Press Release Details

NI Reports Record Third Quarter Revenue, up 17 Percent YOY

Operating margin up more than 100 basis points YTD 

Q3 2022 Summary

  • Record GAAP revenue of $428 million, up 17 percent year over year
  • Record orders for a third quarter, up 12 percent year over year
  • Strong diluted GAAP EPS of $0.47 and diluted non-GAAP EPS of $0.53
  • Cash and cash equivalents of $149 million as of September 30, 2022

 

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 27, 2022-- National Instruments Corporation (Nasdaq: NATI) today announced Q3 2022 revenue of $428 million, up 17 percent year over year, an all-time quarterly record.

In Q3 2022, the total value of the company's orders was up 12 percent year over year. For Q3, year over year orders were up 16 percent in the Americas, down 1 percent in APAC, and up 23 percent in EMEA.

In Q3, GAAP gross margin was 66 percent and non-GAAP gross margin was 70 percent. Total GAAP operating expenses were $237 million and non-GAAP operating expenses were $208 million. GAAP operating income for Q3 was $80 million with non-GAAP operating income of $92 million. In Q3, GAAP operating margin was 19 percent with non-GAAP operating margin of 21 percent.

GAAP net income for Q3 was $62 million and non-GAAP net income was $71 million, with GAAP diluted EPS of $0.47 and non-GAAP diluted EPS of $0.53. GAAP net income includes $26 million of gains, net of tax, related to real estate sales that were completed during the third quarter of 2022.

“We achieved very strong performance in the third quarter with record orders, revenue and non-GAAP EPS for a third consecutive quarter." said Eric Starkloff, NI President and CEO. “The initiatives that we’ve executed since 2017 have transformed NI into a company with higher growth, better profitability, and lower cyclicality. We believe these strategic shifts position us to meet our three year plan for growth and margin expansion."

“We planned ahead and are taking action in anticipation of a semiconductor downturn and the impact of a weaker macro economy. Looking ahead, we will continue to sharpen our focus on making intentional investments for growth, pivoting to new customer opportunities, and on continuing to increase scale and leverage across our business,” said Karen Rapp, NI CFO. "Through disciplined cost management, we remain focused on delivering on our commitment to increase non-GAAP operating margin by 100 basis points in 2022.”

As of September 30, 2022, NI had $149 million in cash and cash equivalents. During the third quarter, NI paid $37 million in dividends and repurchased approximately 2 million shares of its common stock at an average price of $40.25 per share. The NI Board of Directors approved a quarterly dividend of $0.28 per share payable on November 28, 2022, to stockholders of record as of the close of business on November 7, 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 properties and 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 $1,209 million, up 15 percent year over year
  • Record orders, up 18 percent year over year
  • Strong diluted GAAP EPS of $0.75, up 103 percent year over year and record diluted non-GAAP EPS of $1.30, up 20 percent year over year

Guidance

  • Q4 GAAP revenue to be in the range of $435 million to $465 million, up 7 percent year over year at the midpoint
  • GAAP diluted EPS to be in the range of $0.22 to $0.36 for Q4, down 3 percent year over year at the midpoint
  • Non-GAAP diluted EPS expected to be in the range of $0.54 to $0.68, up 2 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 third quarter. Investors can listen to the Q3 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 “Q3 2022 NATI Earnings Conference Call” to participate. The webcast will remain on the company site for 90 days.

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. 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 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, 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 Q4 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)

 

September 30,

December 31,

 

 

2022

 

 

2021

 

 

(unaudited)

 

Assets

 

 

Cash and cash equivalents

$

149,002

 

$

211,106

 

Accounts receivable, net

 

380,792

 

 

341,275

 

Inventories, net

 

373,544

 

 

289,243

 

Prepaid expenses and other current assets

 

144,145

 

 

89,925

 

Total current assets

 

1,047,483

 

 

931,549

 

Property and equipment, net

 

254,127

 

 

253,668

 

Goodwill

 

593,148

 

 

575,992

 

Intangible assets, net

 

219,730

 

 

220,418

 

Operating lease right-of-use assets

 

59,906

 

 

58,641

 

Other long-term assets

 

71,140

 

 

74,717

 

Total assets

$

2,245,534

 

$

2,114,985

 

 

 

 

Liabilities and Stockholders' Equity

 

 

Accounts payable and accrued expenses

$

96,848

 

$

83,218

 

Accrued compensation

 

61,166

 

 

111,261

 

Deferred revenue - current

 

118,257

 

 

137,818

 

Operating lease liabilities - current

 

13,288

 

 

13,137

 

Other taxes payable

 

61,002

 

 

59,109

 

Debt, current

 

25,000

 

 

 

Other current liabilities

 

52,079

 

 

40,671

 

Total current liabilities

 

427,640

 

 

445,214

 

Deferred income taxes

 

13,725

 

 

14,249

 

Income tax payable - non-current

 

40,646

 

 

54,195

 

Deferred revenue - non-current

 

50,177

 

 

32,822

 

Operating lease liabilities - non-current

 

32,027

 

 

30,468

 

Debt - non-current

 

542,768

 

 

300,000

 

Other long-term liabilities

 

15,066

 

 

14,340

 

Total liabilities

$

1,122,049

 

$

891,288

 

 

 

 

Stockholders' equity:

 

 

Common stock

 

1,306

 

 

1,323

 

Additional paid-in capital

 

1,183,329

 

 

1,129,647

 

Retained earnings

 

(18,135

)

 

112,858

 

Accumulated other comprehensive loss

 

(43,015

)

 

(20,131

)

Total stockholders' equity

 

1,123,485

 

 

1,223,697

 

Total liabilities and stockholders' equity

$

2,245,534

 

$

2,114,985

 

National Instruments

Condensed Consolidated Statements of Income

(in thousands, except per share data, unaudited)

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

September 30,

September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

Net sales:

 

 

 

 

Product

$

389,620

 

$

325,724

 

$

1,088,110

 

$

927,307

 

Software maintenance

 

38,308

 

 

41,438

 

 

120,589

 

 

121,733

 

Total net sales

 

427,928

 

 

367,162

 

 

1,208,699

 

 

1,049,040

 

 

 

 

 

 

Cost of sales:

 

 

 

 

Product

 

139,823

 

 

99,072

 

 

378,154

 

 

286,485

 

Software maintenance

 

3,879

 

 

3,643

 

 

12,249

 

 

10,882

 

Total cost of sales

 

143,702

 

 

102,715

 

 

390,403

 

 

297,367

 

 

 

 

 

 

Gross profit

 

284,226

 

 

264,447

 

 

818,296

 

 

751,673

 

 

 

66.4%

 

72.0%

 

67.7%

 

71.7%

Operating expenses:

 

 

 

 

Sales and marketing

 

119,951

 

 

117,065

 

 

365,015

 

 

345,048

 

Research and development

 

82,861

 

 

82,165

 

 

250,610

 

 

243,685

 

General and administrative

 

34,617

 

 

31,037

 

 

104,569

 

 

94,672

 

Total operating expenses

 

237,429

 

 

230,267

 

 

720,194

 

 

683,405

 

Gain on sale of assets

 

33,636

 

 

 

 

33,636

 

 

 

Operating income

 

80,433

 

 

34,180

 

 

131,738

 

 

68,268

 

Other expense

 

(5,150

)

 

(1,820

)

 

(8,622

)

 

(9,851

)

Income before income taxes

 

75,283

 

 

32,360

 

 

123,116

 

 

58,417

 

Provision for income taxes

 

13,376

 

 

5,183

 

 

23,539

 

 

9,438

 

Net income

$

61,907

 

$

27,177

 

$

99,577

 

$

48,979

 

 

 

 

 

 

Basic earnings per share

$

0.47

 

$

0.20

 

$

0.75

 

$

0.37

 

Diluted earnings per share

$

0.47

 

$

0.20

 

$

0.75

 

$

0.37

 

 

 

 

 

 

Weighted average shares outstanding -

 

 

 

 

Basic

 

132,044

 

 

133,031

 

 

132,040

 

 

132,657

 

Diluted

 

132,581

 

 

133,686

 

 

133,001

 

 

133,829

 

 

 

 

 

 

Dividends declared per share

$

0.28

 

$

0.27

 

$

0.84

 

$

0.81

 

 

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

 

Cash flow from operating activities:

 

 

Net income

$

99,577

 

$

48,979

 

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

 

 

Disposal gains on sale of assets

 

(33,636

)

 

 

Depreciation and amortization

 

68,828

 

 

73,418

 

Stock-based compensation

 

60,843

 

 

56,064

 

Loss from equity-method investees

 

(483

)

 

5,082

 

Deferred income taxes

 

928

 

 

(2,030

)

Net change in operating assets and liabilities

 

(204,987

)

 

(95,477

)

Net cash (used in) provided by operating activities

 

(8,930

)

 

86,036

 

 

 

 

Cash flow from investing activities:

 

 

Acquisitions, net of cash received

 

(72,802

)

 

(19,784

)

Capital expenditures

 

(39,193

)

 

(26,147

)

Proceeds from sale of assets

 

40,987

 

 

 

Capitalization of internally developed software

 

(388

)

 

(1,246

)

Additions to other intangibles

 

(3,165

)

 

(2,317

)

Acquisitions of equity-method investments

 

 

 

(15,753

)

Sales and maturities of short-term investments

 

 

 

59,714

 

Net cash used in investing activities

 

(74,561

)

 

(5,533

)

 

 

 

Cash flow from financing activities:

 

 

Proceeds from revolving loan facility

 

268,000

 

 

100,000

 

Payments on revolving loan facility

 

(498,000

)

 

 

Proceeds from term loan

 

500,000

 

 

 

Payments on term loan

 

 

 

(98,750

)

Debt issuance costs

 

(2,348

)

 

(1,993

)

Proceeds from issuance of common stock

 

25,444

 

 

25,438

 

Repurchase of common stock

 

(151,831

)

 

(25,000

)

Dividends paid

 

(111,161

)

 

(107,397

)

Net cash provided by (used in) financing activities

 

30,104

 

 

(107,702

)

 

 

 

Impact of changes in exchange rates on cash

 

(8,717

)

 

(2,336

)

 

 

 

Net change in cash and cash equivalents

 

(62,104

)

 

(29,535

)

Cash and cash equivalents at beginning of period

 

211,106

 

 

260,232

 

Cash and cash equivalents at end of period

$

149,002

 

$

230,697

 

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 assets, and other that were recorded in the line items indicated below (unaudited) (in thousands)

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

September 30,

September 30,

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Stock-based compensation

 

 

 

 

Cost of sales

$

1,300

 

$

1,183

 

$

3,775

 

$

3,487

 

Sales and marketing

 

7,148

 

 

6,332

 

 

21,439

 

 

18,949

 

Research and development

 

6,163

 

 

5,811

 

 

18,522

 

 

17,704

 

General and administrative

 

5,429

 

 

5,530

 

 

17,107

 

 

16,050

 

Provision for income taxes

 

(3,039

)

 

(2,798

)

 

(7,687

)

 

(10,036

)

Total

$

17,001

 

$

16,058

 

$

53,156

 

$

46,154

 

 

 

 

 

 

Amortization of acquisition-related intangibles and fair value adjustments

 

 

 

 

Net sales

$

371

 

$

421

 

$

1,114

 

$

1,971

 

Cost of sales

 

6,806

 

 

4,194

 

 

17,025

 

 

12,691

 

Sales and marketing

 

5,712

 

 

2,331

 

 

17,423

 

 

6,859

 

Research and development

 

 

 

 

 

(320

)

 

 

Other expense (income)

 

482

 

 

529

 

 

1,500

 

 

1,476

 

Provision for income taxes

 

(2,272

)

 

(917

)

 

(5,802

)

 

(2,870

)

Total

$

11,099

 

$

6,558

 

$

30,940

 

$

20,127

 

 

 

 

 

 

Acquisition transaction and integration costs, restructuring charges, and other

 

 

 

 

Net sales

$

(411

)

$

 

$

(411

)

$

 

Cost of sales

 

6,604

 

 

(7

)

 

8,548

 

 

(50

)

Sales and marketing

 

2,819

 

 

584

 

 

5,464

 

 

6,071

 

Research and development

 

453

 

 

386

 

 

1,555

 

 

1,422

 

General and administrative

 

1,461

 

 

850

 

 

4,479

 

 

7,388

 

Gain on sale of assets

 

(33,636

)

 

 

 

(33,636

)

 

 

Other expense (income)

 

(3,153

)

 

316

 

 

(5,285

)

 

4,322

 

Provision for income taxes

 

5,850

 

 

(238

)

 

4,494

 

 

(3,701

)

Total

$

(20,013

)

$

1,891

 

$

(14,792

)

$

15,452

 

 

 

 

 

 

(Capitalization) and amortization of internally developed software costs

 

 

 

 

Cost of sales

$

1,160

 

$

5,532

 

$

5,090

 

$

18,633

 

Research and development

 

(202

)

 

(525

)

 

(388

)

 

(1,246

)

Provision for income taxes

 

(216

)

 

(1,192

)

 

(1,059

)

 

(3,792

)

Total

$

742

 

$

3,815

 

$

3,643

 

$

13,595

 

National Instruments

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, unaudited)

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

September 30,

September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

Reconciliation of Gross Profit to Non-GAAP Gross Profit

 

 

Gross profit, as reported

$

284,226

 

$

264,447

 

$

818,296

 

$

751,673

 

Stock-based compensation

 

1,300

 

 

1,183

 

 

3,775

 

 

3,487

 

Amortization of acquisition-related intangibles and fair value adjustments

 

7,177

 

 

4,615

 

 

18,139

 

 

14,662

 

Acquisition transaction and integration costs, restructuring charges and other

 

6,193

 

 

(7

)

 

8,137

 

 

(50

)

Amortization of internally developed software costs

 

1,160

 

 

5,532

 

 

5,090

 

 

18,633

 

Non-GAAP gross profit

$

300,056

 

$

275,770

 

$

853,437

 

$

788,405

 

Non-GAAP gross margin

 

70.1%

 

75.0%

 

70.6%

 

75.0%

 

 

 

 

 

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

 

 

Operating expenses, as reported

$

237,429

 

$

230,267

 

$

720,194

 

$

683,405

 

Stock-based compensation

 

(18,740

)

 

(17,673

)

 

(57,068

)

 

(52,703

)

Amortization of acquisition-related intangibles and fair value adjustments

 

(5,712

)

 

(2,331

)

 

(17,103

)

 

(6,859

)

Acquisition transaction and integration costs, restructuring charges and other

 

(4,733

)

 

(1,820

)

 

(11,498

)

 

(14,881

)

Capitalization of internally developed software costs

 

202

 

 

525

 

 

388

 

 

1,246

 

Non-GAAP operating expenses

$

208,446

 

$

208,968

 

$

634,913

 

$

610,208

 

 

 

 

 

 

Reconciliation of Operating Income to Non-GAAP Operating Income(1)

 

 

Operating income, as reported

$

80,433

 

$

34,180

 

$

131,738

 

$

68,268

 

Stock-based compensation

 

20,040

 

 

18,856

 

 

60,843

 

 

56,190

 

Amortization of acquisition-related intangibles and fair value adjustments

 

12,889

 

 

6,946

 

 

35,242

 

 

21,521

 

Acquisition transaction and integration costs, restructuring charges and other

 

10,926

 

 

1,813

 

 

19,635

 

 

14,831

 

Net amortization of internally developed software costs

 

958

 

 

5,007

 

 

4,702

 

 

17,387

 

Gain on sale of assets

 

(33,636

)

 

 

 

(33,636

)

 

 

Non-GAAP operating income

$

91,610

 

$

66,802

 

$

218,524

 

$

178,197

 

Non-GAAP operating margin

 

21.4%

 

18.2%

 

18.1%

 

17.0%

 

 

 

 

 

Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes(2)

 

 

Provision for income taxes, as reported

$

13,376

 

$

5,183

 

$

23,539

 

$

9,438

 

Stock-based compensation

 

3,039

 

 

2,798

 

 

7,687

 

 

10,036

 

Amortization of acquisition-related intangibles and fair value adjustments

 

2,272

 

 

917

 

 

5,802

 

 

2,870

 

Acquisition transaction and integration costs, restructuring charges and other

 

1,967

 

 

238

 

 

3,323

 

 

3,701

 

Net amortization of internally developed software costs

 

216

 

 

1,192

 

 

1,059

 

 

3,792

 

Gain on sale of assets

 

(7,817

)

 

 

 

(7,817

)

 

 

Non-GAAP provision for income taxes(2)

$

13,053

 

$

10,328

 

$

33,593

 

$

29,837

 

(1): During the third quarter of 2022, the company recognized a gain of $34 million related to the sale of land and office buildings, presented within "Gain on sale of assets".

(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.

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

Nine Months Ended

 

September 30,

September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

Net income, as reported

$

61,907

 

$

27,177

 

$

99,577

 

$

48,979

 

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

 

 

 

 

Stock-based compensation

 

20,040

 

 

18,856

 

 

60,843

 

 

56,190

 

Amortization of acquisition-related intangibles and fair value adjustments

 

13,371

 

 

7,475

 

 

36,742

 

 

22,997

 

Acquisition transaction and integration costs, restructuring charges and other

 

7,773

 

 

2,129

 

 

14,350

 

 

19,153

 

Net amortization of internally developed software costs

 

958

 

 

5,007

 

 

4,702

 

 

17,387

 

Gain on sale of assets(1)

 

(33,636

)

 

 

 

(33,636

)

 

 

Income tax effects and adjustments(2)

 

323

 

 

(5,145

)

 

(10,054

)

 

(20,399

)

Non-GAAP net income

$

70,736

 

$

55,499

 

$

172,524

 

$

144,307

 

Non-GAAP net margin

 

16.5%

 

15.1%

 

14.3%

 

13.7%

 

Diluted EPS, as reported

$

0.47

 

$

0.20

 

$

0.75

 

$

0.37

 

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS

 

 

 

 

Stock-based compensation

 

0.15

 

 

0.14

 

 

0.46

 

 

0.42

 

Amortization of acquisition-related intangibles and fair value adjustments

 

0.10

 

 

0.06

 

 

0.28

 

 

0.17

 

Acquisition transaction and integration costs, restructuring charges and other

 

0.05

 

 

0.02

 

 

0.11

 

 

0.14

 

Net amortization of internally developed software costs

 

0.01

 

 

0.04

 

 

0.03

 

 

0.13

 

Gain on sale of assets(1)

 

(0.25

)

 

 

 

(0.25

)

 

 

Income tax effects and adjustments(2)

 

 

 

(0.04

)

 

(0.08

)

 

(0.15

)

Non-GAAP diluted EPS

$

0.53

 

$

0.42

 

$

1.30

 

$

1.08

 

(1): During the third quarter of 2022, the company recognized a gain of $34 million related to the sale of land and office buildings, presented within "Gain on sale of assets".

(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.

Weighted average shares outstanding - Diluted

 

132,581

 

 

133,686

 

 

133,001

 

 

133,829

 

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

(unaudited)

 

Three Months Ended

 

December 31, 2022

 

 

 

 

Low

High

GAAP Diluted EPS, guidance

$

0.22

 

$

0.36

 

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)

 

0.13

 

 

0.13

 

Income tax effects and adjustments(2)

 

(0.06

)

 

(0.06

)

Non-GAAP Diluted EPS, guidance

$

0.54

 

$

0.68

 

(1): Includes $10 million of pre-tax charitable contribution using a portion of the proceeds received from real estate sales completed in the third quarter of 2022.

(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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