Contact:
|
Marissa Vidaurri
|
Head of Investor Relations
|
|
(512) 683-5215
|
•
|
Record GAAP revenue for a second quarter of $396 million, up 14 percent year over year
|
•
|
Record orders for a second quarter, up 20 percent year over year
|
•
|
Strong diluted GAAP EPS of $0.09 and diluted non-GAAP EPS of $0.36
|
•
|
Cash and cash equivalents of $111 million as of June 30, 2022
|
•
|
Record GAAP revenue of $781 million, up 15 percent year over year
|
•
|
Record orders, up 22 percent year over year
|
•
|
Strong diluted GAAP EPS of $0.28, up 75 percent year over year and record diluted non-GAAP EPS of $0.77, up 15 percent year over year
|
•
|
Q3 GAAP revenue to be in the range of $410 million to $440 million, up 16 percent year over year at the midpoint
|
•
|
GAAP diluted EPS to be in the range of $0.34 to $0.48 for Q3, up 105 percent year over year at the midpoint
|
•
|
Non-GAAP diluted EPS expected to be in the range of $0.46 to $0.60, up 26 percent year over year at the midpoint
|
National Instruments
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands)
|
||||||||
|
June 30,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
|
(unaudited)
|
|||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
110,873
|
$
|
211,106
|
||||
Accounts receivable, net
|
356,077
|
341,275
|
||||||
Inventories, net
|
343,627
|
289,243
|
||||||
Prepaid expenses and other current assets
|
122,361
|
89,925
|
||||||
Total current assets
|
932,938
|
931,549
|
||||||
Property and equipment, net
|
258,155
|
253,668
|
||||||
Goodwill
|
603,793
|
575,992
|
||||||
Intangible assets, net
|
237,059
|
220,418
|
||||||
Operating lease right-of-use assets
|
64,476
|
58,641
|
||||||
Other long-term assets
|
71,435
|
74,717
|
||||||
Total assets
|
$
|
2,167,856
|
$
|
2,114,985
|
||||
|
||||||||
Liabilities and Stockholders' Equity
|
||||||||
Accounts payable and accrued expenses
|
$
|
91,227
|
$
|
83,218
|
||||
Accrued compensation
|
50,199
|
111,261
|
||||||
Deferred revenue - current
|
122,029
|
137,818
|
||||||
Operating lease liabilities - current
|
14,813
|
13,137
|
||||||
Other taxes payable
|
51,958
|
59,109
|
||||||
Other current liabilities
|
44,148
|
40,671
|
||||||
Total current liabilities
|
374,374
|
445,214
|
||||||
Deferred income taxes
|
16,575
|
14,249
|
||||||
Income tax payable - non-current
|
40,646
|
54,195
|
||||||
Deferred revenue - non-current
|
42,943
|
32,822
|
||||||
Operating lease liabilities - non-current
|
34,520
|
30,468
|
||||||
Debt - non-current
|
475,000
|
300,000
|
||||||
Other long-term liabilities
|
15,291
|
14,340
|
||||||
Total liabilities
|
$
|
999,349
|
$
|
891,288
|
||||
Stockholders' equity:
|
||||||||
Common stock
|
1,323
|
1,323
|
||||||
Additional paid-in capital
|
1,173,131
|
1,129,647
|
||||||
Retained earnings
|
21,533
|
112,858
|
||||||
Accumulated other comprehensive loss
|
(27,480
|
)
|
(20,131
|
)
|
||||
Total stockholders' equity
|
1,168,507
|
1,223,697
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,167,856
|
$
|
2,114,985
|
National Instruments
|
||||||||||||||||
Condensed Consolidated Statements of Income
|
||||||||||||||||
(in thousands, except per share data, unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
||||||||||||||||
Net sales:
|
||||||||||||||||
Product
|
$
|
354,805
|
$
|
306,490
|
$
|
698,489
|
$
|
601,583
|
||||||||
Software maintenance
|
40,710
|
40,206
|
82,281
|
80,295
|
||||||||||||
Total net sales
|
395,515
|
346,696
|
780,770
|
681,878
|
||||||||||||
|
||||||||||||||||
Cost of sales:
|
||||||||||||||||
Product
|
123,307
|
95,722
|
238,332
|
187,379
|
||||||||||||
Software maintenance
|
4,167
|
3,516
|
8,370
|
7,273
|
||||||||||||
Total cost of sales
|
127,474
|
99,238
|
246,702
|
194,652
|
||||||||||||
|
||||||||||||||||
Gross profit
|
268,041
|
247,458
|
534,068
|
487,226
|
||||||||||||
|
67.8%
|
|
71.4%
|
|
68.4%
|
|
71.5%
|
|
||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
124,908
|
111,199
|
245,064
|
227,983
|
||||||||||||
Research and development
|
85,589
|
81,434
|
167,750
|
161,520
|
||||||||||||
General and administrative
|
36,772
|
30,277
|
69,949
|
63,636
|
||||||||||||
Total operating expenses
|
247,269
|
222,910
|
482,763
|
453,139
|
||||||||||||
Operating income
|
20,772
|
24,548
|
51,305
|
34,087
|
||||||||||||
Other expense
|
(3,505
|
)
|
(2,963
|
)
|
(3,473
|
)
|
(8,031
|
)
|
||||||||
Income before income taxes
|
17,267
|
21,585
|
47,832
|
26,056
|
||||||||||||
Provision for income taxes
|
4,833
|
4,279
|
10,162
|
4,254
|
||||||||||||
Net income
|
$
|
12,434
|
$
|
17,306
|
$
|
37,670
|
$
|
21,802
|
||||||||
|
||||||||||||||||
Basic earnings per share
|
$
|
0.09
|
$
|
0.13
|
$
|
0.29
|
$
|
0.17
|
||||||||
Diluted earnings per share
|
$
|
0.09
|
$
|
0.13
|
$
|
0.28
|
$
|
0.16
|
||||||||
|
||||||||||||||||
Weighted average shares outstanding -
|
||||||||||||||||
Basic
|
131,973
|
132,498
|
132,039
|
131,996
|
||||||||||||
Diluted
|
132,708
|
133,539
|
132,948
|
133,157
|
||||||||||||
|
||||||||||||||||
Dividends declared per share
|
$
|
0.28
|
$
|
0.27
|
$
|
0.56
|
$
|
0.54
|
Condensed Consolidated Statements of Cash Flows
|
||||||||
(in thousands, unaudited)
|
||||||||
Six Months Ended June 30,
|
||||||||
2022
|
2021
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$
|
37,670
|
$
|
21,802
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
45,742
|
50,024
|
||||||
Stock-based compensation
|
40,804
|
37,208
|
||||||
Loss from equity-method investees
|
(131
|
)
|
5,360
|
|||||
Deferred income taxes
|
943
|
1,301
|
||||||
Net change in operating assets and liabilities
|
(169,930
|
)
|
(63,372
|
)
|
||||
Net cash (used in) provided by operating activities
|
(44,902
|
)
|
52,323
|
|||||
Cash flow from investing activities:
|
||||||||
Acquisitions, net of cash received
|
(72,802
|
)
|
(19,784
|
)
|
||||
Capital expenditures
|
(24,509
|
)
|
(17,411
|
)
|
||||
Capitalization of internally developed software
|
(187
|
)
|
(721
|
)
|
||||
Additions to other intangibles
|
(2,478
|
)
|
(1,519
|
)
|
||||
Acquisitions of equity-method investments
|
—
|
(12,551
|
)
|
|||||
Sales and maturities of short-term investments
|
—
|
45,671
|
||||||
Net cash used in investing activities
|
(99,976
|
)
|
(6,315
|
)
|
||||
Cash flow from financing activities:
|
||||||||
Proceeds from revolving loan facility
|
175,000
|
100,000
|
||||||
Payments on term loan
|
—
|
(98,750
|
)
|
|||||
Debt issuance costs
|
—
|
(1,993
|
)
|
|||||
Proceeds from issuance of common stock
|
17,859
|
17,239
|
||||||
Repurchase of common stock
|
(70,000
|
)
|
—
|
|||||
Dividends paid
|
(74,034
|
)
|
(71,428
|
)
|
||||
Net cash used in financing activities
|
48,825
|
(54,932
|
)
|
|||||
Impact of changes in exchange rates on cash
|
(4,180
|
)
|
(887
|
)
|
||||
Net change in cash and cash equivalents
|
(100,233
|
)
|
(9,811
|
)
|
||||
Cash and cash equivalents at beginning of period
|
211,106
|
260,232
|
||||||
Cash and cash equivalents at end of period
|
$
|
110,873
|
$
|
250,421
|
The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles and fair
value adjustments, acquisition-related transaction and integration costs, capitalization and amortization of internally developed software costs, restructuring charges, gains on sale of business/assets, and other that were recorded in the
line items indicated below (unaudited) (in thousands)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Stock-based compensation
|
||||||||||||||||
Cost of sales
|
$
|
1,253
|
$
|
1,191
|
$
|
2,475
|
$
|
2,305
|
||||||||
Sales and marketing
|
7,202
|
6,922
|
14,291
|
12,617
|
||||||||||||
Research and development
|
6,271
|
6,180
|
12,359
|
11,893
|
||||||||||||
General and administrative
|
5,951
|
5,854
|
11,680
|
10,520
|
||||||||||||
Provision for income taxes
|
(1,993
|
)
|
(3,916
|
)
|
(4,648
|
)
|
(7,241
|
)
|
||||||||
Total
|
$
|
18,684
|
$
|
16,231
|
$
|
36,157
|
$
|
30,094
|
||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
||||||||||||||||
Net sales
|
$
|
371
|
$
|
738
|
$
|
742
|
$
|
1,551
|
||||||||
Cost of sales
|
6,415
|
4,226
|
10,218
|
8,497
|
||||||||||||
Sales and marketing
|
5,573
|
2,357
|
11,712
|
4,528
|
||||||||||||
Research and development
|
—
|
—
|
(320
|
)
|
—
|
|||||||||||
Other (expense) income
|
503
|
554
|
1,019
|
948
|
||||||||||||
Provision for income taxes
|
(2,094
|
)
|
(979
|
)
|
(3,530
|
)
|
(1,969
|
)
|
||||||||
Total
|
$
|
10,768
|
$
|
6,896
|
$
|
19,841
|
$
|
13,555
|
||||||||
Acquisition transaction and integration costs, restructuring charges, and other
|
||||||||||||||||
Cost of sales
|
$
|
1,159
|
$
|
(118
|
)
|
$
|
1,944
|
$
|
(43
|
)
|
||||||
Sales and marketing
|
2,339
|
839
|
2,646
|
5,487
|
||||||||||||
Research and development
|
487
|
548
|
1,102
|
1,036
|
||||||||||||
General and administrative
|
1,248
|
873
|
3,019
|
6,539
|
||||||||||||
Other (expense) income
|
(265
|
)
|
280
|
(2,132
|
)
|
4,006
|
||||||||||
Provision for income taxes
|
(779
|
)
|
(578
|
)
|
(1,356
|
)
|
(3,463
|
)
|
||||||||
Total
|
$
|
4,189
|
$
|
1,844
|
$
|
5,223
|
$
|
13,562
|
||||||||
(Capitalization) and amortization of internally developed software costs
|
||||||||||||||||
Cost of sales
|
$
|
1,896
|
$
|
6,227
|
$
|
3,929
|
$
|
13,101
|
||||||||
Research and development
|
—
|
(495
|
)
|
(187
|
)
|
(721
|
)
|
|||||||||
Provision for income taxes
|
(436
|
)
|
(1,204
|
)
|
(843
|
)
|
(2,600
|
)
|
||||||||
Total
|
$
|
1,460
|
$
|
4,528
|
$
|
2,899
|
$
|
9,780
|
National Instruments
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||||||||||
(in thousands, unaudited)
|
||||||||||||||||
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Reconciliation of Net sales to Non-GAAP Net sales
|
||||||||||||||||
Net sales, as reported
|
$
|
395,515
|
$ |
346,696
|
$ |
780,770
|
$
|
681,878
|
||||||||
plus: Impact of acquisition-related fair value adjustments
|
371
|
738
|
742
|
1,551
|
||||||||||||
Non-GAAP net sales
|
$
|
395,886
|
347,434
|
781,512
|
$
|
683,429
|
||||||||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||||||||||
Gross profit, as reported
|
$
|
268,041
|
$
|
247,458
|
$
|
534,068
|
$
|
487,226
|
||||||||
Stock-based compensation
|
1,253
|
1,191
|
2,475
|
2,305
|
||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
6,786
|
4,964
|
10,960
|
10,048
|
||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
1,159
|
(118
|
)
|
1,944
|
(43
|
)
|
||||||||||
Amortization of internally developed software costs
|
1,896
|
6,227
|
3,929
|
13,101
|
||||||||||||
Non-GAAP gross profit
|
$
|
279,135
|
$
|
259,722
|
$
|
553,376
|
$
|
512,637
|
||||||||
Non-GAAP gross margin
|
70.5%
|
|
74.8%
|
70.8%
|
|
75.0%
|
|
|||||||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||||||||||
Operating expenses, as reported
|
$
|
247,269
|
$
|
222,910
|
$
|
482,763
|
$
|
453,139
|
||||||||
Stock-based compensation
|
(19,424
|
)
|
(18,956
|
)
|
(38,330
|
)
|
(35,030
|
)
|
||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
(5,573
|
)
|
(2,357
|
)
|
(11,392
|
)
|
(4,528
|
)
|
||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
(4,074
|
)
|
(2,260
|
)
|
(6,767
|
)
|
(13,062
|
)
|
||||||||
Capitalization of internally developed software costs
|
—
|
495
|
187
|
721
|
||||||||||||
Non-GAAP operating expenses
|
$
|
218,198
|
$
|
199,832
|
$
|
426,461
|
$
|
401,240
|
||||||||
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||||||||||
Operating income, as reported
|
$
|
20,772
|
$
|
24,548
|
$
|
51,305
|
$
|
34,087
|
||||||||
Stock-based compensation
|
20,677
|
20,147
|
40,805
|
37,335
|
||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
12,359
|
7,321
|
22,352
|
14,576
|
||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
5,233
|
2,142
|
8,711
|
13,019
|
||||||||||||
Net amortization of internally developed software costs
|
1,896
|
5,732
|
3,742
|
12,380
|
||||||||||||
Non-GAAP operating income
|
$
|
60,937
|
$
|
59,890
|
$
|
126,915
|
$
|
111,397
|
||||||||
Non-GAAP operating margin
|
15.4%
|
|
17.2%
|
|
16.2%
|
|
16.3%
|
|
||||||||
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes(1)
|
||||||||||||||||
Provision for income taxes, as reported
|
$
|
4,833
|
$
|
4,279
|
$
|
10,162
|
$
|
4,254
|
||||||||
Stock-based compensation
|
1,993
|
3,916
|
4,648
|
7,241
|
||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
2,094
|
979
|
3,530
|
1,969
|
||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
779
|
578
|
1,356
|
3,463
|
||||||||||||
Net amortization of internally developed software costs
|
436
|
1,204
|
843
|
2,600
|
||||||||||||
Non-GAAP provision for income taxes(1)
|
$
|
10,135
|
$
|
10,956
|
$
|
20,539
|
$
|
19,527
|
||||||||
(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP
adjustment, and considers the current and deferred tax impact of those adjustments.
|
Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Net Income and Non-GAAP Diluted EPS
|
||||||||||||||||
(in thousands, except per share data, unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
||||||||||||||||
Net income, as reported
|
$
|
12,434
|
$
|
17,306
|
$
|
37,670
|
$
|
21,802
|
||||||||
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||||||||||
Stock-based compensation
|
20,677
|
20,147
|
40,805
|
37,335
|
||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
12,862
|
7,875
|
23,371
|
15,524
|
||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
4,968
|
2,422
|
6,579
|
17,025
|
||||||||||||
Net amortization of internally developed software costs
|
1,896
|
5,732
|
3,742
|
12,380
|
||||||||||||
Income tax effects and adjustments(1)
|
(5,302
|
)
|
(6,677
|
)
|
(10,377
|
)
|
(15,273
|
)
|
||||||||
Non-GAAP net income
|
$
|
47,535
|
$
|
46,805
|
$
|
101,790
|
$
|
88,793
|
||||||||
Non-GAAP net margin
|
12.0%
|
|
13.5%
|
|
13.0%
|
|
13.0%
|
|
||||||||
Diluted EPS, as reported
|
$
|
0.09
|
$
|
0.13
|
$
|
0.28
|
$
|
0.16
|
||||||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS
|
||||||||||||||||
Stock-based compensation
|
0.16
|
0.15
|
0.31
|
0.28
|
||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
0.10
|
0.06
|
0.18
|
0.12
|
||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
0.04
|
0.02
|
0.05
|
0.13
|
||||||||||||
Net amortization of internally developed software costs
|
0.01
|
0.04
|
0.03
|
0.09
|
||||||||||||
Income tax effects and adjustments(1)
|
(0.04
|
)
|
(0.05
|
)
|
(0.08
|
)
|
(0.11
|
)
|
||||||||
Non-GAAP diluted EPS
|
$
|
0.36
|
$
|
0.35
|
$
|
0.77
|
$
|
0.67
|
||||||||
(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates
applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.
|
||||||||||||||||
Weighted average shares outstanding - Diluted
|
132,708
|
133,539
|
132,948
|
133,157
|
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS Guidance
|
||||||||
(unaudited)
|
||||||||
|
Three Months Ended
|
|||||||
|
September 30, 2022
|
|||||||
|
||||||||
|
Low
|
High
|
||||||
GAAP Diluted EPS, guidance
|
$
|
0.34
|
$
|
0.48
|
||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
|
||||||||
Stock-based compensation
|
0.15
|
0.15
|
||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
0.10
|
0.10
|
||||||
Acquisition transaction and integration costs, restructuring charges, and other(1)
|
(0.12
|
)
|
(0.12
|
)
|
||||
Income tax effects and adjustments(2)
|
(0.01
|
)
|
(0.01
|
)
|
||||
Non-GAAP Diluted EPS, guidance
|
$
|
0.46
|
$
|
0.60
|
||||
(1): Includes $23 million of pre-tax income related to disposal gains from sale of buildings and property, partially offset by
charitable contribution using a portion of the sale proceeds.
|
||||||||
(2): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates
applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.
|