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National Instruments Reports Third Consecutive Quarter of Revenue GrowthStrong Growth in Asia Drives Earnings of 13 Cents Per Share AUSTIN, Texas -- April 17, 2003 -- National Instruments (NASDAQ: NATI) today announced revenue for the first quarter of 2003 of $99.2 million, a five percent increase over the first quarter of 2002, and the company's third straight quarter of year-over-year revenue growth. Diluted earnings per share for the first quarter of 2003 are $0.13. This number includes a $2.7 million expense, or approximately $0.04 per share, related to winning a favorable jury verdict in a patent infringement case filed by NI. "Despite a difficult quarter with geopolitical uncertainty impacting our revenue in the U.S. and Europe, we are pleased that Q1 2003 represents our third consecutive quarter of overall revenue growth," said Alex Davern, NI CFO. "We saw strong results in Asia during the quarter and plan to continue investing in strategic areas of our business, primarily in R&D and Asia." The geographic breakdown of revenue growth in U.S. dollars in the first quarter of 2003 as compared to the first quarter of 2002 was as follows: Americas, down two percent; Europe, up eight percent; Asia, up 17 percent; and up five percent worldwide. In local currency terms, revenue was down two percent in the Americas, down three percent in Europe, up 38 percent in Asia, and up four percent worldwide. "While I am not satisfied with our overall growth rate, I am pleased with our internal execution throughout the company in the first quarter and am optimistic about future prospects," said James Truchard, NI president and CEO. "We continue to aggressively pursue new product development and plan to introduce revolutionary new products during the next few quarters that should drive virtual instrumentation into the mainstream of measurement and automation and target an expanded range of applications." Cash flow from operations was $13.5 million, up from $4.4 million in the first quarter of 2002. NI continues to have a very strong balance sheet with a near record $158 million in cash and short-term investments, and no debt. Orders for the first half of April are up by double digits. However, given the easier compares with early April 2002 and the current global economic uncertainty, the company feels it is appropriate to set expectations at single digit, year-over-year revenue growth in the second quarter of 2003 and diluted earnings per share in the range of $0.12 and $0.16 per share. This earnings per share estimate is net of approximately $600,000 in expected legal expenses related to ongoing patent litigation. The company will decide how to recognize the gain on the Jury's $3.5 million damages award when it receives the Court's disposition of post-trial motions. As a result of the better than expected ramp up of the company's new Hungarian manufacturing facility, NI currently estimates its effective tax rate for 2003 and 2004 will drop to approximately 25 percent, down from 28 percent in 2002. Interested parties can listen to a conference call today, April 17, 2003, beginning at 4 p.m. CDT, on ni.com/call. Replay information will be available by calling (719) 457-0820, confirmation code #597410, from 7 p.m. CDT April 17, 2003, through May 1, 2003 at 12 a.m. CDT. This release contains "forward-looking statements," including the company's plans to continue investing in strategic areas, optimism about future prospects, the aggressive pursuit of new product development, and expected revenue, earnings, tax rates, and expenses. These are subject to a number of risks and uncertainties, including the risk of further deterioration in the global economy, delays in the release of new products, fluctuations in customer demand for NI products, manufacturing inefficiencies, and foreign exchange fluctuations. Actual results may differ materially from the expected results. The company directs you to documents filed with the SEC for other risks associated with the company's future performance. About National Instruments NI investment information may be obtained from the company's Investor Relations Department at (512) 683-5090, by sending e-mail to nati@ni.com, or on the Web at ni.com/nati. The condensed consolidated balance sheets, statements of income, and cash flows to follow. Condensed Consolidated Balance Sheets (in thousands)
National Instruments Condensed Consolidated Statements of Income (in thousands, except per share data) Three months ended March 31, (unaudited)
National Instruments Consolidated Statements of Cash Flows (in thousands)
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