Delaware
|
000-25426
|
74-1871327
|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
|
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated July 27, 2011
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
Contact
|
Caitlin Cooper Gursslin
|
Investor Relations
|
|
(512) 683-8456
|
· |
Record quarterly revenue of $253 million, up 20 percent year-over-year
|
· |
Strong revenue growth in academic, PXI Modular Instrumentation, Software, Data Acquisition and NI CompactRIO products
|
· |
GAAP gross margin of 77.9 percent and non-GAAP gross margin of 78.5 percent
|
· |
Record GAAP and non-GAAP operating income for a second quarter
|
· |
Fully diluted GAAP EPS of $ 0.22
|
· |
Fully diluted non-GAAP EPS of $0.27, at the mid-point of guidance
|
· |
Record EBITDA of $44 million, or $0.37 per share for a second quarter
|
· |
Cash and short-term investments of $320 million as of June 30, 2011
|
National Instruments Reports Record Revenue and Profit
|
July 27, 2011
|
Page 2
|
National Instruments Reports Record Revenue and Profit
|
July 27, 2011
|
Page 3
|
National Instruments
|
||||||||
Consolidated Balance Sheets
|
||||||||
(in thousands)
|
||||||||
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 207,367 | $ | 219,447 | ||||
Short-term investments
|
112,341 | 131,215 | ||||||
Accounts receivable, net
|
148,939 | 127,214 | ||||||
Inventories, net
|
141,571 | 117,765 | ||||||
Prepaid expenses and other current assets
|
42,007 | 36,239 | ||||||
Deferred income taxes, net
|
13,919 | 18,838 | ||||||
Total current assets
|
666,144 | 650,718 | ||||||
Property and equipment, net
|
171,506 | 160,410 | ||||||
Goodwill
|
132,011 | 70,278 | ||||||
Intangible assets, net
|
93,971 | 52,816 | ||||||
Other long-term assets
|
25,938 | 25,460 | ||||||
Total assets
|
$ | 1,089,570 | $ | 959,682 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 36,475 | $ | 33,544 | ||||
Accrued compensation
|
34,135 | 27,734 | ||||||
Deferred revenue
|
80,172 | 71,650 | ||||||
Accrued expenses and other liabilities
|
20,156 | 16,538 | ||||||
Other taxes payable
|
19,478 | 16,846 | ||||||
Total current liabilities
|
190,416 | 166,312 | ||||||
Deferred income taxes
|
37,476 | 29,477 | ||||||
Liability for uncertain tax position
|
18,016 | 14,953 | ||||||
Other long-term liabilities
|
17,201 | 4,395 | ||||||
Total liabilities
|
$ | 263,109 | $ | 215,137 | ||||
Stockholders' equity:
|
||||||||
Preferred stock
|
- | - | ||||||
Common stock
|
1,201 | 1,179 | ||||||
Additional paid-in capital
|
447,407 | 407,713 | ||||||
Retained earnings
|
369,512 | 336,363 | ||||||
Accumulated other comprehensive income (loss)
|
8,341 | (710) | ||||||
Total stockholders' equity
|
$ | 826,461 | $ | 744,545 | ||||
Total liabilities and stockholders' equity
|
$ | 1,089,570 | $ | 959,682 |
National Instruments
|
||||||||
Consolidated Statements of Income
|
||||||||
(in thousands, except per share data)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Net sales:
|
||||||||
Product
|
$
|
233,141
|
$
|
194,830
|
$
|
451,751
|
$
|
370,225
|
Software maintenance
|
20,143
|
16,887
|
39,383
|
32,583
|
||||
Total net sales
|
253,284
|
211,717
|
491,134
|
402,808
|
||||
Cost of sales:
|
||||||||
Cost of product
|
$
|
54,803
|
$
|
47,176
|
$
|
105,761
|
$
|
89,438
|
Cost of software maintenance
|
1,083
|
1,463
|
2,601
|
2,443
|
||||
Total cost of sales
|
55,886
|
48,639
|
108,362
|
91,881
|
||||
Gross profit
|
$
|
197,398
|
$
|
163,078
|
$
|
382,772
|
$
|
310,927
|
Operating expenses:
|
||||||||
Sales and marketing
|
$
|
96,197
|
$
|
79,231
|
$
|
183,352
|
$
|
153,672
|
Research and development
|
47,027
|
36,395
|
89,895
|
74,941
|
||||
General and administrative
|
21,232
|
16,969
|
40,071
|
32,309
|
||||
Total operating expenses
|
$
|
164,456
|
$
|
132,595
|
$
|
313,318
|
$
|
260,922
|
Operating income
|
$
|
32,942
|
$
|
30,483
|
$
|
69,454
|
$
|
50,005
|
Other income (expense):
|
||||||||
Interest income
|
$
|
344
|
$
|
371
|
$
|
685
|
$
|
671
|
Net foreign exchange (loss)
|
(486)
|
(2,203)
|
(709)
|
(2,901)
|
||||
Other income (loss), net
|
(571)
|
462
|
(125)
|
810
|
||||
Income before income taxes
|
$
|
32,229
|
$
|
29,113
|
$
|
69,305
|
$
|
48,585
|
Provision for income taxes
|
5,681
|
4,511
|
12,296
|
5,630
|
||||
Net income
|
$
|
26,548
|
$
|
24,602
|
$
|
57,009
|
$
|
42,955
|
Basic earnings per share
|
$
|
0.22
|
$
|
0.21
|
$
|
0.48
|
$
|
0.37
|
Diluted earnings per share
|
$
|
0.22
|
$
|
0.21
|
$
|
0.47
|
$
|
0.36
|
Weighted average shares outstanding -
|
||||||||
basic
|
119,736
|
116,898
|
119,218
|
116,485
|
||||
diluted
|
121,161
|
118,488
|
120,810
|
118,128
|
||||
Dividends declared per share
|
$
|
0.10
|
$
|
0.09
|
$
|
0.20
|
$
|
0.18
|
National Instruments
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
(in thousands)
|
||||||||
Six Months Ended
|
||||||||
June 30,
|
||||||||
(Unaudited)
|
||||||||
2011
|
2010
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$ | 57,009 | $ | 42,955 | ||||
Adjustments to reconcile net income to net cash provided
|
||||||||
by operating activities:
|
||||||||
Depreciation and amortization
|
23,390 | 18,988 | ||||||
Stock-based compensation
|
10,296 | 9,459 | ||||||
Tax expense from deferred income taxes
|
2,770 | 3,774 | ||||||
Tax (benefit) expense from stock option plans
|
(5,035) | 579 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(13,841) | (6,803) | ||||||
Inventories
|
(21,393) | (9,163) | ||||||
Prepaid expenses and other assets
|
2,186 | (18,740) | ||||||
Accounts payable
|
937 | 4,953 | ||||||
Deferred revenue
|
7,051 | 7,205 | ||||||
Taxes and other liabilities
|
9,926 | 18,513 | ||||||
Net cash provided by operating activities
|
$ | 73,296 | $ | 71,720 | ||||
Cash flow from investing activities:
|
||||||||
Capital expenditures
|
(23,053) | (10,015) | ||||||
Capitalization of internally developed software
|
(9,391) | (11,021) | ||||||
Additions to other intangibles
|
(1,756) | (1,690) | ||||||
Acquisition, net of cash received
|
(73,558) | (2,191) | ||||||
Purchases of short-term investments
|
(54,097) | (85,199) | ||||||
Sales and maturities of short-term investments
|
73,915 | 41,538 | ||||||
Net cash (used by) investing activities
|
$ | (87,940) | $ | (68,578) | ||||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of common stock
|
21,389 | 32,550 | ||||||
Repurchase of common stock
|
- | (30,935) | ||||||
Dividends paid
|
(23,860) | (20,225) | ||||||
Tax benefit (expense) from stock option plans
|
5,035 | (579) | ||||||
Net cash provided by (used by) financing activities
|
$ | 2,564 | $ | (19,189) | ||||
Net change in cash and cash equivalents
|
(12,080) | (16,047) | ||||||
Cash and cash equivalents at beginning of period
|
219,447 | 201,465 | ||||||
Cash and cash equivalents at end of period
|
$ | 207,367 | $ | 185,418 |
Detail of GAAP charges related to stock-based compensation,
|
||||||||
amortization of acquisition intangibles, and acquisition related transaction costs
|
||||||||
(Unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Stock-based compensation
|
||||||||
Cost of sales
|
$
|
398
|
$
|
320
|
$
|
715
|
$
|
682
|
Sales and marketing
|
2,457
|
1,996
|
4,379
|
4,100
|
||||
Research and development
|
2,070
|
1,593
|
3,756
|
3,358
|
||||
General and administrative
|
781
|
634
|
1,446
|
1,319
|
||||
Provision for income taxes
|
(2,120)
|
(1,582)
|
(3,960)
|
(3,127)
|
||||
Total
|
$
|
3,586
|
$
|
2,961
|
$
|
6,336
|
$
|
6,332
|
Amortization of acquisition intangibles
|
||||||||
Cost of sales
|
$
|
1,005
|
$
|
922
|
$
|
2,009
|
$
|
1,644
|
Sales and marketing
|
100
|
100
|
177
|
222
|
||||
Provision for income taxes
|
(359)
|
(327)
|
(709)
|
(580)
|
||||
Total
|
$
|
746
|
$
|
695
|
$
|
1,477
|
$
|
1,286
|
Acquisition related transaction costs
|
||||||||
Sales and marketing
|
$
|
982
|
$
|
-
|
$
|
982
|
$
|
-
|
General and administrative
|
427
|
-
|
427
|
-
|
||||
Provision for income taxes
|
(51)
|
-
|
(51)
|
-
|
||||
Total
|
$
|
1,358
|
$
|
-
|
$
|
1,358
|
$
|
-
|
National Instruments
|
||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, except per share data)
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
197,398
|
$
|
163,078
|
$
|
382,772
|
$
|
310,927
|
Stock-based compensation
|
398
|
320
|
715
|
682
|
||||
Amortization of acquisition intangibles
|
1,005
|
922
|
2,009
|
1,644
|
||||
Non-GAAP gross profit
|
$
|
198,801
|
$
|
164,320
|
$
|
385,496
|
$
|
313,253
|
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
164,456
|
$
|
132,595
|
$
|
313,318
|
$
|
260,922
|
Stock-based compensation
|
(5,308)
|
(4,223)
|
(9,581)
|
(8,777)
|
||||
Amortization of acquisition intangibles
|
(100)
|
(100)
|
(177)
|
(222)
|
||||
Acquisition related transaction costs
|
(1,409)
|
-
|
(1,409)
|
-
|
||||
Non-GAAP operating expenses
|
$
|
157,639
|
$
|
128,272
|
$
|
302,151
|
$
|
251,923
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
32,942
|
$
|
30,483
|
$
|
69,454
|
$
|
50,005
|
Stock-based compensation
|
5,706
|
4,543
|
10,296
|
9,459
|
||||
Amortization of acquisition intangibles
|
1,105
|
1,022
|
2,186
|
1,866
|
||||
Acquisition related transaction costs
|
1,409
|
-
|
1,409
|
-
|
||||
Non-GAAP operating income
|
$
|
41,162
|
$
|
36,048
|
$
|
83,345
|
$
|
61,330
|
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
|
||||||||
Income before income taxes, as reported
|
$
|
32,229
|
$
|
29,113
|
$
|
69,305
|
$
|
48,585
|
Stock-based compensation
|
5,706
|
4,543
|
10,296
|
9,459
|
||||
Amortization of acquisition intangibles
|
1,105
|
1,022
|
2,186
|
1,866
|
||||
Acquisition related transaction costs
|
1,409
|
-
|
1,409
|
-
|
||||
Non-GAAP income before income taxes
|
$
|
40,449
|
$
|
34,678
|
$
|
83,196
|
$
|
59,910
|
Reconciliation of Provision for Income Taxes to Non-GAAP Provision For Income Taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
5,681
|
$
|
4,511
|
$
|
12,296
|
$
|
5,630
|
Stock-based compensation
|
2,120
|
1,582
|
3,960
|
3,127
|
||||
Amortization of acquisition intangibles
|
359
|
327
|
709
|
580
|
||||
Acquisition related transaction costs
|
51
|
-
|
51
|
-
|
||||
Non-GAAP provision for income taxes
|
$
|
8,211
|
$
|
6,420
|
$
|
17,016
|
$
|
9,337
|
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Basic EPS and Diluted EPS
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Net income, as reported
|
$
|
26,548
|
$
|
24,602
|
$
|
57,009
|
$
|
42,955
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Stock-based compensation, net of tax effect
|
3,586
|
2,961
|
6,336
|
6,332
|
||||
Amortization of acquisition intangibles, net of tax effect
|
746
|
695
|
1,477
|
1,286
|
||||
Acquisition related transaction costs
|
1,358
|
-
|
1,358
|
-
|
||||
Non-GAAP net income
|
$
|
32,238
|
$
|
28,258
|
$
|
66,180
|
$
|
50,573
|
Basic EPS, as reported
|
$
|
0.22
|
$
|
0.21
|
$
|
0.48
|
$
|
0.37
|
Adjustment to reconcile basic EPS to non-GAAP
|
||||||||
basic EPS:
|
||||||||
Impact of stock-based compensation, net of tax effect
|
$
|
0.03
|
$
|
0.02
|
$
|
0.06
|
$
|
0.05
|
Impact of amortization of acquisition intangibles, net of tax effect
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
Impact of acquisition related transaction costs
|
$
|
0.01
|
$
|
-
|
$
|
0.01
|
$
|
-
|
Non-GAAP basic EPS
|
$
|
0.27
|
$
|
0.24
|
$
|
0.56
|
$
|
0.43
|
Diluted EPS, as reported
|
$
|
0.22
|
$
|
0.21
|
$
|
0.47
|
$
|
0.36
|
Adjustment to reconcile diluted EPS to non-GAAP
|
||||||||
diluted EPS:
|
||||||||
Impact of stock-based compensation, net of tax effect
|
$
|
0.03
|
$
|
0.02
|
$
|
0.06
|
$
|
0.06
|
Impact of amortization of acquisition intangibles, net of tax effect
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
Impact of acquisition related transaction costs
|
$
|
0.01
|
$
|
-
|
$
|
0.01
|
$
|
-
|
Non-GAAP diluted EPS
|
$
|
0.27
|
$
|
0.24
|
$
|
0.55
|
$
|
0.43
|
Weighted average shares outstanding -
|
||||||||
Basic
|
119,736
|
116,898
|
119,218
|
116,485
|
||||
Diluted
|
121,161
|
118,488
|
120,810
|
118,128
|
Reconciliation of Net Income and Diluted EPS to EBITDA and EBITDA Diluted EPS
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Net income, as reported
|
$
|
26,548
|
$
|
24,602
|
$
|
57,009
|
$
|
42,955
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(344)
|
(371)
|
(685)
|
(671)
|
||||
Taxes
|
5,681
|
4,511
|
12,296
|
5,630
|
||||
Depreciation and amortization
|
12,417
|
9,546
|
23,390
|
18,988
|
||||
EBITDA
|
$
|
44,302
|
$
|
38,288
|
$
|
92,010
|
$
|
66,902
|
Diluted EPS, as reported
|
$
|
0.22
|
$
|
0.21
|
$
|
0.47
|
$
|
0.36
|
Adjustment to reconcile diluted EPS to EBITDA
|
||||||||
Interest income
|
$
|
(0.00)
|
$
|
(0.00)
|
$
|
(0.01)
|
$
|
(0.01)
|
Taxes
|
$
|
0.05
|
$
|
0.03
|
$
|
0.10
|
$
|
0.05
|
Depreciation and amortization
|
$
|
0.10
|
$
|
0.08
|
$
|
0.20
|
$
|
0.17
|
EBITDA diluted EPS
|
$
|
0.37
|
$
|
0.32
|
$
|
0.76
|
$
|
0.57
|
Weighted average shares outstanding - Diluted
|
121,161
|
118,488
|
120,810
|
118,128
|
National Instruments
|
Reconciliation of GAAP to Non-GAAP Operating Expense
|
(unaudited)
|
Three months ended
|
|||||
September 30, 2011
|
|||||
(Thousands)
|
|||||
Low
|
High
|
||||
GAAP operating expense, guidance
|
$
|
174,650
|
$
|
178,650
|
|
Adjustment to reconcile operating expense to non-GAAP
|
|||||
operating expense:
|
|||||
Impact of stock-based compensation
|
$
|
(5,800)
|
$
|
(5,800)
|
|
Impact of amortization of acquisition intangibles
|
$
|
(850)
|
$
|
(850)
|
|
Non-GAAP operating expense, guidance
|
$
|
168,000
|
$
|
172,000
|
National Instruments
|
|||||
Reconciliation of GAAP to Non-GAAP Revenue Guidance
|
|||||
(unaudited)
|
|||||
Three months ended
|
|||||
September 30, 2011
|
|||||
(Millions)
|
|||||
Low
|
High
|
||||
GAAP revenue, guidance
|
$
|
257
|
$
|
273
|
|
Adjustment to reconcile revenue to non-GAAP
|
|||||
revenue:
|
|||||
Impact of acquistion deferred revenue write down
|
$
|
3
|
$
|
3
|
|
Non-GAAP revenue, guidance
|
$
|
260
|
$
|
276
|
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
|||||
(unaudited)
|
|||||
Three months ended
|
|||||
September 30, 2011
|
|||||
Low
|
High
|
||||
GAAP Fully Diluted EPS, guidance
|
$
|
0.16
|
$
|
0.24
|
|
Adjustment to reconcile diluted EPS to non-GAAP
|
|||||
diluted EPS:
|
|||||
Impact of acquisition deferred revenue write down, net of tax effect
|
$
|
0.02
|
$
|
0.02
|
|
Impact of stock-based compensation, net of tax effect
|
$
|
0.03
|
$
|
0.03
|
|
Impact of amortization of acquisition intangibles, net of tax effect
|
$
|
0.02
|
$
|
0.02
|
|
Non-GAAP diluted EPS, guidance
|
$
|
0.23
|
$
|
0.31
|