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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000724910-08-000004.txt : 20080502
<SEC-HEADER>0000724910-08-000004.hdr.sgml : 20080502
<ACCEPTANCE-DATETIME>20080318104627
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000724910-08-000004
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20080318

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:		CORRESP

	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>
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<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>
<hr color="#225EAC" noshade size="1">
<table width="100%" border="0" cellspacing="00" cellpadding="0">
  <tr>
    <td><img src="sml-logo.gif" width="102" height="29"></td>
    <td>
      <div align="right"><font size="1" face="Arial, Helvetica, sans-serif">11409 Valley View Road, Eden Prairie, MN 55344-3617<br>Phone: 952.829.9217<br>www.nve.com</font></div>
    </td>
  </tr>
</table>
<hr color="#225EAC" noshade size="1">
<div align="center"><font face="Times New Roman, Times, serif" size="3"><br><br><b>Via EDGAR and Federal Express</b><br>
  <br>
  <br>
</font></div>
<font face="Times New Roman, Times, serif" size="3">March 18</font>, 2008
<p><font face="Times New Roman, Times, serif" size="3"><br>
  Mr. Jay Web<br>
  Division of Corporate Finance<br>
  Mail Stop 6010<br>
  United States Securities and Exchange Commission<br>
  100 F Street N.E.<br>
  Washington, DC 20549<br>
  <br>
  <br>
</font>
<table border="0" cellspacing="00" cellpadding="0">
  <tr>
    <td valign="top" width="1%"><font face="Times New Roman, Times, serif" size="3"><b>SUBJ:</b>&nbsp;&nbsp;</font></td>
    <td>
      <p><font face="Times New Roman, Times, serif" size="3">NVE Corporation<br>
        Form 10&#8209;K for the year ended March 31, 2007<br>
        Filed May 25, 2007<br>
        Form 10&#8209;Q for the quarter ended December 31, 2007<br>
        Filed January 23, 2008<br>
        File No. 000&#8209;12196</font>
    </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif" size="3"> </font><font face="Times New Roman, Times, serif" size="3"><br>
  Dear Mr. Web,</font>
<p><font face="Times New Roman, Times, serif" size="3">This is in response to your March 10 letter.<br>
  <br>
  <br>
  <b><u>Form 10&#8209;K for the year ended March 31, 2007</u></b></font>
<p><u><b><font face="Times New Roman, Times, serif" size="3">Item 7. Management&#146;s
  Discussion and Analysis of Financial Condition and Results of Operations, page
  16</font></b></u>
<p><u><b><font face="Times New Roman, Times, serif" size="3">Inventory Reserves
  Estimation, page 16</font></b></u>
<p><b><font face="Times New Roman, Times, serif" size="3">COMMENT 1. Please refer
  to our prior comment 1. You responded that your inventory reserve is for potentially
  excess and slow-moving inventory, not for lower-of-cost-or-market write-downs.
  Note that in accounting for inventories, a loss should be recognized whenever
  the utility of goods is impaired by damage, deterioration, obsolescence, changes
  in price levels, or other causes. The <i>measurement of such losses</i> is accomplished
  by applying the rule of pricing inventories at cost or market, whichever is
  lower. Refer to Chapter&nbsp;4, paragraph&nbsp;8 of ARB&nbsp;43 and explain
  to us why your inventory valuation accounting is not for lower of cost or market.
  Also explain to us your inventory valuation accounting in greater detail and
  why your accounting is in accordance with U.S. GAAP. Please cite the applicable
  U.S. GAAP that supports your conclusions.</font></b>
<p><font face="Times New Roman, Times, serif" size="3">&nbsp;</font>
<hr><br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman, Times, serif" size="3">RESPONSE 1.</font> Our
  inventory accounting is in accordance with Chapter&nbsp;4, Paragraph&nbsp;8 of ARB&nbsp;43
  because in certain situations we have reduced the carrying cost of inventory
  to the selling price when market conditions demand that. More commonly, as part
  of our normal processes we examine our inventory in the context of sales trends,
  turnover, competition and other market factors and record a provision to the
  inventory reserve when we determine that such trends indicate that certain inventory
  exceeds our customers&#146; demands, leading us to conclude that some portion is
  unlikely to be sold. The reserve is released at the time the related parts are
  sold or written off, resulting in balance sheet only entries. As a result, our
  policy complies with SAB Topic 5BB, and is in accordance with U.S. GAAP.
<p><br>
  <font face="Times New Roman, Times, serif" size="3"></font> <font size="3" face="Times New Roman, Times, serif"><u><b>Form
  10&#8209;Q for the quarter ended December 31, 2007</b></u></font>
<p><font size="3" face="Times New Roman, Times, serif"><b><u>Note 4. Marketable
  Securities, page 8</u></b></font>
<p><b><font size="3" face="Times New Roman, Times, serif">COMMENT 2. Please refer
  to our prior comment 4. Please refer to paragraph&nbsp;17 of FSP Nos.&nbsp;FAS
  115&#8209;1 and FAS 124&#8209;1 and disclose all information required under
  that paragraph, <i>if applicable</i>, in your future filings.</font></b>
<p><font face="Times New Roman, Times, serif" size="3">RESPONSE 2. If applicable,
  we will disclose all of the information required under paragraph&nbsp;17 of
  FSP&nbsp;Nos. FAS 115&#8209;1 and FAS 124&#8209;1 in our future filings.</font>
<p><font face="Times New Roman, Times, serif" size="3">Please call Daniel Baker
  or me at 952-829-9217 with any questions.<br>
  <br>
  Sincerely,<br>
  NVE CORPORATION</font>
<p><font face="Times New Roman, Times, serif" size="3">/s/ CURT A. REYNDERS<br>
Curt A. Reynders<br>
Chief Financial Officer<br>
<br>
<br>
<br>
  cc:&nbsp;&nbsp;Daniel A. Baker, Ph.D.; President & CEO</font>
<p align="center"><font face="Times New Roman, Times, serif" size="3">2</font>
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