National Instruments Reports Q2 2009 Results
Significant Improvement in Profitability From Q1 2009
AUSTIN, Texas – July 23, 2009 – National Instruments (Nasdaq: NATI) reported quarterly revenue for Q2 2009 of $152.2 million, which represents a 28 percent year-over-year decline and comes in above the midpoint of the company’s guidance. While revenue declined by 4 percent sequentially from Q1, orders increased 1 percent, resulting in a $6 million sequential increase in the backlog of orders during Q2.
Net income for Q2 was $4.4 million, with fully diluted earnings per share (EPS) of $0.06. Non-GAAP net income was $8.3 million, with non-GAAP fully diluted EPS of $0.11. The company’s non-GAAP results exclude the impact of both stock-based compensation and the amortization of acquisition-related intangibles. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.
“I am pleased to see orders in the key product areas of NI CompactRIO, PXI and modular instruments grow sequentially despite the continued contraction in the global industrial economy,” said Dr. James Truchard, NI president and CEO. “I believe our strategic investment in R&D in recent years has allowed us to deliver highly differentiated products, which are helping us outperform competitors and should position us well for the eventual recovery.”
In Q2 2009, NI virtual instrumentation and graphical system design products, which constitute the majority of the company’s product portfolio, experienced a 26 percent year-over-year revenue decline. Sales of NI instrument control products, which now represent approximately 6 percent of NI revenue, were down 46 percent year-over-year in Q2 2009. Product revenue was $140 million, down 29 percent from Q2 2008, and software maintenance revenue was $12 million, down 17 percent year-over-year.
Geographically, the company saw the effects of the slowdown worldwide. Revenue in U.S. dollar terms for Q2 2009 compared to Q2 2008 was down 23 percent in the Americas, down 35 percent in Europe and down 25 percent in Asia, equaling an overall revenue decline of 28 percent. The company believes that European performance was negatively impacted by the shift in Easter from Q1 in 2008 to Q2 in 2009. In local currency terms, revenue was down 25 percent in Europe and down 17 percent in Asia, for an overall local currency decline of 21 percent year-over-year.
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 2
Total operating expenses for the quarter were down $20 million year-over-year, illustrating the strong fiscal discipline that has been exercised throughout the organization in response to the severe downturn in the global industrial economy. Total headcount as of June 30 was 5,135, up 5 percent year-over-year. The primary focus for headcount additions this year has been in R&D and field sales.
As of June 30, 2009, NI had $251 million in net cash and short-term investments, up $9.2 million from March 31, 2009. During Q2 2009, the company paid $9.3 million in dividends and used $5.7 million to repurchase 249,000 shares of its common stock at an average price of $22.97 per share. National Instruments announced that its Board of Directors declared a dividend of $0.12 per share on its common stock payable on Aug. 31, 2009, to shareholders of record on Aug. 10, 2009.
Q2 2009 Highlights
| · | Quarterly revenue of $152 million, down 28 percent year-over-year |
| · | Net income of $4.4 million |
| · | Non-GAAP net income of $8.3 million |
| · | Cash and short-term investments of $251 million |
| · | Total operating expenses for the quarter down $20 million year-over-year |
Outlook and Specific Guidance for Q3 2009
After reaching a record low in Q1 2009, the quarterly average of the global Purchasing Managers Index (PMI) made significant progress toward the breakeven level of 50 in the second quarter. The latest reading of the global PMI of 46.9 in June indicates that while the rate of decline in the global industrial economy has moderated significantly from the end of 2008, global industrial production was still contracting sequentially through the end of June. The company has scheduled a business update call for September 8 at 4:00 p.m.
“Our expense management efforts kicked in fully in Q2, which allowed us to reduce our non-GAAP expenses by 16 percent year-over-year and by $10 million sequentially. This helped us significantly increase our non-GAAP EPS from Q1, which increased our non-GAAP operating margin from 2 percent in Q1 to 5.5 percent in Q2, with non-GAAP net margin of 5.4 percent in Q2,” said Alex Davern, NI CFO. “Looking forward, it now appears increasingly likely that Q1 will be the low point in non-GAAP operating margin for this cycle.”
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 3
For Q3, NI currently expects revenue to be in the range of $158 million to $168 million. The company currently expects that GAAP fully diluted EPS will be in the range of $0.04 to $0.12 per share for Q3, with non-GAAP fully diluted EPS expected to be in the range of $0.09 to $0.17 per share.
In Q3 2009, the company expects the impact of both stock-based compensation and the amortization of acquisition-related intangibles to be $0.05 per share. A reconciliation of the company’s Q3 2009 guidance on a GAAP basis to its guidance on a non-GAAP basis is included as part of this news release.
Non-GAAP Results and Guidance Presentation
In addition to disclosing results determined in accordance with GAAP, NI discloses certain non-GAAP operating results and non-GAAP guidance that exclude certain charges. In this news release, the company has presented its net income and EPS for Q2 2009 and its guidance for Q3 2009 on a GAAP and non-GAAP basis. When presenting non-GAAP information, the company includes a reconciliation of the non-GAAP data to the GAAP data.
Management believes that including the non-GAAP results assists investors in assessing the company’s operational performance and its performance relative to its competitors. The company presents these non-GAAP results as a complement to results provided in accordance with GAAP, and these results should not be regarded as a substitute for GAAP. Management uses these non-GAAP measures to manage and assess the profitability and performance of its business and does not consider stock-based compensation expense or amortization of acquired intangibles that are all non-cash charges in managing its operations. Specifically, management uses non-GAAP measures to plan and forecast future periods, to establish operational goals, to compare with its business plan and individual operating budgets, to measure management performance for purposes of executive compensation including payments to be made under bonus plans, to assist the public in measuring the company’s performance relative to the company’s long-term public performance goals, to allocate resources and, relative to the company’s historical financial performance, to enable comparability between periods. Management also considers such non-GAAP results to be an important supplemental measure of its performance.
Conference Call Information
Interested parties can listen to the Q2 2009 conference call today, July 23, beginning at 4:00 p.m. CDT, at www.ni.com/call. Replay information is available by calling (888) 203-1112, confirmation code # 8314695, from July 23 at 7:00 p.m. CDT through July 28 at midnight CDT.
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 4
Forward-Looking Statements
This release contains “forward-looking statements,” including statements related to allowing us to outperform competitors and positioning us well for the eventual recovery, being likely that global industrial production will turn positive in the near term, that the industrial economy will be dealing with significant amounts of excess capacity which will take a considerable period of positive growth to absorb, our served markets remaining very weak throughout 2009, our guidance for Q3 2009 with respect to revenue, GAAP and Non-GAAP EPS and the impact of stock based compensation and amortization of acquisition related intangibles. These statements are subject to a number of risks and uncertainties, including the risk of further adverse changes or fluctuations in the global economy, delays in the release of new products, fluctuations in customer demand for NI products, our ability to continue to control our operating expenses, manufacturing inefficiencies and foreign exchange fluctuations. Actual results may differ materially from the expected results. The company directs readers to documents it files with the SEC for other risks associated with the company’s future performance.
About National Instruments
National Instruments (www.ni.com) is transforming the way engineers and scientists design, prototype and deploy systems for measurement, automation and embedded applications. NI empowers customers with off-the-shelf software such as NI LabVIEW and modular cost-effective hardware, and sells to a broad base of more than 30,000 different companies worldwide, with no one customer representing more than 3 percent of revenue and no one industry representing more than 15 percent of revenue. Headquartered in Austin, Texas, NI has more than 5,000 employees and direct operations in more than 40 countries. For the past 10 years, FORTUNE magazine has named NI one of the 100 best companies to work for in America. Readers can obtain investment information from the company’s investor relations department by calling (512) 683-5090, e-mailing nati@ni.com or visiting www.ni.com/nati. (NATI-F)
CompactRIO, LabVIEW, National Instruments, NI and ni.com are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies.
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 5
| National Instruments | |
| Condensed Consolidated Balance Sheets | |
| (in thousands) | |
| | | | | | | |
| | | June 30, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (unaudited) | | | | |
| | | | | | | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 221,723 | | | $ | 229,400 | |
| Short-term investments | | | 28,991 | | | | 6,220 | |
| Accounts receivable, net | | | 91,393 | | | | 121,548 | |
| Inventories, net | | | 95,269 | | | | 107,358 | |
| Prepaid expenses and other current assets | | | 43,496 | | | | 43,062 | |
| Deferred income taxes, net | | | 23,989 | | | | 21,435 | |
| Total current assets | | | 504,861 | | | | 529,023 | |
| | | | | | | | | |
| Long-term investments | | | 10,500 | | | | 10,500 | |
| Property and equipment, net | | | 150,620 | | | | 154,477 | |
| Goodwill, net | | | 64,610 | | | | 64,561 | |
| Intangible assets, net | | | 46,719 | | | | 41,915 | |
| Other long-term assets | | | 32,028 | | | | 32,115 | |
| Total assets | | $ | 809,338 | | | $ | 832,591 | |
| | | | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 24,378 | | | $ | 30,876 | |
| Accrued compensation | | | 18,387 | | | | 22,012 | |
| Deferred revenue | | | 47,692 | | | | 45,514 | |
| Accrued expenses and other liabilities | | | 12,333 | | | | 18,848 | |
| Other taxes payable | | | 11,855 | | | | 13,481 | |
| Total current liabilities | | | 114,645 | | | | 130,731 | |
| | | | | | | | | |
| Deferred income taxes | | | 24,488 | | | | 25,157 | |
| Other long-term liabilities | | | 12,784 | | | | 12,265 | |
| Total liabilities | | $ | 151,917 | | | $ | 168,153 | |
| | | | | | | | | |
| Stockholders’ equity: | | | | | | | | |
| Preferred stock | | | - | | | | - | |
| Common stock | | | 775 | | | | 772 | |
| Additional paid-in capital | | | 45,964 | | | | 39,673 | |
| Retained earnings | | | 599,681 | | | | 613,510 | |
| Accumulated other comprehensive income | | | 11,001 | | | | 10,483 | |
| Total stockholders’ equity | | | 657,421 | | | | 664,438 | |
| Total liabilities and stockholders’ equity | | $ | 809,338 | | | $ | 832,591 | |
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 6
| National Instruments | |
| Condensed Consolidated Statements of Income | |
| (in thousands, except per share data) | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | (unaudited) | | | (unaudited) | |
| Net revenue: | | | | | | | | | | | | |
| Products | | $ | 139,792 | | | $ | 195,562 | | | $ | 283,242 | | | $ | 377,351 | |
| Software maintenance | | | 12,371 | | | | 14,912 | | | | 26,720 | | | | 26,041 | |
| Total net revenue | | | 152,163 | | | | 210,474 | | | | 309,962 | | | | 403,392 | |
| | | | | | | | | | | | | | | | | |
| Cost of revenue: | | | | | | | | | | | | | | | | |
| Cost of products | | | 39,202 | | | | 51,863 | | | | 78,758 | | | | 99,530 | |
| Cost of software maintenance | | | 1,284 | | | | 1,577 | | | | 2,611 | | | | 2,979 | |
| Total cost of revenue | | | 40,486 | | | | 53,440 | | | | 81,369 | | | | 102,509 | |
| | | | | | | | | | | | | |
| Gross profit | | | 111,677 | | | | 157,034 | | | | 228,593 | | | | 300,883 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Sales and marketing | | | 65,137 | | | | 78,729 | | | | 133,963 | | | | 152,246 | |
| Research and development | | | 29,447 | | | | 33,188 | | | | 64,236 | | | | 68,792 | |
| General and administrative | | 14,752 | | | 17,283 | | | 30,532 | | | 33,945 | |
| Total operating expenses | | | 109,336 | | | | 129,200 | | | | 228,731 | | | | 254,983 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | 2,341 | | | | 27,834 | | | | (138 | ) | | | 45,900 | |
| | | | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | 407 | | | | 1,514 | | | | 996 | | | | 3,651 | |
| Net foreign exchange gain (loss) | | | 1,063 | | | | (313 | ) | | | 361 | | | | 1,235 | |
| Other income (expense), net | | | 334 | | | | (129 | ) | | | 497 | | | | (68 | ) |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 4,145 | | | | 28,906 | | | | 1,716 | | | | 50,718 | |
| | | | | | | | | | | | | | | | | |
| Provision for (benefit from) income taxes | | | (285 | ) | | | 4,172 | | | | (3,072 | ) | | | 8,368 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 4,430 | | | $ | 24,734 | | | $ | 4,788 | | | $ | 42,350 | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.06 | | | $ | 0.32 | | | $ | 0.06 | | | $ | 0.54 | |
| Diluted earnings per share | | $ | 0.06 | | | $ | 0.31 | | | $ | 0.06 | | | $ | 0.53 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding - | | | | | | | | | | | | | | | | |
| basic | | | 77,556 | | | | 78,484 | | | | 77,417 | | | | 78,662 | |
| diluted | | | 77,824 | | | | 79,549 | | | | 77,596 | | | | 79,691 | |
| | | | | | | | | | | | | | | | | |
| Dividends declared per share | | $ | 0.12 | | | $ | 0.11 | | | $ | 0.24 | | | $ | 0.22 | |
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 7
| National Instruments | |
| Condensed Consolidated Statements of Cash Flows | |
| (in thousands) | |
| | | | | | | |
| | | Six Months Ended | |
| | | June 30, | |
| | | | | | | |
| | | 2009 | | | 2008 | |
| | | (unaudited) | | | (unaudited) | |
| Cash flow from operating activities: | | | | | | |
| Net income | | $ | 4,788 | | | $ | 42,350 | |
| Adjustments to reconcile net income to net cash provided | | | | | | | | |
| by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 19,569 | | | | 19,852 | |
| Stock-based compensation | | | 10,036 | | | | 9,662 | |
| Benefit from deferred income taxes | | | (2,610 | ) | | | (3,585 | ) |
| Tax expense (benefit from) stock option plans | | | 1,379 | | | | (492 | ) |
| Changes in operating assets and liabilities: | | | | | | | | |
| Accounts receivable | | | 30,155 | | | | 3,524 | |
| Inventories | | | 12,089 | | | | (12,894 | ) |
| Prepaid expenses and other assets | | | (624 | ) | | | (839 | ) |
| Accounts payable | | | (6,498 | ) | | | 2,425 | |
| Deferred revenue | | | 2,178 | | | | 5,316 | |
| Taxes and other liabilities | | (11,922 | ) | | 3,008 | |
| Net cash provided by operating activities | | | 58,540 | | | | 68,327 | |
| | | | | | | | | |
| Cash flow from investing activities: | | | | | | | | |
| Capital expenditures | | | (7,706 | ) | | | (12,382 | ) |
| Capitalization of internally developed software | | | (9,936 | ) | | | (7,585 | ) |
| Additions to other intangibles | | | (2,420 | ) | | | (1,072 | ) |
| Acquisition, net of cash received | | | - | | | | (17,310 | ) |
| Purchases of short-term and long-term investments | | | (23,989 | ) | | | (17,245 | ) |
| Sales and maturities of short-term and long-term investments | | | 1,218 | | | | 74,682 | |
| Purchases of foreign currency option contracts | | - | | | (2,784 | ) |
| Net cash (used by) provided by investing activities | | | (42,833 | ) | | | 16,304 | |
| | | | | | | | | |
| Cash flow from financing activities: | | | | | | | | |
| Proceeds from issuance of common stock | | | 11,520 | | | | 17,077 | |
| Repurchase of common stock | | | (14,908 | ) | | | (57,644 | ) |
| Dividends paid | | | (18,617 | ) | | | (17,370 | ) |
| Tax benefit from stock option plans | | (1,379 | ) | | 492 | |
| Net cash used in financing activities | | | (23,384 | ) | | | (57,445 | ) |
| | | | | | | | | |
| Net change in cash and cash equivalents | | | (7,677 | ) | | | 27,186 | |
| Cash and cash equivalents at beginning of period | | 229,400 | | | 194,839 | |
| Cash and cash equivalents at end of period | | $ | 221,723 | | | $ | 222,025 | |
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 8
| Detail of GAAP charges related to stock-based compensation and | |
| amortization of acquisition intangibles | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | |
| Stock-based compensation | | | | | | | | | | | | |
| Cost of sales | | $ | 330 | | | $ | 270 | | | $ | 640 | | | $ | 515 | |
| Sales and marketing | | | 2,231 | | | | 2,084 | | | | 4,416 | | | | 4,090 | |
| Research and development | | | 1,683 | | | | 1,566 | | | | 3,420 | | | | 3,293 | |
| General and administrative | | | 761 | | | | 797 | | | | 1,560 | | | | 1,551 | |
| Provision for income taxes | | | (1,865 | ) | | | (1,141 | ) | | | (4,879 | ) | | | (2,224 | ) |
| Total | | $ | 3,140 | | | $ | 3,576 | | | $ | 5,157 | | | $ | 7,225 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Amortization of acquisition intangibles | | | | | | | | | | | | | |
| Cost of sales | | $ | 853 | | | $ | 937 | | | $ | 1,740 | | | $ | 1,788 | |
| Sales and marketing | | | 126 | | | | 156 | | | | 252 | | | | 297 | |
| Research and development | | | - | | | | 5 | | | | - | | | | 13 | |
| General and administrative | | | - | | | | - | | | | - | | | | - | |
| Provision for income taxes | | | (277 | ) | | | (293 | ) | | | (557 | ) | | | (561 | ) |
| Total | | $ | 702 | | | $ | 805 | | | $ | 1,435 | | | $ | 1,537 | |
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 9
| National Instruments | |
| Reconciliation of GAAP to Non-GAAP Measures | |
| (in thousands, except per share data) | |
| (unaudited) | |
| | | | | | | | | | | | | |
| Reconciliation of Gross Profit to Non-GAAP Gross Profit | | | | | | | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Gross profit, as reported | | $ | 111,677 | | | $ | 157,034 | | | $ | 228,593 | | | $ | 300,883 | |
| Stock-based compensation | | | 330 | | | | 270 | | | | 640 | | | | 515 | |
| Amortization of acquisition intangibles | | | 853 | | | | 937 | | | | 1,740 | | | | 1,788 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP gross profit | | $ | 112,860 | | | $ | 158,241 | | | $ | 230,973 | | | $ | 303,186 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Reconciliation of Operating Expense to Non-GAAP Operating Expenses | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | | | | | |
| | | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| | | | | | | | | | | | | | | | | |
| Operating expense, as reported | | $ | 109,336 | | | $ | 129,200 | | | $ | 228,731 | | | $ | 254,983 | |
| Stock-based compensation | | | (4,675 | ) | | | (4,447 | ) | | | (9,396 | ) | | | (8,934 | ) |
| Amortization of acquisition intangibles | | | (126 | ) | | | (161 | ) | | | (252 | ) | | | (310 | ) |
| | | | | | | | | | | | | | | | | |
| Non-GAAP operating expenses | | $ | 104,535 | | | $ | 124,592 | | | $ | 219,083 | | | $ | 245,739 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 10
| Reconciliation of Operating Income to Non-GAAP Operating Income | | | | | | | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Operating income, as reported | | $ | 2,341 | | | $ | 27,834 | | | $ | (138 | ) | | $ | 45,900 | |
| Stock-based compensation | | | 5,005 | | | | 4,717 | | | | 10,036 | | | | 9,449 | |
| Amortization of acquisition intangibles | | | 979 | | | | 1,098 | | | | 1,992 | | | | 2,098 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP operating income | | $ | 8,325 | | | $ | 33,649 | | | $ | 11,890 | | | $ | 57,447 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Reconciliation of Income Before Income Taxes to Non-GAAP Income Before Income Taxes | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | | | | | |
| | | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes, as reported | | $ | 4,145 | | | $ | 28,906 | | | $ | 1,716 | | | $ | 50,718 | |
| Stock-based compensation | | | 5,005 | | | | 4,717 | | | | 10,036 | | | | 9,449 | |
| Amortization of acquisition intangibles | | | 979 | | | | 1,098 | | | | 1,992 | | | | 2,098 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP income before income taxes | | $ | 10,129 | | | $ | 34,721 | | | $ | 13,744 | | | $ | 62,265 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Reconciliation of Provision for Income Taxes to Non-GAAP Provision for Income Taxes | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | | | | | |
| | | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| | | | | | | | | | | | | | | | | |
| Provision for income taxes, as reported | | $ | (285 | ) | | $ | 4,172 | | | $ | (3,072 | ) | | $ | 8,368 | |
| Stock-based compensation | | | 1,865 | | | | 1,141 | | | | 4,879 | | | | 2,224 | |
| Amortization of acquisition intangibles | | | 277 | | | | 293 | | | | 557 | | | | 561 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP provision for income taxes | | $ | 1,857 | | | $ | 5,606 | | | $ | 2,364 | | | $ | 11,153 | |
National Instruments Reports Q2 2009 Results
July 23, 2009
Page 11
| Reconciliation of Net Income and Diluted EPS to Non-GAAP Net Income and Non-GAAP | |
| Diluted EPS (unaudited) | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | | | | | | | | | | | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Net income, as reported | | $ | 4,430 | | | $ | 24,734 | | | $ | 4,788 | | | $ | 42,350 | |
| Adjustments to reconcile net income to non-GAAP net income: | | | | | | | | | | | | | | | | |
| Stock-based compensation, net of tax effect | | | 3,140 | | | | 3,576 | | | | 5,157 | | | | 7,225 | |
| Amortization of acquisition intangibles, net of tax effect | | | 702 | | | | 805 | | | | 1,435 | | | | 1,537 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP net income | | $ | 8,272 | | | $ | 29,115 | | | $ | 11,380 | | | $ | 51,112 | |
| | | | | | | | | | | | | | | | | |
| Basic EPS, as reported | | $ | 0.06 | | | $ | 0.32 | | | $ | 0.06 | | | $ | 0.54 | |
| Adjustment to reconcile basic EPS to non-GAAP | | | | | | | | | | | | | | | | |
| basic EPS: | | | | | | | | | | | | | | | | |
| Impact of stock-based compensation, net of tax effect | | $ | 0.04 | | | $ | 0.04 | | | $ | 0.07 | | | $ | 0.09 | |
| Impact of amortization of acquisition intangibles, net of tax effect | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.02 | | | $ | 0.02 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP basic EPS | | $ | 0.11 | | | $ | 0.37 | | | $ | 0.15 | | | $ | 0.65 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted EPS, as reported | | $ | 0.06 | | | $ | 0.31 | | | $ | 0.06 | | | $ | 0.53 | |
| Adjustment to reconcile diluted EPS to non-GAAP | | | | | | | | | | | | | | | | |
| diluted EPS: | | | | | | | | | | | | | | | | |
| Impact of stock-based compensation, net of tax effect | | $ | 0.04 | | | $ | 0.05 | | | $ | 0.07 | | | $ | 0.09 | |
| Impact of amortization of acquisition intangibles, net of tax effect | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.02 | | | $ | 0.02 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP diluted EPS | | $ | 0.11 | | | $ | 0.37 | | | $ | 0.15 | | | $ | 0.64 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding - | | | | | | | | | | | | | | | | |
| Basic | | | 77,556 | | | | 78,484 | | | | 77,417 | | | | 78,662 | |
| Diluted | | | 77,824 | | | | 79,549 | | | | 77,596 | | | | 79,691 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Reconciliation of Estimated GAAP Fully Diluted EPS to Non-GAAP Fully Diluted EPS | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | | | | | | | |
| | | September 30, 2009 | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Low | | | High | | | | | | | | | |
| GAAP fully diluted EPS, estimated | | $ | 0.04 | | | $ | 0.12 | | | | | | | | | |
| Adjustment to reconcile diluted EPS to non-GAAP | | | | | | | | | | | | | | | | |
| diluted EPS: | | | | | | | | | | | | | | | | |
| Impact of stock-based compensation, net of tax effect | | | 0.04 | | | | 0.04 | | | | | | | | | |
| Impact of amortization of acquisition intangibles, net of tax effect | | | 0.01 | | | | 0.01 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Non-GAAP diluted EPS, estimated | | $ | 0.09 | | | $ | 0.17 | | | | | | | | | |
