National Instruments Announces Record Revenues and Earnings for First Quarter 1996

Net Income Up 31 Percent Over Q1 1995

Austin, Texas -- April 18, 1996 -- National Instruments (NASDAQ:NATI) today announced record revenues and earnings for the first quarter of fiscal year 1996 ended March 31, 1996.

Revenues for the first quarter were $46.4 million, up 16 percent from $39.8 million in the first quarter of 1995, and up 5 percent from the $44.4 million reported in the fourth quarter of 1995. Net income in the quarter was $5.5 million, up 31 percent from $4.2 million a year ago, and up 1 percent from the $5.4 million reported in the immediately prior quarter.

National Instruments reported earnings per share of $0.25 on 21.7 million weighted average shares outstanding, compared with earnings per share of $0.22 on 18.9 million weighted average shares outstanding in the first quarter of 1995 and $0.25 on 21.7 million weighted average shares outstanding in the fourth quarter of 1995.

National Instruments manufactures software and hardware products for PCs and workstations that scientists and engineers use to build virtual instrumentation systems. These systems are used for research and industrial applications such as automated testing, laboratory automation, process monitoring and control, factory automation, physiological monitoring, numerical analysis, and data visualization.

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 and product information can also be accessed through the National Instruments InstrumentationWeb at /corp/company.htm.

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 1996 (unaudited)	December 31 1995
ASSETS
Current assets:
Cash and cash equivalents	$ 16,342	$ 12,016
Marketable securities	39,355	37,765
Accounts receivable, net	33,473	28,789
Inventories	13,490	15,295
Other current assets	6,217	6,788
Total current assets	108,877	100,653
Intangibles and other assets	4,091	3,853
Property and equipment, net	31,894	32,596
Total assets	$144,862	$137,102
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$ 2,446	$ 2,137
Accounts payable	9,886	9,783
Accrued expenses	16,305	14,187
Total current liabilities	28,637	26,107
Long-term debt	11,538	11,603
Deferred income taxes	656	656
Total liabilities	40,831	38,366
Stockholder's equity:
Common stock	215	215
Additional paid-in capital	41,283	41,277
Retained earnings	62,587	57,104
Other	(54)	140
Total stockholders' equity	104,031	98,736
Total liabilities and stockholders' equity	$144,862	$137,102

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

	Three Months Ended March 31 (unaudited)
	1996	1995
Net sales	$46,408	$39,844
Cost of sales	11,266	9,826
Gross profit	35,142	30,018
Operating expenses
Sales and marketing	17,565	15,478
Research and development	4,975	4,868
General and administrative	4,174	3,232
Total operating expenses	26,714	23,578
Operating income	8,428	6,440
Interest income (expense), net	257	12
Foreign exchange (loss) gain, net	(378)	422
Income before income taxes	8,307	6,874
Provision for income taxes	2,824	2,680
Net income	$5,483	$ 4,194
Earnings per share	$ 0.25	$ 0.22
Weighted average shares outstanding	21,666	18,944

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

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