National Instruments Reports Q3 2016 Revenue of $306 Million

Strong Revenue Growth in Software and Record Revenue in RF

Q3 2016 Highlights

  • Revenue of $306 million, up 2 percent year over year in U.S. dollar terms with core revenue up 4 percent year over year
  • GAAP gross margin of 75 percent, up 70 basis points year over year
  • Non-GAAP gross margin of 75.7 percent, up 30 basis points year over year
  • Fully diluted GAAP EPS of $0.19 and fully diluted non-GAAP EPS of $0.25
  • Currency volatility in Q3 resulted in a $0.8 million loss on foreign exchange
  • EBITDA of $46 million
  • Cash and short-term investments of $353 million as of Sept. 30, 2016

AUSTIN, Texas — (BUSINESS WIRE) — October 27, 2016 — National Instruments (Nasdaq: NATI) today announced Q3 2016 revenue of $306 million, up 2 percent year over year in U.S. dollar terms with core revenue up 4 percent year over year. The company’s definition of core revenue is GAAP revenue excluding the impact of NI’s largest customer and the impact of foreign currency exchange. A reconciliation of GAAP revenue to core revenue is included with this news release.

In Q3 2016, NI received $5 million in orders from its largest customer compared with $6 million in orders from this customer in Q3 2015. Excluding NI’s largest customer, the company’s total order growth was up 5 percent in U.S. dollar terms for the quarter. The impact of foreign currency exchange reduced our year-over-year order growth by 3 percent. Orders under $20,000 were down 3 percent year over year; orders between $20,000 and $100,000 were up 2 percent year over year; and orders above $100,000 were up 34 percent year over year.

GAAP net income for Q3 was $24.5 million, with fully diluted earnings per share (EPS) of $0.19, and non-GAAP net income was $32.1 million, with non-GAAP fully diluted EPS of $0.25. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $46.1 million.

In Q3, GAAP gross margin was 75.0 percent and non-GAAP gross margin was 75.7 percent. Total GAAP operating expenses were $200 million, up 5 percent year over year. Total non-GAAP operating expenses were $194 million, up 6 percent year over year. GAAP operating margin was 9.6 percent in Q3, with GAAP operating income of $29.4 million. Non-GAAP operating margin was 12.5 percent in Q3, with non-GAAP operating income of $38.3 million.

“Over the last decade, we have made the long-term strategic investments necessary to make NI a company built to last,” said James Truchard, NI president, co-founder and CEO. “I believe the strong platform-based product offering and ecosystem we have today, coupled with significant progress in key areas including RF, FPGA and software puts NI in a strategically differentiated position.”

Alex Davern, NI COO and CFO, said, “We continued to execute well in the third quarter, delivering revenue growth year-over-year. I am encouraged by our order growth this quarter and believe that the strong growth in orders over $100,000 reflects improving confidence among our larger customers. We believe we will continue to build on the multi-year investments that we have made to help deliver continued revenue growth and drive towards our 18 percent non-GAAP operating margin target.”

Geographic revenue in U.S. dollar terms for Q3 2016 compared with Q3 2015 was up 3 percent in the Americas and down 6 percent in EMEIA. Revenue growth in APAC was strong at approximately 12 percent year over year. In constant currency terms, revenue was up 3 percent in the Americas, up 1 percent in EMEIA and up 12 percent in APAC. Historical revenue from these three regions can be found on NI’s investor website at www.ni.com/nati.

As of Sept. 30, 2016, NI had $353 million in cash and short-term investments. During the quarter, NI paid $26 million in dividends and repaid $15 million of the outstanding balance under its line of credit. The NI Board of Directors approved a quarterly dividend of $0.20 per share payable on Dec. 5, 2016, to stockholders of record on Nov. 14, 2016.

The company’s non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions and restructuring charges. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.

Guidance for Q4 2016

NI currently expects Q4 revenue to be in the range of $323 million to $353 million. Based on current exchange rates, the company expects that the impact of the strengthening U.S. dollar will reduce the company’s year-over-year dollar revenue growth rate by approximately 2 percent in Q4. We are expecting our non-GAAP effective tax rate to be approximately 25 percent in Q4. For 2017, we are expecting our non-GAAP effective tax rate to be in the range of 18 percent to 20 percent. The company currently expects that GAAP fully diluted EPS will be in the range of $0.23 to $0.37 for Q4, with non-GAAP fully diluted EPS expected to be in the range of $0.31 to $0.45.

1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article
Featured Video
Editorial
Latest Blog Posts
Joseph LopezPROSTEP INC Blog
by Joseph Lopez
OpenPDM MIGRATE supports Windchill Bulk Migrator
Roberto FrazzoliMCADCafe Editorial
by Roberto Frazzoli
A closer look at CCE’s EnSuite – Cloud ReVue LiveLink
Jobs
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
GIS Specialist for Schneider Geospatial at Indianapolis, Indiana
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
Senior Highway Engineer for RS&H at Jacksonville, Florida
Upcoming Events
WESTEC Online at Online CA - Sep 21 - 23, 2021
Canadian Manufacturing Technology Show 2021 at The International Centre (Hall 2) 6900 Airport Road Mississauga, Ontario L4V 1E8 Canada - Oct 4 - 7, 2021
Houstex 2021 at George R. Brown Convention Center Houston TX - Oct 5 - 7, 2021
Autodesk University 2021 | Free digital conference at United States - Oct 5 - 14, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise