National Instruments Reports Record First Quarter Revenue and Profit
Q1 2011 Highlights
- Revenue of
$238 million , up 24 percent year-over-year - Record revenue for a first quarter in software, data acquisition, PXI and NI CompactRIO products
- Record 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 first quarter
- Fully diluted GAAP EPS of
$0.25 - Fully diluted non-GAAP EPS of
$0.28 - Record EBITDA of
$47.7 million , or$0.40 per share for a first quarter - Cash and short-term investments of
$385 million as ofMarch 31, 2011
In Q1, GAAP and non-GAAP operating income reached all-time records for a first quarter, and non-GAAP operating margins were the highest for a first quarter since 2001. Net income for Q1 was
In Q1, GAAP gross margin increased 50 basis points year-over-year to 77.9 percent. Non-GAAP gross margin reached an all-time record of 78.5 percent, an increase of 60 basis points year-over-year.
The company's non-GAAP results exclude the impact of both stock-based compensation and the amortization of acquisition-related intangibles. Reconciliations of the company's GAAP and non-GAAP results are included as part of this news release.
"I was extremely pleased with our performance in Q1 as we delivered record revenue and profit for a first quarter, and I would like to thank all of our employees for the hard work they have contributed to this very strong result," said Dr.
NI graphical system design product sales were up 25 percent year-over-year. NI instrument control product sales were up 18 percent year-over-year in Q1. During Q1, deferred revenue increased by
Geographically, revenue in U.S. dollar terms for Q1 2011 compared to Q1 2010 was up 23 percent in the
As of
Guidance for Q2 2011
While the trends of the global Purchasing Managers Index (PMI) continued to be positive in Q1, the impact of the earthquake and tsunami that struck
"While we are pleased to see greater than 20 percent year-over-year order growth in April, we do see some reasons for caution as we look out to the rest of Q2," said
NI expects revenue for Q2 to be between
Non-GAAP Presentation
In addition to disclosing results determined in accordance with GAAP, NI discloses certain non-GAAP operating results and non-GAAP information that exclude certain charges. In this news release, the company has presented its gross profit, operating expenses, operating income, income before income taxes, provision for income taxes, net income and basic and fully diluted EPS for the three-month periods ending
Conference Call Information
Interested parties can listen to the Q1 2011 conference call today,
Forward-Looking Statements
This release contains "forward-looking statements," including statements related to continuing to drive growth in strategic platforms, being confident in our long-term opportunity, plans to aggressively increase our R&D and field sales personnel in 2011 and our Q2 guidance for revenue and GAAP and non-GAAP EPS. These statements are subject to a number of risks and uncertainties, including the risk of adverse changes or fluctuations in the global economy, component shortages, delays in the release of new products, fluctuations in customer demand for NI products, the company's ability to continue to control its operating expenses, manufacturing inefficiencies, the outcome of events in
About
CompactRIO, LabVIEW,
Contact: | Veronica Garza | |
Investor Relations | ||
(512) 683-6873 | ||
National Instruments | |||||
Consolidated Balance Sheets | |||||
(in thousands) | |||||
March 31, | December 31, | ||||
2011 | 2010 | ||||
(unaudited) | |||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 254,594 | $ | 219,447 | |
Short-term investments | 130,460 | 131,215 | |||
Accounts receivable, net | 132,148 | 127,214 | |||
Inventories, net | 134,408 | 117,765 | |||
Prepaid expenses and other current assets | 25,459 | 36,239 | |||
Deferred income taxes, net | 19,792 | 18,838 | |||
Total current assets | 696,861 | 650,718 | |||
Property and equipment, net | 164,288 | 160,410 | |||
Goodwill | 70,768 | 70,278 | |||
Intangible assets, net | 51,928 | 52,816 | |||
Other long-term assets | 27,584 | 25,460 | |||
Total assets | $ | 1,011,429 | $ | 959,682 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 36,615 | $ | 33,544 | |
Accrued compensation | 22,952 | 27,734 | |||
Deferred revenue | 77,787 | 71,650 | |||
Accrued expenses and other liabilities | 14,081 | 16,538 | |||
Other taxes payable | 14,805 | 16,846 | |||
Total current liabilities | 166,240 | 166,312 | |||
Deferred income taxes | 29,697 | 29,477 | |||
Liability for uncertain tax positions | 16,416 | 14,953 | |||
Other long-term liabilities | 4,694 | 4,395 | |||
Total liabilities | $ | 217,047 | $ | 215,137 | |
Stockholders' equity: | |||||
Preferred stock | - | - | |||
Common stock | 1,190 | 786 | |||
Additional paid-in capital | 431,726 | 408,106 | |||
Retained earnings | 354,956 | 336,363 | |||
Accumulated other comprehensive income (loss) | 6,510 | (710) | |||
Total stockholders' equity | $ | 794,382 | $ | 744,545 | |
Total liabilities and stockholders' equity | $ | 1,011,429 | $ | 959,682 | |
National Instruments | |||||
Consolidated Statements of Income | |||||
(in thousands, except per share data) | |||||
Three Months Ended | |||||
March 31, | |||||
(unaudited) | |||||
2011 | 2010 | ||||
Net sales: | |||||
Product | $ | 218,610 | $ | 175,395 | |
Software maintenance | 19,240 | 15,696 | |||
Total net sales | 237,850 | 191,091 | |||
Cost of sales: | |||||
Cost of product | $ | 50,958 | $ | 42,262 | |
Cost of software maintenance | 1,518 | 980 | |||
Total cost of sales | 52,476 | 43,242 | |||
Gross profit | $ | 185,374 | $ | 147,849 | |
Operating expenses: | |||||
Sales and marketing | $ | 87,155 | $ | 74,441 | |
Research and development | 42,868 | 38,546 | |||
General and administrative | 18,839 | 15,340 | |||
Total operating expenses | $ | 148,862 | $ | 128,327 | |
Operating income | $ | 36,512 | $ | 19,522 | |
Other income (expense): | |||||
Interest income | $ | 341 | $ | 300 | |
Net foreign exchange (loss) | (223) | (698) | |||
Other income, net | 446 | 348 | |||
Income before income taxes | $ | 37,076 | $ | 19,472 | |
Provision for income taxes | 6,615 | 1,119 | |||
Net income | $ | 30,461 | $ | 18,353 | |
Basic earnings per share | $ | 0.26 | $ | 0.16 | |
Diluted earnings per share | $ | 0.25 | $ | 0.16 | |
Weighted average shares outstanding - | |||||
Basic | 118,693 | 116,070 | |||
Diluted | 120,443 | 117,652 | |||
Dividends declared per share | $ | 0.10 | $ | 0.09 | |
National Instruments | |||||
Consolidated Statements of Cash Flows | |||||
(in thousands) | |||||
Three Months Ended | |||||
March 31, | |||||
(unaudited) | |||||
2011 | 2010 | ||||
Cash flow from operating activities: | |||||
Net income | $ | 30,461 | $ | 18,353 | |
Adjustments to reconcile net income to net cash provided | |||||
by operating activities: | |||||
Depreciation and amortization | 10,973 | 9,442 | |||
Stock-based compensation | 4,590 | 4,916 | |||
Tax expense (benefit) from deferred income taxes | (560) | 1,709 | |||
Tax expense (benefit) from stock option plans | (1,327) | 1,587 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (4,933) | (613) | |||
Inventories | (16,643) | (3,006) | |||
Prepaid expenses and other assets | 14,995 | (297) | |||
Accounts payable | 3,071 | 3,618 | |||
Deferred revenue | 6,137 | 3,730 | |||
Taxes and other liabilities | (5,134) | 2,162 | |||
Net cash provided by operating activities | $ | 41,630 | $ | 41,601 | |
Cash flow from investing activities: | |||||
Capital expenditures | (9,580) | (5,271) | |||
Capitalization of internally developed software | (3,731) | (3,404) | |||
Additions to other intangibles | (436) | (543) | |||
Acquisition, net of cash received | - | (2,191) | |||
Purchases of short-term investments | (27,176) | (35,823) | |||
Sales and maturities of short-term investments | 27,931 | 9,037 | |||
Net cash (used by) investing activities | $ | (12,992) | $ | (38,195) | |
Cash flow from financing activities: | |||||
Proceeds from issuance of common stock | 17,050 | 22,341 | |||
Repurchase of common stock | - | (30,935) | |||
Dividends paid | (11,868) | (10,072) | |||
Tax (expense) benefit from stock option plans | 1,327 | (1,587) | |||
Net cash provided (used) by financing activities | $ | 6,509 | $ | (20,253) | |
Net change in cash and cash equivalents | 35,147 | (16,847) | |||
Cash and cash equivalents at beginning of period | 219,447 | 201,465 | |||
Cash and cash equivalents at end of period | $ | 254,594 | $ | 184,618 | |
Detail of GAAP charges related to stock-based compensation and | |||||
amortization of acquisition intangibles | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | |||||
2011 | 2010 | ||||
Stock-based compensation | |||||
Cost of sales | $ | 317 | $ | 362 | |
Sales and marketing | 1,922 | 2,104 | |||
Research and development | 1,686 | 1,765 | |||
General and administrative | 665 | 685 | |||
Provision for income taxes | (1,840) | (1,545) | |||
Total | $ | 2,750 | $ | 3,371 | |
Amortization of acquisition intangibles | |||||
Cost of sales | $ | 1,004 | $ | 722 | |
Sales and marketing | 77 | 122 | |||
Research and development | - | - | |||
General and administrative | - | - | |||
Provision for income taxes | (350) | (253) | |||
Total | $ | 731 | $ | 591 | |
National Instruments | |||||
Reconciliation of GAAP to Non-GAAP Measures | |||||
(in thousands, except per share data) | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | |||||
2011 | 2010 | ||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit | |||||
Gross profit, as reported | $ | 185,374 | $ | 147,849 | |
Stock-based compensation | 317 | 362 | |||
Amortization of acquisition intangibles | 1,004 | 722 | |||
Non-GAAP gross profit | $ | 186,695 | $ | 148,933 | |
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses | |||||
Operating expenses, as reported | $ | 148,862 | $ | 128,327 | |
Stock-based compensation | (4,273) | (4,554) | |||
Amortization of acquisition intangibles | (77) | (122) | |||
Non-GAAP operating expenses | $ | 144,512 | $ | 123,651 | |
Reconciliation of Operating Income to Non-GAAP Operating Income | |||||
Operating income, as reported | $ | 36,512 | $ | 19,522 | |
Stock-based compensation | 4,590 | 4,916 | |||
Amortization of acquisition intangibles | 1,081 | 844 | |||
Non-GAAP operating income | $ | 42,183 | $ | 25,282 | |
Reconciliation of Income before Income Taxes to Non-GAAP Income before Income Taxes | |||||
Income before income taxes, as reported | $ | 37,076 | $ | 19,472 | |
Stock-based compensation | 4,590 | 4,916 | |||
Amortization of acquisition intangibles | 1,081 | 844 | |||
Non-GAAP income before income taxes | $ | 42,747 | $ | 25,232 | |
Reconciliation of Provision for Income Taxes to Non-GAAP Provision For Income Taxes | |||||
Provision for income taxes, as reported | $ | 6,615 | $ | 1,119 | |
Stock-based compensation | 1,840 | 1,545 | |||
Amortization of acquisition intangibles | 350 | 253 | |||
Non-GAAP provision for income taxes | $ | 8,805 | $ | 2,917 | |
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Basic EPS and Diluted EPS | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | |||||
2011 | 2010 | ||||
Net income, as reported | $ | 30,461 | $ | 18,353 | |
Adjustments to reconcile net income to non-GAAP net income: | |||||
Stock-based compensation, net of tax effect | 2,750 | 3,371 | |||
Amortization of acquisition intangibles, net of tax effect | 731 | 591 | |||
Non-GAAP net income | $ | 33,942 | $ | 22,315 | |
Basic EPS, as reported | $ | 0.26 | $ | 0.16 | |
Adjustment to reconcile basic EPS to non-GAAP | |||||
basic EPS: | |||||
Impact of stock-based compensation, net of tax effect | $ | 0.02 | $ | 0.03 | |
Impact of amortization of acquisition intangibles, net of tax effect | $ | 0.01 | $ | 0.00 | |
Non-GAAP basic EPS | $ | 0.29 | $ | 0.19 | |
Diluted EPS, as reported | $ | 0.25 | $ | 0.16 | |
Adjustment to reconcile diluted EPS to non-GAAP | |||||
diluted EPS: | |||||
Impact of stock-based compensation, net of tax effect | $ | 0.02 | $ | 0.03 | |
Impact of amortization of acquisition intangibles, net of tax effect | $ | 0.01 | $ | 0.00 | |
Non-GAAP diluted EPS | $ | 0.28 | $ | 0.19 | |
Weighted average shares outstanding - | |||||
Basic | 118,693 | 116,070 | |||
Diluted | 120,443 | 117,652 | |||
Reconciliation of Net Income and Diluted EPS to EBITDA and EBITDA Diluted EPS | |||||
(unaudited) | |||||
Three Months Ended | |||||
March 31, | |||||
2011 | 2010 | ||||
Net income, as reported | $ | 30,461 | $ | 18,353 | |
Adjustments to reconcile net income to EBITDA: | |||||
Interest income | (341) | (300) | |||
Taxes | 6,615 | 1,119 | |||
Depreciation and amortization | 10,973 | 9,442 | |||
EBITDA | $ | 47,708 | $ | 28,614 | |
Diluted EPS, as reported | $ | 0.25 | $ | 0.16 | |
Adjustment to reconcile diluted EPS to EBITDA | |||||
Interest income | $ | (0.00) | $ | (0.00) | |
Taxes | $ | 0.06 | $ | 0.00 | |
Depreciation and amortization | $ | 0.09 | $ | 0.08 | |
EBITDA diluted EPS | $ | 0.40 | $ | 0.24 | |
Weighted average shares outstanding - Diluted | 120,443 | 117,652 | |||
National Instruments | ||||||
Reconciliation of GAAP to Non-GAAP EPS Guidance | ||||||
(unaudited) | ||||||
Three months ended | ||||||
June 30, 2011 | ||||||
Low | High | |||||
GAAP Fully Diluted EPS, guidance | $ | 0.19 | $ | 0.27 | ||
Adjustment to reconcile diluted EPS to non-GAAP | ||||||
diluted EPS: | ||||||
Impact of stock-based compensation, net of tax effect | $ | 0.03 | $ | 0.03 | ||
Impact of amortization of acquisition intangibles, net of tax effect | $ | 0.01 | $ | 0.01 | ||
Non-GAAP diluted EPS, guidance | $ | 0.23 | $ | 0.31 | ||
SOURCE
News Provided by Acquire Media