Exhibit 99.1
Contacts: | Kimberly Allen | Kathleen Fisher | ||
Investor Relations Manager | Business Communications Manager | |||
(512) 683-6873 | (512) 683-5731 |
National Instruments Reports Third Consecutive Quarter of Revenue Growth
Strong 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 to $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.
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National Instruments Reports Third Consecutive Quarter of Revenue Growth
April 17, 2003
Page 2
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
National Instruments (http://ni.com) is a technology pioneer and leader in virtual instrumentation – a revolutionary concept that has changed the way engineers and scientists approach measurement and automation. Leveraging the PC and its related technologies, virtual instrumentation increases productivity and lowers costs for customers worldwide through easy-to-integrate software, such as the NI LabVIEW graphical development environment, and modular hardware, such as PXI modules for data acquisition, instrument control and machine vision. Headquartered in Austin, Texas, NI has more than 3,000 employees and direct operations in 40 countries. In 2002, the company sold products to more than 25,000 different companies in more than 80 countries around the world. For the past four consecutive years,FORTUNE magazine has named NI one of the 100 best companies to work for in America.
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.
Product and company names listed are trademarks or trade names of their respective companies.
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National Instruments Reports Third Consecutive Quarter of Revenue Growth
April 17, 2003
Page 3
National Instruments
Condensed Consolidated Balance Sheets
(in thousands)
March 31 2003 | December 31 2002 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 36,854 |
| $ | 40,240 |
| ||
Short-term investments |
| 121,035 |
|
| 113,638 |
| ||
Accounts receivable, net |
| 62,229 |
|
| 62,981 |
| ||
Inventories |
| 37,570 |
|
| 39,247 |
| ||
Other current assets |
| 18,822 |
|
| 21,860 |
| ||
Total current assets |
| 276,510 |
|
| 277,966 |
| ||
Property and equipment, net |
| 150,711 |
|
| 152,133 |
| ||
Intangibles and other assets |
| 35,344 |
|
| 28,615 |
| ||
Total assets | $ | 462,565 |
| $ | 458,714 |
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 27,728 |
| $ | 25,578 |
| ||
Accrued expenses |
| 34,468 |
|
| 40,935 |
| ||
Total current liabilities |
| 62,196 |
|
| 66,513 |
| ||
Deferred income taxes |
| 5,538 |
|
| 5,738 |
| ||
Total liabilities |
| 67,734 |
|
| 72,251 |
| ||
Stockholders’ equity: | ||||||||
Common stock |
| 512 |
|
| 511 |
| ||
Additional paid-in capital |
| 73,806 |
|
| 72,063 |
| ||
Retained earnings |
| 328,576 |
|
| 321,813 |
| ||
Other |
| (8,063 | ) |
| (7,924 | ) | ||
Total stockholders’ equity |
| 394,831 |
|
| 386,463 |
| ||
Total liabilities and stockholders’ equity | $ | 462,565 |
| $ | 458,714 |
| ||
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National Instruments Reports Third Consecutive Quarter of Revenue Growth
April 17, 2003
Page 4
National Instruments
Condensed Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended March 31 | ||||||||
2003 | 2002 | |||||||
(unaudited) | ||||||||
Net sales | $ | 99,173 |
| $ | 94,739 |
| ||
Cost of sales |
| 26,013 |
|
| 25,358 |
| ||
Gross profit |
| 73,160 |
|
| 69,381 |
| ||
Sales and marketing |
| 38,545 |
|
| 35,407 |
| ||
Research and development |
| 15,251 |
|
| 15,933 |
| ||
General and administrative |
| 8,338 |
|
| 7,281 |
| ||
Patent litigation |
| 2,702 |
|
| 505 |
| ||
Total operating expenses |
| 64,836 |
|
| 59,126 |
| ||
Operating income |
| 8,324 |
|
| 10,255 |
| ||
Interest income, net |
| 686 |
|
| 797 |
| ||
Foreign exchange loss, net |
| (14 | ) |
| (894 | ) | ||
Other income |
| 21 |
|
| 74 |
| ||
Income before income taxes |
| 9,017 |
|
| 10,232 |
| ||
Provision for income taxes |
| 2,254 |
|
| 2,865 |
| ||
Net income | $ | 6,763 |
| $ | 7,367 |
| ||
Earnings per share: | ||||||||
Basic | $ | 0.13 |
| $ | 0.14 |
| ||
Diluted | $ | 0.13 |
| $ | 0.14 |
| ||
Weighted average shares Outstanding: | ||||||||
Basic |
| 51,156 |
|
| 51,205 |
| ||
Diluted |
| 53,273 |
|
| 53,953 |
| ||
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National Instruments Reports Third Consecutive Quarter of Revenue Growth
April 17, 2003
Page 5
National Instruments
Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended March, 31 | ||||||||
2003 | 2002 | |||||||
(unaudited) | ||||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 6,763 |
| $ | 7,367 |
| ||
Adjustments to reconcile net income to cash from operating activities: | ||||||||
Charges to income not requiring cash outlays: | ||||||||
Depreciation and amortization |
| 6,097 |
|
| 4,350 |
| ||
Provision for (benefit from) deferred income taxes |
| (582 | ) |
| (1,456 | ) | ||
Tax benefit from stock option plans |
| 752 |
|
| 459 |
| ||
Changes in operating assets and liabilities: | ||||||||
(Increase) decrease in accounts receivable |
| 752 |
|
| (6,550 | ) | ||
Decrease in inventory |
| 1,677 |
|
| 1,800 |
| ||
Decrease (increase) in prepaid expense and other assets |
| 2,336 |
|
| (3,376 | ) | ||
Increase (decrease) in current liabilities |
| (4,317 | ) |
| 1,853 |
| ||
Net cash provided by operating activities |
| 13,478 |
|
| 4,447 |
| ||
Cash flow from investing activities: | ||||||||
Capital expenditures |
| (3,113 | ) |
| (6,871 | ) | ||
Additions to intangibles |
| (8,097 | ) |
| (605 | ) | ||
Purchases of short-term investments |
| (37,272 | ) |
| (49,084 | ) | ||
Sales of short-term investments |
| 29,875 |
|
| 42,282 |
| ||
Net cash used in investing activities |
| (18,607 | ) |
| (14,278 | ) | ||
Cash flow from financing activities: | ||||||||
Proceeds from issuance of common stock, net of repurchases |
| 1,743 |
|
| 1,242 |
| ||
Net cash provided by financing activities |
| 1,743 |
|
| 1,242 |
| ||
Net decrease in cash and cash equivalents |
| (3,386 | ) |
| (8,589 | ) | ||
Cash and cash equivalents at beginning of period |
| 40,240 |
|
| 49,089 |
| ||
Cash and cash equivalents at end of period | $ | 36,854 |
| $ | 40,500 |
| ||
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