Press Release Details

NI Reports Record Revenue for a Second Quarter, up 14 Percent YOY

Company reaffirms guidance for full year 2022 and increases expectations for full year 2023

Q2 2022 Summary

  • Record GAAP revenue for a second quarter of $396 million, up 14 percent year over year
  • Record orders for a second quarter, up 20 percent year over year
  • Strong diluted GAAP EPS of $0.09 and diluted non-GAAP EPS of $0.36
  • Cash and cash equivalents of $111 million as of June 30, 2022

AUSTIN, Texas--(BUSINESS WIRE)--Jul. 28, 2022-- National Instruments Corporation (Nasdaq: NATI) today announced Q2 2022 revenue of $396 million, up 14 percent year over year, a record for a second quarter.

In Q2 2022, the total value of the company's orders was up 20 percent year over year. For Q2, year over year orders were up 33 percent in the Americas, up 16 percent in APAC, and up 7 percent in EMEA.

In Q2, GAAP gross margin was 68 percent and non-GAAP gross margin was 71 percent. Total GAAP operating expenses were $247 million and non-GAAP operating expenses were $218 million. GAAP operating income for Q2 was $21 million with non-GAAP operating income of $61 million. In Q2, GAAP operating margin was 5 percent with non-GAAP operating margin of 15 percent.

GAAP net income for Q2 was $12 million and non-GAAP net income was $48 million, with GAAP diluted EPS of $0.09 and non-GAAP diluted EPS of $0.36.

“NI has delivered strong performance over the last several quarters, driven by our highly differentiated technologies and offerings targeted at segments with powerful growth drivers, including electric and autonomous vehicles, wireless communication, and new space technology. We believe our focused strategy is leading to ongoing share gains,” said Eric Starkloff, NI President and CEO. “Momentum continued in the second quarter with orders up 20 percent year over year and revenue up 14 percent year over year. These results bring us increased confidence in achieving revenue growth and earnings per share in line with current consensus estimates."

“We continue to see the benefits of the actions we have taken to increase scale into our business model. Despite the temporary headwinds to gross margin, we have improved diluted non-GAAP EPS by 15 percent year over year in the first half of 2022. Looking ahead, we will continue to sharpen our focus on making intentional investments for growth and on streamlining processes for greater efficiency,” said Karen Rapp, NI CFO. "With many key initiatives underway, we are confident in our ability to deliver on our commitment to non-GAAP operating margin improvement. Even in a potential recessionary environment, we now expect to increase our non-GAAP operating margin by 300 basis points in 2023, followed by 100 basis points of additional improvement each year through 2025.”

As of June 30, 2022, NI had $111 million in cash and cash equivalents. During the second quarter, NI paid $37 million in dividends and repurchased approximately 987,000 shares of our common stock at an average price of $39.06 per share. The NI Board of Directors approved a quarterly dividend of $0.28 per share payable on August 29, 2022, to stockholders of record on August 8, 2022.

NI'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 NI's GAAP and non-GAAP results are included as part of this news release.

YTD 2022 Summary

  • Record GAAP revenue of $781 million, up 15 percent year over year
  • Record orders, up 22 percent year over year
  • Strong diluted GAAP EPS of $0.28, up 75 percent year over year and record diluted non-GAAP EPS of $0.77, up 15 percent year over year

Guidance

  • Q3 GAAP revenue to be in the range of $410 million to $440 million, up 16 percent year over year at the midpoint
  • GAAP diluted EPS to be in the range of $0.34 to $0.48 for Q3, up 105 percent year over year at the midpoint
  • Non-GAAP diluted EPS expected to be in the range of $0.46 to $0.60, up 26 percent year over year at the midpoint

Conference Call Information

Today, NI management will host a call with the investment community to discuss the company's financial performance in the second quarter. Investors can listen to the Q2 2022 earnings conference call beginning at 4:00 p.m. CT today. This event will be webcast in listen-only mode. Listeners may log on to the call at www.ni.com/investor-relations under the “Events and Presentations” section and select “Q2 2022 NATI Earnings Conference Call” to participate. The webcast will remain on the company site for 90 days.

Annual Investor Conference

As is our annual tradition, NI management will host an investor conference in September with more details to be shared in the coming weeks. Despite expectations for a weaker macro entering 2023, we believe we have several factors that will drive our performance – our exposure to key growth opportunities and secular cycles, the favorable gross margin impacts as supply chain pressures ease, the growing impact of recurring revenue, and the full year impact of our expense management focus. In fact, our current expectation is for strengthening revenue growth and non-GAAP operating margin growth well above our 100 bps commitment in 2023. We plan to walk through these elements to our model and discuss our 3 year strategic plan at this event.

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 and non-GAAP guidance for diluted EPS. A reconciliation of the adjustments to GAAP results is included in the tables below. The company is not able to provide guidance on its GAAP tax rate or a related reconciliation without unreasonable efforts since its future GAAP tax rate depends on its future stock price and related information that is not currently available. Additionally, certain non-GAAP financial measures presented on a forward-looking basis, such as non-GAAP operating margin, were not reconciled to the comparable GAAP financial measures because the reconciliation could not be performed without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures. 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 our financial targets and long-term financial model, our ability to grow faster than the overall market, our continued momentum across regions and business units, our opportunities to drive growth, profitability and efficiency in our business, confidence in our strategy and the strategic changes made to our business, including the transition to subscription-based licensing model for software offerings, our ability to successfully integrate acquisitions and execute our growth strategy, our ability to turn backlog to revenue, our ability to drive customer demand through focus on high growth opportunities, the impacts of war in Europe, supply chain constraints and software licensing model transition on our financial results, and our guidance and expectations for our Q3 2022 revenue, diluted EPS and non-GAAP diluted EPS, and future operating expenses, backlog, lead times, gross margin, operating margin and tax rate. 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 global shortage of key components; 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 or cyber-attacks on our systems; the dependency of our product revenue on certain industries and the risk of contractions in such industries; 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; 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, technical personnel and operational employees; our 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 restructuring activities; our exposure to large orders; our shift to more system orders; our ability to effectively manage our operating expenses and meet budget; 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; and provisions in charter documents and Delaware law that delay or prevent our acquisition. 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, 2021, 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. All information in this release is as of the date above. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

About NI

At NI, we bring together 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 and ni.com and Engineer Ambitiously are trademarks of National Instruments Corporation. 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)

 

June 30,

 

December 31,

 

2022

 

2021

 

(unaudited)

 

 

Assets

 

 

Cash and cash equivalents

$

110,873

 

$

211,106

 

Accounts receivable, net

 

356,077

 

 

341,275

 

Inventories, net

 

343,627

 

 

289,243

 

Prepaid expenses and other current assets

 

122,361

 

 

89,925

 

Total current assets

 

932,938

 

 

931,549

 

Property and equipment, net

 

258,155

 

 

253,668

 

Goodwill

 

603,793

 

 

575,992

 

Intangible assets, net

 

237,059

 

 

220,418

 

Operating lease right-of-use assets

 

64,476

 

 

58,641

 

Other long-term assets

 

71,435

 

 

74,717

 

Total assets

$

2,167,856

 

$

2,114,985

 

 

 

 

Liabilities and Stockholders' Equity

 

 

Accounts payable and accrued expenses

$

91,227

 

$

83,218

 

Accrued compensation

 

50,199

 

 

111,261

 

Deferred revenue - current

 

122,029

 

 

137,818

 

Operating lease liabilities - current

 

14,813

 

 

13,137

 

Other taxes payable

 

51,958

 

 

59,109

 

Other current liabilities

 

44,148

 

 

40,671

 

Total current liabilities

 

374,374

 

 

445,214

 

Deferred income taxes

 

16,575

 

 

14,249

 

Income tax payable - non-current

 

40,646

 

 

54,195

 

Deferred revenue - non-current

 

42,943

 

 

32,822

 

Operating lease liabilities - non-current

 

34,520

 

 

30,468

 

Debt - non-current

 

475,000

 

 

300,000

 

Other long-term liabilities

 

15,291

 

 

14,340

 

Total liabilities

$

999,349

 

$

891,288

 

 

 

 

Stockholders' equity:

 

 

Common stock

 

1,323

 

 

1,323

 

Additional paid-in capital

 

1,173,131

 

 

1,129,647

 

Retained earnings

 

21,533

 

 

112,858

 

Accumulated other comprehensive loss

 

(27,480

)

 

(20,131

)

Total stockholders' equity

 

1,168,507

 

 

1,223,697

 

Total liabilities and stockholders' equity

$

2,167,856

 

$

2,114,985

 

National Instruments

Condensed Consolidated Statements of Income

(in thousands, except per share data, unaudited)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

Net sales:

 

 

 

 

Product

$

354,805

 

$

306,490

 

$

698,489

 

$

601,583

 

Software maintenance

 

40,710

 

 

40,206

 

 

82,281

 

 

80,295

 

Total net sales

 

395,515

 

 

346,696

 

 

780,770

 

 

681,878

 

 

 

 

 

 

Cost of sales:

 

 

 

 

Product

 

123,307

 

 

95,722

 

 

238,332

 

 

187,379

 

Software maintenance

 

4,167

 

 

3,516

 

 

8,370

 

 

7,273

 

Total cost of sales

 

127,474

 

 

99,238

 

 

246,702

 

 

194,652

 

 

 

 

 

 

Gross profit

 

268,041

 

 

247,458

 

 

534,068

 

 

487,226

 

 

 

67.8%

 

71.4%

 

68.4%

 

71.5%

Operating expenses:

 

 

 

 

Sales and marketing

 

124,908

 

 

111,199

 

 

245,064

 

 

227,983

 

Research and development

 

85,589

 

 

81,434

 

 

167,750

 

 

161,520

 

General and administrative

 

36,772

 

 

30,277

 

 

69,949

 

 

63,636

 

Total operating expenses

 

247,269

 

 

222,910

 

 

482,763

 

 

453,139

 

Operating income

 

20,772

 

 

24,548

 

 

51,305

 

 

34,087

 

Other expense

 

(3,505

)

 

(2,963

)

 

(3,473

)

 

(8,031

)

Income before income taxes

 

17,267

 

 

21,585

 

 

47,832

 

 

26,056

 

Provision for income taxes

 

4,833

 

 

4,279

 

 

10,162

 

 

4,254

 

Net income

$

12,434

 

$

17,306

 

$

37,670

 

$

21,802

 

 

 

 

 

 

Basic earnings per share

$

0.09

 

$

0.13

 

$

0.29

 

$

0.17

 

Diluted earnings per share

$

0.09

 

$

0.13

 

$

0.28

 

$

0.16

 

 

 

 

 

 

Weighted average shares outstanding -

 

 

 

 

Basic

 

131,973

 

 

132,498

 

 

132,039

 

 

131,996

 

Diluted

 

132,708

 

 

133,539

 

 

132,948

 

 

133,157

 

 

 

 

 

 

Dividends declared per share

$

0.28

 

$

0.27

 

$

0.56

 

$

0.54

 

 

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

Six Months Ended June 30,

 

2022

 

2021

 

 

Cash flow from operating activities:

 

 

Net income

$

37,670

 

$

21,802

 

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

 

 

Depreciation and amortization

 

45,742

 

 

50,024

 

Stock-based compensation

 

40,804

 

 

37,208

 

Loss from equity-method investees

 

(131

)

 

5,360

 

Deferred income taxes

 

943

 

 

1,301

 

Net change in operating assets and liabilities

 

(169,930

)

 

(63,372

)

Net cash (used in) provided by operating activities

 

(44,902

)

 

52,323

 

 

 

 

Cash flow from investing activities:

 

 

Acquisitions, net of cash received

 

(72,802

)

 

(19,784

)

Capital expenditures

 

(24,509

)

 

(17,411

)

Capitalization of internally developed software

 

(187

)

 

(721

)

Additions to other intangibles

 

(2,478

)

 

(1,519

)

Acquisitions of equity-method investments

 

 

 

(12,551

)

Sales and maturities of short-term investments

 

 

 

45,671

 

Net cash used in investing activities

 

(99,976

)

 

(6,315

)

 

 

 

Cash flow from financing activities:

 

 

Proceeds from revolving loan facility

 

175,000

 

 

100,000

 

Payments on term loan

 

 

 

(98,750

)

Debt issuance costs

 

 

 

(1,993

)

Proceeds from issuance of common stock

 

17,859

 

 

17,239

 

Repurchase of common stock

 

(70,000

)

 

 

Dividends paid

 

(74,034

)

 

(71,428

)

Net cash used in financing activities

 

48,825

 

 

(54,932

)

 

 

 

Impact of changes in exchange rates on cash

 

(4,180

)

 

(887

)

 

 

 

Net change in cash and cash equivalents

 

(100,233

)

 

(9,811

)

Cash and cash equivalents at beginning of period

 

211,106

 

 

260,232

 

Cash and cash equivalents at end of period

$

110,873

 

$

250,421

 

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 and integration costs, capitalization and amortization of internally developed software costs, restructuring charges, gains on sale of business/assets, and other that were recorded in the line items indicated below (unaudited) (in thousands)

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2021

Stock-based compensation

 

 

 

 

Cost of sales

$

1,253

 

$

1,191

 

$

2,475

 

$

2,305

 

Sales and marketing

 

7,202

 

 

6,922

 

 

14,291

 

 

12,617

 

Research and development

 

6,271

 

 

6,180

 

 

12,359

 

 

11,893

 

General and administrative

 

5,951

 

 

5,854

 

 

11,680

 

 

10,520

 

Provision for income taxes

 

(1,993

)

 

(3,916

)

 

(4,648

)

 

(7,241

)

Total

$

18,684

 

$

16,231

 

$

36,157

 

$

30,094

 

 

 

 

 

 

Amortization of acquisition-related intangibles and fair value adjustments

 

 

 

 

Net sales

$

371

 

$

738

 

$

742

 

$

1,551

 

Cost of sales

 

6,415

 

 

4,226

 

 

10,218

 

 

8,497

 

Sales and marketing

 

5,573

 

 

2,357

 

 

11,712

 

 

4,528

 

Research and development

 

 

 

 

 

(320

)

 

 

Other (expense) income

 

503

 

 

554

 

 

1,019

 

 

948

 

Provision for income taxes

 

(2,094

)

 

(979

)

 

(3,530

)

 

(1,969

)

Total

$

10,768

 

$

6,896

 

$

19,841

 

$

13,555

 

 

 

 

 

 

Acquisition transaction and integration costs, restructuring charges, and other

 

 

 

 

Cost of sales

$

1,159

 

$

(118

)

$

1,944

 

$

(43

)

Sales and marketing

 

2,339

 

 

839

 

 

2,646

 

 

5,487

 

Research and development

 

487

 

 

548

 

 

1,102

 

 

1,036

 

General and administrative

 

1,248

 

 

873

 

 

3,019

 

 

6,539

 

Other (expense) income

 

(265

)

 

280

 

 

(2,132

)

 

4,006

 

Provision for income taxes

 

(779

)

 

(578

)

 

(1,356

)

 

(3,463

)

Total

$

4,189

 

$

1,844

 

$

5,223

 

$

13,562

 

 

 

 

 

 

(Capitalization) and amortization of internally developed software costs

 

 

 

 

Cost of sales

$

1,896

 

$

6,227

 

$

3,929

 

$

13,101

 

Research and development

 

 

 

(495

)

 

(187

)

 

(721

)

Provision for income taxes

 

(436

)

 

(1,204

)

 

(843

)

 

(2,600

)

Total

$

1,460

 

$

4,528

 

$

2,899

 

$

9,780

 

National Instruments

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, unaudited)

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

Reconciliation of Net sales to Non-GAAP Net sales

 

 

 

 

Net sales, as reported

$

395,515

 

 

346,696

 

 

780,770

 

$

681,878

 

plus: Impact of acquisition-related fair value adjustments

 

371

 

 

738

 

 

742

 

 

1,551

 

Non-GAAP net sales

$

395,886

 

 

347,434

 

 

781,512

 

$

683,429

 

 

 

 

 

 

Reconciliation of Gross Profit to Non-GAAP Gross Profit

 

 

Gross profit, as reported

$

268,041

 

$

247,458

 

$

534,068

 

$

487,226

 

Stock-based compensation

 

1,253

 

 

1,191

 

 

2,475

 

 

2,305

 

Amortization of acquisition-related intangibles and fair value adjustments

 

6,786

 

 

4,964

 

 

10,960

 

 

10,048

 

Acquisition transaction and integration costs, restructuring charges and other

 

1,159

 

 

(118

)

 

1,944

 

 

(43

)

Amortization of internally developed software costs

 

1,896

 

 

6,227

 

 

3,929

 

 

13,101

 

Non-GAAP gross profit

$

279,135

 

$

259,722

 

$

553,376

 

$

512,637

 

Non-GAAP gross margin

70.5%

74.8%

70.8%

75.0%

 

 

 

 

 

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

 

 

Operating expenses, as reported

$

247,269

 

$

222,910

 

$

482,763

 

$

453,139

 

Stock-based compensation

 

(19,424

)

 

(18,956

)

 

(38,330

)

 

(35,030

)

Amortization of acquisition-related intangibles and fair value adjustments

 

(5,573

)

 

(2,357

)

 

(11,392

)

 

(4,528

)

Acquisition transaction and integration costs, restructuring charges and other

 

(4,074

)

 

(2,260

)

 

(6,767

)

 

(13,062

)

Capitalization of internally developed software costs

 

 

 

495

 

 

187

 

 

721

 

Non-GAAP operating expenses

$

218,198

 

$

199,832

 

$

426,461

 

$

401,240

 

 

 

 

 

 

Reconciliation of Operating Income to Non-GAAP Operating Income

 

 

Operating income, as reported

$

20,772

 

$

24,548

 

$

51,305

 

$

34,087

 

Stock-based compensation

 

20,677

 

 

20,147

 

 

40,805

 

 

37,335

 

Amortization of acquisition-related intangibles and fair value adjustments

 

12,359

 

 

7,321

 

 

22,352

 

 

14,576

 

Acquisition transaction and integration costs, restructuring charges and other

 

5,233

 

 

2,142

 

 

8,711

 

 

13,019

 

Net amortization of internally developed software costs

 

1,896

 

 

5,732

 

 

3,742

 

 

12,380

 

Non-GAAP operating income

$

60,937

 

$

59,890

 

$

126,915

 

$

111,397

 

Non-GAAP operating margin

15.4%

17.2%

16.2%

16.3%

 

 

 

 

 

Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes(1)

 

 

Provision for income taxes, as reported

$

4,833

 

$

4,279

 

$

10,162

 

$

4,254

 

Stock-based compensation

 

1,993

 

 

3,916

 

 

4,648

 

 

7,241

 

Amortization of acquisition-related intangibles and fair value adjustments

 

2,094

 

 

979

 

 

3,530

 

 

1,969

 

Acquisition transaction and integration costs, restructuring charges and other

 

779

 

 

578

 

 

1,356

 

 

3,463

 

Net amortization of internally developed software costs

 

436

 

 

1,204

 

 

843

 

 

2,600

 

Non-GAAP provision for income taxes(1)

$

10,135

 

$

10,956

 

$

20,539

 

$

19,527

 

(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

 

Six Months Ended

 

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

Net income, as reported

$

12,434

 

$

17,306

 

$

37,670

 

$

21,802

 

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

 

 

 

 

Stock-based compensation

 

20,677

 

 

20,147

 

 

40,805

 

 

37,335

 

Amortization of acquisition-related intangibles and fair value adjustments

 

12,862

 

 

7,875

 

 

23,371

 

 

15,524

 

Acquisition transaction and integration costs, restructuring charges and other

 

4,968

 

 

2,422

 

 

6,579

 

 

17,025

 

Net amortization of internally developed software costs

 

1,896

 

 

5,732

 

 

3,742

 

 

12,380

 

Income tax effects and adjustments(1)

 

(5,302

)

 

(6,677

)

 

(10,377

)

 

(15,273

)

Non-GAAP net income

$

47,535

 

$

46,805

 

$

101,790

 

$

88,793

 

Non-GAAP net margin

12.0%

13.5%

13.0%

13.0%

 

Diluted EPS, as reported

$

0.09

 

$

0.13

 

$

0.28

 

$

0.16

 

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS

 

 

 

 

Stock-based compensation

 

0.16

 

 

0.15

 

 

0.31

 

 

0.28

 

Amortization of acquisition-related intangibles and fair value adjustments

 

0.10

 

 

0.06

 

 

0.18

 

 

0.12

 

Acquisition transaction and integration costs, restructuring charges and other

 

0.04

 

 

0.02

 

 

0.05

 

 

0.13

 

Net amortization of internally developed software costs

 

0.01

 

 

0.04

 

 

0.03

 

 

0.09

 

Income tax effects and adjustments(1)

 

(0.04

)

 

(0.05

)

 

(0.08

)

 

(0.11

)

Non-GAAP diluted EPS

$

0.36

 

$

0.35

 

$

0.77

 

$

0.67

 

(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 - Diluted

 

132,708

 

 

133,539

 

 

132,948

 

 

133,157

 

Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS Guidance

(unaudited)

 

Three Months Ended

 

September 30, 2022

 

 

 

 

Low

High

GAAP Diluted EPS, guidance

$

0.34

 

$

0.48

 

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(1)

 

(0.12

)

 

(0.12

)

Income tax effects and adjustments(2)

 

(0.01

)

 

(0.01

)

Non-GAAP Diluted EPS, guidance

$

0.46

 

$

0.60

 

(1): Includes $23 million of pre-tax income related to disposal gains from sale of buildings and property, partially offset by charitable contribution using a portion of the sale proceeds.

(2): 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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