National Instruments Announces Record First Quarter Revenues

Net Income Up 38 Percent Over First Quarter of 1996

Austin, Texas -- April 16, 1997 -- National Instruments (Nasdaq: NATI) today announced record revenues for the first quarter of fiscal year 1997.

Revenues for the first quarter were $54.6 million, up 18 percent from $46.4 million in the first quarter of 1996, and up from the $54.4 million reported in the fourth quarter of 1996. Net income in the quarter was $7.6 million, up 38 percent from $5.5 million a year ago, and down 8 percent from the $8.2 million reported in the immediately prior quarter. National Instruments reported earnings per share of $0.34 on 22.3 million weighted average shares outstanding, compared with earnings per share of $0.25 on 21.7 million weighted average shares outstanding in the first quarter of 1996 and $0.37 on 22.2 million weighted average shares outstanding in the fourth quarter of 1996.

"I am pleased to report the company's best sales quarter ever," declared Dr. James Truchard, President and CEO. "We built upon the momentum of 1996 and continued to expand the portfolio of virtual instrumentation products that fueled our growth. I congratulate our employees on successfully executing our strategies for the quarter."

"Our very favorable gross margin of 77 percent was accomplished by maintaining our manufacturing overhead cost relatively constant year over year while increasing our output," continued Dr. Truchard. "We are indeed seeing the benefits of operational improvements made last year including the implementing of our Oracle manufacturing software system."

Products introduced in the first quarter of 1997 include MITE-based PCI data acquisition products and high-speed digital input/output modules for the PCI and ISA form factors. The company's new family of digitizing oscilloscope modules for PCI, ISA, and PCMCIA are targeted as direct functional replacements for many traditional digitizing oscilloscopes. In addition, National Instruments introduced the first GPIB interface for CompactPCI.

National Instruments manufactures software and hardware products for PCs and workstations that scientists and engineers use to build virtual instrumentation systems in a variety of applications and industries. National Instruments is traded on the Nasdaq National Market System under the symbol NATI. More information on National Instruments is available from the company's SEC filings or by contacting the company's Investor Relations Department at 6504 Bridge Point Parkway, Austin, Texas 78730-5039, (512) 349-5090. General company, product and financial information can be accessed through the National Instruments web site at www.ni.com.

The condensed consolidated statement of income and balance sheets to follow.

Product and company names listed are trademarks or tradenames of their respective companies.

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Condensed Consolidated Balance Sheets
(in thousands)

	March 31 1997	December31 1996
ASSETS
Current assets:
Cash and cash equivalents	$ 30,167	$ 30,211
Marketable securities	50,442	48,956
Accounts receivable, net	34,698	33,442
Inventories	11,630	11,778
Other current assets	7,748	7,198
Total current assets	134,685	131,585
Property and equipment, net	32,282	32,184
Intangibles and other assets	5,733	5,456
Total assets	$172,700	$169,225
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$ 851	$ 1,517
Accounts payable	12,617	11,430
Accrued expenses	18,727	19,344
Total current liabilities	32,195	32,291
Long-term debt	5,848	9,175
Deferred income taxes	808	806
Total liabilities	38,851	42,272
Stockholder's equity:
Common stock	216	216
Additional paid-in capital	44,552	44,396
Retained earnings	90,158	82,590
Other	(1,077)	(249)
Total stockholders' equity	133,849	126,953
Total liabilities and stockholders' equity	$172,700	$169,225

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National Instruments
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)

	Three Months Ended March 31 (unaudited)
		1997	1996
Net sales	$54,571	$46,408
Cost of sales	12,293	11,266
Gross profit	42,278	35,142
Operating expenses
Sales and marketing	19,962	17,565
Research and development	6,477	4,975
General and administrative	4,270	4,174
Total operating expenses	30,709	26,714
Operating income	11,569	8,428
Interest income, net	698	257
Foreign exchange (loss) gain, net	(964)	(378)
Income before income taxes	11,303	8,307
Provision for income taxes	3,735	2,824
Net income	$7,568	$ 5,483
Earnings per share	$ 0.34	$ 0.25
Weighted average shares outstanding	22,300	21,666

Contact:
Investor Relations
National Instruments
(512) 683-5090

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