Delaware
|
000-25426
|
74-1871327
|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
|
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release dated July 29, 2013
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
·
|
Second quarter revenue of $296 million, up 1 percent year-over-year
|
·
|
All-time revenue record for RF products
|
·
|
General industry weakness
|
·
|
Fully diluted GAAP EPS of $0.12 and fully diluted non-GAAP EPS of $0.18
|
National Instruments
|
||||||||
Consolidated Balance Sheets
|
||||||||
(in thousands)
|
||||||||
June 30, 2013
|
Dec. 31,
|
|||||||
(unaudited)
|
2012
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 169,580 | $ | 161,996 | ||||
Short-term investments
|
153,970 | 173,166 | ||||||
Accounts receivable, net
|
172,880 | 187,060 | ||||||
Inventories, net
|
185,278 | 169,990 | ||||||
Prepaid expenses and other current assets
|
68,202 | 48,009 | ||||||
Deferred income taxes, net
|
30,197 | 27,479 | ||||||
Total current assets
|
780,107 | 767,700 | ||||||
Property and equipment, net
|
263,915 | 249,721 | ||||||
Goodwill
|
146,922 | 147,258 | ||||||
Intangible assets, net
|
87,972 | 93,913 | ||||||
Other long-term assets
|
25,303 | 26,177 | ||||||
Total assets
|
$ | 1,304,219 | $ | 1,284,769 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 54,606 | $ | 65,080 | ||||
Accrued compensation
|
28,467 | 29,978 | ||||||
Deferred revenue – current
|
95,137 | 90,714 | ||||||
Accrued expenses and other liabilities
|
33,412 | 34,373 | ||||||
Other taxes payable
|
22,315 | 24,811 | ||||||
Total current liabilities
|
233,937 | 244,956 | ||||||
Deferred income taxes
|
46,480 | 47,630 | ||||||
Liability for uncertain tax positions
|
22,277 | 20,920 | ||||||
Deferred revenue – long-term
|
21,120 | 20,446 | ||||||
Other long-term liabilities
|
8,646 | 11,689 | ||||||
Total liabilities
|
332,460 | 345,641 | ||||||
Stockholders’ equity:
|
||||||||
Preferred stock
|
- | - | ||||||
Common stock
|
1,248 | 1,229 | ||||||
Additional paid-in capital
|
568,426 | 532,845 | ||||||
Retained earnings
|
402,597 | 404,210 | ||||||
Accumulated other comprehensive (loss) income
|
(512 | ) | 844 | |||||
Total stockholders’ equity
|
971,759 | 939,128 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,304,219 | $ | 1,284,769 |
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Net sales:
|
||||||||
Product
|
$
|
275,663
|
$
|
268,979
|
$
|
541,081
|
$
|
508,314
|
Software maintenance
|
20,463
|
21,931
|
41,533
|
43,729
|
||||
GSA accrual
|
-
|
1,349
|
-
|
1,349
|
||||
Total net sales
|
296,126
|
292,259
|
582,614
|
553,392
|
||||
Cost of sales:
|
||||||||
Product
|
82,787
|
69,787
|
151,413
|
129,578
|
||||
Software maintenance
|
1,028
|
1,064
|
2,642
|
2,621
|
||||
Total cost of sales
|
83,815
|
70,851
|
154,055
|
132,199
|
||||
Gross profit
|
212,311
|
221,408
|
428,559
|
421,193
|
||||
Operating expenses:
|
||||||||
Sales and marketing
|
112,561
|
110,756
|
226,631
|
210,808
|
||||
Research and development
|
58,473
|
54,286
|
119,729
|
108,301
|
||||
General and administrative
|
22,156
|
21,502
|
45,000
|
42,876
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Total operating expenses
|
193,190
|
186,544
|
390,044
|
361,985
|
||||
Operating income
|
19,121
|
34,864
|
38,515
|
59,208
|
||||
Other income (expense):
|
||||||||
Interest income
|
177
|
132
|
362
|
362
|
||||
Net foreign exchange loss
|
(1,051)
|
(1,016)
|
(2,513)
|
(1,904)
|
||||
Other income, net
|
400
|
151
|
424
|
255
|
||||
Income before taxes
|
18,647
|
34,131
|
36,788
|
57,921
|
||||
Provision for income taxes
|
4,226
|
7,690
|
3,767
|
12,838
|
||||
Net income
|
$
|
14,421
|
$
|
26,441
|
$
|
33,021
|
$
|
45,083
|
Basic earnings per share
|
$
|
0.12
|
$
|
0.22
|
$
|
0.27
|
$
|
0.37
|
Diluted earnings per share
|
$
|
0.12
|
$
|
0.22
|
$
|
0.26
|
$
|
0.37
|
Weighted average shares outstanding:
|
||||||||
Basic
|
124,377
|
121,801
|
123,845
|
121,360
|
||||
Diluted
|
125,270
|
122,759
|
124,824
|
122,376
|
||||
Dividends declared per share
|
$
|
0.14
|
$
|
$ 0.14
|
$
|
0.28
|
$
|
0.28
|
Consolidated Statements of Cash Flows
|
||||
(in thousands)
|
||||
Six Months Ended
|
||||
June 30,
|
||||
(unaudited)
|
||||
2013
|
2012
|
|||
Cash flow from operating activities:
|
||||
Net income
|
$
|
33,021
|
$
|
45,083
|
Adjustments to reconcile net income to net cash provided
|
||||
by operating activities:
|
||||
Depreciation and amortization
|
33,555
|
27,316
|
||
Stock-based compensation
|
14,006
|
13,285
|
||
Tax (expense) benefit from deferred income taxes
|
(3,633)
|
6,695
|
||
Tax benefit from stock option plans
|
(2,042)
|
(2,094)
|
||
Changes in operating assets and liabilities:
|
||||
Accounts receivable
|
14,358
|
(31,203)
|
||
Inventories
|
(14,732)
|
(16,994)
|
||
Prepaid expenses and other assets
|
(18,418)
|
(17,625)
|
||
Accounts payable
|
(10,612)
|
10,596
|
||
Deferred revenue
|
5,097
|
17,911
|
||
Taxes and other liabilities
|
(6,208)
|
(11,169)
|
||
Net cash provided by operating activities
|
44,392
|
41,801
|
||
Cash flow from investing activities:
|
||||
Capital expenditures
|
(33,147)
|
(28,934)
|
||
Capitalization of internally developed software
|
(8,073)
|
(9,664)
|
||
Additions to other intangibles
|
(2,710)
|
(1,085)
|
||
Purchases of short-term investments
|
(16,039)
|
(38,879)
|
||
Sales and maturities of short-term investments
|
35,234
|
183,058
|
||
Net cash (used in) provided by investing activities
|
(24,735)
|
104,496
|
||
Cash flow from financing activities:
|
||||
Proceeds from issuance of common stock
|
20,612
|
14,422
|
||
Dividends paid
|
(34,727)
|
(34,019)
|
||
Tax benefit from stock option plans
|
2,042
|
2,094
|
||
Net cash used in financing activities
|
(12,073)
|
(17,503)
|
||
Net change in cash and cash equivalents
|
7,584
|
128,794
|
||
Cash and cash equivalents at beginning of period
|
161,996
|
142,608
|
||
Cash and cash equivalents at end of period
|
$
|
169,580
|
$
|
271,402
|
National Instruments
|
|||||||||
Amortization of Acquisition Intangibles and Acquisition-Related Transaction Costs
|
|||||||||
(in thousands)
|
|||||||||
(unaudited)
|
|||||||||
Three Months Ended
|
Six Months Ended
|
||||||||
June 30,
|
June 30,
|
||||||||
2013
|
2012
|
2013
|
2012
|
||||||
Revenue
|
|||||||||
Acquisition-related deferred revenue
|
$
|
-
|
$
|
887
|
$
|
-
|
$
|
2,156
|
|
GSA accrual
|
-
|
(1,349)
|
-
|
(1,349)
|
|||||
Benefit from (provision for) income taxes
|
-
|
162
|
-
|
(282)
|
|||||
Total
|
$
|
-
|
$
|
(300)
|
$
|
-
|
$
|
525
|
|
Stock-based compensation
|
|||||||||
Cost of sales
|
$
|
408
|
$
|
438
|
$
|
829
|
$
|
853
|
|
Sales and marketing
|
2,926
|
2,945
|
5,999
|
5,585
|
|||||
Research and development
|
2,596
|
2,679
|
5,333
|
5,128
|
|||||
General and administrative
|
942
|
921
|
1,845
|
1,720
|
|||||
Provision for income taxes
|
(1,877)
|
(1,880)
|
(3,691)
|
(3,387)
|
|||||
Total
|
$
|
4,995
|
$
|
5,103
|
$
|
10,315
|
$
|
9,899
|
|
Amortization of acquisition intangibles
|
|||||||||
Cost of sales
|
$
|
2,613
|
$
|
2,186
|
$
|
5,373
|
$
|
4,596
|
|
Sales and marketing
|
498
|
448
|
1,016
|
895
|
|||||
Research and development
|
569
|
-
|
1,242
|
-
|
|||||
Other income, net
|
188
|
193
|
381
|
382
|
|||||
Provision for income taxes
|
(1,268)
|
(894)
|
(2,618)
|
(1,866)
|
|||||
Total
|
$
|
2,600
|
$
|
1,933
|
$
|
5,394
|
$
|
4,007
|
|
Acquisition-related transaction costs
|
|||||||||
Cost of sales
|
$
|
3
|
$
|
-
|
$
|
3
|
$
|
32
|
|
Sales and marketing
|
142
|
19
|
260
|
239
|
|||||
Research and development
|
266
|
56
|
410
|
162
|
|||||
General and administrative
|
69
|
9
|
175
|
56
|
|||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
|||||
Provision for income taxes
|
(153)
|
(29)
|
(259)
|
(171)
|
|||||
Total
|
$
|
327
|
$
|
55
|
$
|
(727)
|
$
|
318
|
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, except per share data)
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Reconciliation of Net Sales to Non-GAAP Net Sales
|
||||||||
Net sales, as reported
|
$
|
296,126
|
$
|
292,259
|
$
|
582,614
|
$
|
553,392
|
Acquisition-related deferred revenue
|
-
|
887
|
-
|
2,156
|
||||
GSA accrual
|
-
|
(1,349)
|
-
|
(1,349)
|
||||
Non-GAAP net sales
|
$
|
296,126
|
$
|
291,797
|
$
|
582,614
|
$
|
554,199
|
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
212,311
|
$
|
221,408
|
$
|
428,559
|
$
|
421,193
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
(462)
|
-
|
807
|
||||
Stock-based compensation
|
408
|
438
|
829
|
853
|
||||
Amortization of acquisition intangibles
|
2,613
|
-
|
5,373
|
32
|
||||
Acquisition-related transaction costs
|
3
|
2,186
|
3
|
4,596
|
||||
Non-GAAP gross profit
|
$
|
215,335
|
$
|
223,570
|
$
|
434,764
|
$
|
427,481
|
Non-GAAP gross margin
|
73%
|
77%
|
75%
|
77%
|
||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
193,190
|
$
|
186,544
|
$
|
390,044
|
$
|
361,985
|
Stock-based compensation
|
(6,464)
|
(6,545)
|
(13,177)
|
(12,433)
|
||||
Amortization of acquisition intangibles
|
(1,067)
|
(448)
|
(2,258)
|
(895)
|
||||
Acquisition-related adjustment
|
-
|
-
|
1,316
|
-
|
||||
Acquisition-related transaction costs
|
(477)
|
(84)
|
(845)
|
(457)
|
||||
Non-GAAP operating expenses
|
$
|
185,182
|
$
|
179,467
|
$
|
375,080
|
$
|
348,200
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
19,121
|
$
|
34,864
|
$
|
38,515
|
$
|
59,208
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
(462)
|
-
|
807
|
||||
Stock-based compensation
|
6,872
|
6,983
|
14,006
|
13,286
|
||||
Amortization of acquisition intangibles
|
3,680
|
2,634
|
7,631
|
5,491
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Acquisition-related transaction costs
|
480
|
84
|
848
|
489
|
||||
Non-GAAP operating income
|
$
|
30,153
|
$
|
44,103
|
$
|
59,684
|
$
|
79,281
|
Non-GAAP operating margin
|
10%
|
15%
|
10%
|
14%
|
||||
Reconciliation of Income Before Income Taxes to Non-GAAP Income Before Income Taxes
|
||||||||
Income before income taxes, as reported
|
$
|
18,647
|
$
|
34,131
|
$
|
36,788
|
$
|
57,921
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
(462)
|
-
|
807
|
||||
Stock-based compensation
|
6,872
|
6,983
|
14,006
|
13,286
|
||||
Amortization of acquisition intangibles
|
3,868
|
2,827
|
8,012
|
5,873
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Acquisition-related transaction costs
|
480
|
84
|
848
|
489
|
||||
Non-GAAP income before income taxes
|
$
|
29,867
|
$
|
43,563
|
$
|
58,338
|
$
|
78,376
|
Reconciliation of Provision for Income Taxes to Non-GAAP Provision for Income Taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
4,226
|
$
|
7,690
|
$
|
3,767
|
$
|
12,838
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
(162)
|
-
|
282
|
||||
Stock-based compensation
|
1,877
|
1,880
|
3,691
|
3,387
|
||||
Amortization of acquisition intangibles
|
1,268
|
894
|
2,618
|
1,866
|
||||
Acquisition-related transaction costs
|
153
|
29
|
259
|
171
|
||||
Non-GAAP provision for income taxes
|
$
|
7,524
|
$
|
10,331
|
$
|
10,335
|
$
|
18,544
|
National Instruments
|
||||||||
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Basic EPS and Diluted EPS
|
||||||||
(in thousands, except per share data)
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Net income, as reported
|
$
|
14,421
|
$
|
26,441
|
$
|
33,021
|
$
|
45,083
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Acquisition-related deferred revenue, net of tax effect
|
-
|
(300)
|
-
|
525
|
||||
Stock-based compensation, net of tax effect
|
4,995
|
5,103
|
10,315
|
9,899
|
||||
Amortization of acquisition intangibles, net of tax effect
|
2,600
|
1,933
|
5,394
|
4,007
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Acquisition-related transaction costs, net of tax effect
|
327
|
55
|
589
|
318
|
||||
Non-GAAP net income
|
$
|
22,343
|
$
|
33,232
|
$
|
48,003
|
$
|
59,832
|
Basic EPS, as reported
|
$
|
0.12
|
$
|
0.22
|
$
|
0.27
|
$
|
0.37
|
Adjustment to reconcile basic EPS to non-GAAP basic EPS:
|
||||||||
Impact of acquisition-related deferred revenue, net of tax effect
|
-
|
-
|
-
|
0.01
|
||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.09
|
0.08
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.01
|
0.04
|
0.03
|
||||
Impact of acquisition-related adjustment
|
-
|
-
|
(0.01)
|
-
|
||||
Impact of acquisition-related transaction costs, net of tax effect
|
-
|
-
|
-
|
-
|
||||
Non-GAAP basic EPS
|
$
|
0.18
|
$
|
0.27
|
$
|
0.39
|
$
|
0.49
|
Diluted EPS, as reported
|
$
|
0.12
|
$
|
0.22
|
$
|
0.26
|
$
|
0.37
|
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
|
||||||||
Impact of acquisition-related deferred revenue, net of tax effect
|
-
|
-
|
-
|
0.01
|
||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.09
|
0.08
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.01
|
0.04
|
0.03
|
||||
Impact of acquisition-related adjustment
|
-
|
-
|
(0.01)
|
-
|
||||
Impact of acquisition-related transaction costs, net of tax effect
|
-
|
-
|
-
|
-
|
||||
Non-GAAP diluted EPS
|
$
|
0.18
|
$
|
0.27
|
$
|
0.38
|
$
|
0.49
|
Weighted average shares outstanding:
|
||||||||
Basic
|
124,377
|
121,801
|
123,845
|
121,360
|
||||
Diluted
|
125,270
|
122,759
|
124,824
|
122,376
|
National Instruments
|
||||||||
Reconciliation of Net Income and Diluted EPS to EBITDA and EBITDA Diluted EPS
|
||||||||
(in thousands, except per share data)
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Six Months Ended
|
|||||||
June 30,
|
June 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Net income, as reported
|
$
|
14,421
|
$
|
26,441
|
$
|
33,021
|
$
|
45,083
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(177)
|
(132)
|
(362)
|
(362)
|
||||
Taxes
|
4,226
|
7,690
|
3,767
|
12,838
|
||||
Depreciation and amortization
|
16,726
|
13,201
|
33,555
|
27,316
|
||||
EBITDA
|
$
|
35,196
|
$
|
47,200
|
$
|
69,981
|
$
|
84,875
|
Diluted EPS, as reported
|
$
|
0.12
|
$
|
0.22
|
$
|
0.26
|
$
|
0.37
|
Adjustments to reconcile diluted EPS to EBITDA:
|
||||||||
Interest income
|
-
|
-
|
-
|
-
|
||||
Taxes
|
0.03
|
0.06
|
0.03
|
0.10
|
||||
Depreciation and amortization
|
0.13
|
0.10
|
0.27
|
0.22
|
||||
EBITDA diluted EPS
|
$
|
0.28
|
$
|
0.38
|
$
|
0.56
|
$
|
0.69
|
Weighted average shares outstanding – Diluted
|
125,270
|
122,759
|
124,824
|
122,376
|
National Instruments
|
|||||
Reconciliation of GAAP to Non-GAAP Operating Expense Guidance
|
|||||
(in millions)
|
|||||
(unaudited)
|
|||||
Three months ended
|
|||||
Sept. 30, 2013
|
|||||
Low
|
High
|
||||
GAAP operating expense, guidance
|
$
|
191
|
$
|
197
|
|
Adjustment to reconcile operating expense to non-GAAP
|
|||||
operating expense:
|
|||||
Impact of stock-based compensation
|
7
|
7
|
|||
Impact of amortization of acquisition intangibles
|
1
|
1
|
|||
Non-GAAP operating expense, guidance
|
$
|
183
|
$
|
189
|
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
|||||
(unaudited)
|
|||||
Three months ended
|
|||||
Sept. 30, 2013
|
|||||
Low
|
High
|
||||
GAAP fully diluted EPS, guidance
|
$
|
0.04
|
$
|
0.16
|
|
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
|
0.02
|
0.02
|
|||
Non-GAAP diluted EPS, guidance
|
$
|
0.10
|
$
|
0.22
|
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
|||||
(in millions)
|
|||||
(unaudited)
|
|||||
Three months ended
|
|||||
Dec. 31, 2013
|
|||||
Low
|
High
|
||||
GAAP operating expense, guidance
|
$
|
186
|
$
|
192
|
|
Adjustment to reconcile operating expense to non-GAAP
|
|||||
operating expense:
|
|||||
Impact of stock-based compensation
|
7
|
7
|
|||
Impact of amortization of acquisition intangibles
|
1
|
1
|
|||
Non-GAAP operating expense, guidance
|
$
|
178
|
$
|
184
|