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

National Instruments Achieves Record Revenues and 22 Percent Earnings Growth


National Instruments Corporation Declares 3-for-2 Stock Split

AUSTIN, Texas -- July 22, 1999 -- National Instruments (NASDAQ:NATI) today announced record revenues and record earnings for the second quarter of 1999.

"We are delighted to have another quarter of record revenues and record earnings,"said James Truchard, President and CEO. "We increased our growth rate significantly and were successful in aggressively increasing our investment in both R&D and the Web. We were especially pleased to see sales through our new online store increase by 400 percent over the previous quarter and Web commerce grow to two percent of our overall business."

Revenues for the second quarter were $79.8 million, up 18 percent from $67.8 million in the second quarter of 1998. Geographically, the breakdown of revenue growth for the quarter compared to second quarter of 1998 was as follows: Americas 11 percent revenue growth; Europe 24 percent revenue growth; and Asia/Pacific 46 percent revenue growth.

Net income for the quarter increased by 22 percent to $11.3 million compared to net income of $9.2 million in the second quarter of 1998. National Instruments reported basic earnings per share of $0.34 for the second quarter of 1999 compared to basic earnings per share of $0.28 in the second quarter of 1998. The Company reported diluted earnings per share of $0.33 on 34.6 million weighted average shares outstanding for the second quarter of 1999 compared to diluted earnings per share of $0.27 for the same period last year.

"We were pleased to see a strong increase in revenue growth and earnings," said Alex Davern, Chief Financial Officer. "This gives us the resources and confidence to make the significant incremental investments in R&D and in the Web, which we believe are necessary to fuel our long-term growth."

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 the Asian economies and risk with regard to the Company's expanded sales force being able to execute effectively. The Company directs you to documents filed with the SEC for risks associated with the Company's future performance.

National Instruments, a leading supplier of computer-based measurement and automation products, manufactures hundreds of software and hardware products which, when combined with industry-standard computers, are used for test, measurement, and industrial automation applications.

National Instruments 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 e-mail to nati@ni.com, or on the Web at www.ni.com/nati

Beginning Thursday, July 22 at 7:00 p.m. CDT, interested parties may listen to a replay of the National Instruments quarterly conference call by visiting the Company's Web site at www.ni.com/nati (replay available through Thursday, July 29 at 12:00 a.m. CDT) or by calling (719) 457-0820; confirmation code # 708094 (replay available through Thursday, August 5 at 12:00 a.m. CDT).

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



National Instruments
Condensed Consolidated Balance Sheets
(in thousands)

June 30,
1999
(unaudited)
December 31,
1998
ASSETS
Current assets:
Cash and cash equivalents $60,739 $51,538
Short-term investments 62,900 49,158
Accounts receivable, net 49,883 45,622
Inventories 18,733 16,454
Other current assets 13,095 11,624
Total current assets 205,350 174,396
Property and equipment, net 65,306 66,131
Intangibles and other assets 8,457 9,259
Total assets $279,113 $249,786
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $882 $849
Accounts payable 20,509 17,242
Accrued expenses 23,417 22,795
Total current liabilities 44,808 40,886
Long-term debt 3,932 4,379
Deferred income taxes 337 337
Total liabilities 49,077 45,602
Stockholders' equity:
Common stock 333 329
Additional paid-in capital 57,016 51,662
Retained earnings 174,865 153,601
Accumulated other comprehensive loss (2,178) (1,408)
Total stockholders' equity 230,036 204,184
Total liabilities and stockholders' equity $279,113 $249,786


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)
1999 1998 1999 1998
Net sales $79,777 $67,770 $153,463 $133,123
Cost of sales 18,119 16,089 35,059 31,658
Gross profit 61,658 51,681 118,404 101,465
Operating expenses:
Sales and marketing 28,674 24,494 55,697 49,024
Research and development 11,214 8,953 20,464 16,703
General and administrative 5,887 5,201 11,194 9,921
Total operating expenses 45,775 38,648 87,355 75,648
Operating income 15,883 13,033 31,049 25,817
Interest income, net 954 635 1,757 1,361
Net foreign exchange loss
 and other
(283) 60 (723) (270)
Income before income taxes and
 cumulative effect of accounting
 change
16,554 13,728 32,083 26,908
Provision for income taxes 5,297 4,530 10,266 8,879
Income before cumulative effect
 of accounting change
11,257 9,198 21,817 18,029
Cumulative effect of accounting
 change
     -      - (552)       -
Net income $11,257 $9,198 $21,265 $18,029
Basic earnings per share $0.34 $0.28 $0.64 $0.55
Weighted average shares
 outstanding -- basic
33,150 32,800 33,070 32,800
Diluted earnings per share $0.33 $0.27 $0.62 $0.53
Weighted average shares
 outstanding -- diluted
34,577 34,200 34,400 34,200

Contact:

Tara Mason
Investor Relations
National Instruments
(512) 683-6873
Alex Davern
CFO/CIO
National Instruments
(512) 683-6977


###

Related Links: