Press Release Details

NI Achieves Record Financial Performance for Q4 and Fiscal Year 2021

NI Board of Directors authorizes $250 million share repurchase program

Q4 2021 Highlights

  • All-time record revenue of $421 million, up 14 percent year over year
  • All-time record orders up 19 percent year over year
  • Strong diluted GAAP EPS of $0.30
  • All-time record diluted non-GAAP EPS of $0.60
  • Cash and cash equivalents of $211 million as of December 31, 2021
  • Returned $66 million to stockholders through stock repurchase and dividends

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 27, 2022-- National Instruments Corporation (Nasdaq: NATI) today announced Q4 2021 revenue of $421 million, up 14 percent year over year and an all-time quarterly record.

In Q4 2021, the value of the company’s total orders were up 19 percent year over year, an all-time quarterly record. Geographic order growth for Q4 2021 compared with Q4 2020 was up 34 percent in the Americas, down 2 percent in APAC and up 20 percent in EMEA.

In Q4, GAAP gross margin was 71 percent and non-GAAP gross margin was 74 percent. Total Q4 GAAP operating expenses were $247 million, up 1 percent year over year. Total Q4 non-GAAP operating expenses were $214 million, up 9 percent year over year. GAAP operating margin was 12 percent in Q4, with GAAP operating income of $50 million. Non-GAAP operating margin was 23 percent in Q4, with non-GAAP operating income of $96 million, up 22 percent year over year.

GAAP net income for Q4 was $40 million, with diluted earnings per share ("EPS") of $0.30, and non-GAAP net income was $80 million, with non-GAAP diluted EPS of $0.60.

"We delivered the strongest non-GAAP financial performance in our company's history in the fourth quarter with all-time record orders, revenue, operating income, and earnings. We believe 2021 is an inflection point for our business and a direct reflection of the strategic changes we’ve made over the last several years," said Eric Starkloff, NI president and CEO. "The areas where we have focused showed momentum throughout the year with growth across all business units and all regions. We believe we are focused on the right market opportunities and enter 2022 in a position of strength and poised to accelerate growth."

"As we close out the year, I am proud of our performance with revenue and EPS at the high end of guidance. We will continue to be intentional with investments that we believe will accelerate revenue and strengthen our competitive advantage, while continuing to scale our cost structure to increase profitability," said Karen Rapp, NI CFO. "We remain confident in our ability to achieve our 2023 financial model a year ahead of schedule. Our strong balance sheet gives us confidence in the ability to leverage inorganic opportunities to enhance our technology capabilities and expertise while also returning excess cash to stockholders."

As of December 31, 2021, NI had $211 million in cash with $143 million in cash generated from operations in 2021. During Q4, NI paid $36 million in dividends and repurchased approximately 740,000 shares of our common stock at an average price of $40.52 per share. For the year, we returned over $198 million to our stockholders through dividends and stock repurchases, including the repurchase of 1.3 million shares at an average price of $41.06 per share. The NI Board of Directors approved a dividend of $0.28 per share payable on February 28, 2022, to stockholders of record on February 7, 2022. This represents an increase of 4 percent per share.

The NI Board of Directors also authorized a new stock repurchase program for up to $250 million of its common stock. The new stock repurchase program is effective immediately and is in addition to the previously authorized stock repurchase program.

The company’s non-GAAP results exclude, as applicable, the impact of purchase accounting fair value adjustments, stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction and integration costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, tax reform charges, disposal gains on buildings and related charitable contributions, tax effects related to businesses held for sale, gain on sale of businesses, 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.

FY 2021 Highlights

  • All-time record revenue of $1.47 billion, up 14 percent year over year
  • GAAP gross margin of 71 percent
  • Non-GAAP gross margin of 75 percent
  • Strong diluted GAAP EPS of $0.67
  • Record diluted non-GAAP EPS of $1.68
  • Returned $198 million to stockholders through stock repurchase and dividends

In 2021, GAAP operating expenses were $931 million, up 6 percent year over year, and non-GAAP operating expenses were $824 million, up 9 percent year over year. GAAP net income in 2021 was $89 million, down 38 percent year over year, and non-GAAP net income was $224 million, up 37 percent year over year.

Q1 2022 Guidance

  • GAAP revenue to be in the range of $385 million to $415 million, up 19 percent year over year at the midpoint
  • GAAP diluted EPS to be in the range of $0.13 to $0.27, up 17 cents year over year at the midpoint
  • Non-GAAP diluted EPS expected to be in the range of $0.35 to $0.49, up 31 percent year over year at the midpoint

Conference Call Information

NI management will discuss Q4 2021 results today, January 27, at 4:00 p.m. CT at www.ni.com/call or dial (855) 212-2361 and enter confirmation code 4276084. The call and an accompanying slide presentation will be webcast on the investor website, www.ni.com/nati, under “Events & Presentations.” Replay is available by calling (855) 859-2056, confirmation code 4276084 , shortly after the call through January 31, at 11:59 p.m. CT.

Non-GAAP Presentation

To supplement NI’s financial statements presented on a GAAP basis, NI has provided non-GAAP financial information, including non-GAAP revenue or net sales, gross profit, gross margin, operating expenses, operating income, operating margin, provision for income taxes, net income, net margin and diluted EPS. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by NI may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including without limitation those statements about our expectations of accelerating growth and progress to meet or exceed long-term financial model, our continued momentum across regions and business units, our opportunities to drive growth, profitability and efficiency in our business, confidence in our software strategy, our ability to drive growth through strategic changes made to our business, including the transition to subscription-based licensing model for software offerings, confidence in our investment strategy, our ability to successfully integrate acquisitions and execute our growth strategy, our ability to achieve sustainable customer demand through focus on secular growth opportunities, and our guidance and expectations for our Q1 2022 revenue, diluted EPS, backlog, lead times and gross margin. These statements are subject to a number of risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: the effect of the global economic and geopolitical conditions; our international operations and foreign economies; adverse public health matters, including epidemics and pandemics such as the COVID-19 pandemic; our ability to effectively manage our partners and distribution channels; interruptions in our technology systems; cyber-attacks; the dependency of our product revenue on certain industries and the risk of contractions in such industries; fluctuations in demand for our products including orders from our large customers; concentration of credit risk and uncertain conditions in the global financial markets; our ability to compete in markets that are highly competitive; our ability to release successful new products or achieve expected returns; the risk that our manufacturing capacity and a substantial majority of our warehousing and distribution capacity are located outside of the U.S.; our dependence on key suppliers and distributors; component shortages; longer delivery lead times from our suppliers; risk of product liability claims; dependence on our proprietary rights and risks of intellectual property litigation; the continued service of key management and technical personnel; the ability to comply with environmental laws and associated costs; our ability to maintain our website; the risks of bugs, vulnerabilities, errors or design flaws in our products; our ability to achieve the benefits of employee restructuring plans; our exposure to large orders; our ability to effectively manage our operating expenses and meet budget; expense overruns; manufacturing inefficiencies and the level of capacity utilization; fluctuations in our quarterly results due to factors outside of our control; our outstanding debt; seasonal variation in our revenues; our ability to comply with laws and regulations; changes in tax rates and exposure to additional tax liabilities; our ability to make certain acquisitions or dispositions, integrate the companies we acquire or separate the companies we sold and/or enter into strategic relationships; risks related to currency fluctuations; adverse effects of price changes; and changes in accounting principles. In addition, our ability to declare and/or pay declared dividends is subject to compliance with the terms of our existing credit agreement. The company directs readers to its Form 10-K for the year ended December 31, 2020, and the other documents it files with the SEC for other risks associated with the company’s future performance. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in our forward-looking statements.

About NI

At NI, we bring together the people, ideas and technology so forward thinkers and creative problem solvers can take on humanity’s biggest challenges. From data and automation to research and validation, we provide the tailored, software-connected systems engineers and enterprises need to Engineer Ambitiously™ every day.

National Instruments, NI, ni.com and Engineer Ambitiously are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies. (NATI-F)

National Instruments

Condensed Consolidated Balance Sheets

(in thousands)

 

December 31,

December 31,

 

2021

2020

 

(unaudited)

 

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

211,106

 

$

260,232

 

Short-term investments

 

 

 

59,923

 

Accounts receivable, net

 

341,275

 

 

266,869

 

Inventories, net

 

289,243

 

 

194,012

 

Prepaid expenses and other current assets

 

90,225

 

 

68,470

 

Total current assets

 

931,849

 

 

849,506

 

Property and equipment, net

 

253,668

 

 

254,399

 

Goodwill

 

583,589

 

 

467,547

 

Intangible assets, net

 

212,521

 

 

172,719

 

Operating lease right-of-use assets

 

58,641

 

 

67,674

 

Other long-term assets

 

74,717

 

 

72,643

 

Total assets

 

2,114,985

 

 

1,884,488

 

 

 

 

LIABILITIES AND EQUITY

 

 

Current liabilities:

 

 

Accounts payable and accrued liabilities

 

83,218

 

 

51,124

 

Accrued compensation

 

111,261

 

 

87,068

 

Deferred revenue

 

137,818

 

 

132,151

 

Operating lease liabilities

 

13,137

 

 

15,801

 

Other taxes payable

 

59,109

 

 

48,129

 

Debt - current

 

 

 

5,000

 

Other current liabilities

 

40,671

 

 

42,578

 

Total current liabilities

 

445,214

 

 

381,851

 

Debt - non-current

 

300,000

 

 

92,036

 

Deferred income taxes

 

14,249

 

 

25,288

 

Income tax payable - non-current

 

54,195

 

 

61,623

 

Deferred revenue - non-current

 

32,822

 

 

36,335

 

Operating lease liabilities - non-current

 

30,468

 

 

35,854

 

Other long-term liabilities

 

14,340

 

 

26,630

 

Total liabilities

 

891,288

 

 

659,617

 

 

 

 

Stockholders' equity:

 

 

Preferred stock

 

 

 

 

Common stock

 

1,323

 

 

1,312

 

Additional paid-in capital

 

1,129,647

 

 

1,033,284

 

Retained earnings

 

112,858

 

 

211,101

 

Accumulated other comprehensive loss

 

(20,131

)

 

(20,826

)

Total stockholders' equity

 

1,223,697

 

 

1,224,871

 

Total liabilities and stockholders' equity

$

2,114,985

 

$

1,884,488

 

National Instruments

Condensed Consolidated Statements of Income

(in thousands, except per share data, unaudited)

 

 

 

 

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

2020

 

2021

2020

 

 

 

 

 

 

Net sales:

 

 

 

 

 

Product

$

377,303

 

$

327,714

 

 

$

1,304,609

 

$

1,137,603

 

Software maintenance

 

43,338

 

 

40,124

 

 

 

165,072

 

 

149,068

 

Total net sales

 

420,641

 

 

367,838

 

 

 

1,469,681

 

 

1,286,671

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

Product

 

119,857

 

 

105,625

 

 

 

406,342

 

 

359,861

 

Software maintenance

 

3,739

 

 

3,571

 

 

 

14,621

 

 

11,260

 

Total cost of sales

 

123,596

 

 

109,196

 

 

 

420,963

 

 

371,121

 

 

 

 

 

 

 

Gross profit

 

297,045

 

 

258,642

 

 

 

1,048,718

 

 

915,550

 

 

 

71%

 

70%

 

 

71%

 

71%

Operating expenses:

 

 

 

 

 

Sales and marketing

 

122,304

 

 

134,570

 

 

 

467,352

 

 

465,509

 

Research and development

 

92,301

 

 

73,733

 

 

 

335,986

 

 

280,381

 

General and administrative

 

32,543

 

 

36,883

 

 

 

127,215

 

 

129,863

 

Total operating expenses

 

247,148

 

 

245,186

 

 

 

930,553

 

 

875,753

 

Gain on sale of business

 

 

 

 

 

 

 

 

159,753

 

Operating income

 

49,897

 

 

13,456

 

 

 

118,165

 

 

199,550

 

Other income (expense)

 

(4,739

)

 

1,797

 

 

 

(14,590

)

 

(788

)

Income before income taxes

 

45,158

 

 

15,253

 

 

 

103,575

 

 

198,762

 

Provision for income taxes

 

4,822

 

 

10,515

 

 

 

14,260

 

 

55,103

 

Net income

$

40,336

 

$

4,738

 

 

$

89,315

 

$

143,659

 

 

 

 

 

 

 

Basic earnings per share

$

0.31

 

$

0.04

 

 

$

0.68

 

$

1.10

 

Diluted earnings per share

$

0.30

 

$

0.04

 

 

$

0.67

 

$

1.09

 

 

 

 

 

 

 

Weighted average shares outstanding -

 

 

 

 

 

Basic

 

132,215

 

 

131,277

 

 

 

132,311

 

 

131,082

 

Diluted

 

133,225

 

 

131,732

 

 

 

133,562

 

 

131,799

 

 

 

 

 

 

 

Dividends declared per share

$

0.27

 

$

0.26

 

 

$

1.08

 

$

1.04

 

National Instruments

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

Years Ended December 31,

 

2021

2020

 

(unaudited)

 

Cash flow from operating activities:

 

 

Net income

$

89,315

 

$

143,659

 

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

 

 

Depreciation and amortization

 

99,402

 

 

87,064

 

Stock-based compensation

 

74,583

 

 

58,376

 

Disposal gain on sale of business/asset

 

 

 

(159,753

)

Loss from equity-method investees

 

5,719

 

 

2,942

 

Deferred income taxes

 

(15,796

)

 

7,771

 

Net change in operating assets and liabilities

 

(110,020

)

 

40,708

 

Net cash provided by operating activities

 

143,203

 

 

180,767

 

 

 

 

Cash flow from investing activities:

 

 

Acquisitions, net of cash received

 

(222,783

)

 

(334,981

)

Proceeds from sale of assets/business, net of cash divested

 

 

 

160,266

 

Capital expenditures

 

(40,975

)

 

(49,652

)

Capitalization of internally developed software

 

(1,464

)

 

(4,054

)

Additions to other intangibles

 

(2,751

)

 

(1,441

)

Acquisitions of equity-method and other investments

 

(15,753

)

 

(9,761

)

Purchases of short-term investments

 

 

 

(206,330

)

Sales and maturities of short-term investments

 

60,297

 

 

384,652

 

Net cash used by investing activities

 

(223,429

)

 

(61,301

)

 

 

 

Cash flow from financing activities:

 

 

Proceeds from term loan

 

 

 

170,000

 

Payments of term loan

 

(98,750

)

 

(71,250

)

Proceeds from revolving line of credit

 

300,000

 

 

20,000

 

Payments of revolving line of credit

 

 

 

(20,000

)

Debt issuance costs

 

(1,993

)

 

(1,893

)

Proceeds from issuance of common stock

 

32,518

 

 

31,947

 

Repurchase of common stock

 

(55,000

)

 

(48,713

)

Dividends paid

 

(143,113

)

 

(136,545

)

Net cash provided by (used by) financing activities

 

33,662

 

 

(56,454

)

 

 

 

Impact of changes in exchange rates on cash

 

(2,562

)

 

2,604

 

 

 

 

Net change in cash and cash equivalents

 

(49,126

)

 

65,616

 

Cash and cash equivalents at beginning of period

 

260,232

 

 

194,616

 

Cash and cash equivalents at end of period

$

211,106

 

$

260,232

 

The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles and fair value adjustments, acquisition-related transaction costs, disposal gains on sale of business/assets and related charitable contributions, tax effects related to businesses held-for-sale, capitalization and amortization of internally developed software costs, and restructuring charges that were recorded in the line items indicated below (unaudited) (in thousands):

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

2020

 

2021

2020

Stock-based compensation

 

 

 

 

 

Cost of sales

$

1,092

 

$

979

 

 

$

4,580

 

$

3,766

 

Sales and marketing

 

6,284

 

 

5,462

 

 

 

25,233

 

 

22,288

 

Research and development

 

5,811

 

 

5,129

 

 

 

23,515

 

 

17,769

 

General and administrative

 

5,335

 

 

4,251

 

 

 

21,384

 

 

14,552

 

Provision for income taxes

 

(2,010

)

 

(445

)

 

 

(12,047

)

 

(8,705

)

Total

$

16,512

 

$

15,376

 

 

$

62,665

 

$

49,670

 

 

 

 

 

 

 

Amortization of acquisition-related intangibles and fair value adjustments

 

 

 

 

 

Net sales

$

352

 

$

1,961

 

 

$

2,324

 

$

3,260

 

Cost of sales

 

6,700

 

 

4,313

 

 

 

19,391

 

 

9,892

 

Sales and marketing

 

3,334

 

 

1,965

 

 

 

10,192

 

 

5,264

 

Research and development

 

320

 

 

9

 

 

 

320

 

 

94

 

General and administrative

 

 

 

846

 

 

 

 

 

846

 

Other expense (income)

 

531

 

 

124

 

 

 

2,007

 

 

487

 

Provision for income taxes

 

(1,626

)

 

(606

)

 

 

(4,071

)

 

(2,554

)

Total

$

9,611

 

$

8,612

 

 

$

30,163

 

$

17,289

 

 

 

 

 

 

 

Acquisition-related transaction and integration costs, restructuring charges, and other(1)(2)

 

 

 

 

 

Cost of sales

$

25

 

$

1,620

 

 

$

(25

)

$

1,626

 

Sales and marketing

 

1,687

 

 

23,309

 

 

 

7,759

 

 

32,079

 

Research and development

 

9,682

 

 

1,184

 

 

 

11,104

 

 

6,374

 

General and administrative (1)

 

865

 

 

8,685

 

 

 

8,254

 

 

21,279

 

Gain on sale of business/asset (2)

 

 

 

 

 

 

 

 

(159,753

)

Other expense (income)

 

 

 

191

 

 

 

4,322

 

 

589

 

Provision for income taxes

 

(2,708

)

 

(1,602

)

 

 

(6,837

)

 

32,364

 

Total

$

9,551

 

$

33,387

 

 

$

24,577

 

$

(65,442

)

(1): During the third quarter of 2020, we recognized $5 million of compensation expense related to the replacement of unvested options acquired from OptimalPlus. These amounts were accounted for as post-combination expense and will be recognized over the required service period

(2): During the first quarter of 2020, we recognized a gain of $160 million related to the divestiture of AWR, presented within "Gain on sale of business/assets".

 

(Capitalization) and amortization of internally developed software costs

 

 

 

 

 

Cost of sales

$

5,041

 

$

6,936

 

 

$

23,674

 

$

27,931

 

Research and development

 

(188

)

 

(1,248

)

 

 

(1,433

)

 

(4,043

)

Provision for income taxes

 

(1,085

)

 

(1,195

)

 

 

(4,877

)

 

(5,017

)

Total

$

3,768

 

$

4,493

 

 

$

17,364

 

$

18,871

 

 

 

 

 

 

 

National Instruments

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

2020

 

2021

2020

Reconciliation of Net sales to Non-GAAP Net sales

 

 

 

 

 

Net sales, as reported

$

420,641

 

$

367,838

 

 

$

1,469,681

 

$

1,286,671

 

Impact of acquisition related fair value adjustments

 

352

 

 

1,961

 

 

 

2,324

 

 

3,260

 

Non-GAAP net sales

$

420,993

 

$

369,799

 

 

$

1,472,005

 

$

1,289,931

 

 

 

 

 

 

 

Reconciliation of Gross Profit to Non-GAAP Gross Profit

 

 

 

 

 

Gross profit, as reported

$

297,045

 

$

258,642

 

 

$

1,048,718

 

$

915,550

 

Stock-based compensation

 

1,092

 

 

979

 

 

 

4,580

 

 

3,766

 

Amortization of acquisition-related intangibles and fair value adjustments

 

7,052

 

 

6,274

 

 

 

21,715

 

 

13,152

 

Acquisition transaction and integration costs, restructuring charges and other

 

25

 

 

1,620

 

 

 

(25

)

 

1,626

 

Amortization of internally developed software costs

 

5,041

 

 

6,936

 

 

 

23,674

 

 

27,931

 

Non-GAAP gross profit

$

310,255

 

$

274,451

 

 

$

1,098,662

 

$

962,025

 

Non-GAAP gross margin

 

74%

 

74%

 

 

75%

 

75%

 

 

 

 

 

 

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

 

 

 

Operating expenses, as reported

$

247,148

 

$

245,186

 

 

$

930,553

 

$

875,753

 

Stock-based compensation

 

(17,430

)

 

(14,842

)

 

 

(70,132

)

 

(54,609

)

Amortization of acquisition-related intangibles and fair value adjustments

 

(3,654

)

 

(2,820

)

 

 

(10,512

)

 

(6,204

)

Acquisition transaction and integration costs, restructuring charges and other

 

(12,234

)

 

(33,178

)

 

 

(27,117

)

 

(59,732

)

Capitalization of internally developed software costs

 

188

 

 

1,248

 

 

 

1,433

 

 

4,043

 

Non-GAAP operating expenses

$

214,018

 

$

195,594

 

 

$

824,225

 

$

759,251

 

 

 

 

 

 

 

Reconciliation of Operating Income to Non-GAAP Operating Income

 

 

 

Operating income, as reported

$

49,897

 

$

13,456

 

 

$

118,165

 

$

199,550

 

Stock-based compensation

 

18,522

 

 

15,821

 

 

 

74,712

 

 

58,375

 

Amortization of acquisition-related intangibles and fair value adjustments

 

10,706

 

 

9,094

 

 

 

32,227

 

 

19,356

 

Acquisition transaction and integration costs, restructuring charges and other

 

12,259

 

 

34,798

 

 

 

27,092

 

 

61,358

 

Net amortization of internally developed software costs

 

4,853

 

 

5,688

 

 

 

22,241

 

 

23,888

 

Gain on sale of business/assets

 

 

 

 

 

 

 

 

(159,753

)

Non-GAAP operating income

$

96,237

 

$

78,857

 

 

$

274,437

 

$

202,774

 

Non-GAAP operating margin

 

23%

 

21%

 

 

19%

 

16%

 

 

 

 

 

 

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

 

 

 

Provision for income taxes, as reported(1)

$

4,822

 

$

10,515

 

 

$

14,260

 

$

55,103

 

Stock-based compensation

 

2,010

 

 

445

 

 

 

12,047

 

 

8,705

 

Amortization of acquisition-related intangibles and fair value adjustments

 

1,626

 

 

606

 

 

 

4,071

 

 

2,554

 

Acquisition transaction and integration costs, restructuring charges and other

 

2,708

 

 

1,328

 

 

 

6,837

 

 

4,122

 

Net amortization of internally developed software costs

 

1,085

 

 

1,195

 

 

 

4,877

 

 

5,017

 

Gain on sale of business/assets

 

 

 

274

 

 

 

 

 

(36,486

)

Non-GAAP provision for income taxes(1)

$

12,251

 

$

14,363

 

 

$

42,092

 

$

39,015

 

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.

Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Net Income and Non-GAAP Diluted EPS

(in thousands, except per share data, unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

2020

 

2021

2020

 

 

 

 

 

 

Net income, as reported

$

40,336

 

$

4,738

 

 

$

89,315

 

$

143,659

 

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

 

 

 

 

 

Stock-based compensation

 

18,522

 

 

15,821

 

 

 

74,712

 

 

58,375

 

Amortization of acquisition-related intangibles and fair value adjustments

 

11,237

 

 

9,218

 

 

 

34,234

 

 

19,843

 

Acquisition transaction and integration costs, restructuring charges and other

 

12,259

 

 

34,989

 

 

 

31,414

 

 

61,947

 

Net amortization of internally developed software costs

 

4,853

 

 

5,688

 

 

 

22,241

 

 

23,888

 

Gain on sale of business/asset

 

 

 

 

 

 

 

 

(159,753

)

Income tax effects and adjustments(1)

 

(7,429

)

 

(3,848

)

 

 

(27,832

)

 

16,088

 

Non-GAAP net income

$

79,778

 

$

66,606

 

 

$

224,084

 

$

164,047

 

Non-GAAP net margin

 

18.9%

 

18.0%

 

 

15.2%

 

12.7%

 

 

 

 

 

 

Diluted EPS, as reported

$

0.30

 

$

0.04

 

 

$

0.67

 

$

1.09

 

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS

 

 

 

 

 

Stock-based compensation

 

0.14

 

 

0.12

 

 

 

0.56

 

 

0.44

 

Amortization of acquisition-related intangibles and fair value adjustments

 

0.09

 

 

0.07

 

 

 

0.26

 

 

0.15

 

Acquisition transaction and integration costs, restructuring charges and other

 

0.09

 

 

0.27

 

 

 

0.23

 

 

0.47

 

Net amortization of internally developed software costs

 

0.04

 

 

0.04

 

 

 

0.17

 

 

0.18

 

Gain on sale of business/asset

 

 

 

 

 

 

 

 

(1.21

)

Income tax effects and adjustments(1)

 

(0.06

)

 

(0.03

)

 

 

(0.21

)

 

0.12

 

Non-GAAP diluted EPS

$

0.60

 

$

0.51

 

 

$

1.68

 

$

1.24

 

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

Basic

 

132,215

 

 

131,277

 

 

 

132,311

 

 

131,082

 

Diluted

 

133,225

 

 

131,732

 

 

 

133,562

 

 

131,799

 

Reconciliation of GAAP to Non-GAAP Diluted EPS Guidance

(unaudited)

 

Three Months Ended

 

March 31, 2022

 

 

 

 

Low

High

GAAP Diluted EPS, guidance

$

0.13

 

$

0.27

 

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

 

 

Stock-based compensation

 

0.15

 

 

0.15

 

Amortization of acquisition-related intangibles and fair value adjustments

 

0.10

 

 

0.10

 

Acquisition transaction and integration costs, restructuring charges and other

 

0.01

 

 

0.01

 

Net amortization of internally developed software costs

 

0.01

 

 

0.01

 

Income tax effects and adjustments(1)

 

(0.05

)

 

(0.05

)

Non-GAAP Diluted EPS, guidance

$

0.35

 

$

0.49

 

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.

 

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

Source: National Instruments Corporation

Contact Investor Relations

Marissa Vidaurri, Head of Investor Relations

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

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