NATI - Earnings call transcript Q2 2021 | National Instruments Corp

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Operator

Good day and thank you for standing by. Welcome to the Q2 2021 NATI Earnings Conference Call. At this time all participants are in a listen-only- mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference to your host, Ms. Vidaurri. Marissa ahead. go Please

Marissa Vidaurri

Officer. afternoon. I'm you Starkloff, joined Officer; Chief Chief Good XXXX President our earnings Executive Financial Rapp, Karen call. today and We you. joining appreciate QX and Thank by Eric

the We will start before an update questions. up your second performance for on opening quarter our with in

to contained on comparable May ni.com/nati. the calendars. directly statements. to of release and A to press financial XX-K you the caution statement on outlook statements, or the report company most the materially constraints, assume today regularly Form operating mark are results statements cause be targets annual quarterly on changes XXXX are Reminder allocation, or expenses, forward-looking financial documents measures call that limitation, and impact just with and events conform any materially files including regarding chain actual including, contained our potential business and update those to supply guidance your discussion the Exchange related statement Form on our forward-looking the differ no and disclosures important on non-GAAP company’s reconciliation that operations. to our Our refer and and the could in filed business include actual revenue, COVID-XX those backlogs results capital numerous our you expectations. Commission, measures results could to to and our results without XX, and on that in will in We forward-looking actual disclosed may documents or the this report earnings, margins, by of GAAP from future factors including XXXX. gross XX-Q identify in negatively that to predictions wish These X our such February impacted company's Securities and We contain duty differ We factors. of filed

at our drive on believe XXXX link I At event XX:XX will growth we a.m. deeper our we intend secular differentiated this team August for strategy, to Eastern investor With and host our to that to XX ni.com/nati software our into virtual executive to Eric growth will enhance accelerate turn already We Livestream. Please a Chief conference and share will position. financial drivers leadership Time. the call visit Starkloff. I progress our Officer, now Executive over will how model

Eric Starkloff

a today. were in some be results Thank growth quarter. details. I We very progress but discuss with I'll to Good the us I'll to Karen, momentum everyone. business Supply hand before We in continued very to I then chain high over QX. expectations you execution. and Marissa. into you, strategy line our a QX, color constraints really across it pleased continue customer the share our into afternoon, great with appreciate demand joining on strong the had quarter the great and dive financial as were coming with headwind the to

proof to helping GAAP records adapt that exceeded paying our focus our XX%. our expectations. continued results market expectations. was our QX of revenue Our all notably, believe able growth quickly We with are to Most QX exceeding were up is quarter. an achieved we of to and quarter our We us results revenue This situation teams and end order all non-GAAP record record a strategy working up the In off. up exceed XX% QX, is the was across year-over-year a was income achieved high income QX guidance second double-digit year-over-year. our also for operating record industries with all-time operating and regions. XX% for orders

detail At the XX% with so revenue half growth channel We're XXXX about year-to-date half a more entering total year-over-year software the outpaced year. of also growth. revenue. backlog company we first in conference, talk the far In the and represents this and software for our and we're our investor addition, progress of position. operating transition will on second we record strategy non-GAAP achieved And pleased very in QX for income with strong the

our We believe accounts, have distribution. and customers allow approximately set scale invest lower of strategy clear accounts. through of cost ultimately opportunities achieve in and efficiency distribution year-over-year reported improve orders continue leverage in growth customer will growth. The this and goals e-commerce of XX% our in record leverage with these customers our and to business and can QX also both our broad-based higher us to and will reach. represented to our experience, sale our e-commerce over forward achieved higher order of XX,XXX business We global portion where focused be serve improve These to

of include, focused the offerings represented believe system-level total wallet. orders. expand our our Our and of accounts potential approximately to that XX% accounts These customers we X,XXX QX have highest share approximately increase

by to our turning industry. Now results

business electronics predictive strong use OptimalPlus results product for to and quickly semiconductor flow and insights. We software support needs throughout the connected up in leverage growth year-over-year our our cycle Our life solution, ways development to up new analytics customers with order of to the allowing them opens XX% were their to data drive QX. technology reported able which

record recovery XX% continued an QX in year-over-year growth order vehicle transportation orders. for in Our of the to production benefit business quarter all-time representing from with

We after are years challenging encouraged two results by these headwinds. of

then now represents and system-level increased the the government accelerate QX value to and record electrification imminent we years production, This already orders. business software business steady rest in second remained been which orders year-over-year of fuel order electric focused representing of XX% of aerospace a discussed and growing of active for a quarter. As of areas defense this on our our growth continued key has transportation and safety for growth an XX% of for strong vehicles Order outpace with over and an expected systems. ADAS significantly to The approximately portion solid XXXX in through customers vehicle recovery to QX over the investment business previously, testament services. ability multiple would

the capitalize defense confident on in environment. spending We our steady to ability are

win to applications space in to continue been highly milestones watch past significant we addition, opportunities multiple in excited few innovative new and the months. customers we've reach In

Our QX. third XX% as a This growth represents portfolio of order of business shift reported intentional well quarter in better our believe strategy serve for these through results the year-over-year broad-based as We global e-commerce these of consecutive are our and order business. indicative business, growth stronger distributors. to macroeconomy, this results

more cycles. our at our share it business grow and our to of strategy will portfolio We more make conference investor through economic about resilient

continue journey to as exceed or we Our meet financial model. our XXXX global strong, the execution remains

We our and are win. Rapp, over priority With Financial a these that to close call to goals committed I a before to with turn Karen few Officer, the Chief with a comments. accelerate I'll growth passionate

Karen Rapp

outstanding NI Thanks, today. delivered Eric. And another joining quarter. thanks The team us everyone, for

the pleased see revenue all connected guidance. We customer in second with momentum see to the demand $XXX year-over-year continue end quarter XX% of industries. for of We strong million, our up regions across solutions to our above software increased and were GAAP high and unique

very into giving to about times our our QX, backlog customers. lead still more visibility us competitive weeks. grew expected, while providing to four As

see and as over to benefit resources continue up strength aligning to see XXXX continue XX% opportunities. we with XX% accounts to in focused QX, orders For up year-over-year high-growth

distribution by QX up and regions channel over year-over-year reported XXXX, EMEA, benefiting from all while global macro year-over-year Americas, Asia-Pacific in order across continued orders success in recovery. We XX% up year-over-year year-over-year. X% orders XX.X%. and were For our XX% orders was In strong digital were quarter. our growth year-over-year and XX% in business, led also initiatives, were the broad-based second Non-GAAP XX% up margin and the in the were gross up up orders

related COVID-XX last about from year these that began additional XX throughout of XXXX. we costs costs We to to and to of in points continue see continue expect impact basis QX

of year-over-year. variable mentioned XXXX, $XX to previously, tied expect the As this employees profit for in business. pay with revenue pay performance line and year. our the pay the million stronger variable we to it QX, financial variable increased of increased we expense our increase have performance I've In and In percentage

to share to quarter. maximizing improving $X.XX. our the growth While XX% to was ensure reported increase was profitability our our earnings order diluted GAAP the and million execution guidance income value. $XX also second we scale focus of invest our driving year-over-year non-GAAP more We non-GAAP delivered an million non-GAAP QX business and areas We of model our of shareholder per importance, the of for and at up of high year-over-year. is making our of priority strategy, $X.XX while QX in XX% income share income resilient. net of earnings committed per remain operating $XX in net continue critical end diluted on We record

the ended quarter investments. We balance in remains and $XXX Our short-term cash strong. sheet with million

operations cash For million. QX, from our flow $XX was

of operations from year. revenue as flow to percent second increase cash a in half of the expect We the

accelerate approach to In $XX clear have continue XXXX software way we XXXX. also capital through in fuel We dividends for $X.XX cash shareholders to the of continue and technology We position but our share balanced through our plan to Board and long-term opportunities per QX, and priorities. to August NI on market We Eric a view not returns disrupt systems repurchase, only payable innovation million a to August approved enterprise inorganic provide to growth. of of Directors to to investments a invest The allocation record space XXth, that referenced. share as to dividend in Xth, on for strong our paid stockholders dividends. and

across and both acquire strategy to strategic on financial Our where achieve M&A that focused our faster. aligned accelerators was funnel leverage help or business technology are industry-specific the our model XXXX to can serving we as technology additional us opportunities expertise

capital continue priorities. across to Our execute is intent these to

However, one in over to others. us our prioritize strategy any growth quarter may given cause

continue our the quarter XXXX. the quarter. to accelerating We're by guidance efficiency in shifting our for Now, deliver expect this to demand third customers and QX ability encouraged into to to and second

currently represents X% growth. At XXXX third expect XX% year-over-year range the we of of in the million. QX this revenue GAAP $XXX midpoint to For the million growth XXXX, revenue to $XXX quarter be and sequential versus

environment strong to range we on the we to the strategic as to $XX with accelerating $XX to QX. customer in line constraints, the exit the In our year. expect the three lead-times due and supply macro focus of million demand, expect systems of weeks million five chain also grow continued we With range backlog in and in

better from QX expect for than revenue. seasonality normal QX to slightly We

diluted to will to expected $X.XX non-GAAP for of with the $X.XX in We $X.XX range year-over-year the be earnings share be midpoint. of increase which per $X.XX QX in is an diluted earnings expect at the XX% range of share GAAP per to

base customer are this testament the globally. the innovative employees indicative strength our Our our a all and platform, provided operational in of customers strong diversity, by believe adaptability work industry of to see and our I our and also results broad efficiency. quarter this the hard is stability the of value

we delivering balance is with in focused believe by puts believe our and X% targets our look goal investments achievable. model capitalize a to compound revenue operating strong annual XXXX remain long-term position growth we of As a achieving forward, on inorganic on our growth rate financial strength of help of growth. margin And we us XX% sheet to accelerate

turn call to Eric for like over the I'd comments. some to back closing Now,

Eric Starkloff

Thank you, Karen.

growth to further on goals. to remain focus in ability accelerate confidence across our seen We both execute confident XXXX profitability. and our on these business we've The increases and in this and year continue my strength the ability We beyond. goals our delivering to in

by customers not As globally. years now execution, we with the their to work us impact in I dedication and our this With decision. just our all remain put but recognize QX, we've your of inspired that of questions. to take want perseverance, and to opportunities for look we've that, I our we'll make done in able all in ahead, been employees the

Operator

Please line Chatterjee. [Operator Instructions] ahead. go from question the first Your comes of Samik

Samik Chatterjee

Hi thank Eric. Hey good afternoon you.

if semis basis because strength where and most seeing are particularly, more the So, to year-over-year in more the we a us with than asking but basis the the I new given a on guess guess of on sequential And a year I seeing basis in what orders increases bit the that year. comps you strong, give of getting you're us around related you color the like they're does Just viewed like give us you had on color can sequential sense segments and you rather last a ago. from I like orders. year-over-year some you're order wanted to and very what situation most more seeing of are on start a a trends just about be ago kind order? the Can a related some maybe year might you sequentially strong look look over XQ give

Eric Starkloff

understand of on I this. a look I'll give you we One Thank for you it. is it the couple Yes, year-over-year. question. at perspectives

look two-year a I also a some I'll of From and really would disruptions line normalize it of our to course. And that give over that Of comments. two-year in because there the view, the course some then saw out we expectations. I'll with just of point sequential it's start we at time long-term that say horizon last you tends year

So, from of two important an a growth electronics. for stories on Transportation both steady transportation because recovered basis. of that's strongest growth. in And the the industry ADG over are portfolio a of was And of performance kind very of as It's Two remains two-year areas and kind and years years semi strongly. of which is two ADG the has that. our view, point next over very mentioned then over are nature in down there. business. that XX% part different I

And in transportation. orders that mentioned an quarter so any this record I all-time in for the were quarter

very, within the on it's space. that very driven we're and by encouraging it's the focused So areas

down that growth. XX% years years. most also the over was it's that It's then And lastly focused up over very approximately areas we're so recovered similarly And of the receiving strongly. couple portfolio on and the encouraging two last is that

the point to So years. growth look that I continued look more a way very you in very, strategy it of accelerate. growth the then would view, is two characterize to quarter order when finally from strong the has normal sequential And over our

very order we're continue of We've setting on the if some are growth to growth gave QX QX. strengthen. backlog it quarter saw expect in that guidance expecting look in the continue we the to to at on an then a start over uptick midpoint So And based order we we got strengthen you and to expectations QX. and strong the

Samik Chatterjee

if sense is And guys may that to a I backlog Eric, trying follow-up seeing my do be guess, correctly on supply some I you're it. Okay. just a for the that deliver constraining the outside out seeing? I'm expect And Got you get heard you increase. on latest headwinds that is to a side revenue there that is to in demand the ability strong to your constraint cost you're you the how called What on -- side? on the the of of that of the supply much limitation

Karen Rapp

It's this Yes. seeing exciting revenue is Karen. order actually I'll that to because we're growth still one. Samik, take outpace continue growth.

seeing to they're So the not the way we're supply but looking be at it they stabilize, point where of point. this where back some to at a is to issues used

planning QX, a of which build five coming put So we're QX lead in backlog $XX $XX week million still are about is to of will that we out in million space additional which us at incredibly time the competitive in. to

Maybe that at cancellations. week it's shift we tend is you're it space. to our even forward see week for to going minimal a other in The the to And to that time important that when very us to us does still product continues that looking quarters four five able really lead give into quickly. we're and visibility thing note

So out right to door after to end of it it it the -- gets the start the getting quarter customers. within basically

Eric Starkloff

of, sort was QX. that And is I'll thing I supply the that chain just met Samik briefly encouraged add in expectations constraints, really by one our

it our pretty relatively out. where or you at QX If back it a for least quarters this predictable point couple would was go expectations. of now a It's play at met how unknown was

we're revenue. it -- in And orders a good say that we're remains I'd Karen than still growing -- as a headwind faster said a but so that's sign

Samik Chatterjee

for question. Karen Thanks, my Eric. Thanks, taking

Eric Starkloff

Thank Samik. Thanks, you.

Operator

of question Your comes line the John from Marchetti. next

is ahead. line Please go Your open.

John Marchetti

of back year sounds over these of starting are Thanks all year the comments really two COVID more of growth Eric, of more some coming the like segments mean think view. very troubles towards against about done of be how I'd to like the two certainly obviously come I last what or to you Can of it you you place. But a how of back much much. versus on nature think go into to of in a much is talk the it cyclical your of year is that just to you've share around much a might of comparing growth basis back how the based some more that some was growth trajectory? bit these little mode. gains, portfolio this when industries

Eric Starkloff

question. good John No, Yes.

strongly. call smaller if what good year And that Those XX% I over the our the tease I period. has of macro of Those up to or of XX% that. if sort exactly across it environment. accounts way of at course We BUs is Samik's areas of, it which yes, the areas But hard The I it's broad-based within answered of like in focus portfolio to compare and look cetera. sort that's baseline. within I or growth strong tied low two at our our the -- growing ADAS industry described years out indices whether put the so the business in XXs a are up the, question. we PMI that on on I and transportation to to And focus two Certainly XG color just then the more things gave that order et past think been through electrification I focused accounts a economic when areas business. areas it's much look it's accounts I see like are more the over

up double-digits strong or accounts focus for of up some two those of years. over XX% up And focus are either triple-digits. them Our sort are of areas

quite encouraging. And so that's

share and the that base our across based we that on is strategy see the gains business. into strong we're leaning think above I demand the where So part that's

John Marchetti

Great. Karen And Thank you. maybe you. for then

the mentioned and that we about non-GAAP do about continue incremental think should You the $XX OpEx here first we variable expect half? in Should you're pay. half the And million that how given how second expect then with -- talking to half? associated maybe expenses the growth second we versus

Karen Rapp

second Yes. John pay imply in seasonality and of we're as for the year kind would returning looking of point normal at into to built that the we're at plus kind being of at QX midpoint well. that's should the of this variable keep from with guidance of you actually looking good kind that question. the way absolutely We're a outlook that what increase year half

Beyond to going that normal the OpEx doing what at from an it's seasonality become core of standpoint. we're

John Marchetti

Great. maybe here. I if sneak one And then can one just last in

five globally back talked of, we very you where the markets and of of be in think expecting and to you'll perspective had XX you backlog levels getting about just to do exit you're to and had maybe low going from somewhere you at, months between out a look historically? you're or maybe now XX on that there what's sort some some actually anticipating given weeks. You historically, five that the XQ If from going months or these changes exit that the weeks

Karen Rapp

Yes.

of think on talked those lean systems that general. center will I we this a the kind lead in strategy around in systems more we've before have but with about that long-term -- time for four-week we as

time at about And weeks a I three year somewhere to that going the range. is of of so lead to continue to five our kind goal week of talked in be backlog. week have to going out several

we'll center is XXXX expecting. that be what around think likely most I'd I in

John Marchetti

you. Thank Great.

Eric Starkloff

Thanks, John.

Operator

Your Mehdi Hosseini. from line next question of the comes

open. is Your go line Please ahead.

Mehdi Hosseini

in couple taking was for of of you Can for team. question. remind follow-ups. what Thanks A Yes. up This the my the cycle XXXX? me backlog your is

Karen Rapp

know don't numbers I the but we... sorry, XXXX, I'm back in Mehdi,

Eric Starkloff

small typically comparatively. were pretty They

time. would that backlog a the an would so set But we or So most week of give you approximation. around of

Mehdi Hosseini

a Okay. due the or and get That's more disruption I COVID. backlog. was your fine. overlay chain to the portfolio just -- your product I increasing trying to gauge supply see diverse

to are compared certainly the longer right? XXXX So last your backlogs cycle,

Eric Starkloff

the be supply This They've two which would but largest had, There's in elements. a backlog. course, point, the chain, these bit. increase gone Yes. of Karen's quite to there's up the causing is we've

they industry. the in business more more competitive the also at quite As you systems that when she backlogs over going there's is backlog well typical remain to forward-looking as strategically mentioned, impact we have us look And have into time, of then business. before, we've increasing visibility give our as said

So we thing. view as positive a that

Mehdi Hosseini

there end times is product lead or where average, And particular market Okay. let's are say, the it… is longer or any than,

Karen Rapp

way Yes, we're we across regions. it was industries platform, all seeing very leverage actually -- because all similar and the the of

Mehdi Hosseini

Right.

And I'm if penetrate that understanding me. the Okay. to item efforts on update there. just there's would last Is for but XG? millimeter an that update there then the hinge wondering an It's on your wave, my

Eric Starkloff

Yes.

of XG a business. be to continues our our in It's millimeter wave. not XG particularly where electronics So growth just driver is. semi That's most

and the about business is before We most our of in sub-X. similar. it half characterized So, it's that's business today semiconductor

continues it opportunity. then as be not particularly said view that opportunity to for of in growth wave, steady APAC the the we've long-term in now probably of but So area And would XG ramp-up push in an larger in a to of of next has and wave surprisingly. say, of seeing for primarily growth now been is before scale millimeter we've serve of a strong, wave still is we sub-X. millimeter volumes It's we kind driver I tended year out time performance millimeter into terms do the

Mehdi Hosseini

for sub-X, is think I this right? manufacturing, high-volume mostly

Eric Starkloff

it's it's Well, about XX-XX, Mehdi. in our XG, including about business

-- half labs and manufacturing. half labs it's in automated So in high-volume about in about

value So healthy for one also delivering balance across of our the systems, we're commonality It's split those of business. the but to those a we of because it pretty two. view that as resiliency nice evenly customers the

Mehdi Hosseini

you. Thank it. Got Okay.

Eric Starkloff

you. Thank Sure.

Operator

of from ahead. comes Please Delaney. go next Your the Mark question line

Mark Delaney

for very afternoon the questions. Good thanks and taking Yes. much

company the Malaysia restrictions some a where the that the was still has you've challenges, of cases. high realize And was a to more hoping specific facility some of of has on able in Malaysia your result government the I to on I unfortunately bit facility some people to environment, operational and company those. above increased to operational been but facilities. there's guidance, think end First as on could talk able the the do number the I be Obviously, you COVID overcome company been in its may the in a encountering come what

Karen Rapp

impact Yes, both Malaysia our in this operational We've facilities Karen. manufacturing any in in and Mark, is Hungary. not had

One things of really fully were that of had see participate was well the we've staff Malaysia pleased the that employees enable was able been our get number to We in able to we employees to their result Intel with were partnership keep access of help so to to factory. employees with any really a COVID not neat vaccinations. and quarter able as to Intel we're running a as the But to of that our facility. the limitations in had far. have to as and the we we this bus any them impact families over And operational the in operations throughout support

Eric Starkloff

certainly, could And if since just had it's you and the noted employees, just not yet. a COVID the across it's just but lot And opportunity, up has as they've of business. resiliency adaptability created our the not the to remarkable for just And the question. our pandemic factories -- this as need I factories highlighted show, say, teed done Mark, I'll the take in you in been you

run to Karen We factories. very adaptability. as milestones that with including said to able in just I've operate really being successful been able the that and have reach been business to despite both we've how financial those of show overwhelmed well

Something ahead. have you follow-up Mark. a may to Go

Mark Delaney

did. I

for Thanks news. comment that's very good and Sorry. the there

of to growing perhaps picking some share. in of chain orders, is potential extended. the Just But has been supply are that times an little do these how think a short, of portion element market the guys the least given of bit there's but the that structural orders. are perhaps company there's double the lead about particularly of the to risk risk And order has in understand cancellations a terms that you I some orders? at areas, some How the tight up due opportunities component a been shrink

Karen Rapp

again. Karen Yes. This is

We out still four because an have are coming business the lead weeks QX. where times about only interesting of

For away ship soon right as quarter as the the orders part, ends. most the

situation. And we've cancellations. very We've so that seen watching been this current given historically minimal

level We in of haven't seen increase the any cancellations.

we continue we come ship away. with plus we of XX% very So to see a the -- minimal into that quarter right backlog

the strength is about of solid good really feeling and that how turn backlog to revenue. it into we're So

Eric Starkloff

And I'll ordering that market the capital doesn't historically double semiconductor That's chain phenomenon our not happens just say happened in that an -- supply in generally generally issue. hasn't been equipment.

Mark Delaney

That's I one one in. last could If helpful. sneak

that sequentially. in made up the most quarter to in you Karen to terms digits like better It fourth comments the typical of revenue, high seasonality. years, single is Just on looks potential slightly mid- be than revenue

is that be what So calculation or on low seasonality single-digits like would implying a it your seems helpful? Thanks. you're high or you could clarify normal perhaps up double-digits, but interpretation if

Karen Rapp

numbers slightly a from kind think the be to X% at will your have QX to right I'm QX higher are that mine. of the now. percent it Mark, Yeah. sequential as looking and X% same than we visibility I normal

Mark Delaney

you. Thank

Operator

ahead. that from Go Mason. question have next is Rob The you

open. is line Your

Rob Mason

afternoon. Yes. Good

Eric Starkloff

Hi, Rob.

Rob Mason

you One that was of the third Eric. The build -- given topic. on just the the Karen, backlog the way that quarter million, still the or but $XX way outperformed about quarter Eric -- the quarter? coming expectation question the Hi, backlog I think case that -- million the you just is hot in would was given to quick $XX into

Karen Rapp

QX, We we like backlog booked million in $XX of number That expected. Rob. is the exactly about just almost

Rob Mason

Okay.

primarily revenue it's your about contribute recent into it just also, a year, could semi-electronics has in that how thoughts about how some to, OptimalPlus just contribution, a through that to just just Eric, or Okay. quarter And owned have maybe contributing business? that you to did as as now give year, the the the acquisition. that you're think this and annualized having if of you've you the annualize terms I I on how curious was maybe been it owned integrated business came most take overall?

Eric Starkloff

absolutely. Yes, Rob. Sure.

number very Israel few very be of there smoothly. center well, which able a that We've ago large in the time. R&D to integration So be just over was I very, first where the very fantastic the for to reached in the integration in actually first was had is the with employees weeks those over OptimalPlus employees has milestones a for person gone pleased. we all

to I'll area the then is And terms it's the in the of analytics this so technology. where with that comment that data platform great for and over of we the that pursuit our but see the people in synergy analytics we're this very second is the business area both pipeline organic that is and expand to in speaking of time and just inorganic looking off with of I a data expansion for fit it, pleased and us. And opportunity an area channel. one The product the generally investment an area an alluded and building we're it's make

growth. So as after we driver that that's to more probably the long-term it's -- and we a in that of year is see do potential statement biggest an a area want

Karen Rapp

see about on more looks real like in going Maybe our I to what really you. can space. as -- continue And for do week just testimonials did understanding Connect. can this customer that lean conference forward customer there quick a just you and there's we We NI that that

turnout. a great So pretty event with exciting

Rob Mason

then -- Great. midpoint X% sequentially of your operating range. the in mid-XX Great. gross the maybe guidance, math your the is operating that the and quarter margin margin we expenses or still be thinking up around margin suggests Last on envelope sequentially. of flattish gross third Karen, And Is kind so -- case? X% question. X%, adjusted back was quick the should just

Karen Rapp

long-term line in Gross be revenue little It margin, our bit, flexes as trends. will with goes a up. yeah,

of then some way in -- look margin that see an would we with bit on the it typically. little From higher see of a baseline standpoint, QX but there's get from I a plus efficiency additional you that that the QX pay top OpEx to Rob. variable normal to at revenue So gross kind the continuing is

Rob Mason

Okay. Very good.

Operator

our at time. like turn speakers. would There back this are the this questions no over I at call to to

Eric Starkloff

to you a day. forward XX seeing joining on us all at good for August investor Thank look We the you conference. today. Have

Operator

call. concludes you Thank for conference all joining. This today's

disconnect. now may You

National Instruments (NATI) 1 Aug 212021 Q2 Earnings call transcript