-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I5IxHmBLbk72ik7exmqTPZxfnaXv4QKa3VCUYjAyFVfqOxuwqZEd4a3dT7pIBv+i pSaJpTzLf7JbFrPImb4Xtw== 0000935494-03-000006.txt : 20030723 0000935494-03-000006.hdr.sgml : 20030723 20030723162546 ACCESSION NUMBER: 0000935494-03-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030630 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL INSTRUMENTS CORP /DE/ CENTRAL INDEX KEY: 0000935494 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 741871327 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25426 FILM NUMBER: 03798560 BUSINESS ADDRESS: STREET 1: 11500 NORTH MOPAC EXPRESSWAY CITY: AUSTIN STATE: TX ZIP: 78759 BUSINESS PHONE: 5123389119 MAIL ADDRESS: STREET 1: 11500 NORTH MOPAC EXPRESSWAY CITY: AUSTIN STATE: TX ZIP: 78759 8-K 1 h723038-k.txt NATIONAL INSTRUMENTS CORPORATION 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 23, 2003 National Instruments Corporation (Exact name of registrant as specified in its charter) Delaware 0-25426 74-1871327 (State or other (Commission File Number) (IRS Employer jurisdiction of Identification No.) Incorporation) 11500 North MoPac Expressway, Austin, Texas 78759 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (512) 338-9119 (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits. (c) Exhibits. 99.1 Press Release dated July 23, 2003. Item 9. Regulation FD Disclosure. The press release filed as an exhibit to this report is being furnished under Item 12 (Furnishing of Earnings Releases) as contemplated by SEC Release Nos. 33-8176 and 33-8216. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 23, 2003 NATIONAL INSTRUMENTS CORPORATION /s/ DAVID G. HUGLEY -------------------------------------------- David G. Hugley Vice President & General Counsel Secretary INDEX TO EXHIBITS Exhibit Number Description of Document 99.1 Press Release dated July 23, 2003. EX-99.1 3 h72303pr.txt NATIONAL INSTRUMENTS CORPORATION PRESS RELEASE Contacts: Kimberly Allen Jennifer Howard-Brown Investor Relations Manager Media Relations Manager (512) 683-6873 (512) 683-8713 National Instruments Reports Fourth Consecutive Quarter of Revenue Growth Company Announces First-Ever Dividend, Record Cash Balance AUSTIN, Texas - July 23, 2003 - National Instruments (Nasdaq: NATI) today announced revenue of $100.2 million for the second quarter of 2003, a seven percent increase from the second quarter of 2002, and the fourth consecutive quarter of year-over-year revenue growth. Fully diluted earnings per share (EPS) for Q2 were 14 cents, including patent litigation expenses of $0.7 million, which amounts to $0.01 per share. NI also reported net income of $7.4 million and a record cash balance of $168 million for Q2 2003, up $10 million from last quarter. With more than 42 consecutive quarters of profitable operation, a record cash balance and the recent reduction to the dividend tax rate, the NI Board of Directors has declared the company's first-ever quarterly cash dividend of 5 cents per common share, payable Aug. 29, 2003 to shareholders of record Aug. 4, 2003. "Our investment in R&D continues to pay off. In Q2, we released more new products than in any quarter in the past six years, including LabVIEW 7 Express, the most significant upgrade to our flagship software product in a decade. LabVIEW 7 Express positions us for continued technical leadership well into the next decade," said Dr. James Truchard, NI CEO. "Additionally, with the company's track record of strong profitability, we are pleased to declare our first-ever dividend payment as another way of delivering long-term value to our shareholders." Q2 2003 Highlights Fourth consecutive quarter of year-over-year revenue growth; solid profitability with diluted EPS of 14 cents First-ever quarterly dividend payment of 5 cents per common share, record cash balance of $168 million Major product introductions, including entire LabVIEW 7 Express product family, Compact Vision System for industrial machine vision and the NI ELVIS instrumentation system for higher education Record number of visits to ni.com and record revenue generated through the Web store Successful upgrade of North American ERP Systems to Oracle 11i Court ruling confirmed jury verdict finding three LabVIEW patents valid and infringed by The MathWorks Inc.'s Simulink product - More - National Instruments Reports Fourth Consecutive Quarter of Revenue Growth July 23, 2003 Page 2 "With almost $200 million in revenue for the first six months of this year, we are on target to set a new revenue record in 2003," said Alex Davern, NI CFO. "We are especially pleased to see our growth increase in Q2 given that U.S. industrial production decreased at an annual rate of more than three percent in Q2. We believe this growth is a result of our significant new product introductions." Geographically, the growth of revenue in U.S. dollar terms for Q2 2003 as compared to Q2 2002 was as follows: Asia, up 32 percent; Europe, up seven percent; and flat in the Americas giving overall growth of seven percent, up from five percent last quarter. In local currency terms, revenue was up 40 percent in Asia, down seven percent in Europe, and flat in the Americas. Given the continued uncertainty in global economic conditions, NI anticipates mid to high single digit, year-over-year revenue growth in Q3 2003. In addition, the company estimates earnings per share will be in the range of 12 to 16 cents per share for Q3 2003. This EPS estimate is net of the $1 million NI expects in patent litigation expenses in Q3. In conjunction with NIWeek 2003, the company's annual customer and technology conference, NI will host an analyst conference on Thurs., Aug. 14. More information about the conference is available by contacting the NI investor relations department at (512) 683-5242. Interested parties can listen to a conference call today, July 23, 2003, beginning at 4 p.m. CDT, at ni.com/call. Replay information will be available by calling (719) 457-0820, confirmation code #764588, from 7 p.m. CDT July 23, 2003, through July 30, 2003, at 12 a.m. CDT. This release contains "forward-looking statements," including the company's ability to deliver record revenue, return on R&D investment, and expected revenue, earnings, and litigation expenses. These are subject to a number of risks and uncertainties, including the risk of adverse changes in the global economy, delays in the release of new products, unforeseen developments in litigation, 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. - More - National Instruments Reports Fourth Consecutive Quarter of Revenue Growth July 23, 2003 Page 3 About National Instruments National Instruments (www.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. Readers may obtain investment information from the company's investor relations department at (512) 683-5090, by sending e-mail to nati@ni.com or on the Web at www.ni.com/nati. The condensed consolidated balance sheets, statements of income, and cash flows to follow. LabVIEW(TM), NI(TM) and ni.com(TM) are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies. - More - National Instruments Reports Fourth Consecutive Quarter of Revenue Growth July 23, 2003 Page 4 National Instruments Condensed Consolidated Balance Sheets (in thousands) June 30, December 31, 2003 2002 ------------ ------------ (unaudited) ASSETS Current assets: Cash and cash equivalents $ 28,062 $ 40,240 Short-term investments 140,029 113,638 Accounts receivable, net 61,760 62,981 Inventories 35,896 39,247 Other current assets 18,787 21,860 ------------ ------------ Total current assets 284,534 277,966 Property and equipment, net 150,395 152,133 Intangibles, net and other assets 38,835 28,615 ------------ ------------ Total assets $ 473,764 $ 458,714 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 25,436 $ 25,578 Accrued expenses 34,099 40,935 ------------ ------------ Total current liabilities 59,535 66,513 Deferred income taxes 5,140 5,738 ------------ ------------ Total liabilities 64,675 72,251 ------------ ------------ Stockholders' equity: Common stock 516 511 Additional paid-in capital 79,773 72,063 Retained earnings 335,980 321,813 Other (7,180) (7,924) ------------ ------------ Total stockholders' equity 409,089 386,463 ------------ ------------ Total liabilities and stockholders' equity $ 473,764 $ 458,714 ============ ============ - More - National Instruments Reports Fourth Consecutive Quarter of Revenue Growth July 23, 2003 Page 5 National Instruments Condensed Consolidated Statements of Income (in thousands, except per share data) Three Months Six Months Ended June 30, Ended June 30, (unaudited) (unaudited) 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Net sales $ 100,165 $ 93,505 $ 199,338 $ 188,244 Cost of sales 27,150 26,603 53,163 51,961 ---------- ---------- ---------- ---------- Gross profit 73,015 66,902 146,175 136,283 ---------- ---------- ---------- ---------- Sales and marketing 38,124 33,566 76,669 68,974 Research and development 16,876 15,734 32,127 31,667 General and administrative 8,469 7,528 16,806 14,809 Patent litigation 732 1,314 3,434 1,819 ---------- ---------- ---------- ---------- Total operating expenses 64,201 58,142 129,036 117,269 ---------- ---------- ---------- ---------- Operating income 8,814 8,760 17,139 19,014 Interest income, net 620 839 1,306 1,635 Foreign exchange loss, net 340 217 325 (677) Other income, net 98 445 119 522 ---------- ---------- ---------- ---------- Income before income taxes 9,872 10,261 18,889 20,494 Provision for income taxes 2,468 2,873 4,722 5,738 ---------- ---------- ---------- ---------- Net income $ 7,404 $ 7,388 $ 14,167 $ 14,756 ========== ========== ========== ========== Earnings per share: Basic $ 0.14 $ 0.14 $ 0.28 $ 0.29 ========== ========== ========== ========== Diluted $ 0.14 $ 0.14 $ 0.27 $ 0.27 ========== ========== ========== ========== Weighted average shares Outstanding: Basic 51,490 51,449 51,324 51,331 ========== ========== ========== ========== Diluted 53,633 53,974 53,453 53,966 ========== ========== ========== ========== - More - National Instruments Reports Fourth Consecutive Quarter of Revenue Growth July 23, 2003 Page 6 National Instruments Consolidated Statements of Cash Flows (in thousands) Six Months Ended June 30, (unaudited) 2003 2002 ---------- ---------- Cash flow from operating activities: Net income $ 14,167 $ 14,756 Adjustments to reconcile net income to cash from operating activities: Charges to income not requiring cash outlays: Depreciation and amortization 12,390 9,922 Benefit from deferred income taxes (965) (3,620) Tax benefit from stock option plans 1,315 1,011 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable 1,221 (6,036) Decrease in inventory 3,351 97 Decrease in prepaid expense and other assets 2,511 336 Increase (decrease) in current liabilities (6,978) 5,024 ---------- ---------- Net cash provided by operating activities 27,012 21,490 ---------- ---------- Cash flow from investing activities: Capital expenditures (7,759) (15,607) Capitalization of internally developed software (8,432) (1,386) Additions to other intangibles (4,323) (1,489) Purchases of short-term investments (77,042) (81,026) Sales of short-term investments 50,651 83,414 ---------- ---------- Net cash used in investing activities (46,905) (16,094) ---------- ---------- Cash flow from financing activities: Proceeds from issuance of common stock, net of repurchases 7,715 6,095 ---------- ---------- Net cash provided by financing activities 7,715 6,095 ---------- ---------- Net (decrease) increase in cash and cash equivalents (12,178) 11,491 Cash and cash equivalents at beginning of period 40,240 49,089 ---------- ---------- Cash and cash equivalents at end of period $ 28,062 $ 60,580 ========== ========== ### -----END PRIVACY-ENHANCED MESSAGE-----