Statement From the CEO

Today, I present our annual citizenship report that outlines our economic, environmental, and social performance as well as our commitments for the future. The 2010 report explains in detail how we continue to work toward the success of our key stakeholders: employees, customers, suppliers, and shareholders.

This year, National Instruments celebrates its 35th anniversary as a company that fosters innovation in a collaborative environment, inspiring and empowering engineers and scientists to improve the world around us. While the last two years have been both challenging and volatile, I am proud that NI successfully navigated one of the worst recessions in history by staying true to our long-term strategy. Our commitment to the long-term view, what we call our 100-year plan, enabled NI to post record revenues and profit while expanding our R&D and global field operations. In 2010, we released 438 new products and services that are creating significant new market opportunities for NI and from which our customers are seeing great value.

As a leading technology company, we strive to empower today's innovators to solve the world's biggest problems with products and services that benefit society. In 2008, the National Academy of Engineering (NAE) outlined 14 grand challenges that serve as a call to action for engineering and science to develop solutions that range from enhancing tools for scientific discovery to engineering better medicine. Our approach strives to create shared value that enhances the economic and social conditions of our communities, much like the impact of Thomas Edison's inventions on the past century. I am inspired every day by how our customers, who are developing solutions in each of the 14 grand challenge areas, are creating new and smarter life-changing applications involving the environment, renewable energy, medical devices, and the process of restoring and improving urban infrastructure. At NI, we are confident that by creating the best possible tools, today's engineers and scientists can successfully address the grand challenges with achievements that will benefit society for years to come.
And as part of this commitment, we believe that grand innovation starts by helping to create a more technically literate society and that by engaging students with technology through mentorship and a fun, hands-on learning environment, future generations will be inspired to solve the problems of tomorrow. This responsibility we feel to the next generation and our commitment to transforming science, technology, engineering, and math (STEM) education are at the heart of our citizenship efforts and impact all of our stakeholders.

Beyond our focus on customer success and improving technical literacy, we also made commitments in 2010 to minimize the environmental footprint of our products, our operations, and our facilities. We reduced the amount of unnecessary material included in our product packaging, initiated a power management program on employee computers, and instituted a citizenship survey completed by our suppliers that evaluates their sustainability in the areas of energy and climate, material efficiency, natural resources, people, and community. We look forward to working on even more initiatives in the coming year.

Our desire to have a significant positive impact in our communities and throughout society is driven by the passion and dedication of NI employees throughout the world. I enjoy learning of their efforts as they design and develop valuable tools for our customers and engage in activities to improve education, health, and well-being within their communities. I am particularly proud of the enthusiasm and impact of our employees who work to inspire and engage students in the fields of engineering and science through programs such as FIRST (For Inspiration and Recognition of Science and Technology).

Finally, we are extremely honored that, in 2010, the Great Place to Work Institute recognized six NI offices as great places to work including NI corporate headquarters which was named to FORTUNE magazine's '100 Best Companies to Work For' list for the 12th consecutive year. This landmark achievement illustrates that by maintaining a positive corporate culture, we can influence the world around us.

We hope you'll learn more about NI citizenship and join us on our journey to improve the world. Our complete citizenship report at ni.com/citizenship provides the full scope of our citizenship efforts, and I welcome your feedback.

Best regards,

Dr. James Truchard
President, Chief Executive Officer, and Cofounder, National Instruments