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<SEC-DOCUMENT>0000724910-07-000005.txt : 20070117
<SEC-HEADER>0000724910-07-000005.hdr.sgml : 20070117
<ACCEPTANCE-DATETIME>20070117165128
ACCESSION NUMBER:		0000724910-07-000005
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070117
DATE AS OF CHANGE:		20070117

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NVE CORP /NEW/
		CENTRAL INDEX KEY:			0000724910
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				411424202
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12196
		FILM NUMBER:		07535535

	BUSINESS ADDRESS:	
		STREET 1:		11409 VALLEY VIEW ROAD
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344
		BUSINESS PHONE:		9528299217

	MAIL ADDRESS:	
		STREET 1:		11409 VALLEY VIEW ROAD
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PREMIS CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>q3q07.htm
<DESCRIPTION>QUARTERLY REPORT FOR THE PERIOD ENDED DECEMBER 31, 2006
<TEXT>
<html>
<p align="center"> <font face="Times New Roman, Times, serif" size="5"><b>UNITED
  STATES<br>
  SECURITIES AND EXCHANGE COMMISSION</b></font><b><font face="Times New Roman, Times, serif" size="2"><br>
  Washington, D.C. &nbsp;&nbsp;20549</font></b></p>
<p align="center"><b><font face="Times New Roman, Times, serif" size="2"> <font size="5">FORM
  10-Q</font></font></b></p>



<p align="left"><font face="Times New Roman, Times, serif" size="1">(Mark One)<br>
  </font><font face="Times New Roman, Times, serif" size="2">[X] QUARTERLY REPORT
  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
  For the quarterly period ended &nbsp;&nbsp;<b><u>December 31, 2006</u></b></font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="2">or</font></p>
<p align="left"><font face="Times New Roman, Times, serif" size="2">[&nbsp;&nbsp;]
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
  ACT OF 1934<br>
  For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>to&nbsp;<u>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  <br>
  Commission File Number: <b><u>000-12196</u></b></font> <br>
  <br>

<div align="center"><img src="nve-logo.gif" width="276" height="55"><font face="Arial, Helvetica, sans-serif" size="6">
  <br>
  <b>NVE Corporation</b></font><font face="Times New Roman, Times, serif" size="2"><br>
  (Exact name of registrant as specified in its charter)</font></div>
<font face="Times New Roman, Times, serif" size="2">
<div align="center">
  <p>&nbsp;</p>
</div>
</font>
<div align="center"></div>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr>
    <td width="33%">
      <p align="center"><font face="Times New Roman, Times, serif" size="2"><b><u>Minnesota</u></b></font></p>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">
        &nbsp;</font></div>
    </td>
    <td>
      <p align="center"><font face="Times New Roman, Times, serif" size="2"><b><u>41-1424202</u></b></font></p>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <p align="center"><font face="Times New Roman, Times, serif" size="2">(State
        or other jurisdiction of incorporation or organization)</font></p>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font size="2" face="Times New Roman, Times, serif">(I.R.S.
        Employer Identification No.)</font></div>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">
        &nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b><u>11409
        Valley View Road, Eden Prairie, Minnesota</u></b></font></div>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td>
      <p align="center"><font size="2" face="Times New Roman, Times, serif"><b><u>55344</u></b></font></p>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">(Address
        of principal executive offices)</font></div>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">
        &nbsp;</font></div>
    </td>
    <td>
      <p align="center"><font size="2" face="Times New Roman, Times, serif">(Zip
        Code)</font></p>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">
        &nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><u>(952)
        829-9217</u></b></font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></div>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">Registrant&#146;s
        telephone number, including area code<b>&nbsp;</b></font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;</font></div>
    </td>
  </tr>
</table>
<p><font size="2" face="Times New Roman, Times, serif"><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indicate by check mark whether the registrant
  (1) has filed all reports required to be filed by Section 13 or 15(d) of the
  Securities Exchange Act of 1934 during the preceding 12 months (or for such
  shorter period that the registrant was required to file such reports), and (2)
  has been subject to such filing requirements for the past 90 days. &nbsp;[X]&nbsp;Yes
  &nbsp;[&nbsp;&nbsp;]&nbsp;No</font></p>
<p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Indicate by check mark whether the registrant is a large accelerated filer,
  an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated
  filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act. (Check
  one): </font>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr>
    <td width="33%">
      <p align="center"><font face="Times New Roman, Times, serif" size="2">Large
        accelerated filer&nbsp;[&nbsp;&nbsp;]</font></p>
    </td>
    <td width="33%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">Accelerated
        filer&nbsp;[&nbsp;&nbsp;]</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">Non-accelerated
        filer&nbsp;[X]</font></div>
    </td>
  </tr>
</table>
<p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark
  whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
  Act).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;]&nbsp;Yes &nbsp;[X]&nbsp;No</font></p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
  the number of shares outstanding of each of the issuer's classes of common stock,
  as of the latest practicable date.<br>
  <b>Common Stock, $0.01 Par Value - 4,627,383 shares outstanding as of January 12, 2007</b></font></p>
<hr>
<div align="center"><br clear="all" style="page-break-before:always;">
  <font face="Times New Roman, Times, serif" size="2"><b>NVE CORPORATION<br>
  INDEX TO FORM 10-Q</b><br>
  <br>
  </font></div>
<table  border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2"><a href="#Part1"><b>PART
        I. FINANCIAL INFORMATION</b></a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Item
        1. Financial Statements</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Balance
        Sheets</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#QIncome">Statements
        of Income for the Quarters Ended December 31, 2006 and 2005</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#FYIncome">Statements
        of Income for the Nine Months Ended December 31, 2006 and 2005</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#CashFlows">Statements
        of Cash Flows</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Notes">Notes
        to Financial Statements</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MDA">Item
        2. Management&#8217;s Discussion and Analysis of Financial Condition and
        Results of Operations</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MarketRisk">Item
        3. Quantitative and Qualitative Disclosures About Market Risk</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Controls">Item
        4. Controls and Procedures</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2"><a href="#Part2"><b>PART
        II. OTHER INFORMATION</b></a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Legal">Item
        1. Legal Proceedings</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Risks">Item
        1A. Risk Factors</a></font></div>
    </td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Exhibits">Item
        6. Exhibits</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom"><td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Signatures">Signatures</a></font></div>
    </td>
  </tr>
</table>
<p><div align="center"><font face="Times New Roman, Times, serif" size="2">2</font>
</div>
<hr> <br clear="all" style="page-break-before:always;">
<div align="center"><b><font face="Times New Roman, Times, serif" size="2"><a name="Part1"></a>PART
  I--FINANCIAL INFORMATION</font></b></div>
<p><font face="Times New Roman, Times, serif" size="2"><b>Item 1. Financial Statements.</b></font>
  <p>
<table border="0" cellspacing="0" cellpadding="0" align="center" >
  <tr>
    <td>
<PRE><b>                                NVE CORPORATION
                                BALANCE SHEETS
                     DECEMBER 31, 2006 AND MARCH 31, 2006

                                                (Unaudited)
                                               Dec. 31, 2006    March 31, 2006*
                                               --------------   --------------
</b>ASSETS
Current assets
  Cash and cash equivalents                    $     423,282    $   1,288,362
  Short-term investments                             838,579        1,248,103
  Accounts receivable, net of allowance for
    uncollectible accounts of $15,000              1,907,637        1,667,029
  Inventories                                      2,189,125        2,149,769
  Deferred tax assets                              1,598,321        1,576,472
  Prepaid expenses and other assets                  275,718          231,412
                                               --------------   --------------
Total current assets                               7,232,662        8,161,147
Fixed assets
  Machinery and equipment                          4,395,392        4,149,080
  Leasehold improvements                             413,482          413,482
                                               --------------   --------------
                                                   4,808,874        4,562,562
  Less accumulated depreciation                    3,707,237        3,319,651
                                               --------------   --------------
Net fixed assets                                   1,101,637        1,242,911
Long-term investments                             14,710,657        8,354,861
                                               --------------   --------------
Total assets                                   $  23,044,956    $  17,758,919
                                               ==============   ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                             $     502,480    $     399,762
  Accrued payroll and other                          524,084          470,392
  Deferred revenue                                      -              77,373
  Capital lease obligations                             -              33,281
                                               --------------   --------------
Total current liabilities                          1,026,564          980,808

Shareholders' equity
  Common stock                                        46,274           46,150
  Additional paid-in capital                      18,018,851       16,042,637
  Accumulated other comprehensive loss              (129,795)        (166,908)
  Retained earnings                                4,083,062          856,232
                                               --------------   --------------
Total shareholders' equity                        22,018,392       16,778,111
                                               --------------   --------------
Total liabilities and shareholders' equity     $  23,044,956    $  17,758,919
                                               ==============   ==============

*The March 31, 2006 Balance Sheet is from the audited financial statements
contained in our Annual Report on Form 10-K for the year ended March 31, 2006.
</PRE>
    </td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, serif" size="2">See accompanying
  notes.</font><br><br>
<div align="center"><font face="Times New Roman, Times, serif" size="2">3</font><br>
</div>
<hr>
<br clear="all" style="page-break-before:always;">
<a name="QIncome"></a><table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>

      <pre><b>                            NVE CORPORATION
                          STATEMENTS OF INCOME
               QUARTERS ENDED DECEMBER 31, 2006 AND 2005
                              (Unaudited)

                                             Quarter Ended December 31
                                                2006           2005
                                            ------------   ------------
</b>Revenue
  Product sales                             $ 3,402,937    $ 1,742,163
  Contract research and development             459,112        868,119
                                            ------------   ------------
Total revenue                                 3,862,049      2,610,282

Cost of sales                                 1,385,163      1,308,752
                                            ------------   ------------
Gross profit                                  2,476,886      1,301,530

Expenses
  Research and development                      544,779        342,616
  Selling, general, and administrative          479,387        434,183
                                            ------------   ------------
Total expenses                                1,024,166        776,799
                                            ------------   ------------

Income from operations                        1,452,720        524,731

Interest income                                 157,337         88,168
Interest expense                                   -            (1,336)
Other income                                       -             3,101
                                            ------------   ------------
Income before taxes                           1,610,057        614,664

Provision for income taxes                      558,504        213,279
                                            ------------   ------------
Net income                                  $ 1,051,553    $   401,385
                                            ============   ============

Net income per share - basic                $      0.23    $      0.09
                                            ============   ============
Net income per share - diluted              $      0.22    $      0.09
                                            ============   ============

Weighted average shares outstanding
  Basic                                       4,620,835      4,576,454
  Diluted                                     4,786,868      4,677,712</pre>
    </td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, serif" size="2">See accompanying
  notes.</font><br>
  <br>
<div align="center"><font face="Times New Roman, Times, serif" size="2">4</font><br>
</div>
<hr>
<br clear="all" style="page-break-before:always;">
<a name="FYIncome"></a><table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                            NVE CORPORATION
                          STATEMENTS OF INCOME
             NINE MONTHS ENDED DECEMBER 31, 2006 AND 2005
                               (Unaudited)

                                             Nine Months Ended Dec. 31
                                                2006           2005
                                            ------------   ------------
</b>Revenue
  Product sales                             $10,233,325    $ 5,548,085
  Contract research and development           1,662,287      3,139,667
                                            ------------   ------------
Total revenue                                11,895,612      8,687,752

Cost of sales                                 4,224,165      4,617,543
                                            ------------   ------------
Gross profit                                  7,671,447      4,070,209

Expenses
  Research and development                    1,641,637      1,237,355
  Selling, general, and administrative        1,421,332      1,238,757
                                            ------------   ------------
Total expenses                                3,062,969      2,476,112
                                            ------------   ------------

Income from operations                        4,608,478      1,594,097

Interest income                                 418,683        233,606
Interest expense                                   (589)        (5,084)
Other income                                     25,246         39,667
                                            ------------   ------------
Income before taxes                           5,051,818      1,862,286

Provision for income taxes                    1,824,988        684,284
                                            ------------   ------------
Net income                                  $ 3,226,830    $ 1,178,002
                                            ============   ============

Net income per share - basic                $      0.70    $      0.26
                                            ============   ============
Net income per share - diluted              $      0.67    $      0.25
                                            ============   ============

Weighted average shares outstanding
  Basic                                       4,618,086      4,573,173
  Diluted                                     4,784,118      4,674,431
</pre>
    </td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, serif" size="2">See accompanying
  notes.</font><br>
  <br>
  <font size="2" face="Times New Roman, Times, serif">5</font><br>
<hr>
<br clear="all" style="page-break-before:always;">
<a name="CashFlows"></a><table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                                NVE CORPORATION
                            STATEMENTS OF CASH FLOWS
                 NINE MONTHS ENDED DECEMBER 31, 2006 AND 2005
                                  (Unaudited)

                                                     Nine Months Ended Dec. 31
                                                        2006           2005
                                                    ------------   ------------
</b>OPERATING ACTIVITIES
Net income                                          $ 3,226,830    $ 1,178,002
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Depreciation and amortization                       392,777        426,450
    Gain on sale of fixed assets                           -           (25,500)
    Stock-based compensation                            128,203           -
    Excess tax benefits                              (1,591,076)          -
    Deferred income taxes                             1,780,688        668,334
    Changes in operating assets and liabilities:
      Accounts receivable                              (240,608)       544,105
      Inventories                                       (39,356)      (461,182)
      Prepaid expenses and other assets                 (44,306)        (7,438)
      Accounts payable and accrued expenses             156,410        (10,919)
      Deferred revenue                                  (77,373)      (168,340)
                                                    ------------   ------------
Net cash provided by operating activities             3,692,189      2,143,512

INVESTING ACTIVITIES
Proceeds from the sale of fixed assets                     -            25,500
Purchases of fixed assets                              (252,604)       (20,573)
Maturities of investment securities                   1,054,686           -
Purchases of investment securities                   (6,943,625)    (2,255,922)
                                                    ------------   ------------
Net cash used in investing activities                (6,141,543)    (2,250,995)


FINANCING ACTIVITIES
Net proceeds from sale of common stock                   26,479         28,313
Excess tax benefits                                   1,591,076           -
Repayment of capital lease obligations                  (33,281)       (50,026)
                                                    ------------   ------------
Net cash provided by (used in) financing activities   1,584,274        (21,713)
                                                    ------------   ------------

Decrease in cash and cash equivalents                  (865,080)      (129,196)
Cash and cash equivalents at beginning of period      1,288,362      1,240,205
                                                    ------------   ------------

Cash and cash equivalents at end of period          $   423,282    $ 1,111,009
                                                    ============   ============

Supplemental disclosures of cash flow information:
    Cash paid during the period for:
      Interest                                      $       589    $     5,084
      Income taxes                                  $    44,300    $    15,950</pre>
    </td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, serif" size="2">See accompanying
  notes.</font><br>
  <font size="2" face="Times New Roman, Times, serif"><br>
  6</font><br>
<hr>
<br clear="all" style="page-break-before:always;">
<a name="Notes"></a><div align="center"><font size="2" face="Times New Roman, Times, serif"><b>NVE
  CORPORATION<br>
  NOTES TO FINANCIAL STATEMENTS<br>
  DECEMBER 31, 2006<br>
  (Unaudited)</b> </font></div>
<p>
<p><font face="Times New Roman, Times, serif" size="2"><b>NOTE 1. NATURE OF BUSINESS</b>
  </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  develop, manufacture, and sell "spintronics" devices, a nanotechnology which
  relies on electron spin rather than electron charge to acquire, store, and transmit
  information. </font>
<p><p>
<p><font face="Times New Roman, Times, serif" size="2"><br><b>NOTE 2. INTERIM FINANCIAL
  INFORMATION</b> </font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  accompanying unaudited financial statements of NVE Corporation are consistent
  with accounting principles generally accepted in the United States and reporting
  with Securities and Exchange Commission (&quot;SEC&quot;) rules and regulations.
  In the opinion of management, these financial statements reflect all adjustments,
  consisting only of normal and recurring adjustments, necessary for a fair presentation
  of the financial statements. Although we believe that the disclosures are adequate
  to make the information presented not misleading, it is suggested that these
  unaudited financial statements be read in conjunction with the audited financial
  statements and the notes included in our latest annual financial statements
  included in our Annual Report on Form 10-K for the fiscal year ended March 31,
  2006. The results of operations for the quarter ended December 31, 2006 are
  not necessarily indicative of the results that may be expected for the quarter
  or full fiscal year ending March 31, 2007. </font>
<p>
<p>
<p><font face="Times New Roman, Times, serif" size="2"><b><br>
  NOTE 3. INVESTMENTS</b> </font>
<p>
<p> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  classify and account for debt and equity securities in accordance with Statement
  of Financial Accounting Standards (SFAS) No. 115, <i>Accounting for Certain
  Investments in Debt and Equity Securities</i>. Securities with original maturities
  greater than three months and remaining maturities less than one year are classified
  as short-term investments; securities with remaining maturities greater than
  one year are classified as long-term investments. </font>
<p>
<p> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  entire portfolio of short-term and long-term investments consists of government-
  and corporate-backed notes and bonds, and is classified as available for sale;
  therefore securities are recorded at fair market value and any associated unrealized
  gain or loss, net of tax, is included as a separate component of shareholders'
  equity, "Accumulated other comprehensive income." </font>
<p>
<p>
<p><font face="Times New Roman, Times, serif" size="2"><br>
<b>NOTE 4. COMPREHENSIVE INCOME</b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  components of comprehensive income are as follows:</font><p>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                                             Quarter Ended December 31
                                               2006             2005
                                           ------------     ------------
</b>Net income                                 $ 1,051,553      $   401,385
Unrealized loss from investments               (13,265)         (19,568)
                                           ------------     ------------
Comprehensive income                       $ 1,038,288      $   381,817
                                           ============     ============


 <b>                                          Nine Months Ended December 31
                                               2006             2005
                                           ------------     ------------
</b>Net income                                 $ 3,226,830      $ 1,178,002
Unrealized gain from investments                37,114            7,906
                                           ------------     ------------
Comprehensive income                       $ 3,263,944      $ 1,185,908
                                           ============     ============
</pre>
    </td>
  </tr>
</table>
<div align="center"><font size="2" face="Times New Roman, Times, serif"><br>
7</font><br>
</div>
<hr><br clear="all" style="page-break-before:always;">
<font face="Times New Roman, Times, serif" size="2"><b>NOTE 5. INVENTORIES</b>
</font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories
  consisted of the following: <br>
  <br>
  </font>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <PRE><b>                             December 31        March 31
                                 2006             2006
                             ------------     ------------
</b>Raw materials                $   778,071      $   703,407
Work-in-process                  843,571          740,578
Finished goods                   772,483          850,784
                             ------------     ------------
                               2,394,125        2,294,769
Less obsolescence reserve       (205,000)        (145,000)
                             ------------     ------------
                             $ 2,189,125      $ 2,149,769
                             ============     ============
</PRE>
    </td>
  </tr>
</table>
<br>
<b> <font face="Times New Roman, Times, serif" size="2">NOTE 6. STOCK-BASED COMPENSATION</font></b>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
  April 1, 2006 we adopted the provisions of, and account for stock-based compensation
  in accordance with, Financial Accounting Standards Board (FASB) Statement of
  Financial Accounting Standards (SFAS) No.&nbsp;123 (revised 2004), <i>Share-Based
  Payment</i>. Under the fair value recognition provisions of SFAS No.&nbsp;123(R),
  we measure stock-based compensation cost at the grant date based on the fair
  value of the award and recognize the compensation expense over the requisite
  service period, which is generally the vesting period. We estimate pre-vesting
  option forfeitures at the time of grant by analyzing historical data and revise
  those estimates in subsequent periods if actual forfeitures differ from those
  estimates. Ultimately, the total expense recognized over the vesting period
  will only be for those awards that vest. We elected the modified-prospective
  method of adopting SFAS No.&nbsp;123(R), under which prior periods are not retroactively
  revised. The valuation provisions of SFAS No. 123(R) apply to awards granted
  after the April 1, 2006 effective date. Stock-based compensation expense for
  awards that were granted prior to the effective date but remain unvested on
  the effective date is being recognized over the remaining service period using
  the compensation cost estimated for our SFAS No.&nbsp;123 pro forma disclosures.
  </font>
<p><br><font face="Times New Roman, Times, serif" size="2"><b>Stock Option Plan</b>
  </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
  2000 Stock Option Plan, as amended, provides for issuance to employees, directors,
  and certain service providers of incentive stock options and nonstatutory stock
  options. Generally, the options may be exercised at any time prior to expiration,
  subject to vesting based on terms of employment. The period ranges from immediate
  vesting to vesting over a five-year period. The options have exercisable lives
  ranging from one year to ten years from the date of grant, and are generally
  not eligible to vest early in the event of retirement, death, disability, or
  change in control. Exercise prices are not less than fair market value of the
  underlying Common Stock at the date the options are granted.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  March 28, 2005, in anticipation of the impact of SFAS No.&nbsp;123(R), the Compensation
  Committee of our Board of Directors approved an immediate and full acceleration
  of vesting of all stock options outstanding under our Stock Option Plan with
  an exercise price greater than $20 per share. As a result of the acceleration,
  out-of-the-money options to purchase 42,125 shares of our Common Stock became
  immediately exercisable as of March 28, 2005.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  January 1, 2006 we terminated our Employee Stock Purchase Plan in anticipation
  of SFAS No.&nbsp;123(R), which we believed otherwise would have required recognizing
  expenses associated with the issuance of shares under SFAS No.&nbsp;123(R).</font>
<p align="center"><font size="2" face="Times New Roman, Times, serif">8</font><br>
<hr><br clear="all" style="page-break-before:always;">
<font face="Times New Roman, Times, serif" size="2"><b>Valuation assumptions</b></font>
<p>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  use the Black-Scholes standard option pricing model to determine the fair value
  of stock options. No options were granted during the quarter ended December
  31, 2006. The following assumptions were used to estimate the fair value of
  options granted during the periods indicated:<br>
  <br>
  </font>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                         Quarters Ended Dec. 31          9 Months Ended Dec. 31
                          2006            2005            2006            2005
                         ------          ------          ------          ------</b>
Risk-free interest rate   n/a             3.9 %           4.9 %           3.9 %
Expected volatility       n/a            83.6 %          80.8 %          85.5 %
Expected life (years)     n/a            10.0             6.5            10.0
Dividend yield            n/a               0 %             0 %             0 %
</pre>
    </td>
  </tr>
</table>

<br>
<font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
determination of the fair value of the awards on the date of grant using the Black-Scholes
model is affected by our stock price as well as assumptions of other variables,
including projected employee stock option exercise behaviors, risk-free interest
rate, and expected volatility of our stock price in future periods. Our estimates
and assumptions affect the amounts reported in the financial statements and accompanying
notes.</font><br>
<p><font face="Times New Roman, Times, serif" size="2"><br>
<b><i>Expected life</i></b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  analyze historical employee exercise and termination data to estimate the expected
  life assumption. We believe historical data currently represents the best estimate
  of the expected life of a new employee option. Prior to adopting SFAS No.&nbsp;123(R),
  we estimated that the expected life was equal to the option term. For determining
  the fair value of options under SFAS No.&nbsp;123(R) we use different expected
  lives for officers and directors than we use for our general employee population.
  We examined the historical pattern of option exercises to determine if there
  was a discernible pattern as to how different classes of employees exercised
  their options. Our analysis showed that officers and directors held their stock
  options for a longer period of time before exercising compared to the rest of
  our employee population.</font>
<p><br>
  <font face="Times New Roman, Times, serif" size="2"><b><i>Risk-free interest
  rate</i></b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  rate is based on the yield of U.S. Treasury securities on the grant date for
  maturities similar to the expected lives of the options. </font>
<p><br>
<font face="Times New Roman, Times, serif" size="2"><b><i>Volatility</i></b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  use historical volatility to estimate the expected volatility of our common
  stock. </font>
<p><br>
<font face="Times New Roman, Times, serif" size="2"><b><i>Dividend yield</i></b>
  </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  assume a dividend yield of zero because we do not anticipate paying dividends
  in the foreseeable future.</font>
<p align="center"><font size="2" face="Times New Roman, Times, serif">9</font><br>
<hr><br clear="all" style="page-break-before:always;">
  <font face="Times New Roman, Times, serif" size="2"><b>Expenses related to share-based
  payments</b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif" size="2">The
  following table shows the effect of our adoption of SFAS No.&nbsp;123(R) on
  our net income and earning per share for the quarter and nine months ended December
  31, 2006. Expenses and costs
  related to share-based payments are presented in the same line or lines as cash
  compensation paid to the same employees. The
  effect of SFAS No.&nbsp;123(R) is included in selling, general, and administrative
  expenses and presented
  in the line titled "Stock-based compensation" on our Statements of Cash Flows:</font>
<p>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                                           Quarter Ended      9 Months Ended
                                           Dec. 31, 2006      Dec. 31, 2006
                                           --------------     --------------
</b>Effect of SFAS No.&nbsp;123(R) on net income           (6,263)           (87,234)

Effect of SFAS No.&nbsp;123(R) on net income
  per share:
    Basic                                  $       (0.00)     $       (0.02)
    Diluted                                $       (0.00)     $       (0.02)</pre>
</td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
  to the adoption of SFAS No.&nbsp;123(R), we presented all tax benefits of deductions
  resulting from the exercise of stock options as operating cash flows in the
  Statement of Cash Flows. SFAS No.&nbsp;123(R) requires the cash flows resulting
  from the tax benefits resulting from tax deductions in excess of the compensation
  cost recognized for those options (excess tax benefits) to be classified as
  financing cash flows.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
  to April 1, 2006 we accounted for our stock-based employee compensation plans
  under the recognition and measurement principles of APB Opinion No.&nbsp;25
  and related interpretations. The following table illustrates the effect on net
  earnings and net earnings per share for the quarter and nine months ended December 31, 2005 if we had applied the fair value recognition provisions of SFAS No.
  123 to our stock-based employee compensation:</font>
<p>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <PRE><b>                                                Quarter Ended
                                                Dec. 31, 2005
                                                --------------
</b>Net income:
  As reported                                   $     401,385
  Pro forma adjustment for stock options              (92,474)
                                                --------------
  Pro forma net income                          $     308,911
                                                ==============
Net income per share:
  Basic - as reported                           $        0.09
  Basic - pro forma                             $        0.07
  Diluted - as reported                         $        0.09
  Diluted - pro forma                           $        0.07

<b>                                                9 Months Ended
                                                Dec. 31, 2005
                                                --------------
</b>Net income:
  As reported                                   $   1,178,002
  Pro forma adjustment for stock options             (207,877)
                                                --------------
  Pro forma net income                          $     970,125
                                                ==============
Net income per share:
  Basic - as reported                           $        0.26
  Basic - pro forma                             $        0.21
  Diluted - as reported                         $        0.25
  Diluted - pro forma                           $        0.21</PRE>
    </td>
  </tr>
</table>
<div align="center"><font size="2" face="Times New Roman, Times, serif"><br>
  10</font> </div>
<hr><br clear="all" style="page-break-before:always;">
<b><font size="2" face="Times New Roman, Times, serif">Tax effects of stock-based
  compensation</font></b>
<p>
<p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
  taxes for the quarter and nine months ended December 31, 2006 increased by $1,903
  and $40,968 due to stock-based compensation.</font>
<p><font size="2" face="Times New Roman, Times, serif"><b><br>
  General stock option information</b></font></p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
  options were issued for the quarter ended December&nbsp;31, 2006. The following
  table summarizes stock option activity during the nine months ended December
  31, 2006:</font> </p>
<p>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                                                 Weighted
                                                 Average
                                   Options       Exercise
                                 Outstanding      Price
                                 -----------     --------
</b>Balance at March 31, 2006           312,130      $ 14.47
Granted                              12,000      $ 20.12
Exercised                           (12,430)     $  2.13
Terminated                             -             -
                                 -----------     --------
Balance at December 31, 2006        311,700      $ 15.18
                                 ===========</pre>
    </td>
  </tr>
</table>
<br>
<p> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
  summary of our nonvested shares as of December 31, 2006, and changes during
  the nine months ended December 31, 2006, is presented below:</font>
<p>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <PRE><b>                                                  Weighted
                                                  Average
                                                 Grant-Date
Nonvested Shares                     Shares      Fair Value
- ---------------------------         --------     ----------
</b>Nonvested at March 31, 2006           3,500       $   6.05
Granted                              12,000       $  20.12
Vested                               (9,250)      $  17.46
Forfeited                              -          $    -
                                    --------     ----------
Nonvested at December 31, 2006        6,250       $  16.18
                                    ========
</PRE>
    </td>
  </tr>
</table>
<font size="2" face="Times New Roman, Times, serif"><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables summarize information concerning
stock options outstanding and exercisable at December 31, 2006: <br>
</font><br>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <PRE><b>                  Options Outstanding                     Options Exercisable
- ------------------------------------------------------   ----------------------
                                            Weighted
                                Weighted    Remaining                  Weighted
                                Average    Contractual                 Average
   Ranges of        Number      Exercise      Life          Number     Exercise
Exercise Prices   Outstanding    Price       (years)     Outstanding    Price
- ---------------   -----------   --------   -----------   -----------   --------
</b>$  0.86 - 10.00       95,950    $  6.25           4.0        94,200    $  6.25
  10.01 - 20.12      165,750      15.53           7.8       161,250      15.40
  21.99 - 58.27       50,000      31.16           7.3        50,000      31.16
- ---------------   -----------   --------   -----------   -----------   --------
                     311,700    $ 15.18           6.5       305,450    $ 15.16
                  ===========                            ===========</PRE>
    </td>
  </tr>
</table>
<div align="center"><font size="2" face="Times New Roman, Times, serif"><br>
  11</font><br>
</div>
<hr><br clear="all" style="page-break-before:always;">
<font face="Times New Roman, Times, serif" size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total intrinsic value of options exercised during the nine months ended December
31, 2006 was $399,989. At December 31, 2006 the total intrinsic value of options
outstanding was $4,946,515 of which $4,855,481 were exercisable. The total intrinsic
value at December 31, 2006 is based on our closing stock price on the last trading
day of the quarter for in-the-money options.</font>
<p><br>
<font face="Times New Roman, Times, serif" size="2"> <b>NOTE 7. INCOME TAXES</b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
  income taxes reflect the net tax effects of temporary differences between the
  carrying amount of assets and liabilities for financial reporting purposes and
  the amounts used for income tax purposes. Under SFAS No. 109, <i>Accounting
  for Income Taxes</i>, stock-based compensation deductions for tax return purposes
  do not reduce taxes reported for book purposes but are credited to &quot;Additional
  paid-in capital.&quot; Tax provisions of $1,821,656 and $668,334 were credited
  to &quot;Additional paid-in capital&quot; for the nine months ended December
  31, 2006 and 2005.</font>
<p><br>
  <font face="Times New Roman, Times, serif" size="2"><b>NOTE 8. CONTINGENCIES</b>
  </font>
<p align="left"><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  February&nbsp;10, 2006 a lawsuit was filed against NVE and certain of its current
  and former executive officers and directors in the U.S. District Court for the
  District of Minnesota by an individual shareholder seeking to represent a class
  of purchasers of our common stock during the period from May&nbsp;22, 2003 through
  February&nbsp;11, 2005. On March&nbsp;6 and March&nbsp;7, 2006, two additional
  lawsuits were filed in the same court by two additional NVE shareholders, with
  the same proposed class period, purporting to represent the same class. These
  lawsuits were subsequently consolidated into a single case and a consolidated
  complaint was filed. The consolidated complaint generally alleges that the defendants
  violated the Securities Exchange Act of 1934 by issuing material misrepresentations
  concerning NVE&#146;s projected revenues and product technology, which artificially
  inflated the market price of our common stock. Two related actions brought by
  individual shareholders who seek to represent NVE derivatively have been filed
  in Hennepin County District Court. These related actions were subsequently consolidated
  into a single case and an amended derivative complaint was filed. The amended
  derivative complaint generally alleges that certain officers and directors violated
  their fiduciary duties to the company. We believe the lawsuits are wholly without
  merit and intend to vigorously defend the actions. We have incurred and expect
  to continue to incur legal expenses related to these lawsuits. Although insurance
  may cover a portion of any judgments, if we do not prevail in these lawsuits
  we may be required to pay substantial amounts which could have a material adverse
  impact on our future results of operation and financial condition.</font>
<p align="center"><font face="Times New Roman, Times, serif" size="2">12</font>
<hr>
<br clear="all" style="page-break-before:always;">
<a name="MDA"></a><font face="Times New Roman, Times, serif" size="2"><b>Item 2. Management's
  Discussion and Analysis of Financial Condition and Results of Operation.</b>
  </font>
<p>
<p>
<p><font face="Times New Roman, Times, serif" size="2"><b>Forward-looking statements</b>
  </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
  of the statements made in this Report or in the documents incorporated by reference
  in this Report and in other materials filed or to be filed by us with the Securities
  and Exchange Commission as well as information included in verbal or written
  statements made by us constitute forward-looking statements within the meaning
  of the Private Securities Litigation Reform Act of 1995. These statements are
  subject to the safe harbor provisions of the reform act. Forward-looking statements
  may be identified by the use of the terminology such as may, will, expect, anticipate,
  intend, believe, estimate, should, or continue, or the negatives of these terms
  or other variations on these words or comparable terminology. To the extent
  that this Report contains forward-looking statements regarding the financial
  condition, operating results, business prospects or any other aspect of NVE,
  you should be aware that our actual financial condition, operating results and
  business performance may differ materially from that projected or estimated
  by us in the forward-looking statements. We have attempted to identify, in context,
  some of the factors that we currently believe may cause actual future experience
  and results to differ from their current expectations. These differences may
  be caused by a variety of factors, including but not limited to competition
  including entry of new competitors, variations in costs that are beyond our
  control, adverse federal, state and local government regulations, unexpected
  costs, lower sales and net income or higher net losses than forecasted, our
  dependence on significant suppliers, our ability to meet stringent customer
  technical requirements, our ability to consummate additional license agreements,
  our ability to continue eligibility for SBIR awards, failure to obtain new customers,
  the possible fluctuation and volatility of our operating results and financial
  condition, inability to carry out marketing and sales plans, loss of key executives,
  and other specific risks that may be alluded to in this Report or in the documents
  incorporated by reference in this report. Further information regarding our
  risks and uncertainties, are contained in Item 1A &quot;Risk Factors&quot;of
  our Annual Report on Form&nbsp;10-K for the year ended March&nbsp;31,&nbsp;2006
  and Part II Item 1A of our Quarterly Reports on Forms 10-Q.</font>
<p><br>
  <font face="Times New Roman, Times, serif" size="2"><b>General</b> </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  develop, manufacture, and sell devices using "spintronics," a nanotechnology
  we helped pioneer, which utilizes electron spin rather than electron charge
  to acquire, store and transmit information. We are a licensor of spintronic
  magnetic random access memory technology, commonly referred to as MRAM, which
  we believe has the potential to revolutionize electronic memory. We also manufacture
  high-performance spintronic products including sensors and couplers to revolutionize
  data sensing and transmission.</font>
<p align="center"><font size="2" face="Times New Roman, Times, serif">13</font><br>
<hr> <br clear="all" style="page-break-before:always;">
<font face="Times New Roman, Times, serif" size="2"><b>Quarter ended December 31, 2006 compared to quarter ended December 31,&nbsp;2005</b> </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  table below summarizes certain summary information for various items for the
  periods indicated:</font><br>
  <br>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <PRE><b>                                      Percentage of Revenue             Period-
                                    Quarter Ended December 31          to-Period
                                     2006              2005             Change
                                   --------          --------          ---------
</b>Revenue
  Product sales                      88.1 %            66.7 %             95.3 %
  Research and development           11.9 %            33.3 %            (47.1)%
                                   --------          --------
Total revenue                       100.0 %           100.0 %             48.0 %
Cost of sales                        35.9 %            50.1 %
                                   --------          --------
Gross profit                         64.1 %            49.9 %

Total expenses                       26.5 %            29.8 %             31.8 %
                                   --------          --------
Income from operations               37.6 %            20.1 %            176.9 %
Net interest and other income         4.1 %             3.5 %             74.9 %
                                   --------          --------
Income before taxes                  41.7 %            23.6 %            161.9 %
Provision for income taxes           14.5 %             8.2 %            161.9 %
                                   --------          --------
Net income                           27.2 %            15.4 %            162.0 %
                                   ========          ========
</PRE>
    </td>
  </tr>
</table>
<font face="Times New Roman, Times, serif" size="2"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue for the quarter ended December 31,
2006 (the third quarter of fiscal 2007) was $3,862,049, an increase of 48% from
$2,610,282 for the quarter ended December 31, 2005 (the third quarter of fiscal
2006). The increase was due to a 95% increase in product sales to $3,402,937 from
$1,742,163, partially offset by a 47% decrease in contract research and development
revenue to $459,112 from $868,119. The increase in product sales was due to increased
sales of both spintronic sensors and spintronic couplers. The decrease in contract
research and development revenue was due to shifts to company-funded research
from contract-funded research and a decrease in U.S. Government contract awards
to us.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
  profit margin increased to 64% of revenue for the third quarter of fiscal 2007
  from 50% for the same quarter of fiscal 2006. The increase was due to higher
  product margins and a more profitable revenue mix consisting of 88% product
  sales versus 67% in the prior-year quarter.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
  and development expense increased 59% to $544,779 for the quarter ended December
  31, 2006 compared to $342,616 for the quarter ended December 31, 2005. The increase
  was due to efforts to develop new and improved products and a shift to company-funded
  research from contract-funded research.</font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
  general and administrative expenses for the quarter ended December 31, 2006
  increased 10% to $479,387 compared to $434,183 for the quarter ended December
  31, 2005. The increase was primarily due to expenses related to Sarbanes-Oxley
  Section 404 compliance matters. Expenses related to Sarbanes-Oxley Section 404
  were approximately $58,000 in the quarter. We had no such expenses in the prior-year
  quarter. </font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
  and other income increased 75% to $157,337 for the quarter ended December 31,
  2006 from $89,933 for the quarter ended December 31, 2005. The increase was
  due to a higher average interest rate as well as an increase in interest-bearing
  investments, which were purchased primarily with cash generated from operations.</font></p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  income totaled $1,051,553 for the quarter ended December 31, 2006, an increase
  of 162% compared to $401,385 for the quarter ended December 31, 2005. The increase
  in net income was primarily due to increases in revenue and gross profit, partially
  offset by increases in expenses and provision for income taxes.</font>
<p align="center"><font face="Times New Roman, Times, serif" size="2">14</font><br>
<hr> <br clear="all" style="page-break-before:always;">
<font face="Times New Roman, Times, serif" size="2"><b>Nine months ended December
31, 2006 compared to nine months ended December 31, 2005</b></font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  table below summarizes certain summary information for various items for the
  periods indicated:</font><br>
  <br>
<table border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <pre><b>                                     Percentage of Revenue              Period-
                                   Nine Months Ended Dec. 31           to-Period
                                     2006              2005             Change
                                   --------          --------          ---------
</b>Revenue
  Product sales                      86.0 %            63.9 %             84.4 %
  Research and development           14.0 %            36.1 %            (47.1)%
                                   --------          --------
Total revenue                       100.0 %           100.0 %             36.9 %
Cost of sales                        35.5 %            53.2 %
                                   --------          --------
Gross profit                         64.5 %            46.8 %             88.5 %

Total expenses                       25.8 %            28.5 %             23.7 %
                                   --------          --------
Income from operations               38.7 %            18.3 %            189.1 %
Net interest and other income         3.7 %             3.1 %             65.3 %
                                   --------          --------
Income before taxes                  42.4 %            21.4 %            171.3 %
Provision for income taxes           15.3 %             7.9 %            166.7 %
                                   --------          --------
Net income                           27.1 %            13.5 %            173.9 %
                                   ========          ========
</pre>
    </td>
  </tr>
</table>
<p><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  revenue for the nine months ended December 31, 2006 was $11,895,612, an increase
  of 37% from revenue of $8,687,752, for the nine months ended December 31, 2005.
  The increase was due to an 84% increase in product sales to $10,233,325 from
  $5,548,085, partially offset by a 47% decrease in contract research and development
  revenue to $1,662,287 from $3,139,667. The increase in product sales was due
  to increased sales of both spintronic sensors and spintronic couplers. The decrease
  in contract research and development revenue was due to shifts to company-funded
  research from contract-funded research and a decrease in U.S. Government contract
  awards to us.</font></p>
<p><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
  profit margin increased to 64% for the first nine months of fiscal 2007 from
  47% for the first nine months of fiscal 2006. The increase was due to a more
  profitable revenue mix consisting of a higher percentage of product sales, and
  increased product margins. Increased product margins were due to price increases
  for calendar 2006 and deployment of lower-cost coupler designs.</font></p>
<p>
<p><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
  and development expenses increased 33% to $1,641,637
  for the nine months ended December 31, 2006 compared to $1,237,355 for the nine
  months ended December 31, 2005. The increase was due to efforts to develop new
  and improved products and a shift to company-funded research from contract-funded
  research.</font> </p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
  general and administrative expenses for the nine months ended December 31, 2006
  increased 14% to $1,421,332 compared to $1,238,757 for the nine months ended
  December 31, 2005. The increase was primarily due to expenses of approximately
  $58,000 related to Sarbanes-Oxley Section 404 compliance matters and a $128,203
  non-cash expense recognized under SFAS No.&nbsp;123(R). </font></p>
<p><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
  and other income increased 65% to $443,340 for the nine months ended December
  31, 2006 from $268,189 for the nine months ended December 31, 2005. The increase
  was primarily due to a higher average interest rate as well as an increase in
  interest-bearing investments, which were purchased primarily with cash generated
  from operations.</font></p>
<p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  income totaled $3,226,830 for the nine months ended December 31, 2006 compared
  to $1,178,002 for the nine months ended December 31, 2005. The increase in net
  income was primarily due to increases in revenue and gross profit, partially
  offset by increases in expenses and provision for income taxes.</font></p>
<p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted
  net income per share increased to $0.67 for the nine months ended December 31,
  2006 from $0.25 for the nine months ended December 31, 2005. The
  effect of SFAS No.&nbsp;123(R) was to reduce diluted net income per share by
  $0.02 for the nine months ended December 31, 2006.</font>
<p align="center"><font face="Times New Roman, Times, serif" size="2">15</font><br>

<hr><br clear="all" style="page-break-before:always;">
<font face="Times New Roman, Times, serif" size="2"> <b>Liquidity and capital
resources</b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
  December 31,&nbsp;2006 we had $15,972,518 in cash plus investments compared
  to $10,891,326 at March&nbsp;31,&nbsp;2006. Our entire portfolio of short-term
  and long-term investments is classified as available for sale. The increase
  in cash plus investments was primarily due to cash generated from operations,
  partially offset by purchases of fixed assets in the first nine months of fiscal
  2007 and payments of capital lease obligations in the first quarter of fiscal
  2007. </font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
  receivable increased to $1,907,637 at December
  31, 2006 from $1,667,029 at March&nbsp;31, 2006. The increase was due to increased
  revenue and the timing of payments under research and development contracts.</font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  had no deferred revenue at December 31, 2006, compared to $77,373 at March&nbsp;31,
  2006. The elimination of deferred revenue was due to our satisfaction of the
  obligations related to a particular government contract and the satisfaction
  during the nine months ended December 31, 2006 of our remaining $4,863 in obligations
  under a prepayment under our 2001 agreement, as amended, with Agilent Technologies,
  Inc.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  completely retired our capital lease obligations in June 2006, eliminating all
  of our debt. Capital lease obligations were $33,281 at March&nbsp;31, 2006.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  made capital expenditures of $252,604 in the nine months ended December 31,
  2006, primarily for equipment to increase our capabilities for the testing and
  processing of very small components that we sell. We evaluate capital investments
  as needs and opportunities arise so our capital expenditures could deviate significantly
  from our expectations. We will likely fund future capital expenditures from
  operating profits or our cash and cash equivalents.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  believe our working capital is adequate for our needs at least for the next
  12 months.</font>
<p>
<p>
<p><font face="Times New Roman, Times, serif" size="2"><b><br>
  Our outlook</b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory
  levels industry-wide are high by some metrics, and this could tend to reduce
  our product sales in the first half of calendar 2007 if stocking distributors
  reduce their purchases to reduce their inventories. Contract research and development
  revenue will likely continue to decrease in the fourth quarter of fiscal 2007
  compared to the prior year due to more limited Government research funds, our
  ongoing shift in emphasis from contract-funded to company-funded research, particularly
  new product development, and our ongoing focus of contract research on certain
  strategic areas.</font>
<p align="center"><font face="Times New Roman, Times, serif" size="2">16<br>
  </font>
<hr> <br clear="all" style="page-break-before:always;">
<a name="MarketRisk"></a><font face="Times New Roman, Times, serif" size="2"><b>Item
  3. Quantitative and Qualitative Disclosures About Market Risk.</b></font>
<p>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  primary objective of our investment activities is to preserve principal while
  at the same time maximizing yields without significantly increasing risk. To
  achieve this objective, we maintain our portfolio of cash equivalents, short-term
  and long-term investments in a variety of securities, including government obligations,
  corporate obligations, and money market funds. Short-term and long-term marketable
  securities are generally classified as available-for sale-and consequently are
  recorded on the balance sheet at fair value with unrealized gains or losses
  reported as a separate component of accumulated other comprehensive income (loss),
  net of estimated tax. Our investments as of December 31, 2006 had remaining
  maturities between three and 59 months. Available-for-sale securities had a
  market value of $15,549,236 at December 31, 2006, representing approximately 67% of our total assets. </font></p>
<p>
<br>
<p><a name="Controls"></a><font face="Times New Roman, Times, serif" size="2"><b>Item
  4. Controls and Procedures.</b></font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
  maintain disclosure controls and procedures designed to ensure that information
  required to be disclosed in our Securities Exchange Act of 1934 (the "Exchange
  Act") reports is recorded, processed, summarized and reported within the time
  periods specified in the SEC's rules and forms and that such information is
  accumulated and communicated to our management, including our Chief Executive
  Officer and Chief Financial Officer, as appropriate, to allow for timely decisions
  regarding required disclosure. In designing and evaluating the disclosure controls
  and procedures, we recognize that any controls and procedures, no matter how
  well designed and operated, can provide only reasonable assurance of achieving
  the desired control objectives, and we are required to apply judgment in evaluating
  the cost-benefit relationship of possible controls and procedures.</font>
<p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  of the end of the period covered by this Report, we conducted an evaluation,
  under the supervision and with the participation of our principal executive
  officer and principal financial officer, of our disclosure controls and procedures
  (as defined in Rules&nbsp;13a-15(e) and 15d-15(e) under the Exchange Act). Based
  on this evaluation, our principal executive officer and principal financial
  officer concluded that our disclosure controls and procedures are effective
  to ensure that information required to be disclosed by us in reports that we
  file or submit under the Exchange Act is (i) recorded, processed, summarized
  and reported within the time periods specified in SEC rules and forms; and (ii)
  is accumulated and communicated to  our management, including our Chief Executive
  Officer and Chief Financial Officer, as appropriate, to allow for timely decisions
  regarding required disclosure. There was no change in our internal control over
  financial reporting during our most recently completed fiscal quarter that has
  materially affected, or is reasonably likely to materially affect, our internal
  control over financial reporting.</font>
<p align="center"><font face="Times New Roman, Times, serif" size="2">17<br>
  </font>
<hr><br clear="all" style="page-break-before:always;">
<div align="center"><a name="Part2"></a>
  <font size="2" face="Times New Roman, Times, serif"><b>PART II--OTHER INFORMATION</b></font>
</div>
<p><a name="Legal"></a><font face="Times New Roman, Times, serif" size="2"><b>Item
  1. Legal Proceedings.</b></font>
<p> <font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;See Item 1A for information regarding legal proceedings.</font>
<p><br>
  <a name="Risks"></a><font face="Times New Roman, Times, serif" size="2"><b>Item
  1A. Risk Factors.</b> </font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;</font><font face="Times New Roman, Times, serif" size="2">Other than
  with respect to the risk factors below, there have been no material changes
  from the risk factors disclosed in our Annual Report on Form 10-K for the fiscal
  year ended March 31, 2006 as updated in Item 1A of our Quarterly Report on Form
  10-Q for the quarter ended September 30, 2006. The risk factors below were disclosed
  on the Form 10-K and updated in Item 1A of our Quarterly Report on Form 10-Q
  for the quarter ended September 30, 2006. It is being updated in light of incursion
  of expenses in order to comply with the requirements of Section&nbsp;404 of
  the Sarbanes-Oxley Act of 2002 and the consolidation of derivative actions filed
  in Hennepin County District Court related to class action litigation during
  the quarter covered by this Report.</font>
<p><br>
  <font face="Times New Roman, Times, serif" size="2"><b><i>While we believe
  that we currently have adequate internal control over financial reporting in
  place, in the future we expect our management will be required to evaluate our
  internal control over financial reporting under Section&nbsp;404 of the Sarbanes-Oxley
  Act of 2002 and any adverse results from such evaluation could result in a loss
  of investor confidence in our financial reports and have an adverse affect on
  our financial results and the market price of our common stock.</i></b></font>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  required by Section&nbsp;404 of the Sarbanes-Oxley Act of 2002, the SEC adopted
  rules&nbsp;requiring each public company to include a management report assessing
  the effectiveness of its internal control over financial reporting in Annual
  Reports on Form&nbsp;10-KSB or 10-K, and the independent registered public accounting
  firm auditing such company&#146;s financial statements must attest to and report
  on management&#146;s assessment of the effectiveness of the internal control
  over financial reporting. We expect this requirement to apply to our Annual
  Report for the fiscal year ending March&nbsp;31, 2007 because we appear to have
  met the criteria for being an &#147;Accelerated Filer&#148; as of September&nbsp;30,
  2006. Under current regulations we will also be required to comply with Section&nbsp;404
  in our Annual Report for the fiscal year ending March&nbsp;31, 2008. While we
  currently anticipate being able to fully implement the requirements relating
  to compliance with Section&nbsp;404 in a timely fashion, we cannot be certain
  as to the timing of completion of our evaluation, testing and remediation actions
  or the impact of such activities on our operations due in large part to the
  lack of precedent available by which to measure compliance with such requirements.
  We have incurred significant expenses in order to comply with the requirements and could incur significant
  additional expenses. If we are not able to implement the requirements
  of Section&nbsp;404 in a timely manner or with adequate compliance, investors
  could lose confidence in the reliability of our financial statements, which
  could result in a decrease in the market price of our common stock. In addition,
  to the extent we or our independent registered public accounting firm identify
  a significant deficiency in our internal control over financial reporting, the
  resources and costs required to remediate such deficiency could have a material
  adverse impact on our future results of operations.</font></p>
<p><font face="Times New Roman, Times, serif" size="2"><b><i>We
  are presently involved in class action litigation.</i></b></font> </p>
<p><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  February&nbsp;10, 2006 a lawsuit was filed against NVE and certain of its current
  and former executive officers and directors in the U.S. District Court for the
  District of Minnesota by an individual shareholder seeking to represent a class
  of purchasers of our common stock during the period from May&nbsp;22, 2003 through
  February&nbsp;11, 2005. On March&nbsp;6 and March&nbsp;7, 2006, two additional
  lawsuits were filed in the same court by two additional NVE shareholders, with
  the same proposed class period, purporting to represent the same class. These
  lawsuits were subsequently consolidated into a single case and a consolidated
  complaint was filed. The consolidated complaint generally alleges that the defendants
  violated the Securities Exchange Act of 1934 by issuing material misrepresentations
  concerning NVE&#146;s projected revenues and product technology, which artificially
  inflated the market price of our common stock. Two related actions brought by
  individual shareholders who seek to represent NVE derivatively have been filed
  in Hennepin County District Court. These related actions
  were subsequently consolidated into a single case and an amended derivative
  complaint was filed. The amended derivative complaint generally alleges
  that certain officers and directors violated their fiduciary duties to the company.
  We believe the lawsuits are wholly without merit and intend to vigorously defend
  the actions. We have incurred and expect to continue to incur legal expenses
  related to these lawsuits. Although insurance may cover a portion of any judgments,
  if we do not prevail in these lawsuits we may be required to pay substantial
  amounts which could have a material adverse impact on our future results of
  operation and financial condition.</font>
<p align="center"><font face="Times New Roman, Times, serif" size="2">18</font><br>
<hr><br clear="all" style="page-break-before:always;">
<a name="Exhibits"></a><font face="Times New Roman, Times, serif" size="2"><b>Item
6. Exhibits.</b></font> <br>
  <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><u>Exhibit
        #</u></b></font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2"><b><u>Description</u></b></font></div>
    </td>
  </tr>
  <tr>
    <td width="8%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="8%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">31.1</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">
        Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a).
        </font></div>
    </td>
  </tr>
  <tr>
    <td width="8%">
      <div align="center"></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"></div>
    </td>
  </tr>
  <tr>
    <td width="8%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">31.2</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">
        Certification by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a).</font></div>
    </td>
  </tr>
  <tr>
    <td width="8%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td width="8%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">32</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="2">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font face="Times New Roman, Times, serif" size="2">Certification
        by Daniel A. Baker and Curt A. Reynders pursuant to 18 U.S.C. Section
        1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
        2002.</font></div>
    </td>
  </tr>
</table>
<p><br><br><p align="center">
  <a name="Signatures"></a><font face="Times New Roman, Times, serif" size="2"><b>SIGNATURES</b></font>
<p><font face="Times New Roman, Times, serif" size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.</font></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr>
    <td width="25%">
      <p align="center"><font size="2" face="Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
    </td>
    <td>
      <p align="left"><font size="2" face="Times New Roman, Times, serif"><b><u>NVE
        CORPORATION</u></b></font></p>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <p align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></p>
    </td>
    <td>
      <p align="left"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</font></p>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b><u>January
        17, 2007</u></b></font></div>
    </td>
    <td>
      <div align="left"><font size="2" face="Times New Roman, Times, serif"><u>/s/
        DANIEL A. BAKER&nbsp;</u></font></div>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">Date</font></div>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Signature)</font></td>
  </tr>
  <tr>
    <td width="25%">
          </td>
    <td>
      <div align="left"><font size="2" face="Times New Roman, Times, serif"> Daniel
        A. Baker</font></div>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif">President and Chief
      Executive Officer</font></td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><b><u>January
        17, 2007</u></b></font></div>
    </td>
    <td>
      <div align="left"><font size="2" face="Times New Roman, Times, serif"><u>/s/
        CURT A. REYNDERS&nbsp;</u></font></div>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">Date</font></div>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Signature)</font></td>
  </tr>
  <tr>
    <td>
    </td>
    <td>
      <div align="left"><font size="2" face="Times New Roman, Times, serif">Curt
        A. Reynders</font></div>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div>
    </td>
    <td><font size="2" face="Times New Roman, Times, serif"> Chief Financial Officer</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<div align="center"><font size="2" face="Times New Roman, Times, serif">19</font></div>
<hr>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex31-dab.htm
<DESCRIPTION>CERTIFICATION BY DANIEL A. BAKER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>

<div style="font-family:Times New Roman;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
    31.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CERTIFICATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Daniel A. Baker, certify that:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The registrant&#146;s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the registrant and have:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Evaluated the effectiveness of the
registrant&#146;s disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such
evaluation; and</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Disclosed in this report any change
in the registrant&#146;s internal control over financial reporting that occurred
during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth
fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant&#146;s internal control
over financial reporting; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The registrant&#146;s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing
the equivalent functions):</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial
information; and</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any fraud, whether or not material,
that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
          January 17, 2007</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:19.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DANIEL A.
  BAKER</font></p>
  </td>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Daniel A. Baker</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and
  Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="2" width="100%" noshade color="gray" align="left"></div>

</div>
</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31-car.htm
<DESCRIPTION>CERTIFICATION BY CURT A. REYNDERS PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>

<div style="font-family:Times New Roman;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
    31.2</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CERTIFICATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Curt A. Reynders, certify that:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The registrant&#146;s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the registrant and have:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Evaluated the effectiveness of the
registrant&#146;s disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such
evaluation; and</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Disclosed in this report any change
in the registrant&#146;s internal control over financial reporting that occurred
during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth
fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant&#146;s internal control
over financial reporting; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The registrant&#146;s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing
the equivalent functions):</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial
information; and</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any fraud, whether or not material,
that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    January 17, 2007</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="20%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:20.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ CURT A.
  REYNDERS</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0in 0in 0in 0in;width:25.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt A. Reynders</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="2" width="100%" noshade color="gray" align="left"></div>

</div>
</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>ex32.htm
<DESCRIPTION>CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
<TEXT>

<div style="font-family:Times New Roman;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
    32</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CERTIFICATION PURSUANT TO SECTION 906</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C.
SECTION 1350)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned certify pursuant to
18 U.S.C. Section 1350, that to the undersigned&#146;s knowledge:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>The accompanying Quarterly Report of NVE Corporation (the &#147;Company&#148;)
    on Form 10-Q for the quarter ended December 31, 2006, fully complies with
    the requirements of Section 13(a) or 15(d) of the Securities Exchange Act
    of 1934; and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The information contained in the
Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    January 17, 2007</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="19%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:19.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DANIEL A.
  BAKER</font></p>
  </td>
  <td width="80%" valign="top" style="padding:0in 0in 0in 0in;width:80.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Daniel A. Baker</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and
  Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="20%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:20.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ CURT A.
  REYNDERS</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in 0in 0in 0in;width:79.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt A. Reynders</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A signed original of this written
statement required by Section 906 has been provided to the Company and will be
retained by the Company and furnished to the Securities and Exchange Commission
or its staff upon request.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="2" width="100%" noshade color="gray" align="left"></div>

</div>
</body>

</html>
</TEXT>
</DOCUMENT>
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<TYPE>GRAPHIC
<SEQUENCE>5
<FILENAME>nve-logo.gif
<DESCRIPTION>NVE CORPORATION LOGO
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end
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-----END PRIVACY-ENHANCED MESSAGE-----
