2006 Annual Report

Five-Year Financial Overview

FISCAL YEAR ENDED DEC. 31, 2006
	2006	2005	2004	2003	2002
OPERATING RESULTS
Net revenue	660	572	514	426	391
Gross margin	490	423	379	314	286
Operating income	88	78	63	40	40
Net income	73	62	49	33	31
Income per common share(1)
Basic	0.91	0.78	0.62	0.43	0.41
Diluted	0.89	0.76	0.59	0.41	0.39
PERCENT OF REVENUE
Gross margin	74.2	73.9	0.736	0.738	0.731
Operating income	0.133	0.137	0.122	0.095	0.103
Net income	0.11	0.108	0.095	0.078	0.08
Income tax rate	0.24	0.23	0.24	0.25	0.28
Net revenue, by region
Americas	0.48	0.48	0.47	0.47	0.5
Europe	0.29	0.3	0.32	0.324	0.31
Asia/ROW	0.23	0.22	0.21	0.206	0.19
FINANCIAL POSITION
Total current assets	477	362	392	331	278
Property, plant and equipment, net	145	144	150	152	152
Working capital	375	275	310	255	211
Total assets	721	608	582	525	459
Total current liabilities	103	88	83	76	67
Long-term debt	-	-	-	-	-
Stockholders’ equity	597	504	486	439	386
Total liabilities and stockholders’ equity	721	608	582	525	459
KEY RATIOS
Current ratio	4.7	4.1	4.7	4.4	4.1
Quick ratio	3.9	3.4	4.1	3.9	3.6
OTHER DATA
Employees	4149	3812	3465	3078	3008
Investment in R&D	113	88	85	71	64
Cash flow from operations	98	88	66	63	49
Weighted average shares outstanding(1)
Basic	79.5	78.6	78.7	77.4	76.8
Diluted	81.5	80.9	82.1	80.9	80.1
Common shares outstanding (year-end)(1)	79.9	79.3	78.9	78.3	76.6
Closing stock price (Nasdaq: NATI)	27.24	32.05	27.2	30.31	21.66

(Dollars in millions, except per-share, per-employee data)

⁽¹⁾ Share and per-share information had been restated to reflect 3-for-2 splits of the common stock in February 2004 and August 1999.