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 26, 2012
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
·
|
Record revenue of $292 million, up 15 percent year-over-year
|
·
|
Record Q2 revenue for PXI and NI CompactRIO products
|
·
|
GAAP gross margin of 76 percent and non-GAAP gross margin of 77 percent
|
·
|
Record operating income for a second quarter
|
·
|
Fully diluted GAAP EPS of $0.22
|
·
|
Fully diluted non-GAAP EPS of $0.27
|
·
|
EBITDA of $47 million, or $0.38 per share
|
·
|
Cash and short-term investments of $351 million as of June 30
|
National Instruments
|
||||
Consolidated Balance Sheets
|
||||
(in thousands)
|
||||
June 30,
|
Dec. 31,
|
|||
2012
|
2011
|
|||
(unaudited)
|
||||
Assets
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$
|
271,402
|
$
|
142,608
|
Short-term investments
|
79,325
|
223,504
|
||
Accounts receivable, net
|
188,258
|
157,056
|
||
Inventories, net
|
148,989
|
131,995
|
||
Prepaid expenses and other current assets
|
56,089
|
38,082
|
||
Deferred income taxes, net
|
19,588
|
26,304
|
||
Total current assets
|
763,651
|
719,549
|
||
Property and equipment, net
|
205,754
|
190,148
|
||
Goodwill
|
128,963
|
130,747
|
||
Intangible assets, net
|
80,679
|
83,866
|
||
Other long-term assets
|
34,584
|
29,984
|
||
Total assets
|
$
|
1,213,631
|
$
|
1,154,294
|
Liabilities and Stockholders’ Equity
|
||||
Current liabilities:
|
||||
Accounts payable
|
$
|
51,707
|
$
|
41,111
|
Accrued compensation
|
33,354
|
29,616
|
||
Deferred revenue – current
|
89,497
|
80,059
|
||
Accrued expenses and other liabilities
|
22,007
|
37,612
|
||
Other taxes payable
|
22,165
|
24,507
|
||
Total current liabilities
|
218,730
|
212,905
|
||
Deferred income taxes
|
43,128
|
43,186
|
||
Liability for uncertain tax positions
|
21,289
|
19,494
|
||
Deferred revenue – long-term
|
18,488
|
10,015
|
||
Other long-term liabilities
|
15,668
|
16,683
|
||
Total liabilities
|
$
|
317,303
|
$
|
302,283
|
Stockholders’ equity:
|
||||
Preferred stock
|
-
|
-
|
||
Common stock
|
1,222
|
1,207
|
||
Additional paid-in capital
|
501,885
|
471,830
|
||
Retained earnings
|
393,502
|
382,474
|
||
Accumulated other comprehensive (loss)
|
(281)
|
(3,500)
|
||
Total stockholders’ equity
|
$
|
896,328
|
$
|
852,011
|
Total liabilities and stockholders’ equity
|
$
|
1,213,631
|
$
|
1,154,294
|
National Instruments
|
||||||||||
Consolidated Statements of Income
|
||||||||||
(in thousands, except per share data)
|
||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||
June 30,
|
June 30,
|
|||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||
2012
|
2011
|
2012
|
2011
|
|||||||
Net sales:
|
||||||||||
Product
|
$
|
268,979
|
$
|
233,141
|
$
|
508,314
|
$
|
451,751
|
||
Software maintenance
|
21,931
|
20,143
|
43,729
|
39,383
|
||||||
GSA accrual
|
1,349
|
-
|
1,349
|
-
|
||||||
Total net sales
|
292,259
|
253,284
|
553,392
|
491,134
|
||||||
Cost of sales:
|
||||||||||
Product
|
$
|
69,787
|
$
|
54,803
|
$
|
129,578
|
$
|
105,761
|
||
Software maintenance
|
1,064
|
1,083
|
2,621
|
2,601
|
||||||
Total cost of sales
|
70,851
|
55,886
|
132,199
|
108,362
|
||||||
Gross profit
|
$
|
221,408
|
$
|
197,398
|
$
|
421,193
|
$
|
382,772
|
||
Operating expenses:
|
||||||||||
Sales and marketing
|
$
|
110,756
|
$
|
96,197
|
$
|
210,808
|
$
|
183,352
|
||
Research and development
|
54,286
|
47,027
|
108,301
|
89,895
|
||||||
General and administrative
|
21,502
|
21,232
|
42,876
|
40,071
|
||||||
Total operating expenses
|
$
|
186,544
|
$
|
164,456
|
$
|
361,985
|
$
|
313,318
|
||
Operating income
|
$
|
34,864
|
$
|
32,942
|
$
|
59,208
|
$
|
69,454
|
||
Other income (expense):
|
||||||||||
Interest income
|
$
|
132
|
$
|
344
|
$
|
362
|
$
|
685
|
||
Net foreign exchange (loss)
|
(1,016)
|
(486)
|
(1,904)
|
(709)
|
||||||
Other income, net
|
151
|
(571)
|
255
|
(125)
|
||||||
Income before income taxes
|
$
|
34,131
|
$
|
32,229
|
$
|
57,921
|
$
|
69,305
|
||
Provision for income taxes
|
7,690
|
5,681
|
12,838
|
12,296
|
||||||
Net income
|
$
|
26,441
|
$
|
26,548
|
$
|
45,083
|
$
|
57,009
|
||
Basic earnings per share
|
$
|
0.22
|
$
|
0.22
|
$
|
0.37
|
$
|
0.48
|
||
Diluted earnings per share
|
$
|
0.22
|
$
|
0.22
|
$
|
0.37
|
$
|
0.47
|
||
Weighted average shares outstanding:
|
||||||||||
Basic
|
121,801
|
119,736
|
121,360
|
119,218
|
||||||
Diluted
|
122,759
|
121,161
|
122,376
|
120,810
|
||||||
Dividends declared per share
|
$
|
0.14
|
$
|
0.10
|
$
|
0.28
|
$
|
0.20
|
Consolidated Statements of Cash Flows
|
||||
(in thousands)
|
||||
Six Months Ended
|
||||
June 30,
|
||||
(Unaudited)
|
||||
2012
|
2011
|
|||
Cash flow from operating activities:
|
||||
Net income
|
$
|
45,083
|
$
|
57,009
|
Adjustments to reconcile net income to net cash provided
|
||||
by operating activities:
|
||||
Depreciation and amortization
|
27,316
|
23,390
|
||
Stock-based compensation
|
13,285
|
10,296
|
||
Tax expense from deferred income taxes
|
5,037
|
2,770
|
||
Tax (benefit) from stock option plans
|
(2,094)
|
(5,035)
|
||
Changes in operating assets and liabilities:
|
||||
Accounts receivable
|
(31,203)
|
(13,841)
|
||
Inventories
|
(16,994)
|
(21,393)
|
||
Prepaid expenses and other assets
|
(15,967)
|
2,186
|
||
Accounts payable
|
10,596
|
937
|
||
Deferred revenue
|
17,911
|
7,051
|
||
Taxes and other liabilities
|
(11,169)
|
9,926
|
||
Net cash provided by operating activities
|
$
|
41,801
|
$
|
73,296
|
Cash flow from investing activities:
|
||||
Capital expenditures
|
(28,934)
|
(23,053)
|
||
Capitalization of internally developed software
|
(9,664)
|
(9,391)
|
||
Additions to other intangibles
|
(1,085)
|
(1,756)
|
||
Acquisitions, net of cash received
|
-
|
(73,558)
|
||
Purchases of short-term investments
|
(38,879)
|
(54,097)
|
||
Sales and maturities of short-term investments
|
183,058
|
73,915
|
||
Net cash provided/(used) by investing activities
|
$
|
104,496
|
$
|
(87,940)
|
Cash flow from financing activities:
|
||||
Proceeds from issuance of common stock
|
14,422
|
21,389
|
||
Dividends paid
|
(34,019)
|
(23,860)
|
||
Tax benefit from stock option plans
|
2,094
|
5,035
|
||
Net cash (used)/provided by financing activities
|
$
|
(17,503)
|
$
|
2,564
|
Net change in cash and cash equivalents
|
128,794
|
(12,080)
|
||
Cash and cash equivalents at beginning of period
|
142,608
|
219,447
|
||
Cash and cash equivalents at end of period
|
$
|
271,402
|
$
|
207,367
|
Amortization of Acquisition Intangibles and Acquisition-Related Transaction Costs
|
||||||||
(in thousands)
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2012
|
2011
|
2012
|
2011
|
|||||
Revenue
|
||||||||
Acquisition-related deferred revenue
|
$
|
887
|
$
|
-
|
$
|
2,156
|
$
|
-
|
GSA accrual
|
(1,349)
|
-
|
(1,349)
|
-
|
||||
Benefit from (provision for) income taxes
|
162
|
-
|
(282)
|
-
|
||||
Total
|
$
|
(300)
|
$
|
-
|
$
|
525
|
$
|
-
|
Stock-based compensation
|
||||||||
Cost of sales
|
$
|
438
|
$
|
398
|
$
|
853
|
$
|
715
|
Sales and marketing
|
2,945
|
2,457
|
5,585
|
4,379
|
||||
Research and development
|
2,679
|
2,070
|
5,128
|
3,756
|
||||
General and administrative
|
921
|
781
|
1,720
|
1,446
|
||||
Provision for income taxes
|
(1,880)
|
(2,120)
|
(3,387)
|
(3,960)
|
||||
Total
|
$
|
5,103
|
$
|
3,586
|
$
|
9,899
|
$
|
6,336
|
Amortization of acquisition intangibles
|
||||||||
Cost of sales
|
$
|
2,186
|
$
|
1,005
|
$
|
4,596
|
$
|
2,009
|
Sales and marketing
|
448
|
100
|
895
|
177
|
||||
Other income, net
|
193
|
-
|
382
|
-
|
||||
Provision for income taxes
|
(894)
|
(359)
|
(1,866)
|
(709)
|
||||
Total
|
$
|
1,933
|
$
|
746
|
$
|
4,007
|
$
|
1,477
|
Acquisition-related transaction costs
|
||||||||
Cost of sales
|
$
|
-
|
$
|
-
|
$
|
32
|
$
|
-
|
Sales and marketing
|
19
|
982
|
239
|
982
|
||||
Research and development
|
56
|
-
|
162
|
-
|
||||
General and administrative
|
9
|
427
|
56
|
427
|
||||
Provision for income taxes
|
(29)
|
(51)
|
(171)
|
(51)
|
||||
Total
|
$
|
55
|
$
|
1,358
|
$
|
318
|
$
|
1,358
|
Reconciliation of GAAP to Non-GAAP Measures
|
|||||||||||
(in thousands, except per share data)
|
|||||||||||
(unaudited)
|
|||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||
June 30,
|
June 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||
Reconciliation of Net Revenue to Non-GAAP Net Revenue
|
|||||||||||
Net sales, as reported
|
$
|
292,259
|
$
|
253,284
|
$
|
553,392
|
$
|
491,134
|
|||
Acquisition-related deferred revenue
|
887
|
-
|
2,156
|
-
|
|||||||
GSA accrual
|
(1,349)
|
-
|
(1,349)
|
-
|
|||||||
Non-GAAP net sales
|
$
|
291,797
|
$
|
253,284
|
$
|
554,199
|
$
|
491,134
|
|||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
|||||||||||
Gross profit, as reported
|
$
|
221,408
|
$
|
197,398
|
$
|
421,193
|
$
|
382,772
|
|||
Acquisition-related deferred revenue and GSA accrual
|
(462)
|
-
|
807
|
-
|
|||||||
Stock-based compensation
|
438
|
398
|
853
|
715
|
|||||||
Amortization of acquisition intangibles
|
-
|
-
|
32
|
-
|
|||||||
Acquisition-related transaction costs
|
2,186
|
1,005
|
4,596
|
2,009
|
|||||||
Non-GAAP gross profit
|
$
|
223,570
|
$
|
198,801
|
$
|
427,481
|
$
|
385,496
|
|||
Non-GAAP gross margin
|
77%
|
78%
|
77%
|
78%
|
|||||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
|||||||||||
Operating expenses, as reported
|
$
|
186,544
|
$
|
164,456
|
$
|
361,985
|
$
|
313,318
|
|||
Stock-based compensation
|
(6,545)
|
(5,308)
|
(12,433)
|
(9,581)
|
|||||||
Amortization of acquisition intangibles
|
(448)
|
(100)
|
(895)
|
(177)
|
|||||||
Acquisition-related transaction costs
|
(84)
|
(1,409)
|
(457)
|
(1,408)
|
|||||||
Non-GAAP operating expenses
|
$
|
179,467
|
$
|
157,639
|
$
|
348,200
|
$
|
302,152
|
|||
Reconciliation of Operating Income to Non-GAAP Operating Income
|
|||||||||||
Operating income, as reported
|
$
|
34,864
|
$
|
32,942
|
$
|
59,208
|
$
|
69,454
|
|||
Acquisition-related deferred revenue and GSA accrual
|
(462)
|
-
|
807
|
-
|
|||||||
Stock-based compensation
|
6,983
|
5,706
|
13,286
|
10,296
|
|||||||
Amortization of acquisition intangibles
|
2,634
|
1,105
|
5,491
|
2,186
|
|||||||
Acquisition-related transaction costs
|
84
|
1,409
|
489
|
1,409
|
|||||||
Non-GAAP operating income
|
$
|
44,103
|
$
|
41,162
|
$
|
79,281
|
$
|
83,345
|
|||
Non-GAAP operating margin
|
15%
|
16%
|
14%
|
17%
|
|||||||
Reconciliation of Income Before Income Taxes to Non-GAAP Income Before Income Taxes
|
|||||||||||
Income before income taxes, as reported
|
$
|
34,131
|
$
|
32,229
|
$
|
57,921
|
$
|
69,305
|
|||
Acquisition-related deferred revenue and GSA accrual
|
(462)
|
-
|
807
|
-
|
|||||||
Stock-based compensation
|
6,983
|
5,706
|
13,286
|
10,296
|
|||||||
Amortization of acquisition intangibles
|
2,827
|
1,105
|
5,873
|
2,186
|
|||||||
Acquisition-related transaction costs
|
84
|
1,409
|
489
|
1,409
|
|||||||
Non-GAAP income before income taxes
|
$
|
43,563
|
$
|
40,449
|
$
|
78,376
|
$
|
83,196
|
|||
Reconciliation of Provision for Income Taxes to Non-GAAP Provision for Income Taxes
|
|||||||||||
Provision for income taxes, as reported
|
$
|
7,690
|
$
|
5,681
|
$
|
12,838
|
$
|
12,296
|
|||
Acquisition-related deferred revenue and GSA accrual
|
(162)
|
-
|
282
|
-
|
|||||||
Stock-based compensation
|
1,880
|
2,120
|
3,387
|
3,960
|
|||||||
Amortization of acquisition intangibles
|
894
|
359
|
1,866
|
709
|
|||||||
Acquisition-related transaction costs
|
29
|
51
|
171
|
51
|
|||||||
Non-GAAP provision for income taxes
|
$
|
10,331
|
$
|
8,211
|
$
|
18,544
|
$
|
17,016
|
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,
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||
Net income, as reported
|
$
|
26,441
|
$
|
26,548
|
$
|
45,083
|
$
|
57,009
|
|||||
Adjustments to reconcile net income to non-GAAP net income:
|
|||||||||||||
Acquisition-related deferred revenue and GSA accrual,
net of tax effect
|
(300)
|
-
|
525
|
-
|
|||||||||
Stock-based compensation, net of tax effect
|
5,103
|
3,586
|
9,899
|
6,336
|
|||||||||
Amortization of acquisition intangibles, net of tax effect
|
1,933
|
746
|
4,007
|
1,477
|
|||||||||
Acquisition-related transaction costs, net of tax effect
|
55
|
1,358
|
318
|
1,358
|
|||||||||
Non-GAAP net income
|
$
|
33,232
|
$
|
32,238
|
$
|
59,832
|
$
|
66,180
|
|||||
Basic EPS, as reported
|
$
|
0.22
|
$
|
0.22
|
$
|
0.37
|
$
|
0.48
|
|||||
Adjustment to reconcile basic EPS to non-GAAP basic EPS:
|
|||||||||||||
Impact of acquisition-related deferred revenue and GSA accrual,
net of tax effect
|
(0.00)
|
-
|
0.01
|
-
|
|||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.03
|
0.08
|
0.06
|
|||||||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.01
|
0.01
|
0.03
|
0.01
|
|||||||||
Impact of acquisition-related transaction costs, net of tax effect
|
0.00
|
0.01
|
0.00
|
0.01
|
|||||||||
Non-GAAP basic EPS
|
$
|
0.27
|
$
|
0.27
|
$
|
0.49
|
$
|
0.56
|
|||||
Diluted EPS, as reported
|
$
|
0.22
|
$
|
0.22
|
$
|
0.37
|
$
|
0.47
|
|||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
|
|||||||||||||
Impact of acquisition-related deferred revenue, net of tax effect
|
(0.00)
|
-
|
0.01
|
-
|
|||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.03
|
0.08
|
0.06
|
|||||||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.01
|
0.01
|
0.03
|
0.01
|
|||||||||
Impact of acquisition-related transaction costs, net of tax effect
|
0.00
|
0.01
|
0.00
|
0.01
|
|||||||||
Non-GAAP diluted EPS
|
$
|
0.27
|
$
|
0.27
|
$
|
0.49
|
$
|
0.55
|
|||||
Weighted average shares outstanding:
|
|||||||||||||
Basic
|
121,801
|
119,736
|
121,360
|
119,218
|
|||||||||
Diluted
|
122,759
|
121,161
|
122,376
|
120,810
|
Reconciliation of Net Income and Diluted EPS to EBITDA and EBITDA Diluted EPS
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2012
|
2011
|
2012
|
2011
|
|||||
Net income, as reported
|
$
|
26,441
|
$
|
26,548
|
$
|
45,083
|
$
|
57,009
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(132)
|
(344)
|
(362)
|
(685)
|
||||
Taxes
|
7,690
|
5,681
|
12,838
|
12,296
|
||||
Depreciation and amortization
|
13,201
|
12,417
|
27,316
|
23,390
|
||||
EBITDA
|
$
|
47,200
|
$
|
44,302
|
$
|
84,875
|
$
|
92,010
|
Diluted EPS, as reported
|
$
|
0.22
|
$
|
0.22
|
$
|
0.37
|
$
|
0.47
|
Adjustment to reconcile diluted EPS to EBITDA:
|
||||||||
Interest income
|
(0.00)
|
(0.00)
|
(0.00)
|
(0.01)
|
||||
Taxes
|
0.06
|
0.05
|
0.10
|
0.10
|
||||
Depreciation and amortization
|
0.10
|
0.10
|
0.22
|
0.20
|
||||
EBITDA diluted EPS
|
$
|
0.38
|
$
|
0.37
|
$
|
0.69
|
$
|
0.76
|
Weighted average shares outstanding – Diluted
|
122,759
|
121,161
|
122,376
|
120,810
|
National Instruments
|
|||||
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
|||||
(unaudited)
|
|||||
Three months ended
|
|||||
September 30, 2012
|
|||||
Low
|
High
|
||||
GAAP fully diluted EPS, guidance
|
$
|
0.14
|
$
|
0.26
|
|
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
|
|||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
|||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
|||
Non-GAAP diluted EPS, guidance
|
$
|
0.20
|
$
|
0.32
|