2001 Annual Report

Five-Year Financial Overview

FISCAL YEAR ENDED DEC. 31,
	2001	2000	1999	1998	1997
OPERATING RESULTS
Net revenue	$385	$410	$330	$274	$241
Gross margin	$284	$312	$254	$209	$186
Operating income	$48	$76	$63	$53	$50
Net income	$36	$55	$45	$37	$34
Income per common share ⁽¹⁾
Basic	$0.72	$1.10	$0.91	$0.76	$0.69
Diluted	$0.68	$1.03	$0.87	$0.73	$0.67

PERCENT OF REVENUE
Gross margin	73.7%	76.0%	76.9%	76.2%	77.1%
Operating income	12.6%	18.6%	19.1%	19.3%	20.7%
Net income	9.4%	13.4%	13.7%	13.6%	14.0%
Income tax rate	32.0%	32.0%	32.0%	33.0%	33.0%
Net revenue, by region
Americas	51%	53%	53%	56%	59%
Europe	33%	32%	33%	32%	27%
Asia/ROW	16%	15%	14%	12%	14%

FISCAL YEAR ENDED DEC. 31,
	2001	2000	1999	1998	1997
FINANCIAL POSITION
Total current assets	$264	$285	$231	$174	$149
Property, plant and equipment, net	$137	$85	$70	$66	$47
Working capital	$210	$220	$174	$133	$112
Total assets	$425	$389	$319	$250	$204
Total current liabilities	$54	$64	$57	$41	$37
Long-term debt	-	-	$5	$4	$5
Stockholders’ equity	$366	$321	$254	$204	$162
Total liabilities and stockholders’ equity	$425	$389	$319	$250	$204

KEY RATIOS
Current ratio	4.9	4.5	4.1	4.2	4.0
Quick ratio	4.3	3.9	3.6	3.9	3.6

OTHER DATA
Employees	2,849	2,511	1,955	1,554	1,371
Investment in R&D	$61	$56	$46	$35	$30
Cash flow from operations	$57.2	$55.0	$46.7	$46.2	$31.7
Weighted average shares outstanding ⁽¹⁾
Basic	50.9	50.3	49.8	49.2	48.8
Diluted	53.7	53.6	52.2	51.2	50.5
Common shares outstanding (year-end) ⁽¹⁾	51.2	50.6	50.0	49.4	49.0
Closing stock price (Nasdaq: NATI)	$37.46	$48.56	$38.25	$22.75	$19.33

⁽¹⁾ Share and per-share information has been restated to reflect 3-for-2 splits of the common stock in November 1997 and August 1999.