Press Release Details

National Instruments Reports Second Quarter Revenue of $334 Million

Company delivers strong cash flow from operations of $264 million for trailing twelve months Q2 2019 Highlights

  • Revenue of $334 million, down 2 percent year over year and up 7 percent sequentially
  • GAAP gross margin of 75 percent
  • Non-GAAP gross margin of 77 percent
  • Fully diluted GAAP EPS of $0.22 and fully diluted non-GAAP EPS of $0.35
  • GAAP net income of $29 million, down 8 percent year over year
  • Non-GAAP net income of $46 million, up 3 percent year over year
  • GAAP net income down 6 percent year over year through first six months
  • Non-GAAP net income up 11 percent year over year through first six months
  • EBITDA of $49 million
  • Cash and short-term investments of $440 million as of June 30, 2019
  • Cash flow from operating activities of $264 million for the twelve months ended June 30, 2019, up 11 percent year over year
  • 1.1 million shares of common stock repurchased at an average price of $41 per share

AUSTIN, Texas--(BUSINESS WIRE)--Jul. 30, 2019-- National Instruments (Nasdaq: NATI) today announced Q2 2019 revenue of $334 million, down 2 percent year over year and up 7 percent sequentially from Q1 2019.

In Q2 2019 the value of the company's total orders was down 4 percent year over year; orders under $20,000 were down 6 percent year over year; and orders over $20,000 were down 2 percent year over year.

In Q2, GAAP gross margin was 75 percent and non-GAAP gross margin was 77 percent. Total GAAP operating expenses were $218 million, down 2 percent year over year. Total non-GAAP operating expenses were down 4 percent year over year at $203 million. GAAP operating margin was 10 percent in Q2, with GAAP operating income of $32 million, down 13 percent year over year. Non-GAAP operating margin was 17 percent in Q2, with non-GAAP operating income of $56 million, up 1 percent year over year. For the first half of 2019, GAAP operating expenses were $430 million, flat year over year, and non-GAAP operating expenses were $403 million, down 4 percent year over year. GAAP operating income for the first half of 2019 was $56 million, down 14 percent year over year, and non-GAAP operating income for the first half of 2019 was $99 million, up 6 percent year over year.

GAAP net income for Q2 was $29 million, with fully diluted earnings per share (EPS) of $0.22, and non-GAAP net income was $46 million, with non-GAAP fully diluted EPS of $0.35. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $49 million for Q2.

“I am pleased with our execution this quarter despite external disruptions in our industry. Revenue came in at 98 percent of the midpoint of our guidance and we delivered an all-time record non-GAAP net income for a second quarter,” said Alex Davern, NI CEO. “We are on a journey to position NI for long-term growth and I believe we have an opportunity to deliver significant operating leverage when the market dynamics recover. I remain optimistic about our opportunity for growth and delivering 18 percent non-GAAP operating margin through the cycle.”

“In Q2, we delivered record non-GAAP net income for a second quarter, due to our increased scalability and strong culture of operational efficiency. In addition, we returned $80 million to shareholders through dividends and share repurchases,” said Karen Rapp, NI CFO. “Our commitment to delivering long-term shareholder value remains a priority.”

Geographic revenue in U.S. dollar terms for Q2 2019 compared with Q2 2018 was down 1 percent in the Americas, up 5 percent in APAC and down 10 percent in EMEIA. Excluding the impact of foreign currency exchange, revenue was flat in the Americas, up 8 percent in APAC and down 6 percent in EMEIA. Historical revenue from these three regions can be found on NI’s investor website at www.ni.com/nati.

As of June 30, 2019, NI had $440 million in cash and short-term investments. During the second quarter, NI paid $33 million in dividends and repurchased 1.1 million shares of our common stock at an average price of $41. The NI Board of Directors approved a quarterly dividend of $0.25 per share payable on September 3, 2019, to stockholders of record on August 12, 2019.

The company’s non-GAAP results exclude, as applicable, the impact of stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, tax reform charges, and capitalization and amortization of internally developed software costs. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.

Guidance

NI currently expects Q3 revenue to be in the range of $325 million to $355 million. The company currently expects that GAAP fully diluted EPS will be in the range of $0.30 to $0.44 for Q3, with non-GAAP fully diluted EPS expected to be in the range of $0.36 to $0.50. Included in the company’s Q3 2019 GAAP EPS guidance is approximately $0.03 of restructuring charges and approximately $0.12 related to disposal gains from the pending sale of an office building less a charitable contribution using a portion of the sale proceeds.

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, gross margin, operating expenses, operating income, operating margin, income before income taxes, provision for income taxes, net income and basic and fully diluted EPS for the three and six months ended June 30, 2019 and 2018, on a GAAP and non-GAAP basis. NI is also providing guidance on its non-GAAP fully diluted EPS.

When presenting non-GAAP information, the company includes a reconciliation of the non-GAAP results to the GAAP results. Management believes that including the non-GAAP results assists investors in assessing the company’s operational performance and its performance relative to its competitors. The company presents these non-GAAP results as a complement to results provided in accordance with GAAP, and these results should not be regarded as a substitute for GAAP. Management uses these non-GAAP measures to manage and assess the profitability and performance of its business and does not consider stock-based compensation expense, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, tax reform charges, and capitalization and amortization of internally developed software costs in managing its operations. Specifically, management uses non-GAAP measures to plan and forecast future periods; to establish operational goals; to compare with its business plan and individual operating budgets; to measure management performance for the purposes of executive compensation, including payments to be made under bonus plans; to assist the public in measuring the company’s performance relative to the company’s long-term public performance goals; to allocate resources; and, relative to the company’s historical financial performance, to enable comparability between periods. Management also considers such non-GAAP results to be an important supplemental measure of its performance.

This news release discloses the company’s EBITDA for the three and six months ended June 30, 2019 and 2018. The company believes that including the EBITDA results assists investors in assessing the company’s operational performance relative to its competitors. A reconciliation of EBITDA to GAAP net income is included with this news release.

Conference Call Information and Availability of Presentation Materials

Interested parties can listen to the Q2 2019 earnings conference call with NI management today, July 30, at 4:00 p.m. CT at www.ni.com/call or by dialing (855) 212-2361 and entering confirmation code 7489827 ten minutes prior to the call start time. Replay information is available by calling (855) 859-2056, confirmation code 7489827, shortly after the call through August 2 at 10:00 p.m. CT or by visiting the company’s website at www.ni.com/call. Presentation materials referred to on the conference call can be found at www.ni.com/nati.

Forward-Looking Statements

This release contains “forward-looking statements” including statements regarding our journey to position NI for long-term growth, believing we have an opportunity to deliver significant operating leverage when the market dynamics recover, remaining optimistic about our opportunity for growth and delivering 18 percent non-GAAP operating margin through the cycle, increased scalability and strong culture of operational efficiency, that our commitment to delivering long-term shareholder value remains a priority, expecting Q3 revenue to be in the range of $325 million to $355 million, expecting that GAAP fully diluted EPS will be in the range of $0.30 to $0.44 for Q3, with non-GAAP fully diluted EPS expected to be in the range of $0.36 to $0.50, and including in our Q3 EPS guidance approximately $0.03 of restructuring charges and approximately $0.12 of disposal gains from the pending sale of an office building and a charitable contribution using a portion of the sale proceeds. These statements are subject to a number of risks and uncertainties, including the risk of adverse changes or fluctuations in the global economy, further adverse fluctuations in our industry, foreign exchange fluctuations, fluctuations in demand for NI products including orders from NI’s large customers, component shortages, delays in the release of new products, the company’s ability to effectively manage its operating expenses, manufacturing inefficiencies and the level of capacity utilization, the impact of any recent or future acquisitions by NI, expense overruns, and adverse effects of price changes or effective tax rates. Actual results may differ materially from the expected results.

The company directs readers to its Form 10-K for the year ended Dec. 31, 2018, its Form 10-Q for the quarter ended March 31, 2019 and the other documents it files with the SEC for other risks associated with the company’s future performance.

About NI

NI (ni.com) develops high-performance automated test and automated measurement systems to help you solve your engineering challenges now and into the future. Our open, software-defined platform uses modular hardware and an expansive ecosystem to help you turn powerful possibilities into real solutions. (NATI-F)

LabVIEW, National Instruments, NI and ni.com are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies.

National Instruments

Condensed Consolidated Balance Sheets

(in thousands)

 

 

June 30,

 

December 31,

 

 

2019

 

2018

 

 

(unaudited)

 

 

 

 

 

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$

191,761

 

$

259,386

 

Short-term investments

 

247,892

 

 

271,396

 

Accounts receivable, net

 

222,565

 

 

242,955

 

Inventories, net

 

206,851

 

 

194,146

 

Prepaid expenses and other current assets

 

66,021

 

 

54,337

 

Total current assets

 

935,090

 

 

1,022,220

 

 

 

 

 

 

Property and equipment, net

 

233,900

 

 

245,201

 

Goodwill

 

263,984

 

 

264,530

 

Intangible assets, net

 

97,612

 

 

110,783

 

Operating lease right-of-use assets

 

70,799

 

 

 

Other long-term assets

 

38,088

 

 

28,501

 

Total assets

$

1,639,473

 

$

1,671,235

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and accrued expenses

$

54,966

 

$

48,388

 

Accrued compensation

 

39,613

 

 

45,821

 

Deferred revenue - current

 

128,787

 

 

127,288

 

Operating lease liabilities - current

 

15,735

 

 

 

Other current liabilities

 

12,665

 

 

25,913

 

Other taxes payable

 

33,517

 

 

35,574

 

Total current liabilities

 

285,283

 

 

282,984

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

27,903

 

 

25,457

 

Liability for uncertain tax positions

 

8,329

 

 

9,775

 

Income tax payable - long-term

 

67,046

 

 

74,546

 

Deferred revenue - long-term

 

32,937

 

 

32,636

 

Operating lease liabilities - non-current

 

38,495

 

 

 

Other long-term liabilities

 

4,906

 

 

7,479

 

Total liabilities

 

464,899

 

 

432,877

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

 

 

 

Common stock

 

1,319

 

 

1,327

 

Additional paid-in capital

 

924,801

 

 

897,544

 

Retained earnings

 

264,484

 

 

356,418

 

Accumulated other comprehensive loss

 

(16,030

)

 

(16,931

)

Total stockholders' equity

 

1,174,574

 

 

1,238,358

 

Total liabilities and stockholders' equity

$

1,639,473

 

$

1,671,235

 

National Instruments

Condensed Consolidated Statements of Income

(in thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

Product

$

299,798

 

$

306,780

 

$

577,500

 

$

587,139

 

Software maintenance

 

34,433

 

 

34,229

 

 

67,805

 

 

65,767

 

Total net sales

 

334,231

 

 

341,009

 

 

645,305

 

 

652,906

 

 

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

 

Product

 

81,741

 

 

79,806

 

 

155,929

 

 

152,122

 

Software maintenance

 

2,025

 

 

2,353

 

 

3,912

 

 

4,560

 

Total cost of sales

 

83,766

 

 

82,159

 

 

159,841

 

 

156,682

 

 

 

 

 

 

 

 

 

 

Gross profit

 

250,465

 

 

258,850

 

 

485,464

 

 

496,224

 

 

 

74.9

%

 

75.9

%

 

75.2

%

 

76.0

%

Operating expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

120,868

 

 

127,138

 

 

238,419

 

 

247,255

 

Research and development

 

68,257

 

 

66,908

 

 

134,423

 

 

128,751

 

General and administrative

 

29,044

 

 

27,892

 

 

56,927

 

 

55,170

 

Total operating expenses

 

218,169

 

 

221,938

 

 

429,769

 

 

431,176

 

 

 

 

 

 

 

 

 

 

Operating income

 

32,296

 

 

36,912

 

 

55,695

 

 

65,048

 

 

 

9.7

%

 

10.8

%

 

8.6

%

 

10.0

%

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

2,023

 

 

1,290

 

 

4,257

 

 

2,305

 

Net foreign exchange loss

 

(1,611

)

 

(2,105

)

 

(1,245

)

 

(1,126

)

Other income (loss), net

 

143

 

 

(1,095

)

 

119

 

 

(1,613

)

 

 

 

 

 

 

 

 

 

Income before income taxes

 

32,851

 

 

35,002

 

 

58,826

 

 

64,614

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

4,159

 

 

3,948

 

 

6,914

 

 

9,292

 

 

 

 

 

 

 

 

 

 

Net income

$

28,692

 

$

31,054

 

$

51,912

 

$

55,322

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.22

 

$

0.24

 

$

0.39

 

$

0.42

 

Diluted earnings per share

$

0.22

 

$

0.23

 

$

0.39

 

$

0.42

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding -

 

 

 

 

 

 

 

 

Basic

 

132,062

 

 

131,877

 

 

132,156

 

 

131,504

 

Diluted

 

132,973

 

 

133,054

 

 

133,172

 

 

132,838

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

$

0.25

 

 

$

0.23

 

0.50

 

 

$

0.46

 

National Instruments

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

 

Net income

51,912

 

 

 $

55,322

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

35,984

 

 

 

35,098

 

Stock-based compensation

 

 

24,662

 

 

 

17,936

 

Deferred income taxes

 

 

2,268

 

 

 

1,766

 

Net change in operating assets and liabilities

 

 

(26,189

)

 

 

(11,270

)

Net cash provided by operating activities

 

 

88,637

 

 

 

98,852

 

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

 

Capital expenditures

 

 

(26,048

)

 

 

(19,764

)

Capitalization of internally developed software

 

 

(4,497

)

 

 

(11,344

)

Acquisitions, net of cash received

 

 

(9,784

)

 

 

 

Additions to other intangibles

 

 

(487

)

 

 

(3,936

)

Purchases of short-term investments

 

 

(91,777

)

 

 

(137,275

)

Sales and maturities of short-term investments

 

 

117,108

 

 

 

47,634

 

Net cash used by investing activities

 

 

(15,485

)

 

 

(124,685

)

 

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

17,645

 

 

 

16,622

 

Repurchase of common stock

 

 

(92,375

)

 

 

 

Dividends paid

 

 

(66,067

)

 

 

(60,575

)

Net cash used by financing activities

 

 

(140,797

)

 

 

(43,953

)

 

 

 

 

 

 

 

Impact of changes in exchange rates on cash

 

 

20

 

 

 

(2,759

)

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(67,625

)

 

 

(72,545

)

Cash and cash equivalents at beginning of period

 

 

259,386

 

 

 

290,164

 

Cash and cash equivalents at end of period

 $

191,761

 

 

 $

217,619

 

The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, restructuring charges, and capitalization and amortization of internally developed software costs, that were recorded in the line items indicated below (unaudited) (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

 

 

 

 

 

 

 

 

2019

 

2018

 

2019

 

2018

Stock-based compensation

 

 

 

 

 

 

 

 

Cost of sales

$

890

 

$

846

 

$

1,683

 

$

1,571

 

Sales and marketing

 

5,140

 

 

3,617

 

 

9,515

 

 

6,956

 

Research and development

 

4,379

 

 

3,255

 

 

7,929

 

 

5,773

 

General and administrative

 

3,219

 

 

2,013

 

 

5,535

 

 

3,636

 

Provision for income taxes

 

(3,940

)

 

(2,955

)

 

(5,776

)

 

(4,663

)

Total

$

9,688

$

6,776

$

18,886

$

13,273

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition intangibles

 

 

 

 

 

 

 

 

Cost of sales

$

841

 

$

846

 

$

1,692

 

$

1,747

 

Sales and marketing

 

494

 

 

533

 

 

993

 

 

1,070

 

Research and development

 

28

 

 

28

 

 

56

 

 

56

 

Other income (loss), net

 

162

 

 

 

 

162

 

 

 

Provision for income taxes

 

(192

)

 

(178

)

 

(386

)

 

(370

)

Total

$

1,333

$

1,229

$

2,517

$

2,503

 

 

 

 

 

 

 

 

 

Acquisition transaction costs, restructuring charges, and other

 

 

 

 

 

 

 

 

Cost of sales

$

 

$

 

$

 

$

29

 

Sales and marketing

 

3,153

 

 

3,033

 

 

5,296

 

 

4,678

 

Research and development

 

311

 

 

893

 

 

656

 

 

1,103

 

General and administrative

 

616

 

 

553

 

 

1,528

 

 

1,165

 

Other income (loss), net

 

 

 

709

 

 

 

 

709

 

Provision for income taxes

 

(1,010

)

 

(1,630

)

 

(1,850

)

 

(2,183

)

Total

$

3,070

 

$

3,558

 

$

5,630

 

$

5,501

 

 

Capitalization and amortization of internally developed software costs

 

 

 

 

 

 

 

 

Cost of sales

$

6,537

 

$

6,494

 

$

13,119

 

$

12,324

 

Research and development

 

(2,218

)

 

(3,676

)

 

(4,497

)

 

(11,343

)

Provision for income taxes

 

(907

)

 

(592

)

 

(1,811

)

 

(206

)

Total

$

3,412

 

$

2,226

 

$

6,811

 

$

775

 

National Instruments

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Reconciliation of Gross Profit to Non-GAAP Gross Profit

Gross profit, as reported

$

250,465

 

$

258,850

 

$

485,464

 

$

496,224

 

Stock-based compensation

 

890

 

 

846

 

 

1,683

 

 

1,571

 

Amortization of acquisition intangibles

 

841

 

 

846

 

 

1,692

 

 

1,747

 

Acquisition transaction costs and restructuring charges

 

 

 

 

 

 

 

29

 

Amortization of internally developed software costs

 

6,537

 

 

6,494

 

 

13,119

 

 

12,324

 

Non-GAAP gross profit

$

258,733

 

$

267,036

 

$

501,958

 

$

511,895

 

Non-GAAP gross margin

 

77.4

%

 

78.3

%

 

77.8

%

 

78.4

%

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

Operating expenses, as reported

$

218,169

 

$

221,938

 

$

429,769

 

$

431,176

 

Stock-based compensation

 

(12,738

)

 

(8,885

)

 

(22,979

)

 

(16,365

)

Amortization of acquisition intangibles

 

(522

)

 

(561

)

 

(1,049

)

 

(1,126

)

Acquisition transaction costs and restructuring charges

 

(4,080

)

 

(4,479

)

 

(7,480

)

 

(6,946

)

Capitalization of internally developed software costs

 

2,218

 

 

3,676

 

 

4,497

 

 

11,343

 

Non-GAAP operating expenses

$

203,047

 

$

211,689

 

$

402,758

 

$

418,082

 

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Income to Non-GAAP Operating Income

Operating income, as reported

$

32,296

 

$

36,912

 

$

55,695

 

$

65,048

 

Stock-based compensation

 

13,628

 

 

9,731

 

 

24,662

 

 

17,936

 

Amortization of acquisition intangibles

 

1,363

 

 

1,407

 

 

2,741

 

 

2,873

 

Acquisition transaction costs and restructuring charges

 

4,080

 

 

4,479

 

 

7,480

 

 

6,975

 

Net amortization of internally developed software costs

 

4,319

 

 

2,818

 

 

8,622

 

 

981

 

Non-GAAP operating income

$

55,686

 

$

55,347

 

$

99,200

 

$

93,813

 

Non-GAAP operating margin

 

16.7

%

 

16.2

%

 

15.4

%

 

14.4

%

 

 

 

 

 

 

 

 

 

Reconciliation of Income before income taxes to Non-GAAP Income before income taxes

Income before income taxes, as reported

$

32,851

 

$

35,002

 

$

58,826

 

$

64,614

 

Stock-based compensation

 

13,628

 

 

9,731

 

 

24,662

 

 

17,936

 

Amortization of acquisition intangibles

 

1,525

 

 

1,407

 

 

2,903

 

 

2,873

 

Acquisition transaction costs and restructuring charges

 

4,080

 

 

5,188

 

 

7,480

 

 

7,684

 

Net amortization of internally developed software costs

 

4,319

 

 

2,818

 

 

8,622

 

 

981

 

Non-GAAP income before income taxes

$

56,403

 

$

54,146

 

$

102,493

 

$

94,088

 

 

 

 

 

 

 

 

 

 

Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes

Provision for income taxes, as reported

$

4,159

 

$

3,948

 

$

6,914

 

$

9,292

 

Stock-based compensation

 

3,940

 

 

2,955

 

 

5,776

 

 

4,663

 

Amortization of acquisition intangibles

 

192

 

 

178

 

 

386

 

 

370

 

Acquisition transaction costs, restructuring charges, and other

 

1,010

 

 

1,630

 

 

1,850

 

 

2,183

 

Net amortization of internally developed software costs

 

907

 

 

592

 

 

1,811

 

 

206

 

Non-GAAP provision for income taxes

$

10,208

 

$

9,303

 

$

16,737

 

$

16,714

 

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,

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

Net income, as reported

$

28,692

$

31,054

$

51,912

$

55,322

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

 

 

 

 

Stock-based compensation, net of tax effect

 

9,688

 

6,776

 

18,886

 

13,273

Amortization of acquisition intangibles, net of tax effect

 

1,333

 

1,229

 

2,517

 

2,503

Acquisition transaction costs, restructuring, and other, net of tax effect

 

3,070

 

3,558

 

5,630

 

5,501

Net amortization of internally developed software costs, net of tax effect

 

3,412

 

2,226

 

6,811

 

775

Non-GAAP net income

$

46,195

$

44,843

$

85,756

$

77,374

 

 

 

 

 

 

 

 

 

Basic EPS, as reported

$

0.22

$

0.24

$

0.39

$

0.42

Adjustment to reconcile basic EPS to non-GAAP basic EPS:

 

 

 

 

 

 

 

 

Impact of stock-based compensation, net of tax effect

 

0.07

 

0.05

 

0.15

 

0.10

Impact of amortization of acquisition intangibles, net of tax effect

 

0.01

 

 

0.02

 

0.02

Impact of acquisition transaction costs, restructuring, and other, net of tax effect

 

0.02

 

0.03

 

0.04

 

0.04

Impact of net amortization of internally developed software costs, net of tax effect

 

0.03

 

0.02

 

0.05

 

0.01

Non-GAAP basic EPS

$

0.35

$

0.34

$

0.65

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS, as reported

$

0.22

$

0.23

$

0.39

$

0.42

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS

 

 

 

 

 

 

 

 

Impact of stock-based compensation, net of tax effect

 

0.07

 

0.05

 

0.14

 

0.10

Impact of amortization of acquisition intangibles, net of tax effect

 

0.01

 

0.01

 

0.02

 

0.02

Impact of acquisition transaction costs, restructuring, and other, net of tax effect

 

0.02

 

0.03

 

0.04

 

0.04

Impact of net amortization of internally developed software costs, net of tax effect

 

0.03

 

0.02

 

0.05

 

Non-GAAP diluted EPS

$

0.35

$

0.34

$

0.64

$

0.58

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding -

 

 

 

 

 

 

 

 

Basic

 

132,062

 

131,877

 

132,156

 

131,504

Diluted

 

132,973

 

133,054

 

133,172

 

132,838

National Instruments

Reconciliation of Net Income to EBITDA

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2019

 

2018

 

2019

 

2018

Net income, as reported

$

28,692

 

$

31,054

 

$

51,912

 

$

55,322

 

Adjustments to reconcile net income to EBITDA:

 

 

 

 

 

 

 

 

Interest income, net

 

(2,012

)

 

(1,253

)

 

(4,232

)

 

(2,180

)

Tax expense

 

4,159

 

 

3,948

 

 

6,914

 

 

9,292

 

Depreciation and amortization

 

17,972

 

 

17,662

 

 

35,984

 

 

35,098

 

EBITDA

$

48,811

 

$

51,411

 

$

90,578

 

$

97,532

 

Weighted average shares outstanding - Diluted

 

132,973

 

 

133,054

 

 

133,172

 

 

132,838

 

Reconciliation of GAAP to Non-GAAP EPS Guidance

(unaudited)

 

Three Months Ended

 

September 30, 2019

 

 

 

 

 

 

 

Low

 

High

GAAP Diluted EPS, guidance

$

0.30

 

$

0.44

 

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:

 

 

 

 

Impact of stock-based compensation, net of tax effect

 

0.09

 

 

0.09

 

Impact of amortization of acquisition intangibles, net of tax effect

 

0.01

 

 

0.01

 

Impact of acquisition transaction costs and restructuring charges, net of tax effect

 

0.03

 

 

0.03

 

Impact of disposal gains and other(1), net of tax effect

 

(0.12

)

 

(0.12

)

Impact of net amortization of software development costs, net of tax effect

 

0.03

 

 

0.03

 

Impact of tax reform-related adjustments

 

0.02

 

 

0.02

 

Non-GAAP Diluted EPS, guidance

$

0.36

 

$

0.50

 

(1) Includes adjustments for $(0.16) related to disposal gain from sale of office building and $0.04 related to charge for charitable contribution of a portion of the sale proceeds.

 

Source: National Instruments

Marissa Vidaurri
Head of Investor Relations
(512) 683-5215

Contact Investor Relations

Marissa Vidaurri, Head of Investor Relations

marissa.vidaurri@ni.com or 512-683-5215

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