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 October 30, 2014
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
·
|
Quarterly revenue of $314 million, up 8 percent year-over-year
|
|
·
|
Record Q3 revenue for CompactRIO, PXI, and data acquisition products
|
|
·
|
GAAP operating income up 67 percent year-over-year
|
|
·
|
Non-GAAP operating income up 38 percent year-over-year
|
|
·
|
Fully diluted GAAP EPS of $0.31 and fully diluted non-GAAP EPS of $0.37
|
|
·
|
|
EBITDA of $51 million or $0.40 per share
|
·
|
Cash and cash equivalents of $448 million, up $46 million from Q2 2014 |
National Instruments
|
||||
Condensed Consolidated Balance Sheets
|
||||
(in thousands)
|
||||
September 30,
|
December 31,
|
|||
2014
|
2013
|
|||
(unaudited)
|
||||
Assets
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$
|
259,455
|
$
|
230,263
|
Short-term investments
|
188,299
|
163,149
|
||
Accounts receivable, net
|
187,726
|
180,680
|
||
Inventories, net
|
170,862
|
172,109
|
||
Prepaid expenses and other current assets
|
71,735
|
49,001
|
||
Deferred income taxes, net
|
28,425
|
33,393
|
||
Total current assets
|
906,502
|
828,595
|
||
Property and equipment, net
|
261,622
|
260,568
|
||
Goodwill
|
145,026
|
146,520
|
||
Intangible assets, net
|
83,151
|
82,310
|
||
Other long-term assets
|
24,592
|
25,558
|
||
Total assets
|
$
|
1,420,893
|
$
|
1,343,551
|
Liabilities and Stockholders' Equity
|
||||
Current liabilities:
|
||||
Accounts payable
|
$
|
61,893
|
$
|
56,614
|
Accrued compensation
|
37,638
|
25,189
|
||
Deferred revenue - current
|
101,407
|
96,117
|
||
Accrued expenses and other liabilities
|
13,728
|
17,627
|
||
Other taxes payable
|
34,822
|
29,808
|
||
Total current liabilities
|
249,488
|
225,355
|
||
Deferred income taxes
|
41,885
|
44,620
|
||
Liability for uncertain tax positions
|
10,412
|
23,572
|
||
Deferred revenue - long-term
|
24,808
|
21,389
|
||
Other long-term liabilities
|
7,012
|
5,531
|
||
Total liabilities
|
333,605
|
320,467
|
||
Stockholders' equity:
|
||||
Preferred stock
|
-
|
-
|
||
Common stock
|
1,276
|
1,257
|
||
Additional paid-in capital
|
649,794
|
604,330
|
||
Retained earnings
|
440,785
|
414,947
|
||
Accumulated other comprehensive (loss) income
|
(4,567)
|
2,550
|
||
Total stockholders' equity
|
1,087,288
|
1,023,084
|
||
Total liabilities and stockholders' equity
|
$
|
1,420,893
|
$
|
1,343,551
|
National Instruments
|
||||||||
Condensed Consolidated Statements of Income
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net sales:
|
||||||||
Product
|
$
|
287,336
|
$
|
269,582
|
$
|
837,824
|
$
|
810,663
|
Software maintenance
|
26,365
|
19,556
|
73,262
|
61,089
|
||||
Total net sales
|
313,701
|
289,138
|
911,086
|
871,752
|
||||
Cost of sales:
|
||||||||
Product
|
79,266
|
73,541
|
229,529
|
224,954
|
||||
Software maintenance
|
1,683
|
1,665
|
4,443
|
4,307
|
||||
Total cost of sales
|
80,949
|
75,206
|
233,972
|
229,261
|
||||
Gross profit
|
232,752
|
213,932
|
677,114
|
642,491
|
||||
Operating expenses:
|
||||||||
Sales and marketing
|
116,736
|
111,253
|
348,026
|
337,884
|
||||
Research and development
|
58,972
|
60,791
|
170,082
|
180,520
|
||||
General and administrative
|
22,741
|
21,363
|
68,854
|
66,363
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Total operating expenses
|
198,449
|
193,407
|
586,962
|
583,451
|
||||
Operating income
|
34,303
|
20,525
|
90,152
|
59,040
|
||||
Other income (expense):
|
||||||||
Interest income
|
362
|
133
|
793
|
495
|
||||
Net foreign exchange (loss) gain
|
(452)
|
456
|
(1,005)
|
(2,057)
|
||||
Other (loss) income, net
|
(70)
|
304
|
283
|
728
|
||||
Income before income taxes
|
34,143
|
21,418
|
90,223
|
58,206
|
||||
(Benefit from) Provision for income taxes
|
(5,559)
|
5,654
|
7,275
|
9,421
|
||||
Net income
|
$
|
39,702
|
$
|
15,764
|
$
|
82,948
|
$
|
48,785
|
Basic earnings per share
|
$
|
0.31
|
$
|
0.13
|
$
|
0.65
|
$
|
0.39
|
Diluted earnings per share
|
$
|
0.31
|
$
|
0.13
|
$
|
0.65
|
$
|
0.39
|
Weighted average shares outstanding -
|
||||||||
basic
|
127,478
|
125,032
|
126,785
|
124,244
|
||||
diluted
|
127,903
|
125,608
|
127,529
|
125,221
|
||||
Dividends declared per share
|
$
|
0.15
|
$
|
0.14
|
$
|
0.45
|
$ 0.42
|
National Instruments
|
||||
Condensed Consolidated Statements of Cash Flows
|
||||
(in thousands, unaudited)
|
||||
Nine Months Ended September 30,
|
||||
2014
|
2013
|
|||
Cash flow from operating activities:
|
||||
Net income
|
$
|
82,948
|
$
|
48,785
|
Adjustments to reconcile net income to net cash provided
|
||||
by operating activities:
|
||||
Depreciation and amortization
|
51,011
|
50,897
|
||
Stock-based compensation
|
19,531
|
21,996
|
||
Tax expense/(benefit) expense from deferred income taxes
|
2,222
|
(1,272)
|
||
Tax benefit from stock option plans
|
(1,189)
|
(2,185)
|
||
Changes in operating assets and liabilities:
|
|
|||
Accounts receivable
|
(7,046)
|
4,789
|
||
Inventories
|
1,247
|
(8,358)
|
||
Prepaid expenses and other assets
|
(24,887)
|
(18,320)
|
||
Accounts payable
|
5,279
|
(10,636)
|
||
Deferred revenue
|
8,709
|
6,192
|
||
Taxes and other liabilities
|
2,891
|
2,834
|
||
Net cash provided by operating activities
|
140,716
|
94,722
|
||
Cash flow from investing activities:
|
||||
Capital expenditures
|
(30,645)
|
(40,795)
|
||
Capitalization of internally developed software
|
(22,055)
|
(10,566)
|
||
Additions to other intangibles
|
(2,238)
|
(4,146)
|
||
Purchases of short-term investments
|
(107,664)
|
(16,039)
|
||
Sales and maturities of short-term investments
|
82,514
|
35,299
|
||
Net cash used by investing activities
|
(80,088)
|
(36,247)
|
||
Cash flow from financing activities:
|
||||
Proceeds from issuance of common stock
|
24,483
|
28,809
|
||
AWR earnout payment
|
-
|
(9,016)
|
||
Dividends paid
|
(57,108)
|
(52,241)
|
||
Tax benefit from stock option plans
|
1,189
|
2,185
|
||
Net cash used by financing activities
|
(31,436)
|
(30,263)
|
||
Net change in cash and cash equivalents
|
29,192
|
28,212
|
||
Cash and cash equivalents at beginning of period
|
230,263
|
161,996
|
||
Cash and cash equivalents at end of period
|
$
|
259,455
|
$
|
190,208
|
National Instruments
|
||||||||
Detail of GAAP charges related to revenue, stock-based compensation, amortization of acquisition intangibles, and acquisition transaction costs and restructuring charges
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Stock-based compensation
|
||||||||
Cost of sales
|
$
|
465
|
$
|
390
|
$
|
1,264
|
$
|
1,219
|
Sales and marketing
|
2,756
|
2,908
|
8,334
|
8,907
|
||||
Research and development
|
2,497
|
3,803
|
7,221
|
9,136
|
||||
General and administrative
|
877
|
889
|
2,657
|
2,734
|
||||
Provision for income taxes
|
(2,284)
|
(2,894)
|
(5,917)
|
(6,585)
|
||||
Total
|
$
|
4,311
|
$
|
5,096
|
$
|
13,559
|
$
|
15,411
|
Amortization of acquisition intangibles
|
||||||||
Cost of sales
|
$
|
2,662
|
$
|
2,672
|
$
|
7,991
|
$
|
8,045
|
Sales and marketing
|
433
|
490
|
1,351
|
1,506
|
||||
Research and development
|
392
|
396
|
1,198
|
1,638
|
||||
Other income, net
|
170
|
185
|
507
|
566
|
||||
Provision for income taxes
|
(1,207)
|
(1,232)
|
(3,647)
|
(3,850)
|
||||
Total
|
$
|
2,450
|
$
|
2,511
|
$
|
7,400
|
$
|
7,905
|
Acquisition transaction costs and restructuring charges
|
||||||||
Cost of sales
|
$
|
547
|
$
|
4
|
$
|
547
|
$
|
7
|
Sales and marketing
|
(24)
|
146
|
152
|
406
|
||||
Research and development
|
(42)
|
281
|
264
|
691
|
||||
General and administrative
|
38
|
71
|
145
|
246
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Provision for income taxes
|
(182)
|
(153)
|
(388)
|
(412)
|
||||
Total
|
$
|
337
|
$
|
349
|
$
|
720
|
$
|
(378)
|
National Instruments
|
||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
232,752
|
$
|
213,932
|
$
|
677,114
|
$
|
642,491
|
Stock-based compensation
|
465
|
390
|
1,264
|
1,219
|
||||
Amortization of acquisition intangibles
|
2,662
|
2,672
|
7,991
|
8,045
|
||||
Acquisition transaction costs and restructuring charges
|
547
|
4
|
547
|
7
|
||||
Non-GAAP gross profit
|
$
|
236,426
|
$
|
216,998
|
$
|
686,916
|
$
|
651,762
|
Non-GAAP gross margin
|
75%
|
75%
|
75%
|
75%
|
||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
198,449
|
$
|
193,407
|
$
|
586,962
|
$
|
583,451
|
Stock-based compensation
|
(6,130)
|
(7,600)
|
(18,212)
|
(20,777)
|
||||
Amortization of acquisition intangibles
|
(825)
|
(886)
|
(2,549)
|
(3,144)
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
1,316
|
||||
Acquisition transaction costs and restructuring charges
|
28
|
(498)
|
(561)
|
(1,343)
|
||||
Non-GAAP operating expenses
|
$
|
191,522
|
$
|
184,423
|
$
|
565,640
|
$
|
559,503
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
34,303
|
$
|
20,525
|
$
|
90,152
|
$
|
59,040
|
Stock-based compensation
|
6,595
|
7,990
|
19,476
|
21,996
|
||||
Amortization of acquisition intangibles
|
3,487
|
3,558
|
10,540
|
11,189
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition transaction costs and restructuring charges
|
519
|
502
|
1,108
|
1,350
|
||||
Non-GAAP operating income
|
$
|
44,904
|
$
|
32,575
|
$
|
121,276
|
$
|
92,259
|
Non-GAAP operating margin
|
14%
|
11%
|
13%
|
11%
|
||||
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
|
||||||||
Income before income taxes, as reported
|
$
|
34,143
|
$
|
21,418
|
$
|
90,223
|
$
|
58,206
|
Stock-based compensation
|
6,595
|
7,990
|
19,476
|
21,996
|
||||
Amortization of acquisition intangibles
|
3,657
|
3,743
|
11,047
|
11,755
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition transaction costs and restructuring charges
|
519
|
502
|
1,108
|
1,350
|
||||
Non-GAAP income before income taxes
|
$
|
44,914
|
$
|
33,653
|
$
|
121,854
|
$
|
91,991
|
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
(5,559)
|
$
|
5,654
|
$
|
7,275
|
$
|
9,421
|
Stock-based compensation
|
2,284
|
2,894
|
5,917
|
6,585
|
||||
Amortization of acquisition intangibles
|
1,207
|
1,232
|
3,647
|
3,850
|
||||
Acquisition transaction costs and restructuring charges
|
182
|
153
|
388
|
412
|
||||
Non-GAAP provision for income taxes
|
$
|
(1,886)
|
$
|
9,933
|
$
|
17,227
|
$
|
20,268
|
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
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net income, as reported
|
$
|
39,702
|
$
|
15,764
|
$
|
82,948
|
$
|
48,785
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Stock-based compensation, net of tax effect
|
4,311
|
5,096
|
13,559
|
15,411
|
||||
Amortization of acquisition intangibles, net of tax effect
|
2,450
|
2,511
|
7,400
|
7,905
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition transaction costs and restructuring charges, net of tax effect
|
337
|
349
|
720
|
938
|
||||
Non-GAAP net income
|
$
|
46,800
|
$
|
23,720
|
$
|
104,627
|
$
|
71,723
|
Basic EPS, as reported
|
$
|
0.31
|
$
|
0.13
|
$
|
0.65
|
$
|
0.39
|
Adjustment to reconcile basic EPS to non-GAAP
|
||||||||
basic EPS:
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.11
|
0.13
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.06
|
0.06
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(0.01)
|
||||
Impact of acquisition transaction costs and restructuring charges,
net of tax effect
|
-
|
-
|
0.01
|
0.01
|
||||
Non-GAAP basic EPS
|
$
|
0.37
|
$
|
0.19
|
$
|
0.83
|
$
|
0.58
|
Diluted EPS, as reported
|
$
|
0.31
|
$
|
0.13
|
$
|
0.65
|
$
|
0.39
|
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.11
|
0.12
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.06
|
0.06
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(0.01)
|
||||
Impact of acquisition transaction costs and restructuring charges,
net of tax effect
|
-
|
-
|
-
|
0.01
|
||||
Non-GAAP diluted EPS
|
$
|
0.37
|
$
|
0.19
|
$
|
0.82
|
$
|
0.57
|
Weighted average shares outstanding -
|
||||||||
Basic
|
127,478
|
125,032
|
126,785
|
124,244
|
||||
Diluted
|
127,903
|
125,608
|
127,529
|
125,221
|
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
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net income, as reported
|
$
|
39,702
|
$
|
15,764
|
$
|
82,948
|
$
|
48,785
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(362)
|
(133)
|
(793)
|
(495)
|
||||
Tax expense
|
(5,559)
|
5,654
|
7,275
|
9,421
|
||||
Depreciation and amortization
|
17,654
|
17,342
|
51,011
|
50,897
|
||||
EBITDA
|
$
|
51,435
|
$
|
38,627
|
$
|
140,441
|
$
|
108,608
|
Diluted EPS, as reported
|
$
|
0.31
|
$
|
0.13
|
$
|
0.65
|
$
|
0.39
|
Adjustment to reconcile diluted EPS to EBITDA
|
||||||||
Interest income
|
(0.01)
|
-
|
(0.01)
|
-
|
||||
Tax expense
|
(0.04)
|
0.04
|
0.06
|
0.07
|
||||
Depreciation and amortization
|
0.14
|
0.14
|
0.40
|
0.41
|
||||
EBITDA diluted EPS
|
$
|
0.40
|
$
|
0.31
|
$
|
1.10
|
$
|
0.87
|
Weighted average shares outstanding - Diluted
|
127,903
|
125,608
|
127,529
|
125,221
|
||||
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
||||
(unaudited)
|
||||
Three months ended
|
||||
December 31, 2014
|
||||
Low
|
High
|
|||
GAAP Fully Diluted EPS, guidance
|
$
|
0.23
|
$
|
0.35
|
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
|
$
|
0.29
|
$
|
0.41
|