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 29, 2014
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
·
|
Quarterly revenue of $313 million, up 6 percent year-over-year
|
|
·
|
Strong order growth for CompactRIO and PXI products
|
|
·
|
GAAP operating income up 67 percent year-over-year
|
|
·
|
Non-GAAP operating income up 40 percent year-over-year
|
|
·
|
Fully diluted GAAP EPS of $0.19 and fully diluted non-GAAP EPS of $0.25
|
|
·
|
EBITDA of $48 million or $0.38 per share
|
|
·
|
Cash and cash equivalents of $402 million
|
National Instruments
|
||||
Condensed Consolidated Balance Sheets
|
||||
(in thousands)
|
||||
June 30,
|
December 31,
|
|||
2014
|
2013
|
|||
Assets
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$
|
237,496
|
$
|
230,263
|
Short-term investments
|
164,017
|
163,149
|
||
Accounts receivable, net
|
210,820
|
180,680
|
||
Inventories, net
|
167,294
|
172,109
|
||
Prepaid expenses and other current assets
|
75,709
|
49,001
|
||
Deferred income taxes, net
|
29,832
|
33,393
|
||
Total current assets
|
885,168
|
828,595
|
||
Property and equipment, net
|
263,709
|
260,568
|
||
Goodwill
|
146,433
|
146,520
|
||
Intangible assets, net
|
86,398
|
82,310
|
||
Other long-term assets
|
23,424
|
25,558
|
||
Total assets
|
$
|
1,405,132
|
$
|
1,343,551
|
Liabilities and Stockholders' Equity
|
||||
Current liabilities:
|
||||
Accounts payable
|
$
|
63,982
|
$
|
56,614
|
Accrued compensation
|
32,727
|
25,189
|
||
Deferred revenue - current
|
104,570
|
96,117
|
||
Accrued expenses and other liabilities
|
16,139
|
17,627
|
||
Other taxes payable
|
33,063
|
29,808
|
||
Total current liabilities
|
250,481
|
225,355
|
||
Deferred income taxes
|
42,374
|
44,620
|
||
Liability for uncertain tax positions
|
24,700
|
23,572
|
||
Deferred revenue - long-term
|
23,435
|
21,389
|
||
Other long-term liabilities
|
6,249
|
5,531
|
||
Total liabilities
|
347,239
|
320,467
|
||
Stockholders' equity:
|
||||
Preferred stock
|
-
|
-
|
||
Common stock
|
1,273
|
1,257
|
||
Additional paid-in capital
|
635,640
|
604,330
|
||
Retained earnings
|
420,216
|
414,947
|
||
Accumulated other comprehensive income
|
764
|
2,550
|
||
Total stockholders' equity
|
1,057,893
|
1,023,084
|
||
Total liabilities and stockholders' equity
|
$
|
1,405,132
|
$
|
1,343,551
|
National Instruments
|
||||||||
Condensed Consolidated Statements of Income
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net sales:
|
||||||||
Product
|
$
|
288,224
|
$
|
275,663
|
$
|
550,488
|
$
|
541,081
|
Software maintenance
|
24,487
|
20,463
|
46,897
|
41,533
|
||||
Total net sales
|
312,711
|
296,126
|
597,385
|
582,614
|
||||
Cost of sales:
|
||||||||
Product
|
80,642
|
82,787
|
150,263
|
151,413
|
||||
Software maintenance
|
1,179
|
1,028
|
2,760
|
2,642
|
||||
Total cost of sales
|
81,821
|
83,815
|
153,023
|
154,055
|
||||
Gross profit
|
230,890
|
212,311
|
444,362
|
428,559
|
||||
Operating expenses:
|
||||||||
Sales and marketing
|
119,374
|
112,561
|
231,290
|
226,631
|
||||
Research and development
|
55,851
|
58,473
|
111,110
|
119,729
|
||||
General and administrative
|
23,640
|
22,156
|
46,113
|
45,000
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Total operating expenses
|
198,865
|
193,190
|
388,513
|
390,044
|
||||
Operating income
|
32,025
|
19,121
|
55,849
|
38,515
|
||||
Other income (expense):
|
||||||||
Interest income
|
234
|
177
|
431
|
362
|
||||
Net foreign exchange loss
|
(603)
|
(1,051)
|
(553)
|
(2,513)
|
||||
Other income, net
|
265
|
400
|
353
|
424
|
||||
Income before income taxes
|
31,921
|
18,647
|
56,080
|
36,788
|
||||
Provision for income taxes
|
7,398
|
4,226
|
12,834
|
3,767
|
||||
Net income
|
$
|
24,523
|
$
|
14,421
|
$
|
43,246
|
$
|
33,021
|
Basic earnings per share
|
$
|
0.19
|
$
|
0.12
|
$
|
0.34
|
$
|
0.27
|
Diluted earnings per share
|
$
|
0.19
|
$
|
0.12
|
$
|
0.34
|
$
|
0.26
|
Weighted average shares outstanding -
|
||||||||
basic
|
126,887
|
124,377
|
126,433
|
123,845
|
||||
diluted
|
127,512
|
125,270
|
127,123
|
124,824
|
||||
Dividends declared per share
|
$
|
0.15
|
$
|
0.14
|
$
|
0.30
|
$ 0.28
|
Condensed Consolidated Statements of Cash Flows
|
||||
(in thousands, unaudited)
|
||||
Six Months Ended June 30,
|
||||
2014
|
2013
|
|||
Cash flow from operating activities:
|
||||
Net income
|
$
|
43,246
|
$
|
33,021
|
Adjustments to reconcile net income to net cash provided
|
||||
by operating activities:
|
||||
Depreciation and amortization
|
33,357
|
33,555
|
||
Stock-based compensation
|
12,881
|
14,006
|
||
Tax expense/(benefit) expense from deferred income taxes
|
1,398
|
(3,633)
|
||
Tax benefit from stock option plans
|
(1,055)
|
(2,042)
|
||
Changes in operating assets and liabilities:
|
||||
Accounts receivable
|
(30,140)
|
14,358
|
||
Inventories
|
4,815
|
(14,732)
|
||
Prepaid expenses and other assets
|
(25,942)
|
(18,418)
|
||
Accounts payable
|
7,368
|
(10,612)
|
||
Deferred revenue
|
10,499
|
5,097
|
||
Taxes and other liabilities
|
12,011
|
(6,208)
|
||
Net cash provided by operating activities
|
68,438
|
44,392
|
||
Cash flow from investing activities:
|
||||
Capital expenditures
|
(22,109)
|
(33,147)
|
||
Capitalization of internally developed software
|
(16,797)
|
(8,073)
|
||
Additions to other intangibles
|
(1,634)
|
(2,710)
|
||
Purchases of short-term investments
|
(80,515)
|
(16,039)
|
||
Sales and maturities of short-term investments
|
79,647
|
35,234
|
||
Net cash used by investing activities
|
(41,408)
|
(24,735)
|
||
Cash flow from financing activities:
|
||||
Proceeds from issuance of common stock
|
17,124
|
20,612
|
||
Dividends paid
|
(37,976)
|
(34,727)
|
||
Tax benefit from stock option plans
|
1,055
|
2,042
|
||
Net cash used by financing activities
|
(19,797)
|
(12,073)
|
||
Net change in cash and cash equivalents
|
7,233
|
7,584
|
||
Cash and cash equivalents at beginning of period
|
230,263
|
161,996
|
||
Cash and cash equivalents at end of period
|
$
|
237,496
|
$
|
169,580
|
National Instruments
|
||||||||
Detail of GAAP charges related to revenue, stock-based compensation, amortization of acquisition intangibles and acquisition related transaction costs
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Stock-based compensation
|
||||||||
Cost of sales
|
$
|
358
|
$
|
408
|
$
|
799
|
$
|
829
|
Sales and marketing
|
2,767
|
2,926
|
5,578
|
5,999
|
||||
Research and development
|
2,273
|
2,596
|
4,724
|
5,333
|
||||
General and administrative
|
930
|
942
|
1,780
|
1,845
|
||||
Provision for income taxes
|
(1,797)
|
(1,877)
|
(3,633)
|
(3,691)
|
||||
Total
|
$
|
4,531
|
$
|
4,995
|
$
|
9,248
|
$
|
10,315
|
Amortization of acquisition intangibles
|
||||||||
Cost of sales
|
$
|
2,663
|
$
|
2,613
|
$
|
5,329
|
$
|
5,373
|
Sales and marketing
|
452
|
498
|
918
|
1,016
|
||||
Research and development
|
400
|
569
|
806
|
1,242
|
||||
Other income, net
|
167
|
188
|
337
|
381
|
||||
Provision for income taxes
|
(1,216)
|
(1,268)
|
(2,440)
|
(2,618)
|
||||
Total
|
$
|
2,466
|
$
|
2,600
|
$
|
4,950
|
$
|
5,394
|
Acquisition related adjustment and transaction costs
|
||||||||
Cost of sales
|
$
|
-
|
$
|
3
|
$
|
-
|
$
|
3
|
Sales and marketing
|
88
|
142
|
176
|
260
|
||||
Research and development
|
153
|
266
|
306
|
410
|
||||
General and administrative
|
42
|
69
|
107
|
175
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Provision for income taxes
|
(99)
|
(153)
|
(206)
|
(259)
|
||||
Total
|
$
|
184
|
$
|
327
|
$
|
383
|
$
|
(727)
|
National Instruments
|
||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
230,890
|
$
|
212,311
|
$
|
444,362
|
$
|
428,559
|
Stock-based compensation
|
358
|
408
|
799
|
829
|
||||
Amortization of acquisition intangibles
|
2,663
|
2,613
|
5,329
|
5,373
|
||||
Acquisition related transaction costs
|
-
|
3
|
-
|
3
|
||||
Non-GAAP gross profit
|
$
|
233,911
|
$
|
215,335
|
$
|
450,490
|
$
|
434,764
|
Non-GAAP gross margin
|
75%
|
73%
|
75%
|
75%
|
||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
198,865
|
$
|
193,190
|
$
|
388,513
|
$
|
390,044
|
Stock-based compensation
|
(5,970)
|
(6,464)
|
(12,082)
|
(13,177)
|
||||
Amortization of acquisition intangibles
|
(852)
|
(1,067)
|
(1,724)
|
(2,258)
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
1,316
|
||||
Acquisition related transaction costs
|
(283)
|
(477)
|
(589)
|
(845)
|
||||
Non-GAAP operating expenses
|
$
|
191,760
|
$
|
185,182
|
$
|
374,118
|
$
|
375,080
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
32,025
|
$
|
19,121
|
$
|
55,849
|
$
|
38,515
|
Stock-based compensation
|
6,328
|
6,872
|
12,881
|
14,006
|
||||
Amortization of acquisition intangibles
|
3,515
|
3,680
|
7,053
|
7,631
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition related transaction costs
|
283
|
480
|
589
|
848
|
||||
Non-GAAP operating income
|
$
|
42,151
|
$
|
30,153
|
$
|
76,372
|
$
|
59,684
|
Non-GAAP operating margin
|
13%
|
10%
|
13%
|
10%
|
||||
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
|
||||||||
Income before income taxes, as reported
|
$
|
31,921
|
$
|
18,647
|
$
|
56,080
|
$
|
36,788
|
Stock-based compensation
|
6,328
|
6,872
|
12,881
|
14,006
|
||||
Amortization of acquisition intangibles
|
3,682
|
3,868
|
7,390
|
8,012
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition related transaction costs
|
283
|
480
|
589
|
848
|
||||
Non-GAAP income before income taxes
|
$
|
42,214
|
$
|
29,867
|
$
|
76,940
|
$
|
58,338
|
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
7,398
|
$
|
4,226
|
$
|
12,834
|
$
|
3,767
|
Stock-based compensation
|
1,797
|
1,877
|
3,633
|
3,691
|
||||
Amortization of acquisition intangibles
|
1,216
|
1,268
|
2,440
|
2,618
|
||||
Acquisition related adjustment and transaction costs
|
99
|
153
|
206
|
259
|
||||
Non-GAAP provision for income taxes
|
$
|
10,510
|
$
|
7,524
|
$
|
19,113
|
$
|
10,335
|
National Instruments
|
||||||||
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Non-GAAP Basic EPS and Non-GAAP Diluted EPS
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net income, as reported
|
$
|
24,523
|
$
|
14,421
|
$
|
43,246
|
$
|
33,021
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Stock-based compensation, net of tax effect
|
4,531
|
4,995
|
9,248
|
10,315
|
||||
Amortization of acquisition intangibles, net of tax effect
|
2,466
|
2,600
|
4,950
|
5,394
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition related transaction costs, net of tax effect
|
184
|
327
|
383
|
589
|
||||
Non-GAAP net income
|
$
|
31,704
|
$
|
22,343
|
$
|
57,827
|
$
|
48,003
|
Basic EPS, as reported
|
$
|
0.19
|
$
|
0.12
|
$
|
0.34
|
$
|
0.27
|
Adjustment to reconcile basic EPS to non-GAAP
|
||||||||
basic EPS:
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.08
|
0.09
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.04
|
0.04
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(0.01)
|
||||
Impact of acquisition related transaction costs, net of tax effect
|
-
|
-
|
-
|
-
|
||||
Non-GAAP basic EPS
|
$
|
0.25
|
$
|
0.18
|
$
|
0.46
|
$
|
0.39
|
Diluted EPS, as reported
|
$
|
0.19
|
$
|
0.12
|
$
|
0.34
|
$
|
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
|
0.07
|
0.09
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.04
|
0.04
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(0.01)
|
||||
Impact of acquisition related transaction costs, net of tax effect
|
-
|
-
|
-
|
-
|
||||
Non-GAAP diluted EPS
|
$
|
0.25
|
$
|
0.18
|
$
|
0.45
|
$
|
0.38
|
Weighted average shares outstanding -
|
||||||||
Basic
|
126,887
|
124,377
|
126,433
|
123,845
|
||||
Diluted
|
127,512
|
125,270
|
127,123
|
124,824
|
National Instruments
|
||||||||
Reconciliation of Net Income and Diluted EPS to EBITDA and EBITDA Diluted EPS
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net income, as reported
|
$
|
24,523
|
$
|
14,421
|
$
|
43,246
|
$
|
33,021
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(234)
|
(177)
|
(431)
|
(362)
|
||||
Tax expense
|
7,398
|
4,226
|
12,834
|
3,767
|
||||
Depreciation and amortization
|
16,363
|
16,726
|
33,357
|
33,555
|
||||
EBITDA
|
$
|
48,050
|
$
|
35,196
|
$
|
89,006
|
$
|
69,981
|
Diluted EPS, as reported
|
$
|
0.19
|
$
|
0.12
|
$
|
0.34
|
$
|
0.26
|
Adjustment to reconcile diluted EPS to EBITDA
|
||||||||
Interest income
|
-
|
-
|
-
|
-
|
||||
Taxes
|
0.06
|
0.03
|
0.10
|
0.03
|
||||
Depreciation and amortization
|
0.13
|
0.13
|
0.26
|
0.27
|
||||
EBITDA diluted EPS
|
$
|
0.38
|
$
|
0.28
|
$
|
0.70
|
$
|
0.56
|
Weighted average shares outstanding - Diluted
|
127,512
|
125,270
|
127,123
|
124,824
|
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
||||
(unaudited)
|
||||
Three months ended
|
||||
September 30, 2014
|
||||
Low
|
High
|
|||
GAAP Fully Diluted EPS, guidance
|
$
|
0.24
|
$
|
0.36
|
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
|
$
|
0.30
|
$
|
0.42
|