX ) is scheduled to release its fourth-quarter 2014 earnings on Jan 28, 2015. The Zacks Consensus Estimate is pegged at 19 cents.

Zacks Rank

NVE Corporation currently carries a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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