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 October 31, 2013
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
·
|
Third quarter revenue of $289 million
|
|
·
|
Strong revenue growth in RF and CompactRIO products
|
|
·
|
Fully diluted GAAP EPS of $0.13 and fully diluted non-GAAP EPS of $0.19
|
|
·
|
EBITDA of $39 million or $0.31 per share
|
National Instruments
|
||||||||
Consolidated Balance Sheets
|
||||||||
(in thousands)
|
||||||||
Sept. 30, 2013
|
Dec. 31,
|
|||||||
(unaudited)
|
2012
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 190,208 | $ | 161,996 | ||||
Short-term investments
|
153,906 | 173,166 | ||||||
Accounts receivable, net
|
182,723 | 187,060 | ||||||
Inventories, net
|
178,904 | 169,990 | ||||||
Prepaid expenses and other current assets
|
66,412 | 48,009 | ||||||
Deferred income taxes, net
|
26,464 | 27,479 | ||||||
Total current assets
|
798,617 | 767,700 | ||||||
Property and equipment, net
|
262,966 | 249,721 | ||||||
Goodwill
|
147,319 | 147,258 | ||||||
Intangible assets, net
|
84,424 | 93,913 | ||||||
Other long-term assets
|
28,269 | 26,177 | ||||||
Total assets
|
$ | 1,321,595 | $ | 1,284,769 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 54,582 | $ | 65,080 | ||||
Accrued compensation
|
29,559 | 29,978 | ||||||
Deferred revenue – current
|
96,043 | 90,714 | ||||||
Accrued expenses and other liabilities
|
20,003 | 34,373 | ||||||
Other taxes payable
|
31,021 | 24,811 | ||||||
Total current liabilities
|
231,208 | 244,956 | ||||||
Deferred income taxes
|
45,046 | 47,630 | ||||||
Liability for uncertain tax positions
|
23,399 | 20,920 | ||||||
Deferred revenue – long-term
|
21,309 | 20,446 | ||||||
Other long-term liabilities
|
9,455 | 11,689 | ||||||
Total liabilities
|
330,417 | 345,641 | ||||||
Stockholders’ equity:
|
||||||||
Preferred stock
|
- | - | ||||||
Common stock
|
1,252 | 1,229 | ||||||
Additional paid-in capital
|
586,406 | 532,845 | ||||||
Retained earnings
|
400,798 | 404,210 | ||||||
Accumulated other comprehensive income
|
2,722 | 844 | ||||||
Total stockholders’ equity
|
991,178 | 939,128 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,321,595 | $ | 1,284,769 |
National Instruments
|
||||||||||||||||
Consolidated Statements of Income
|
||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Sept. 30,
|
Sept. 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net sales:
|
||||||||||||||||
Product
|
$ | 269,582 | $ | 267,894 | $ | 810,663 | $ | 776,208 | ||||||||
Software maintenance
|
19,556 | 22,080 | 61,089 | 65,809 | ||||||||||||
GSA accrual
|
- | - | - | 1,349 | ||||||||||||
Total net sales
|
289,138 | 289,974 | 871,752 | 843,366 | ||||||||||||
Cost of sales:
|
||||||||||||||||
Product
|
73,541 | 71,796 | 224,954 | 201,374 | ||||||||||||
Software maintenance
|
1,665 | 1,698 | 4,307 | 4,319 | ||||||||||||
Total cost of sales
|
75,206 | 73,494 | 229,261 | 205,693 | ||||||||||||
Gross profit
|
213,932 | 216,480 | 642,491 | 637,673 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
111,253 | 109,213 | 337,884 | 320,021 | ||||||||||||
Research and development
|
60,791 | 56,627 | 180,520 | 164,928 | ||||||||||||
General and administrative
|
21,363 | 20,714 | 66,363 | 63,590 | ||||||||||||
Acquisition-related adjustment
|
- | - | (1,316 | ) | - | |||||||||||
Total operating expenses
|
193,407 | 186,554 | 583,451 | 548,539 | ||||||||||||
Operating income
|
20,525 | 29,926 | 59,040 | 89,134 | ||||||||||||
Other income (expense):
|
||||||||||||||||
Interest income
|
133 | 133 | 495 | 495 | ||||||||||||
Net foreign exchange gain (loss)
|
456 | (235 | ) | (2,057 | ) | (2,139 | ) | |||||||||
Other income (loss), net
|
304 | (899 | ) | 728 | (644 | ) | ||||||||||
Income before taxes
|
21,418 | 28,925 | 58,206 | 86,846 | ||||||||||||
Provision for income taxes
|
5,654 | 4,585 | 9,421 | 17,423 | ||||||||||||
Net income
|
$ | 15,764 | $ | 24,340 | $ | 48,785 | $ | 69,423 | ||||||||
Basic earnings per share
|
$ | 0.13 | $ | 0.20 | $ | 0.39 | $ | 0.57 | ||||||||
Diluted earnings per share
|
$ | 0.13 | $ | 0.20 | $ | 0.39 | $ | 0.57 | ||||||||
Weighted average shares outstanding -
|
||||||||||||||||
Basic
|
125,032 | 122,402 | 124,244 | 121,710 | ||||||||||||
Diluted
|
125,608 | 123,074 | 125,221 | 122,726 | ||||||||||||
Dividends declared per share
|
$ | 0.14 | $ | 0.14 | $ | 0.42 | $ | 0.42 | ||||||||
Consolidated Statements of Cash Flows
|
||||
(in thousands)
|
||||
Nine Months Ended
|
||||
Sept. 30,
|
||||
(unaudited)
|
||||
2013
|
2012
|
|||
Cash flow from operating activities:
|
||||
Net income
|
$
|
48,785
|
$
|
69,423
|
Adjustments to reconcile net income to net cash provided
|
||||
by operating activities:
|
||||
Depreciation and amortization
|
50,897
|
41,029
|
||
Stock-based compensation
|
21,996
|
20,506
|
||
Tax (benefit) expense from deferred income taxes
|
(1,272)
|
3,626
|
||
Tax benefit from stock option plans
|
(2,185)
|
(2,353)
|
||
Changes in operating assets and liabilities:
|
||||
Accounts receivable
|
4,789
|
(25,549)
|
||
Inventories
|
(8,358)
|
(23,278)
|
||
Prepaid expenses and other assets
|
(18,320)
|
(10,296)
|
||
Accounts payable
|
(10,636)
|
11,100
|
||
Deferred revenue
|
6,192
|
(2,271)
|
||
Taxes and other liabilities
|
2,834
|
8,325
|
||
Net cash provided by operating activities
|
94,722
|
90,262
|
||
Cash flow from investing activities:
|
||||
Capital expenditures
|
(40,795)
|
(52,483)
|
||
Capitalization of internally developed software
|
(10,566)
|
(11,284)
|
||
Additions to other intangibles
|
(4,146)
|
(1,426)
|
||
Purchases of short-term investments
|
(16,039)
|
(48,718)
|
||
Sales and maturities of short-term investments
|
35,299
|
220,094
|
||
Net cash (used in) provided by investing activities
|
(36,247)
|
106,183
|
||
Cash flow from financing activities:
|
||||
Proceeds from issuance of common stock
|
28,809
|
21,297
|
||
AWR earn-out payment
|
(9,016)
|
-
|
||
Dividends paid
|
(52,241)
|
(51,167)
|
||
Tax benefit from stock option plans
|
2,185
|
2,353
|
||
Net cash used in financing activities
|
(30,263)
|
(27,517)
|
||
Net change in cash and cash equivalents
|
28,212
|
168,928
|
||
Cash and cash equivalents at beginning of period
|
161,996
|
142,608
|
||
Cash and cash equivalents at end of period
|
$
|
190,208
|
$
|
311,536
|
National Instruments
|
|||||||||
Amortization of Acquisition Intangibles and Acquisition-Related Transaction Costs
|
|||||||||
(in thousands)
|
|||||||||
(unaudited)
|
|||||||||
Three Months Ended
|
Nine Months Ended
|
||||||||
Sept. 30,
|
Sept. 30,
|
||||||||
2013
|
2012
|
2013
|
2012
|
||||||
Revenue
|
|||||||||
Acquisition-related deferred revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,156
|
|
GSA accrual
|
-
|
-
|
-
|
(1,349)
|
|||||
Provision for income taxes
|
-
|
-
|
-
|
(282)
|
|||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
525
|
|
Stock-Based Compensation
|
|||||||||
Cost of sales
|
$
|
390
|
$
|
436
|
$
|
1,219
|
$
|
1,289
|
|
Sales and marketing
|
2,908
|
2,994
|
8,907
|
8,579
|
|||||
Research and development
|
3,803
|
2,862
|
9,136
|
7,990
|
|||||
General and administrative
|
889
|
928
|
2,734
|
2,648
|
|||||
Provision for income taxes
|
(2,894)
|
(1,999)
|
(6,585)
|
(5,386)
|
|||||
Total
|
$
|
5,096
|
$
|
5,221
|
$
|
15,411
|
$
|
15,120
|
|
Amortization of Acquisition Intangibles
|
|||||||||
Cost of sales
|
$
|
2,672
|
$
|
2,165
|
$
|
8,045
|
$
|
6,761
|
|
Sales and marketing
|
490
|
448
|
1,506
|
1,343
|
|||||
Research and development
|
396
|
-
|
1,638
|
-
|
|||||
Other income, net
|
185
|
189
|
566
|
571
|
|||||
Provision for income taxes
|
(1,232)
|
(887)
|
(3,850)
|
(2,753)
|
|||||
Total
|
$
|
2,511
|
$
|
1,915
|
$
|
7,905
|
$
|
5,922
|
|
Acquisition-Related Transaction Costs
|
|||||||||
Cost of sales
|
$
|
4
|
$
|
-
|
$
|
7
|
$
|
32
|
|
Sales and marketing
|
146
|
190
|
406
|
429
|
|||||
Research and development
|
281
|
33
|
691
|
195
|
|||||
General and administrative
|
71
|
(18)
|
246
|
38
|
|||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
|||||
Provision for income taxes
|
(153)
|
(72)
|
(412)
|
(243)
|
|||||
Total
|
$
|
349
|
$
|
133
|
$
|
(378)
|
$
|
451
|
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, except per share data)
|
||||||||
(unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
Sept. 30,
|
Sept. 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Reconciliation of Net Sales to Non-GAAP Net Sales
|
||||||||
Net sales, as reported
|
$
|
289,138
|
$
|
289,974
|
$
|
871,752
|
$
|
843,366
|
Acquisition-related deferred revenue
|
-
|
-
|
-
|
2,156
|
||||
GSA accrual
|
-
|
-
|
-
|
(1,349)
|
||||
Non-GAAP net sales
|
$
|
289,138
|
$
|
289,974
|
$
|
871,752
|
$
|
844,173
|
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
213,932
|
$
|
216,480
|
$
|
642,491
|
$
|
637,673
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
-
|
-
|
807
|
||||
Stock-based compensation
|
390
|
436
|
1,219
|
1,289
|
||||
Amortization of acquisition intangibles
|
2,672
|
2,165
|
8,045
|
6,761
|
||||
Acquisition-related transaction costs
|
4
|
-
|
7
|
32
|
||||
Non-GAAP gross profit
|
$
|
216,998
|
$
|
219,081
|
$
|
651,762
|
$
|
646,562
|
Non-GAAP gross margin
|
75%
|
76%
|
75%
|
77%
|
||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
193,407
|
$
|
186,554
|
$
|
583,451
|
$
|
548,539
|
Stock-based compensation
|
(7,600)
|
(6,784)
|
(20,777)
|
(19,217)
|
||||
Amortization of acquisition intangibles
|
(886)
|
(448)
|
(3,144)
|
(1,343)
|
||||
Acquisition-related adjustment
|
-
|
-
|
1,316
|
-
|
||||
Acquisition-related transaction costs
|
(498)
|
(205)
|
(1,343)
|
(662)
|
||||
Non-GAAP operating expenses
|
$
|
184,423
|
$
|
179,117
|
$
|
559,503
|
$
|
527,317
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
20,525
|
$
|
29,926
|
$
|
59,040
|
$
|
89,134
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
-
|
-
|
807
|
||||
Stock-based compensation
|
7,990
|
7,220
|
21,996
|
20,506
|
||||
Amortization of acquisition intangibles
|
3,558
|
2,613
|
11,189
|
8,104
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Acquisition-related transaction costs
|
502
|
205
|
1,350
|
694
|
||||
Non-GAAP operating income
|
$
|
32,575
|
$
|
39,964
|
$
|
92,259
|
$
|
119,245
|
Non-GAAP operating margin
|
11%
|
14%
|
11%
|
14%
|
||||
Reconciliation of Income Before Income Taxes to Non-GAAP Income Before Income Taxes
|
||||||||
Income before income taxes, as reported
|
$
|
21,418
|
$
|
28,925
|
$
|
58,206
|
$
|
86,846
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
-
|
-
|
807
|
||||
Stock-based compensation
|
7,990
|
7,220
|
21,996
|
20,506
|
||||
Amortization of acquisition intangibles
|
3,743
|
2,802
|
11,755
|
8,675
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Acquisition-related transaction costs
|
502
|
205
|
1,350
|
694
|
||||
Non-GAAP income before income taxes
|
$
|
33,653
|
$
|
39,152
|
$
|
91,991
|
$
|
117,528
|
Reconciliation of Provision for Income Taxes to Non-GAAP Provision for Income Taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
5,654
|
$
|
4,585
|
$
|
9,421
|
$
|
17,423
|
Acquisition-related deferred revenue and GSA accrual
|
-
|
-
|
-
|
282
|
||||
Stock-based compensation
|
2,894
|
1,999
|
6,585
|
5,386
|
||||
Amortization of acquisition intangibles
|
1,232
|
887
|
3,850
|
2,753
|
||||
Acquisition-related transaction costs
|
153
|
72
|
412
|
243
|
||||
Non-GAAP provision for income taxes
|
$
|
9,933
|
$
|
7,543
|
$
|
20,268
|
$
|
26,087
|
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
|
Nine Months Ended
|
|||||||
Sept. 30,
|
Sept. 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Net income, as reported
|
$
|
15,764
|
$
|
24,340
|
$
|
48,785
|
$
|
69,423
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Acquisition-related deferred revenue, net of tax effect
|
-
|
-
|
-
|
525
|
||||
Stock-based compensation, net of tax effect
|
5,096
|
5,221
|
15,411
|
15,120
|
||||
Amortization of acquisition intangibles, net of tax effect
|
2,511
|
1,915
|
7,905
|
5,922
|
||||
Acquisition-related adjustment
|
-
|
-
|
(1,316)
|
-
|
||||
Acquisition-related transaction costs, net of tax effect
|
349
|
133
|
938
|
451
|
||||
Non-GAAP net income
|
$
|
23,720
|
$
|
31,609
|
$
|
71,723
|
$
|
91,441
|
Basic EPS, as reported
|
$
|
0.13
|
$
|
0.20
|
$
|
0.39
|
$
|
0.57
|
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
|
0.13
|
0.12
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.06
|
0.05
|
||||
Impact of acquisition-related adjustment
|
-
|
-
|
(0.01)
|
-
|
||||
Impact of acquisition-related transaction costs, net of tax effect
|
-
|
-
|
0.01
|
-
|
||||
Non-GAAP basic EPS
|
$
|
0.19
|
$
|
0.26
|
$
|
0.58
|
$
|
0.75
|
Diluted EPS, as reported
|
$
|
0.13
|
$
|
0.20
|
$
|
0.39
|
$
|
0.57
|
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
|
0.12
|
0.12
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.06
|
0.05
|
||||
Impact of acquisition-related adjustment
|
-
|
-
|
(0.01)
|
-
|
||||
Impact of acquisition-related transaction costs, net of tax effect
|
-
|
-
|
0.01
|
-
|
||||
Non-GAAP diluted EPS
|
$
|
0.19
|
$
|
0.26
|
$
|
0.57
|
$
|
0.75
|
Weighted average shares outstanding -
|
||||||||
Basic
|
125,032
|
122,402
|
124,244
|
121,710
|
||||
Diluted
|
125,608
|
123,074
|
125,221
|
122,726
|
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
|
Nine Months Ended
|
|||||||
Sept. 30,
|
Sept. 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Net income, as reported
|
$
|
15,764
|
$
|
24,340
|
$
|
48,785
|
$
|
69,423
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(133)
|
(133)
|
(495)
|
(495)
|
||||
Taxes
|
5,654
|
4,585
|
9,421
|
17,423
|
||||
Depreciation and amortization
|
17,342
|
13,713
|
50,897
|
41,029
|
||||
EBITDA
|
$
|
38,627
|
$
|
42,505
|
$
|
108,608
|
$
|
127,380
|
Diluted EPS, as reported
|
$
|
0.13
|
$
|
0.20
|
$
|
0.39
|
$
|
0.57
|
Adjustment to reconcile diluted EPS to EBITDA:
|
||||||||
Interest income
|
-
|
-
|
-
|
-
|
||||
Taxes
|
0.04
|
0.04
|
0.07
|
0.14
|
||||
Depreciation and amortization
|
0.14
|
0.11
|
0.41
|
0.33
|
||||
EBITDA diluted EPS
|
$
|
0.31
|
$
|
0.35
|
$
|
0.87
|
$
|
1.04
|
Weighted average shares outstanding - diluted
|
125,608
|
123,074
|
125,221
|
122,726
|
National Instruments
|
||||||||||||
Net Revenue Excluding Its Largest Customer
|
||||||||||||
(in millions)
|
||||||||||||
(unaudited)
|
||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||
Sept. 30,
|
Sept. 30,
|
|||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||
Net sales, as reported
|
$
|
289
|
$
|
290
|
$
|
872
|
$
|
844
|
||||
Year-over-year change
|
0%
|
3%
|
||||||||||
Net sales from its largest customer
|
4
|
27
|
31
|
52
|
||||||||
Net sales, excluding its largest customer
|
$
|
285
|
$
|
263
|
$
|
841
|
$
|
792
|
||||
Year-over-year change
|
8%
|
6%
|
National Instruments
|
|||||
Reconciliation of GAAP to Non-GAAP Operating Expense Guidance
|
|||||
(in millions)
|
|||||
(unaudited)
|
|||||
Three Months Ended
|
|||||
Dec. 31, 2013
|
|||||
Low
|
High
|
||||
GAAP operating expense, guidance
|
$
|
187
|
$
|
191
|
|
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
|
$
|
179
|
$
|
183
|
National Instruments
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
|||||
(unaudited)
|
|||||
Three Months Ended
|
|||||
Dec. 31, 2013
|
|||||
Low
|
High
|
||||
GAAP fully diluted EPS, guidance
|
$
|
0.19
|
$
|
0.31
|
|
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
|
$
|
0.25
|
$
|
0.37
|