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<SEC-DOCUMENT>0000724910-10-000016.txt : 20100721
<SEC-HEADER>0000724910-10-000016.hdr.sgml : 20100721
<ACCEPTANCE-DATETIME>20100721161222
ACCESSION NUMBER:		0000724910-10-000016
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20100630
FILED AS OF DATE:		20100721
DATE AS OF CHANGE:		20100721

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:		10962506

	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>q1q11.htm
<DESCRIPTION>QUARTERLY REPORT FOR THE PERIOD ENDED JUNE 30, 2010
<TEXT>
<html>
<pre><font style="font-size: 10pt; font-family: Times New Roman">&nbsp;</font> </pre><p align="center"><b><font face="Times New Roman" size="5">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font><font style="font-size: 10pt; font-family: Times New Roman"><br>
Washington, D.C.&nbsp;&nbsp;20549</font></b>
<p align="center"><b><font face="Times New Roman" size="5">FORM 10-Q</font></b>
<p align="left"><font style="font-size: 8pt; font-family: Times New Roman">(Mark One)</font><br>
<font style="font-size: 10pt; font-family: Times New Roman">[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>June 30, 2010</u></b><br>
<div align="center">or</div>[&nbsp;&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><br>
<br>
<br>
</font>
<div align="center"><img src="nve-logo.gif" width="276" height="54" alt="NVE Logo"><br>
<b><font style="font-size: 22pt; font-family: Arial; Helvetica; sans-serif;">NVE CORPORATION</font></b><br>
<font style="font-size: 10pt; font-family: Times New Roman">(Exact name of registrant
as specified in its charter)</font></div><font style="font-size: 10pt; font-family: Times New Roman"><br>
&nbsp;</font>
<table style="font-size: 10pt; font-family: Times New Roman" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr align="center">
<td width="48%">
<b><u>Minnesota</u></b></td><td>&nbsp;</td><td width="48%">
<b><u>41-1424202</u></b>
</td></tr>
<tr align="center">
<td>(State or other jurisdiction of incorporation or organization)
</td><td>&nbsp;</td><td>(I.R.S. Employer Identification No.)
</td></tr>
<tr>
<td colspan="3">&nbsp;</td></tr>
<tr align="center">
<td>
<b><u>11409 Valley View Road, Eden Prairie, Minnesota</u></b>
</td><td>&nbsp;</td><td>
<b><u>55344</u></b>
</td></tr>
<tr align="center">
<td>
(Address of principal executive offices)
</td><td>&nbsp;</td><td>(Zip Code)
</td></tr>
<tr>
<td colspan="3">&nbsp;</td></tr>
<tr>
<td colspan="3" align="center">&nbsp;<b><u>(952) 829-9217</u></b>&nbsp;
</td></tr>
<tr>
<td colspan="3" align="center">(Registrant&#146;s telephone number, including area code)
</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indicate by check mark whether the registrant
(1)&nbsp;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)&nbsp;has been subject to such filing requirements for the past 90 days.
<div align="right">[X]&nbsp;Yes&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;No</div><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12
months (or for such shorter period that the registrant was required to submit and post such files).
<br>
<div align="right">[&nbsp;&nbsp;&nbsp;]&nbsp;Yes&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;No<br>
<br>
</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, a non-accelerated filer, or a smaller reporting company.
See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated
filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange
Act.</font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="70%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Large accelerated filer [&nbsp;&nbsp;&nbsp;]</td><td>Accelerated filer [X]</td></tr>
<tr>
<td>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Non-accelerated&nbsp;filer&nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;(Do&nbsp;not&nbsp;check&nbsp;if&nbsp;a&nbsp;smaller&nbsp;reporting&nbsp;company)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>Smaller reporting company [&nbsp;&nbsp;&nbsp;]</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
&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;]&nbsp;Yes&nbsp;&nbsp;[X]&nbsp;No<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
the number of shares outstanding of each of the issuer&#146;s classes of common
stock, as of the latest practicable date.<br>
<b>Common Stock, $0.01 Par Value &#150; 4,700,583 shares outstanding as of July
16, 2010<br>
</b><br>
</font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman">&nbsp;<a href="#TOC"></a><a name="TOC"></a><br>
<div align="center"><b>NVE CORPORATION<br>
QUARTERLY REPORT ON FORM 10-Q<br>
TABLE OF CONTENTS</b></div><br>
<br>
<br>
<a href="#Part1"><b>PART I. FINANCIAL INFORMATION</b></a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Item 1. Financial Statements</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Balance Sheets</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#QIncome">Statements
of Income</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#CashFlows">Statements of Cash Flows</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Notes">Notes to Financial Statements</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MDA">Item 2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MarketRisk">Item 3. Quantitative and Qualitative Disclosures About Market Risk</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Controls">Item 4. Controls and Procedures</a><br>
<br>
<a href="#Part2"><b>PART II. OTHER INFORMATION</b></a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Risks">Item 1A. Risk Factors</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Exhibits">Item 6. Exhibits</a><br>
<br>
<a href="#Signatures"><b>SIGNATURES</b></a><br>
<br>
<br>
<div align="center"><br>2</div></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="Part1"></a>
<br>
<br>
<div align="center">PART I&#150;FINANCIAL INFORMATION</div><br><br>Item 1. Financial Statements.
<div align="center">NVE CORPORATION<br>
BALANCE SHEETS<br>
&nbsp;<br>
</div></b></font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td></td><td style="border-bottom: 1px solid black;" colspan="3" valign="bottom" align="center"><b>(Unaudited)<br>
June 30, 2010</b></td><td width="2%"></td><td style="border-bottom: 1px solid black;" colspan="3" valign="bottom" align="center"><b>March 31, 2010*</b></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">ASSETS</td></tr>
<tr>
<td colspan="8">Current assets</td></tr>
<tr bgcolor="#ccdaef"><td>
<div style="margin-left: 9pt;">Cash and cash equivalents</div></td><td width="1%">$</td><td align="right" width="11%">1,654,293</td><td width="1%"></td><td></td><td width="1%">$</td><td align="right" width="11%">1,389,288</td><td width="1%"></td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Marketable securities, short term</div></td><td>&nbsp;</td><td align="right">1,836,026</td><td></td><td></td><td></td><td align="right">1,566,666</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Accounts receivable, net of allowance for uncollectible accounts of $15,000</div></td><td>&nbsp;</td><td align="right">3,178,771</td><td></td><td></td><td></td><td align="right">4,221,564</td><td></td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Inventories</div></td><td>&nbsp;</td><td align="right">1,848,177</td><td></td><td></td><td></td><td align="right">1,706,427</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Prepaid expenses and other assets</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">848,649</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">781,294</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>Total current assets</td><td>&nbsp;</td><td align="right">9,365,916</td><td></td><td></td><td></td><td align="right">9,665,239</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">Fixed assets</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Machinery and equipment&nbsp;</div></td><td>&nbsp;</td><td align="right">5,679,090</td><td></td><td></td><td></td><td align="right">5,617,136</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td><div style="margin-left: 9pt;">Leasehold improvements</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">450,546</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">450,546</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>&nbsp;</td><td>&nbsp;</td><td align="right">6,129,636</td><td></td><td></td><td></td><td align="right">6,067,682</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Less accumulated depreciation&nbsp;</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">4,947,296</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">4,857,819</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>Net fixed assets</td><td>&nbsp;</td><td align="right">1,182,340</td><td></td><td></td><td></td><td align="right">1,209,863</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>Marketable securities, long term</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">51,185,164</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">46,587,812</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr valign="top">
<td>Total assets</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">61,733,420</td><td style="border-bottom: 3px double black;">&nbsp;</td><td></td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">57,462,914</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">&nbsp;</td></tr>
<tr>
<td colspan="8">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">Current liabilities</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Accounts payable</div></td><td>$</td><td align="right">500,120</td><td></td><td></td><td>$</td><td align="right">665,782</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Accrued payroll and other</div></td><td colspan="2" align="RIGHT">742,957</td><td colspan="4" align="RIGHT">720,867</td><td></td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Income taxes payable&nbsp;</div></td><td>&nbsp;</td><td align="right">1,543,822</td><td></td><td></td><td></td><td align="right">-</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Deferred taxes</div></td><td colspan="2" align="right">53,631</td><td colspan="4" align="RIGHT">102,138</td><td></td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Deferred revenue</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">20,833</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td>Total current liabilities</td><td></td><td align="right">2,840,530</td><td></td><td></td><td></td><td align="right">1,509,620</td><td></td></tr>
<tr>
<td colspan="8">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">Shareholders&#146; equity</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Common stock</div></td><td>&nbsp;</td><td align="right">47,006</td><td></td><td></td><td></td><td align="right">47,006</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Additional paid-in capital</div></td><td>&nbsp;</td><td align="right">20,169,924</td><td></td><td></td><td></td><td align="right">20,169,924</td><td></td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Accumulated other comprehensive income</div></td><td></td><td align="right">968,225</td><td></td><td></td><td></td><td align="right">1,129,726</td><td>&nbsp;
</td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Retained earnings</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">37,707,735</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">34,606,638</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>Total shareholders&#146; equity</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">58,892,890</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">55,953,294</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr valign="top" bgcolor="#ccdaef">
<td>Total liabilities and shareholders&#146; equity</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">61,733,420</td><td style="border-bottom: 3px double black;">&nbsp;</td><td></td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">57,462,914</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
*The March 31, 2010 Balance Sheet is derived from the audited financial statements contained
in our Annual Report on <font style="white-space: nowrap;">Form 10-K</font> for the fiscal year ended March&nbsp;31, 2010.<br>
<br>
<div align="center">See accompanying notes.<br>
<br>
<br>
3<br>
</div></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="QIncome"></a>
<div align="center">
<br>
NVE CORPORATION<br>
STATEMENTS OF INCOME<br>
(Unaudited)</div></b><br></font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2"></td><td colspan="7" style="border-bottom: 1px solid black;" align="center"><b>Quarter&nbsp;Ended&nbsp;June&nbsp;30</b></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" colspan="3" align="center">
<b>2010</b></td><td width="2%"></td><td style="border-bottom: 1px solid black;" colspan="3" align="center">
<b>2009</b></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">Revenue</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Product sales</div></td><td width="1%">$</td><td align="right" width="11%">6,193,876</td><td width="1%">&nbsp;</td><td>&nbsp;</td><td width="1%">$</td><td align="right" width="11%">5,534,037</td><td width="1%"></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;">Contract research and development</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,047,418</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,300,495</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>Total revenue</td><td></td><td align="right">7,241,294</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td align="right">6,834,532</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>Cost of sales</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">2,075,804</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,891,423</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>Gross profit</td><td></td><td align="right">5,165,490</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td align="right">4,943,109</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">Expenses</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;">Selling, general, and administrative</div></td><td></td><td align="right">628,386</td><td>&nbsp;</td><td>&nbsp;</td><td></td><td align="right">635,723</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td><div style="margin-left: 9pt;">Research and development</div></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">341,663</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">267,321</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td>Total expenses</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">970,049</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">903,044</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td>Income from operations</td><td></td><td align="right">4,195,441</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td align="right">4,040,065</td><td></td></tr>
<tr>
<td>Interest income</td><td style="border-bottom: 1px solid black;" colspan="2" align="RIGHT">475,730</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">370,025</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td>Income before taxes</td><td></td><td align="right">4,671,171</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td align="right">4,410,090</td><td></td></tr>
<tr>
<td>Provision for income taxes</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,570,074</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,471,158</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td valign="top">Net income</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">3,101,097</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">2,938,932</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
<tr>
<td valign="top">Net income per share &#150; basic</td><td style="border-bottom: 3px double black;" valign="top">
$</td><td style="border-bottom: 3px double black;" align="right" valign="top">0.66</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">
$</td><td style="border-bottom: 3px double black;" align="right" valign="top">0.63</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td valign="top">Net income per share &#150; diluted</td><td style="border-bottom: 3px double black;" valign="top">
$</td><td style="border-bottom: 3px double black;" align="right" valign="top">0.64</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">0.61</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
<tr>
<td colspan="8">Weighted average shares outstanding</td></tr>
<tr bgcolor="#ccdaef">
<td><div style="margin-left: 9pt;">Basic</div></td><td></td><td align="right">4,700,583</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td align="right">4,676,209</td><td></td></tr>
<tr>
<td><div style="margin-left: 9pt;">Diluted</div></td><td></td><td align="right">4,861,331</td><td></td><td></td><td></td><td align="right">4,855,525</td><td></td></tr>
</table><div align="center"><font style="font-size: 10pt; font-family: Times New Roman"><br>
<br>See accompanying notes.<br>
<br>
<br>4<br>
</font>
</div><hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="CashFlows"></a>
<br>
<div align="center">
<br>
NVE CORPORATION<br>
STATEMENTS OF CASH FLOWS<br>
(Unaudited)</div></b><br></font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2"></td><td colspan="7" style="border-bottom: 1px solid black;">
<div align="center"><b>Quarter Ended June 30</b></div></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" colspan="3" align="center"><b>2010</b></td><td></td><td style="border-bottom: 1px solid black;" colspan="3" align="center"><b>2009</b></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">OPERATING ACTIVITIES</td></tr>
<tr>
<td>Net income</td><td width="1%">$</td><td align="right" width="11%">3,101,097</td><td width="1%"></td><td width="2%"></td><td width="1%">$</td><td align="right" width="11%">2,938,932</td><td width="1%"></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">
Adjustments to reconcile net income to net cash
<div style="margin-left: 9pt;">provided by operating activities:</div></td></tr>
<tr>
<td>
<div style="margin-left: 18pt;">Depreciation</div></td><td></td><td align="right">89,476</td><td></td><td></td><td>&nbsp;</td><td align="right">90,905</td><td valign="bottom"></td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 18pt;">Stock-based compensation</div></td><td></td><td align="right">-</td><td></td><td></td><td>&nbsp;</td><td align="right">5,598</td><td valign="bottom"></td></tr>
<tr>
<td>
<div style="margin-left: 18pt;">Excess tax benefits</div></td><td></td><td align="right">-</td><td>&nbsp;</td><td></td><td>&nbsp;</td><td align="right">(116,941</td><td valign="bottom">)</td></tr>
<tr bgcolor="#ccdaef">
<td><div style="margin-left: 18pt;">Deferred income taxes</div></td><td></td><td align="right">20,857</td><td></td><td></td><td>&nbsp;</td><td align="right">122,922</td><td></td></tr>
<tr>
<td colspan="8">
<div style="margin-left: 18pt;">Changes in operating assets and liabilities:</div></td></tr>
<tr bgcolor="#ccdaef"><td><div style="margin-left: 36pt;">Accounts receivable</div></td><td></td><td align="right">1,042,793</td><td></td><td></td><td>&nbsp;</td><td align="right">293,998</td><td></td></tr>
<tr>
<td>
<div style="margin-left: 36pt;">Inventories</div></td><td></td><td align="right">(141,750</td><td>)</td><td></td><td>&nbsp;</td><td align="right">179,684</td><td valign="bottom">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td><div style="margin-left: 36pt;">Prepaid expenses and other assets</div></td><td></td><td align="right">(67,355</td><td>)</td><td></td><td>&nbsp;</td><td align="right">(42,411</td><td>)</td></tr>
<tr>
<td>
<div style="margin-left: 36pt;">Accounts payable, accrued expenses, and income taxes payable</div></td><td></td><td align="right" valign="BOTTOM">1,400,250</td><td></td><td></td><td>&nbsp;</td><td align="right" valign="BOTTOM">1,340,258</td><td valign="bottom">&nbsp;</td></tr>
<tr bgcolor="#ccdaef"><td><div style="margin-left: 36pt;">Deferred revenue</div></td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">(20,833</td><td style="border-bottom: 1px solid black;">)</td><td></td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">(20,834</td><td style="border-bottom: 1px solid black;" valign="bottom">)</td></tr>
<tr>
<td>Net cash provided by operating activities</td><td></td><td align="right">5,424,535</td><td></td><td></td><td>&nbsp;</td><td align="right">4,792,111</td><td valign="bottom"></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">&nbsp;</td></tr>
<tr>
<td colspan="8">INVESTING ACTIVITIES</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="2">Purchases of fixed assets</td><td align="right">(61,953</td><td>)</td><td></td><td>&nbsp;</td><td align="right">(35,921</td><td valign="bottom">)</td></tr>
<tr><td>Purchases of marketable securities</td><td></td><td align="right">(5,699,849</td><td>)</td><td></td><td>&nbsp;</td><td align="right">(5,727,717</td><td valign="bottom">)</td></tr>
<tr bgcolor="#ccdaef">
<td>Proceeds from maturities and sales of marketable securities</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">602,272</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">78,231</td><td style="border-bottom: 1px solid black;" valign="bottom">&nbsp;</td></tr>
<tr><td>Net cash used in investing activities</td><td></td><td align="right">(5,159,530</td><td>)</td><td></td><td>&nbsp;</td><td align="right">(5,685,407</td><td valign="bottom">)</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">&nbsp;</td></tr>
<tr>
<td colspan="8">FINANCING ACTIVITIES</td></tr>
<tr bgcolor="#ccdaef">
<td>Net proceeds from sale of common stock</td><td></td><td align="right">-</td><td></td><td></td><td>&nbsp;</td><td align="right">152,853</td><td></td></tr>
<tr>
<td>Excess tax benefits</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">-</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">116,941</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td>Net cash provided by financing activities</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">-</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;">&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">269,794</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td colspan="8">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td>Increase (decrease) in cash and cash equivalents</td><td></td><td align="right">265,005</td><td>&nbsp;</td><td></td><td>&nbsp;</td><td align="right">(623,502</td><td valign="bottom">)</td></tr>
<tr>
<td>Cash and cash equivalents at beginning of period</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,389,288</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,875,063</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">&nbsp;</td></tr>
<tr>
<td valign="top">Cash and cash equivalents at end of period</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">1,654,293</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top"></td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">1,251,561</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="8">&nbsp;</td></tr>
<tr>
<td colspan="8">Supplemental disclosures of cash flow information:</td></tr>
<tr>
<td><div style="margin-left: 18pt;">Cash paid during the period for income taxes</div></td><td>$</td><td align="right">4,742</td><td></td><td></td><td>$</td><td align="right">7,438</td><td></td></tr>
</table><div align="center"><font style="font-size: 10pt; font-family: Times New Roman">&nbsp;<br>&nbsp;<br>
See accompanying notes.<br>
<br>
<br>5<br>
</font></div><hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="Notes"></a>
<br>
<br>
<div align="center">NVE CORPORATION<br>
NOTES TO FINANCIAL STATEMENTS<br>
(Unaudited)</div><br>
NOTE 1. DESCRIPTION OF BUSINESS</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We develop and sell devices that use spintronics,
a nanotechnology that relies on electron spin rather than electron charge to acquire,
store, and transmit information.<br>
<br>
<b>NOTE 2. INTERIM FINANCIAL INFORMATION</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying unaudited financial statements
of NVE Corporation are prepared consistent with accounting principles generally accepted
in the United States and in accordance with Securities and Exchange Commission 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 <font style="white-space: nowrap;">Form 10-K</font> for the fiscal
year ended March&nbsp;31, 2010. The results of operations for the quarter ended
June&nbsp;30, 2010 are not necessarily indicative of the results that may be expected
for the full fiscal year ending March&nbsp;31, 2011.<br>
<br>
<b>NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements,
including those not yet effective, is not anticipated to have a material effect on our financial position or results of operations.<br>
<br>
<b>NOTE 4. NET INCOME PER SHARE</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share are computed based on the
weighted-average number of common shares issued and outstanding during each period.
Diluted net income per share amounts assume conversion, exercise or issuance of
all potential common stock instruments (stock options and warrants). Stock options
and warrants totaling 5,000 for the quarter ended
June&nbsp;30, 2010 and 1,000 for the quarter ended June&nbsp;30, 2009 were
not included in the computation of diluted earnings per share because the exercise
prices of the options and warrants were greater than the market price of the common
stock. The following table reflects the components of common shares outstanding:<br>
<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2"></td><td colspan="3" style="border-bottom: 1px solid black;" align="center"><b>Quarter Ended June 30</b></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" align="center" width="11%">
<b>2010</b></td><td></td><td style="border-bottom: 1px solid black;" align="center" width="11%">
<b>2009</b></td></tr>
<tr bgcolor="#ccdaef">
<td>Weighted average common shares outstanding &#150; basic</td><td align="right">4,700,583</td><td align="left" width="2%"></td><td align="right" width="11%">4,676,209</td></tr>
<tr>
<td colspan="4">Effect of dilutive securities:</td></tr>
<tr bgcolor="#ccdaef">
<td><div style="margin-left: 9pt;" align="left">Stock options</div></td><td align="right">154,488</td><td align="left"></td><td align="right">172,666</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;" align="left">Warrants</div></td><td style="border-bottom: 1px solid black;" align="right">6,260</td><td align="left"></td><td style="border-bottom: 1px solid black;" align="right">6,650</td></tr>
<tr bgcolor="#ccdaef">
<td valign="top">Shares used in computing net income per share &#150; diluted</td><td style="border-bottom: 3px double black;" align="right" valign="top">4,861,331</td><td align="left" valign="top"></td><td style="border-bottom: 3px double black;" align="right" valign="top">4,855,525</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
&nbsp;<br>
<br>
<div align="center">6</div></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><br>
<br>
NOTE 5. MARKETABLE SECURITIES</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketable securities with remaining maturities
less than one year are classified as short-term, and those with remaining maturities
greater than one year are classified as long-term. The fair value of our marketable
securities as of June&nbsp;30, 2010 were as follows:<br>
<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" border="0" cellpadding="0" cellspacing="0" width="50%" align="center">
<tr>
<td style="border-bottom: 1px solid black;" colspan="2" align="center">
<b>Total</b></td><td width="4%"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>&lt;1 Year</b></td><td width="4%"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>1&#150;3 Years</b></td><td width="4%"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>3&#150;5 Years</b></td></tr>
<tr>
<td width="1%">$</td><td width="12%" align="right">53,021,190</td><td>&nbsp;</td><td width="1%">$</td><td align="right" width="12%">1,836,026</td><td>&nbsp;</td><td width="1%">$</td><td align="right" width="12%">29,806,706</td><td width="2%">&nbsp;</td><td width="1%">$</td><td align="right" width="12%">21,378,458</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman">&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30 and March&nbsp;31, 2010, our marketable securities were as follows:<br>
&nbsp;<br></font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2"></td><td style="border-bottom: 1px solid black;" align="center" colspan="12"><b>As of June&nbsp;30, 2010</b></td><td style="border-bottom: 1px solid black;" rowspan="2" width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="12"><b>As of March&nbsp;31, 2010</b></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" align="center" colspan="2">
<b><br>
Adjusted<br>
Cost</b></td><td width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Gross<br>
Unrealized<br>
Gains</b></td><td width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="3"><b>Gross<br>
Unrealized<br>
Losses</b></td><td width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Fair<br>
Market<br>
Value</b></td><td style="border-bottom: 1px solid black;" align="center" colspan="2">
<b><br>
Adjusted<br>
Cost</b></td><td width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Gross<br>
Unrealized<br>
Gains</b></td><td width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="3"><b>Gross<br>
Unrealized<br>
Losses</b></td><td width="1"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Fair<br>
Market<br>
Value</b></td></tr>
<tr bgcolor="#ccdaef">
<td valign="bottom">
U.S. agency<br>
<div style="margin-left: 9pt;">securities</div></td><td valign="bottom">$</td><td valign="bottom" align="right">110,990</td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td align="right" valign="bottom">-</td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td align="right" valign="bottom">(409</td><td valign="bottom">)</td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td align="right" valign="bottom">110,581</td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td valign="bottom" align="right">702,992</td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td align="right" valign="bottom">19,240</td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td align="right" valign="bottom">-</td><td valign="bottom">&nbsp; </td><td>&nbsp;&nbsp;</td><td valign="bottom">$</td><td align="right" valign="bottom">722,232</td></tr>
<tr>
<td valign="bottom">
Corporate&nbsp;bonds</td><td></td><td align="right" valign="bottom">29,578,247</td><td>&nbsp;</td><td>&nbsp;</td><td align="right" valign="bottom">1,072,012</td><td>&nbsp;</td><td>&nbsp;</td><td align="right" valign="bottom">(323,947</td><td valign="bottom">)</td><td>&nbsp;</td><td>&nbsp;</td><td align="right" valign="bottom">30,326,312</td><td></td><td></td><td align="right" valign="bottom">23,807,375</td><td>&nbsp;</td><td>&nbsp;</td><td align="right" valign="bottom">1,029,273</td><td>&nbsp;</td><td>&nbsp;</td><td align="right" valign="bottom">(23,601</td><td valign="bottom">)</td><td>&nbsp;</td><td>&nbsp;</td><td align="right" valign="bottom">24,813,047</td></tr>
<tr bgcolor="#ccdaef">
<td valign="bottom">
Municipal&nbsp;bonds&nbsp;&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">21,795,964</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">788,333</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td style="border-bottom: 1px solid black; valign="bottom valign="bottom"">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">22,584,297</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">21,877,258</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">747,483</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">(5,542</td><td style="border-bottom: 1px solid black; valign="bottom valign="bottom"">)</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">22,619,199</td></tr>
<tr>
<td valign="top">Total</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">51,485,201</td><td>&nbsp;</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">1,860,345</td><td>&nbsp;</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">(324,356</td><td style="border-bottom: 3px double black;">)</td><td>&nbsp;</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">53,021,190</td><td></td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">46,387,625</td><td>&nbsp;</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">1,795,996</td><td>&nbsp;</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">(29,1
43</td><td style="border-bottom: 3px double black;">)</td><td>&nbsp;</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">48,154,478</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman">&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the gross unrealized losses
and fair value of our investments with unrealized losses, aggregated by investment
category and length of time that individual securities had been in a continuous
unrealized loss position as of June&nbsp;30 and March&nbsp;31, 2010:<br>
&nbsp;<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%" align="center">
<tr>
<td rowspan="2" colspan="2"></td><td style="border-bottom: 1px solid black;" align="center" colspan="6">
<b>Less Than 12 Months</b></td><td rowspan="2"></td><td style="border-bottom: 1px solid black;" align="center" colspan="6">
<b>12 Months or Greater</b></td><td rowspan="2"></td><td style="border-bottom: 1px solid black;" align="center" colspan="6">
<b>Total</b></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Fair<br>
Market<br>
Value</b></td><td></td><td style="border-bottom: 1px solid black;" align="center" colspan="3"><b>Gross<br>
Unrealized<br>
Losses</b></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Fair<br>
Market<br>
Value</b></td><td></td><td style="border-bottom: 1px solid black;" align="center" colspan="3"><b>Gross<br>
Unrealized<br>
Losses</b></td><td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>Fair<br>
Market<br>
Value</b></td><td></td><td style="border-bottom: 1px solid black;" align="center" colspan="3"><b>Gross<br>
Unrealized<br>
Losses</b></td></tr>
<tr>
<td colspan="22">As of June 30, 2010</td></tr>
<tr bgcolor="#ccdaef">
<td width="9pt">&nbsp;</td><td>U.S.&nbsp;agency&nbsp;securities&nbsp;</td><td width="1%">$</td><td align="right" width="9%">110,581</td><td width="2%">&nbsp;</td><td width="1%">$</td><td align="right" width="8%">(409</td><td valign="bottom" width="1%">)</td><td width="4%">&nbsp;</td><td width="1%">$</td><td align="right" width="9%">-</td><td width="2%">&nbsp;</td><td width="1%">$</td><td align="right" width="8%">-</td><td width="1%">&nbsp;</td><td width="4%">&nbsp;</td><td width="1%">$</td><td align="right" width="9%">110,581</td><td width="2%">&nbsp;</td><td width="1%">$</td><td align="right" width="8%">(409</td><td valign="bottom" width="1%">)</td></tr>
<tr>
<td>&nbsp;</td><td>Corporate bonds</td><td colspan="2" align="right">4,625,580</td><td colspan="3" align="right">(323,947</td><td>)</td><td colspan="3" align="right">-</td><td colspan="3" align="right">-</td><td>&nbsp;</td><td colspan="3" align="right">4,625,580</td><td colspan="3" align="right">(323,947</td><td>
)</td></tr>
<tr bgcolor="#ccdaef">
<td>&nbsp;</td><td>Municipal bonds</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td style="border-bottom: 1px solid black;"></td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td style="border-bottom: 1px solid black;">&nbsp;
</td></tr>
<tr>
<td>&nbsp;</td><td valign="top">Total</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">4,736,161</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">(324,356</td><td style="border-bottom: 3px double black;" valign="top">)</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">-</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">-</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">4,736,161</td><td
 valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">(324,356</td><td style="border-bottom: 3px double black;" valign="top">)</td></tr>
<tr>
<td colspan="22">As of March 31, 2010</td></tr>
<tr bgcolor="#ccdaef">
<td></td><td>U.S.&nbsp;agency&nbsp;securities&nbsp;</td><td>$</td><td align="right">-</td><td>&nbsp;</td><td>$</td><td align="right">-</td><td></td><td>&nbsp;</td><td>$</td><td align="right">-</td><td>&nbsp;</td><td>$</td><td align="right">-</td><td></td><td>&nbsp;</td><td>$</td><td align="right">-</td><td>&nbsp;</td><td>$</td><td align="right">-</td><td>&nbsp; </td></tr>
<tr>
<td></td><td>Corporate bonds</td><td colspan="2" align="right">2,032,306</td><td colspan="3" align="right">(23,601</td><td>)</td><td colspan="3" align="right">-</td><td colspan="3" align="right">-</td><td>&nbsp;</td><td colspan="3" align="right">2,032,306</td><td colspan="3" align="right">(23,601</td><td>
)</td></tr>
<tr bgcolor="#ccdaef">
<td></td><td>Municipal bonds</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,564,416</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">(5,542</td><td style="border-bottom: 1px solid black;">)</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">-</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">1,564,416</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">(5,542</td><td style="border-bottom: 1px solid black;">
)</td></tr>
<tr>
<td></td><td valign="top">Total</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">3,596,722</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">(29,143</td><td style="border-bottom: 3px double black;" valign="top">)</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">-</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">-</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">3,596,722</td><td valign
="top">&nbsp;</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">(29,143</td><td style="border-bottom: 3px double black;" valign="top">)</td></tr></table><font style="font-size: 10pt; font-family: Times New Roman"><br>
&nbsp;&nbsp;&nbsp;&nbsp; Gross unrealized losses at June&nbsp;30, 2010 were attributable to three corporate bonds and one U.S. agency security in our
portfolio of 52 securities. All of the securities with an unrealized loss were rated A2/A or better by Moody&#146;s or Standard and Poor&#146;s, and none had been in a continuous unrealized
loss position for 12&nbsp;months or more. Of the $324,356 total gross unrealized loss, $313,428 was attributable to guaranteed global notes issued
by BP Capital Markets&nbsp;plc, which were downgraded to A2/A from Aa1/A+ during the quarter ended June&nbsp;30, 2010.
Our investments in such securities issued by BP mature November&nbsp;7, 2013 and had a fair market value of $2,482,002 at June&nbsp;30, 2010.
The impact of BP&#146;s Macondo subsea well oil spill on BP&#146;s financial profile was cited as a reason for downgrade.
<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the securities issued by BP and each other security with an unrealized loss,
we expect to recover the entire cost basis of each security based on our consideration
of factors including their credit ratings, seniority, and historical default rates for securities of comparable credit rating. Because
we expect to recover the entire cost basis of the securities,
and because we do not intend to sell the securities and it is not more likely
than not that we will be required to sell the securities before recovery of the
cost basis, which may be maturity, we did not consider any of our marketable securities
to be other-than-temporarily impaired at June&nbsp;30, 2010.
<br><br><br></font>
<div style="width: 100%; text-align: center;"><font style=" font-size: 10pt; font-family: Times New Roman">7</font></div><hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><a href="#TOC"><b>Table of Contents</b></a><br>
<br><b>NOTE 6. COMPREHENSIVE INCOME</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of comprehensive income are as follows:<br>
<br></font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2"></td><td colspan="7" style="border-bottom: 1px solid black;">
<div align="center">&nbsp;<b>Quarter Ended June 30</b></div></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" colspan="3" align="center">
<div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><b>2010</b></div></td><td width="2%"></td><td style="border-bottom: 1px solid black;" colspan="3" align="center">
<div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><b>2009</b></div></td></tr>
<tr bgcolor="#ccdaef">
<td>Net income</td><td width="1%">$</td><td align="right" width="11%">3,101,097</td><td width="1%"></td><td></td><td width="1%">
$</td><td align="right" width="11%">2,938,932</td><td width="1%"></td></tr>
<tr>
<td>Unrealized (loss) gain from marketable securities, net of tax</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">(161,501</td><td style="border-bottom: 1px solid black;">)</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">811,896</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr bgcolor="#ccdaef">
<td valign="top">Comprehensive income</td><td style="border-bottom: 3px double black;" valign="top">$</td><td style="border-bottom: 3px double black;" align="right" valign="top">2,939,596</td><td style="border-bottom: 3px double black;" valign="top">&nbsp;</td><td valign="top"></td><td style="border-bottom: 3px double black;" valign="top">
$</td><td style="border-bottom: 3px double black;" align="right" valign="top">3,750,828</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
<b>NOTE 7. INVENTORIES</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories consisted of the following:<br>
&nbsp;<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" cellpadding="0" cellspacing="0" width="50%" align="center">
<tr>
<td></td><td style="border-bottom: 1px solid black;" colspan="3" align="center"><b>June 30<br>
2010</b></td><td></td><td style="border-bottom: 1px solid black;" colspan="3" align="center"><b>March 31<br>
2010</b></td></tr>
<tr bgcolor="#ccdaef">
<td>Raw materials</td><td width="1%">$</td><td align="right" width="22%">636,406</td><td width="1%"></td><td width="4%"></td><td width="1%">$</td><td align="right" width="22%">595,032</td><td width="1%"></td></tr>
<tr>
<td>Work in process</td><td></td><td align="right">1,038,732</td><td></td><td></td><td></td><td align="right">794,091</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>Finished goods</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">473,039</td><td style="border-bottom: 1px solid black;">&nbsp;</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">617,304</td><td style="border-bottom: 1px solid black;">&nbsp;</td></tr>
<tr>
<td></td><td></td><td align="right">2,148,177</td><td></td><td></td><td></td><td align="right">2,006,427</td><td></td></tr>
<tr bgcolor="#ccdaef">
<td>Less inventory reserve</td><td style="border-bottom: 1px solid black;" colspan="2" align="right">(300,000</td><td style="border-bottom: 1px solid black;">
)</td><td></td><td style="border-bottom: 1px solid black;" colspan="2" align="right">(300,000</td><td style="border-bottom: 1px solid black;">
)</td></tr>
<tr valign="top">
<td>
Total inventories</td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">1,848,177</td><td style="border-bottom: 3px double black;">&nbsp;</td><td></td><td style="border-bottom: 3px double black;">$</td><td style="border-bottom: 3px double black;" align="right">1,706,427</td><td style="border-bottom: 3px double black;">&nbsp;</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman">&nbsp;<br>
&nbsp;<br>
<b>NOTE 8. STOCK-BASED COMPENSATION</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no stock-based compensation expense for
the first quarter of fiscal 2011. Stock-based compensation expenses were $5,598
for the first quarter of fiscal 2010.<br>
<br>
<b>NOTE 9. INCOME TAXES</b><br>
&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.
No tax provisions were credited to
&#147;Additional paid-in capital&#148; for the quarter ended June&nbsp;30, 2010;
$116,941 was credited to &#147;Additional paid-in capital&#148; for the quarter ended June&nbsp;30, 2009. <br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We had no unrecognized tax benefits as of June&nbsp;30,
2010 or March&nbsp;31, 2010, and we do not expect any significant unrecognized tax benefits within 12&nbsp;months
of the reporting date. We recognize interest and penalties related to income tax
matters in income tax expense. As of June&nbsp;30, 2010 and March&nbsp;31, 2010, we had no accrued interest related to uncertain tax positions. The tax years 1999 through
2009 remain open to examination by the major taxing jurisdictions to which we
are subject.<br>
<br>
<br>
<div align="center">8</div></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a></b><br>
<br>
<b>NOTE 10. FAIR VALUE MEASUREMENTS</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally accepted accounting principles establish a framework for measuring fair value, provide a definition of fair value and prescribe required disclosures about fair-value measurements. Generally accepted accounting principles define fair value as the price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Generally accepted accounting principles utilize a valuation hierarchy for disclosure of fair value measurements. The categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The categories within the valuation hierarchy are described as follows:
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 1&nbsp;&#150; Financial instruments with quoted prices in active markets for identical assets or liabilities. Our Level&nbsp;1 financial instruments consist of publicly-traded marketable debt securities that are classified as available-for-sale. On the balance sheets, available-for-sale securities are classified as &#147;Marketable securities, short term&#148; and &#147;Marketable securities, long term.&#148; The fair value of our available-for-sale securities was $53,021,190 at June&nbsp;30, 2010 and $48,154,478 at March&nbsp;31, 2010.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 2 &#150; Financial instruments with quoted prices in active markets for similar assets or liabilities. Level&nbsp;2 fair value measurements are determined using either prices for similar instruments or inputs that are either directly or indirectly observable, such as interest rates. We do not have any financial assets or liabilities being measured at fair value that are classified as Level&nbsp;2 financial instruments.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 3 &#150; Inputs to the fair value measurement are unobservable inputs or valuation techniques. We do not have any financial assets or liabilities being measured at fair value that are classified as Level&nbsp;3 financial instruments.<br>
<br>
<b>NOTE 11. STOCK REPURCHASE PLAN</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;21, 2009 we announced that our Board of Directors
authorized the repurchase of up to $2,500,000 of our Common Stock.
The repurchase program may be modified or discontinued at any time without notice.
We did not repurchase any of our Common Stock during the quarter ended June&nbsp;30, 2010.<br>
<br>
<br>
</font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman">9</font></div><hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="MDA"></a></b><br>
<br>
<b>Item 2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations.<br>
<br>
Forward-looking statements</b><br>
&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 (&#147;SEC&#148;) 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 risks associated with competition, progress in research and development activities
by us and others, decreased sales, failure of suppliers to meet our requirements, inability
to meet customer technical requirements, inability to consummate license agreements,
ineligibility for SBIR awards, inability to renew agreements with large customers, risks of losses on our marketable securities, and other specific risks
that may be alluded to in this Report or in the documents incorporated by reference
in this Report.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further information regarding our risks and uncertainties are
contained in Part&nbsp;I, Item 1A &#147;Risk Factors&#148; of our Annual Report on
<font style="white-space: nowrap;">Form 10-K</font> for the year ended March&nbsp;31,&nbsp;2010,
as updated in Part&nbsp;II, Item 1A of this Quarterly Report on Form <font style="white-space: nowrap;">10-Q</font>.<br>
<br>
<b>General</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NVE Corporation, referred to as NVE, we, us, or
our, develops and sells devices that use spintronics, a nanotechnology that
relies on electron spin rather than electron charge to acquire, store and transmit
information. We manufacture high-performance spintronic products including sensors
and couplers that are used to acquire and transmit data. We have also licensed
our spintronic magnetoresistive random access memory technology, commonly known
as MRAM.<br>
<br>
<b>Critical accounting policies</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A description of our critical accounting policies
is provided in Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations in our Annual Report on <font style="white-space: nowrap;">Form 10-K</font> for the year ended
March&nbsp;31, 2010. At June&nbsp;30, 2010 our critical accounting policies
and estimates continued to include research and development contract percentage
of completion estimation, inventory valuation,
allowance for doubtful accounts estimation, and deferred tax assets estimation.<br>
<br>
<br>
<div align="center">10</div></font>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="Q-MD&A"></a><br>
<br>
Quarter ended June&nbsp;30, 2010 compared to quarter ended June&nbsp;30, 2009</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table shown below summarizes the percentage
of revenue and quarter-to-quarter changes for various items:<br>
<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2"></td><td style="border-bottom: 1px solid black;" align="center" colspan="5"><b>Percentage of Revenue<br>
Quarter Ended June 30</b></td><td rowspan="2"></td><td style="border-bottom: 1px solid black;" align="center" colspan="2" rowspan="2"><b>Quarter-<br>
to-Quarter<br>
Change</b></td></tr>
<tr>
<td style="border-bottom: 1px solid black;" align="center" colspan="2"><b>2010</b></td><td></td><td style="border-bottom: 1px solid black;"align="center" colspan="2"><b>2009</b></td></tr>
<tr bgcolor="#ccdaef">
<td colspan="9">Revenue</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;" align="left">Product sales</div></td><td align="right" width="9%">85.5</td><td width="1%">%</td><td width="4%">&nbsp;</td><td align="right" width="9%">81.0</td><td width="1%">
%</td><td width="4%">&nbsp;</td><td align="right" width="9%">11.9</td><td width="1%">%</td></tr>
<tr bgcolor="#ccdaef"><td>
<div style="margin-left: 9pt;" align="left">Contract&nbsp;research&nbsp;and&nbsp;development</div></td><td style="border-bottom: 1px solid black;" align="right">14.5</td><td style="border-bottom: 1px solid black;" align="left">%</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">19.0</td><td style="border-bottom: 1px solid black;">%</td><td>&nbsp;</td><td align="right">(19.5</td><td>)%</td></tr>
<tr>
<td>
Total revenue</td><td align="right">100.0</td><td>%</td><td></td><td align="right">100.0</td><td>%</td><td>&nbsp;</td><td align="right">6.0</td><td>%</td></tr>
<tr bgcolor="#ccdaef">
<td>Cost of sales</td><td style="border-bottom: 1px solid black;" align="right">28.7</td><td style="border-bottom: 1px solid black;" align="left">%</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">27.7</td><td style="border-bottom: 1px solid black;">%</td><td>&nbsp;</td><td align="right">9.7</td><td>%</td></tr>
<tr>
<td>
Gross profit</td><td align="right">71.3</td><td>%</td><td>&nbsp;</td><td align="right">72.3</td><td>
%</td><td>&nbsp;</td><td align="right">4.5</td><td>
%</td></tr>
<tr bgcolor="#ccdaef">
<td colspan="9">Expenses</td></tr>
<tr>
<td>
<div style="margin-left: 9pt;" align="left">Selling, general, and administrative</div></td><td align="right">8.7</td><td>%</td><td>&nbsp;</td><td align="right">9.3</td><td>%</td><td>&nbsp;</td><td align="right">(1.2</td><td>)%</td></tr>
<tr bgcolor="#ccdaef">
<td>
<div style="margin-left: 9pt;" align="left">Research&nbsp;and&nbsp;development</div></td><td style="border-bottom: 1px solid black;" align="right">4.7</td><td style="border-bottom: 1px solid black;" align="left">
%</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">3.9</td><td style="border-bottom: 1px solid black;">%</td><td>&nbsp;</td><td align="right">27.8</td><td>%</td></tr>
<tr>
<td>Total expenses</td><td style="border-bottom: 1px solid black;" align="right">13.4</td><td style="border-bottom: 1px solid black;" align="left">
%</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">13.2</td><td style="border-bottom: 1px solid black;">%</td><td>&nbsp;</td><td align="right">7.4</td><td>
%</td></tr>
<tr bgcolor="#ccdaef">
<td>Income from operations</td><td align="right">57.9</td><td>%</td><td>&nbsp;</td><td align="right">59.1</td><td>
%</td><td>&nbsp;</td><td align="right">3.8</td><td>
%</td></tr>
<tr>
<td>Interest and other income</td><td style="border-bottom: 1px solid black;" align="right">6.6</td><td style="border-bottom: 1px solid black;" align="left">%</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">5.4</td><td style="border-bottom: 1px solid black;">%</td><td>&nbsp;</td><td align="right">28.6</td><td>%</td></tr>
<tr bgcolor="#ccdaef">
<td>Income before taxes</td><td align="right">64.5</td><td>%</td><td>&nbsp;</td><td align="right">64.5</td><td>%</td><td>&nbsp;</td><td align="right">5.9</td><td>
%</td></tr>
<tr>
<td>Provision for income taxes</td><td style="border-bottom: 1px solid black;" align="right">21.7</td><td style="border-bottom: 1px solid black;" align="left">%</td><td>&nbsp;</td><td style="border-bottom: 1px solid black;" align="right">21.5</td><td style="border-bottom: 1px solid black;">%</td><td>&nbsp;</td><td align="right">6.7</td><td>%</td></tr>
<tr bgcolor="#ccdaef">
<td valign="top">Net income</td><td style="border-bottom: 3px double black;" align="right" valign="top">42.8</td><td style="border-bottom: 3px double black;" valign="top">%</td><td valign="top">&nbsp;</td><td style="border-bottom: 3px double black;" align="right" valign="top">43.0</td><td style="border-bottom: 3px double black;" valign="top">%</td><td valign="top">&nbsp;</td><td align="right" valign="top">5.5</td><td valign="top">%</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue for the quarter ended June&nbsp;30, 2010 (the first quarter of fiscal 2011) increased 6% to $7,241,294 compared to
$6,834,532 for the quarter ended June&nbsp;30, 2009 (the first quarter of fiscal 2010). The increase was due to a 12% increase in product sales, partially offset by a 20%
decrease in contract research and development revenue.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The increase in product sales from the prior-year
quarter was due to the addition of new customers and increased purchase volume
by existing customers.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decrease in research and development revenue
was due to the completion of certain contracts and contract activities. Contract research and development activities can fluctuate for
a number of reasons, some of which are beyond our control, and there can be no
assurance of additional or follow-on contracts for expired or completed contracts.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit margin decreased to 71% of revenue
for the first quarter of fiscal 2011 compared to 72% for the first quarter of fiscal 2010, due to a less favorable product sales mix.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses increased 7% for
the first quarter of fiscal 2011 compared to the first quarter of fiscal 2010 due to a 28% increase
in research and development expense. The increase in research and development expense was due to a decrease
in contract research and development activities, which
caused resources to be reallocated to expensed research and development activities,
and increased product development activities.
Research and development expense can fluctuate significantly depending
on staffing, project requirements, and contract research and development activities.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income increased 29% to $475,730 for the first quarter of fiscal 2011
compared to $370,025 for the first quarter of fiscal 2010. The increase was due to an increase in interest-bearing marketable
securities.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision for income taxes was $1,570,074 for
the first quarter of fiscal 2011 compared to $1,471,158 for the first quarter of fiscal 2010. The effective tax rate was 34% of income before taxes
for the first quarter of fiscal 2011 compared to 33% for the prior-year quarter due
to a higher Federal effective tax rate. Our effective tax rate can fluctuate due to a number of factors,
some of which are outside our control.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 6% increase in net income in the first quarter
of fiscal 2011 compared to the prior-year quarter was primarily due to increased
product sales and increased interest income.<br>
<br>
<br><div align="center">11</div></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><br>
<br>
Liquidity and capital resources</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June&nbsp;30, 2010 we had $54,675,483 in
cash plus short-term and long-term marketable securities compared to $49,543,766
at March&nbsp;31,&nbsp;2010. Our entire portfolio of short-term and long-term
marketable securities is classified as available for sale. The increase in cash
plus marketable securities in the first quarter of fiscal 2011 was primarily
due to $5,424,535 in net cash provided by operating activities partially offset by a $230,864 net decrease in the market value of our marketable securities due to market-price
changes including a downgrade in the credit rating of a security. Further information regarding risks related to our marketable securities are
contained in Part&nbsp;II, Item&nbsp;1A &#147;Risk Factors&#148; of this Quarterly Report on <font style="white-space: nowrap;">Form 10-Q</font>.
<br><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable decreased by $1,042,793 at June&nbsp;30, 2010 compared to March&nbsp;31,&nbsp;2010 due to the timing
of payments by our customers and higher revenue late in fiscal 2010 compared to late in the quarter ended June 30, 2010.
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable increased $1,543,822 because we had no estimated income tax payments due in the quarter ended June 30, 2010.
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We had no deferred revenue as of June&nbsp;30, 2010 compared to $20,833 at March&nbsp;31,&nbsp;2010. Deferred revenue at March&nbsp;31,&nbsp;2010 was due to a nonrefundable
payment of $250,000 by Avago to us under the terms of Amendment No.&nbsp;2 to an agreement between us and Agilent. We recognized revenue from
the payment over the term of Amendment No.&nbsp;2, which was effective as of June&nbsp;27, 2007 and ended June&nbsp;27, 2010.
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of fixed assets were $61,953 during the quarter, primarily for production equipment. We currently expect such purchases to be at a significantly higher quarterly rate during the balance of the fiscal
year ending March&nbsp;31,&nbsp;2011 because we plan to expand our production capacity.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently believe our working capital is adequate for our needs at least for the next 12&nbsp;months.<br>
<br><br></font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman">12</font></div><hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="MarketRisk"></a><br>
<br>
Item 3. Quantitative and Qualitative Disclosures About Market Risk.</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The primary objective of our investment activities
is to preserve principal while at the same time maximizing after-tax yields without
significantly increasing risk. To achieve this objective, we maintain our portfolio
of cash equivalents and marketable securities in a variety of securities including
government agency obligations, municipal 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, net of estimated tax. Marketable securities
as of June&nbsp;30, 2010 had remaining maturities between seven weeks and 57 months.
Our short-term and long-term marketable securities had a fair market value of
$53,021,190 at June&nbsp;30, 2010, representing approximately 85% of our total
assets. We have not used derivative financial instruments in our investment portfolio.<br>
<br>
<a name="Controls"></a><b>Item 4. Controls and Procedures.</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management, with the participation of the Chief
Executive Officer and Chief Financial Officer, has performed an evaluation of
our disclosure controls and procedures (as defined in
<font style="white-space: nowrap;">Rules 13a-15(e)</font> and <font style="white-space: nowrap;">15d-15(e)</font>
of the Securities Exchange Act of 1934 (Exchange Act)) as of the end of the
period covered by this report. This evaluation included consideration of the
controls, processes and procedures that are designed to ensure that information
required to be disclosed by us in the reports we file under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified
in the SEC&#146;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 timely decisions regarding required
disclosure. Based on such evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that, as of the end of the period covered by this
report, our disclosure controls and procedures were effective.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the quarter ended June&nbsp;30, 2010,
there was no change in our internal control over financial reporting that materially
affected, or is reasonably likely to materially affect, our internal control
over financial reporting.<br>&nbsp;<br>
<br>
<div align="center"><b><a name="Part2"></a>PART II&#150;OTHER INFORMATION</b></div><br>
<b><a name="Risks"></a>Item 1A. Risk Factors.</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no material changes from the risk
factors disclosed in our Annual Report on <font style="white-space: nowrap;">Form 10-K</font> for the fiscal year ended
March&nbsp;31, 2010, except the risk factors titled &#147;We may lose revenue if we are unable to renew agreements with large customers&#148; and &#147;We could incur losses on our marketable securities&#148; are replaced in their entirety by the following:<br><br>
<b><i>We may lose revenue if we are unable to renew agreements with large customers.</i></b>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Supplier Partnering Agreement with
St.&nbsp;Jude Medical, as amended, expires December&nbsp;31, 2010; our agreement with Avago Technologies, Inc.,
as amended, expires June&nbsp;27, 2013; our and our
Phonak AG Supply Agreement expires May&nbsp;1, 2012. We have executed a letter of intent including a provision to extended the term of our Agreement with Phonak through March&nbsp;31, 2015. We cannot predict
if any of these agreements will be renewed, or if renewed, under what terms.
Although it is possible we could continue to sell products to these
customers without formal agreements, an inability to agree on mutually acceptable terms or the loss of
any of these large customers could have a significant adverse impact on our
revenue and our profitability.
<br><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This risk factor is being updated because we executed an amendment extending the term of our agreement with Avago and a letter of intent including a provision to extended the term of our agreement with Phonak.<br><br><br><b><i>We could incur losses on our marketable securities.</i></b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June&nbsp;30, 2010, we held $53,021,190 in short-term
and long-term marketable securities, representing approximately 85% of our total
assets. For the fiscal year ended March&nbsp;31, 2011 we earned $1,617,880 in
interest, virtually all of which was from those securities. During the past two
fiscal years a number of the securities we hold were downgraded by Moody&#146;s or Standard and Poor&#146;s indicating a possible increase in
default risk. The credit crisis may have caused or contributed to many of these downgrades.
Conditions and circumstances beyond our control or ability to anticipate can cause downgrades and increases in
default risk. For example, in fiscal 2011 guaranteed global notes issued by BP Capital Markets plc that we hold were downgraded due to the
impact of BP&#146;s Macondo subsea well oil spill on BP&#146;s financial profile.
Downgrades of any of our marketable securities are possible at any time for reasons beyond our control. Additionally, the assignment of a high credit rating does not preclude the risk
of default on any marketable security. We could incur losses on our marketable securities, which could have a material adverse impact on our financial condition,
income, or cash flows.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This risk
factor is being updated because of the impact of BP&#146;s Macondo subsea well oil spill on BP&#146;s financial profile.<br>&nbsp;<br>
&nbsp;<br>
<div align="center">13</div></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table of Contents</a><a name="Exhibits"></a>
<br>
<br>
Item 6. Exhibits.</b><br>
<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" width="100%" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="1%">
<div align="center"><b><u>Exhibit&nbsp;#</u></b></div></td><td width="88%">
<div align="center"><b><u>Description</u></b></div></td></tr>
<tr>
<td colspan="2">&nbsp;</td></tr><tr>
<td valign="top">&nbsp;&nbsp;10.1+</td><td><font face="Times New Roman, Times, serif" size="2">Letter of Intent relating to Supply Agreement by and between NVE Corporation and Phonak AG</font>
(incorporated by reference to our Current Report on Form 8-K/A filed May&nbsp;12, 2010).<br>
&nbsp;
</td></tr>
<tr>
<td valign="top">&nbsp;&nbsp;10.2</td><td><font face="Times New Roman, Times, serif" size="2">Amendment No.&nbsp;3 dated June&nbsp;27, 2010 to Agreement between the company and
Agilent Technologies, Inc. (incorporated by reference to our Exhibit&nbsp;10.6 filed with Current Report on Form 8-K/A filed June&nbsp;28, 2010.</font><br>
&nbsp;
</td></tr>
<tr>
<td valign="top">&nbsp;&nbsp;31.1</td><td>
Certification by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a).<br>
&nbsp;
</td></tr>
<tr>
<td valign="top">
&nbsp;&nbsp;31.2</td><td valign="top">Certification by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a).<br>
&nbsp;
</td></tr>
<tr>
<td valign="top">&nbsp;&nbsp;32</td><td valign="top">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.</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
+Confidential portions of this exhibit were deleted and filed separately with the SEC under a request for confidential
treatment pursuant to Rule 24b-2 or Rule 406.<br>
<br>
<br>
<br>
<br>
<br>
<br>
</font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman">14</font></div><hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman"><b><a href="#TOC">Table
of Contents</a><br>
<br>
</b>
<div align="center"><a name="Signatures"></a><b>SIGNATURES</b></div><br>
&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.<br>
<br>
</font>
<table style="font-size: 10pt; font-family: Times New Roman" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td rowspan="2"></td><td><b><u>NVE CORPORATION</u></b></td></tr>
<tr>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</td></tr>
<tr>
<td colspan="2"><br>
&nbsp;
</td></tr>
<tr>
<td width="25%"><div align="center"><b><u>July 21, 2010</u></b></div></td><td><u>/s/ DANIEL A. BAKER&nbsp;</u></td></tr>
<tr>
<td><div align="center">Date</div></td><td>Daniel A. Baker
</td></tr>
<tr>
<td></td><td>President and Chief Executive Officer</td></tr>
<tr>
<td colspan="2"><br>
&nbsp;
</td></tr>
<tr>
<td>
<div align="center"><b><u>July 21, 2010</u></b></div></td><td>
<div align="left"><u>/s/ CURT A. REYNDERS&nbsp;</u></div></td></tr>
<tr>
<td>
<div align="center">Date</div></td><td>Curt A. Reynders</td></tr>
<tr>
<td></td><td>Chief Financial Officer</td></tr>
</table><font style="font-size: 10pt; font-family: Times New Roman"><br>
<br>
<br>
<br>
<br>
<br>
<br>
<div align="center">15<br></div></font>
<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>
<html>
<div style="font-size: 10pt; font-family: Times New Roman;">
<p align="right"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 31.1</font></b>
<p align="center"><b>CERTIFICATION</b>
<p>I, Daniel A. Baker, certify that:<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">1.<font size="1" style="font-size:3.0pt;"><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>&#160;&#160;&#160;&#160;&#160; </font> I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">2.<font size="1" style="font-size:3.0pt;"><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>&#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 style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">3.<font size="1" style="font-size:3.0pt;"><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>&#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 style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">4.<font size="1" style="font-size:3.0pt;"><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>&#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)) and internal control over financial
 reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
 registrant and have:
<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(a)<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;
 <br>
<br>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(b)<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 internal control over financial reporting, or caused such internal control
 over financial reporting to be designed under our supervision, to provide
 reasonable assurance regarding the reliability of financial reporting and
 the preparation of financial statements for external purposes in accordance
 with generally accepted accounting principles;&nbsp;
 <br>
<br>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(c)<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>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
 <br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(d)<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
<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">5.<font size="1" style="font-size:3.0pt;"><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>&#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):
<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(a)<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 style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(b)<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>Date: July 21, 2010
<p>&nbsp;
<table style="font-size: 10pt; font-family: Times New Roman;" border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
 <td valign="top" style="padding:0in 0in 0in 0in;width:50%;">
 </td>
 <td valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
/s/ DANIEL A. BAKER
 </td>
 <td valign="top" style="padding:0in 0in 0in 0in;">
 </td>
 </tr>
 <tr>
 <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
 </td>
 <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
Daniel A. Baker
 </td>
 </tr>
 <tr>
 <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
 </td>
 <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
President and Chief Executive Officer
 </td>
 </tr>
</table>
</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>
<html>
<div style="font-size: 10pt; font-family: Times New Roman;">
<p align="right"><b>Exhibit 31.2</b>
<p align="center"><b>CERTIFICATION</b>
<p>I, Curt A. Reynders, certify that:<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">1.<font size="1" style="font-size:3.0pt;"><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>&#160;&#160;&#160;&#160;&#160; </font> I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;
<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">2.<font size="1" style="font-size:3.0pt;"><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>&#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 style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">3.<font size="1" style="font-size:3.0pt;"><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>&#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 style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">4.<font size="1" style="font-size:3.0pt;"><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>&#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)) and internal control over financial
 reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
 registrant and have:
<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(a)<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;
 <br>
<br>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(b)<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 internal control over financial reporting, or caused such internal control
 over financial reporting to be designed under our supervision, to provide
 reasonable assurance regarding the reliability of financial reporting and
 the preparation of financial statements for external purposes in accordance
 with generally accepted accounting principles;&nbsp;
 <br>
<br>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(c)<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>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
 <br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(d)<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
<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;">5.<font size="1" style="font-size:3.0pt;"><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>&#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):
<br>
<br>
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(a)<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 style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">&nbsp;
<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;">(b)<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>Date: July 21, 2010
<p>&nbsp;
<table style="font-size: 10pt; font-family: Times New Roman;" border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
 <td valign="top" style="padding:0in 0in 0in 0in;width:50%;">
 <p>&nbsp;
 </td>

<td valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
/s/ CURT A. REYNDERS</td>
 <td valign="top" style="padding:0in 0in 0in 0in;">
 </td>
 </tr>
 <tr>
 <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
 </td>
 <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
Curt A. Reynders
 </td>
 </tr>
 <tr>
 <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
 </td>
<td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
Chief Financial Officer</td>
 </tr>
</table>
</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>
<html>
<div style="font-family:Times New Roman;">
<p align="right"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 32</font></b><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 June&nbsp;30, 2010, 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:
 July 21, 2010</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 valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
 <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 valign="top" style="padding:0in 0in 0in 0in;">
 <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 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 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 valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
 <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 wvalign="top" style="padding:0in 0in 0in 0in;">
 <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>
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