Academic Company Events NI Developer Zone Support Solutions Products & Services Contact NI MyNI

National Instruments Reports Record Earnings, First $100 Million Quarter


Revenue Climbs 25 Percent in Ninth Consecutive Quarter of Record Revenue

AUSTIN, Texas -- July 20, 2000 -- National Instruments (Nasdaq:NATI), a leading supplier of computer-based measurement and automation products, today announced record revenue for the second quarter of 2000, as revenue grew by 25 percent and earnings climbed 28 percent.

"Achieving our first $100 million quarter is a significant milestone toward becoming a multibillion dollar company," said James Truchard, NI President and CEO. "In the past 12 months, our success in recruiting top engineering talent enabled us to increase R&D staff by more than 50 percent and achieve our strategic goal of investing 14 percent of revenue in R&D."

Revenue for the second quarter was $100 million, up 25 percent from $80 million in the second quarter of 1999. Geographically, the breakdown of revenue growth for the quarter as compared to the second quarter of 1999 was as follows: Americas 23 percent revenue growth, Europe 29 percent revenue growth, and Asia/Pacific 20 percent revenue growth. In constant currency terms, total revenue would have increased by 28 percent.

"Q2 2000 was a very strong quarter, delivering our ninth consecutive quarter of record revenue," said Alex Davern, CFO of NI. "In addition to consistent top line execution, NI continued to deliver strong earnings growth with net income up 28 percent."

Net income for the quarter increased by 28 percent to a record $14.4 million compared to net income of $11.3 million in the second quarter of 1999. NI reported basic earnings per share of $0.29 for the second quarter of 2000 compared to basic earnings per share of $0.23 in the second quarter of 1999. The Company reported diluted earnings per share of $0.27 on 53.6 million weighted average shares outstanding for the second quarter of 2000 compared to diluted earnings per share of $0.22 for the same period last year.

Quarterly Highlights

  • First $100 million quarter
  • Ninth consecutive quarter of record revenue
  • Increased R&D staff by more than 50 percent and met strategic goal of investing 14 percent of revenue in R&D
  • Strong growth in emerging product lines
  • Success in delivering more of the total system solution to customers
  • Mihir Ravel, a leading technologist in test and measurement, joins as VP of Corporate Development
  • Telecom industry veteran, Charles J. Roesslein, joins NI Board of Directors

About National Instruments
NI manufactures hundreds of software and hardware products that leverage industry-standard computers and Internet technology for measurement and automation applications.

NI stock is traded on the Nasdaq National Market System under the symbol NATI. Investment information may be obtained from the Company's Investor Relations Department at (512) 683-5090, by sending an e-mail to nati@ni.com, or on the Web at ni.com/nati

Beginning Thursday, July 20 at 7 p.m. CDT through Thursday, July 27 at 12 a.m. CDT, interested parties may listen to a replay of the NI quarterly conference call by visiting the Company's Web site at ni.com/call or by calling (719) 457-0820, confirmation code #442933.

This release may contain "forward-looking statements" (as defined under securities laws), which are subject to a number of risks and uncertainties. Actual results may differ materially from the expected results. Specific risks include: customer acceptance of and demand for our new products; business conditions in general economy and in the markets NI serves; currency fluctuations; inability to protect intellectual property rights or successfully defend infringement claims by others; inventory obsolescence risks; deliveries of products containing errors or defects; changes in product and sales mix which affect gross margins; the availability of parts and supplies from third-party suppliers on a timely basis and at reasonable prices; technological difficulties; resource constraints encountered in developing new products; and economic and regulatory risks of overseas operations. The Company directs you to documents filed with the SEC for risks associated with the Company's future performance.

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



National Instruments
Condensed Consolidated Balance Sheets
(in thousands)

June 30,
2000
(unaudited)
December 31,
1999
ASSETS
Current assets:
Cash and cash equivalents $ 60,126 $ 45,309
Short-term investments 80,364 83,525
Accounts receivable, net 63,280 58,279
Inventories 27,486 26,161
Other current assets 19,547 17,755
Total current assets 250,803 231,029
Property and equipment, net 76,269 69,771
Intangibles and other assets 20,292 17,953
Total assets $347,364 $318,753
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 867 $ 876
Accounts payable 25,528 23,318
Accrued expenses 27,355 33,074
Total current liabilities 53,750 57,268
Long-term debt 3,688 4,301
Deferred income taxes 2,948 2,949
Total liabilities 60,386 64,518
Stockholders' equity:
Common stock 503 500
Additional paid-in capital 63,091 58,830
Retained earnings 225,945 198,849
Accumulated other comprehensive loss (2,561) (3,944)
Total stockholders' equity 286,978 254,235
Total liabilities and stockholders' equity $347,364 $318,753


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

Three Months
Ended June 30,
(unaudited)
Six Months
Ended June 30,
(unaudited)
2000 1999 2000 1999
Net sales $99,550 $79,777 $193,655 $153,463
Cost of sales 24,030 18,119 46,269 35,059
Gross profit 75,520 61,658 147,386 118,404
Operating expenses:
Sales and marketing 34,442 28,674 69,205 55,697
Research and development 13,752 11,214 26,098 20,464
General and administrative 7,151 5,887 13,855 11,194
Total operating expenses 55,345 45,775 109,158 87,355
Operating income 20,175 15,883 38,228 31,049
Interest income, net 1,336 954 2,525 1,757
Net foreign exchange loss
 and other
(289) (283) (907) (723)
Income before income taxes and
 cumulative effect of accounting
 change
21,222 16,554 39,846 32,083
Provision for income taxes 6,791 5,297 12,751 10,266
Income before cumulative effect
 of accounting change
14,431 11,257 27,095 21,817
Cumulative effect of accounting
 change
     -      -       - (552)
Net income $14,431 $11,257 $27,095 $21,265
Basic earnings per share $0.29 $0.23 $0.54 $0.43
Weighted average shares
 outstanding -- basic
50,274 49,725 50,193 49,605
Diluted earnings per share $0.27 $0.22 $0.51 $0.41
Weighted average shares
 outstanding -- diluted
53,567 51,866 53,490 51,600

Contact:

Tara Mason
Investor Relations Manager
National Instruments
(512) 683-6873
Alex Davern
Chief Financial Officer
National Instruments
(512) 683-6977


###

Related Links: