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 January 29, 2015
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
● | Record quarterly revenue of $333 million | |
● | Revenue up 11 percent year-over-year in U.S. dollar terms and 13 percent in constant currency terms | |
● | Strong revenue growth in LabVIEW, PXI, RF and CompactRIO products | |
● | GAAP operating income up 39 percent year-over-year | |
● | Non-GAAP operating income up 30 percent year-over-year | |
● | Fully diluted GAAP EPS of $0.34 and fully diluted non-GAAP EPS of $0.40 | |
● | EBITDA of $73 million or $0.57 per share | |
● | Cash and cash equivalents of $471 million, up $78 million from Dec. 31, 2013 |
● |
Record revenue of $1.24 billion, up 6 percent year-over-year
|
|
● |
Record new product revenue
|
|
● |
Record fully diluted GAAP EPS of $0.99, up 54% year-over-year
|
|
● |
Record non-GAAP fully diluted EPS of $1.22, up 39% year-over-year
|
|
● |
EBITDA of $213 million, or $1.67 per share
|
|
● |
Dividends paid of $76 million, or $0.60 per share
|
National Instruments
|
||||
Condensed Consolidated Balance Sheets
|
||||
(in thousands, unaudited)
|
||||
December 31,
|
December 31,
|
|||
2014
|
2013
|
|||
Assets
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$
|
274,030
|
$
|
230,263
|
Short-term investments
|
197,163
|
163,149
|
||
Accounts receivable, net
|
202,329
|
180,680
|
||
Inventories, net
|
173,052
|
172,109
|
||
Prepaid expenses and other current assets
|
70,075
|
49,001
|
||
Deferred income taxes, net
|
31,171
|
33,393
|
||
Total current assets
|
947,820
|
828,595
|
||
Property and equipment, net
|
264,086
|
260,568
|
||
Goodwill
|
144,325
|
146,520
|
||
Intangible assets, net
|
78,282
|
82,310
|
||
Other long-term assets
|
20,978
|
25,558
|
||
Total assets
|
$
|
1,455,491
|
$
|
1,343,551
|
Liabilities and Stockholders' Equity
|
||||
Current liabilities:
|
||||
Accounts payable
|
$
|
58,603
|
$
|
56,614
|
Accrued compensation
|
33,774
|
25,189
|
||
Deferred revenue - current
|
105,964
|
96,117
|
||
Accrued expenses and other liabilities
|
14,714
|
17,627
|
||
Other taxes payable
|
34,602
|
29,808
|
||
Total current liabilities
|
247,657
|
225,355
|
||
Deferred income taxes
|
47,406
|
44,620
|
||
Liability for uncertain tax positions
|
10,127
|
23,572
|
||
Deferred revenue - long-term
|
26,452
|
21,389
|
||
Other long-term liabilities
|
6,353
|
5,531
|
||
Total liabilities
|
337,995
|
320,467
|
||
Stockholders' equity:
|
||||
Preferred stock
|
-
|
-
|
||
Common stock
|
1,278
|
1,257
|
||
Additional paid-in capital
|
662,889
|
604,330
|
||
Retained earnings
|
464,993
|
414,947
|
||
Accumulated other comprehensive (loss) income
|
(11,664)
|
2,550
|
||
Total stockholders' equity
|
1,117,496
|
1,023,084
|
||
Total liabilities and stockholders' equity
|
$
|
1,455,491
|
$
|
1,343,551
|
National Instruments
|
||||||||
Condensed Consolidated Statements of Income
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Year Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net sales:
|
||||||||
Product
|
$
|
305,176
|
$
|
280,523
|
$
|
1,143,000
|
$
|
1,091,186
|
Software maintenance
|
27,600
|
20,283
|
100,862
|
81,372
|
||||
Total net sales
|
332,776
|
300,806
|
1,243,862
|
1,172,558
|
||||
Cost of sales:
|
||||||||
Product
|
83,094
|
74,900
|
312,623
|
299,854
|
||||
Software maintenance
|
1,066
|
1,082
|
5,509
|
5,389
|
||||
Total cost of sales
|
84,160
|
75,982
|
318,132
|
305,243
|
||||
Gross profit
|
248,616
|
224,824
|
925,730
|
867,315
|
||||
Operating expenses:
|
||||||||
Sales and marketing
|
113,819
|
109,916
|
461,845
|
447,800
|
||||
Research and development
|
57,351
|
54,276
|
227,433
|
234,796
|
||||
General and administrative
|
22,411
|
21,055
|
91,265
|
87,418
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Total operating expenses
|
193,581
|
185,247
|
780,543
|
768,698
|
||||
Operating income
|
55,035
|
39,577
|
145,187
|
98,617
|
||||
Other income (expense):
|
||||||||
Interest income
|
340
|
184
|
1,133
|
679
|
||||
Net foreign exchange loss
|
(1,245)
|
(521)
|
(2,250)
|
(2,578)
|
||||
Other (loss) income, net
|
(352)
|
(278)
|
(69)
|
450
|
||||
Income before income taxes
|
53,778
|
38,962
|
144,001
|
97,168
|
||||
Provision for income taxes
|
10,393
|
7,234
|
17,668
|
16,655
|
||||
Net income
|
$
|
43,385
|
$
|
31,728
|
$
|
126,333
|
$
|
80,513
|
Basic earnings per share
|
$
|
0.34
|
$
|
0.25
|
$
|
0.99
|
$
|
0.65
|
Diluted earnings per share
|
$
|
0.34
|
$
|
0.25
|
$
|
0.99
|
$
|
0.64
|
Weighted average shares outstanding -
|
||||||||
basic
|
127,755
|
125,489
|
127,030
|
124,558
|
||||
diluted
|
128,233
|
126,217
|
127,799
|
125,571
|
||||
Dividends declared per share
|
$
|
0.15
|
$
|
0.14
|
$
|
0.60
|
$
|
0.56
|
Condensed Consolidated Statements of Cash Flows
|
||||
(in thousands, unaudited)
|
||||
Year Ended December 31,
|
||||
2014
|
2013
|
|||
Cash flow from operating activities:
|
||||
Net income
|
$
|
126,333
|
$
|
80,513
|
Adjustments to reconcile net income to net cash provided
|
||||
by operating activities:
|
|
|||
Depreciation and amortization
|
70,206
|
67,974
|
||
Stock-based compensation
|
25,759
|
28,992
|
||
Tax expense/(benefit) from deferred income taxes
|
5,886
|
(4,353)
|
||
Tax benefit from stock option plans
|
(1,242)
|
(2,407)
|
||
Changes in operating assets and liabilities:
|
|
|||
Accounts receivable
|
(21,649)
|
6,820
|
||
Inventories
|
(943)
|
(1,563)
|
||
Prepaid expenses and other assets
|
(25,046)
|
(1,767)
|
||
Accounts payable
|
1,989
|
(8,604)
|
||
Deferred revenue
|
14,910
|
6,346
|
||
Taxes and other liabilities
|
(1,097)
|
(2,472)
|
||
Net cash provided by operating activities
|
195,106
|
169,479
|
||
Cash flow from investing activities:
|
||||
Capital expenditures
|
(44,944)
|
(47,796)
|
||
Capitalization of internally developed software
|
(25,781)
|
(14,883)
|
||
Additions to other intangibles
|
(2,834)
|
(5,182)
|
||
Purchases of short-term investments
|
(123,849)
|
(70,354)
|
||
Sales and maturities of short-term investments
|
89,835
|
80,371
|
||
Net cash used in investing activities
|
(107,573)
|
(57,844)
|
||
Cash flow from financing activities:
|
||||
Proceeds from issuance of common stock
|
31,277
|
39,319
|
||
AWR earnout payment
|
-
|
(15,318)
|
||
Dividends paid
|
(76,285)
|
(69,776)
|
||
Tax benefit from stock option plans
|
1,242
|
2,407
|
||
Net cash used in financing activities
|
(43,766)
|
(43,368)
|
||
Net change in cash and cash equivalents
|
43,767
|
68,267
|
||
Cash and cash equivalents at beginning of period
|
230,263
|
161,996
|
||
Cash and cash equivalents at end of period
|
$
|
274,030
|
$
|
230,263
|
National Instruments
|
||||||||
Detail of GAAP charges related to revenue, stock-based compensation, amortization of acquisition intangibles and acquisition transaction costs and restructuring charges
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Year Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Stock-based compensation
|
||||||||
Cost of sales
|
$
|
447
|
$
|
439
|
$
|
1,711
|
$
|
1,658
|
Sales and marketing
|
2,597
|
2,882
|
10,931
|
11,789
|
||||
Research and development
|
2,428
|
2,728
|
9,649
|
11,864
|
||||
General and administrative
|
810
|
890
|
3,467
|
3,624
|
||||
Provision for income taxes
|
(1,497)
|
(3,216)
|
(7,414)
|
(9,801)
|
||||
Total
|
$
|
4,785
|
$
|
3,723
|
$
|
18,344
|
$
|
19,134
|
Amortization of acquisition intangibles
|
||||||||
Cost of sales
|
$
|
2,660
|
$
|
2,673
|
$
|
10,651
|
$
|
10,718
|
Sales and marketing
|
433
|
482
|
1,784
|
1,988
|
||||
Research and development
|
369
|
405
|
1,567
|
2,043
|
||||
Other income, net
|
165
|
185
|
672
|
751
|
||||
Provision for income taxes
|
(1,199)
|
(1,231)
|
(4,846)
|
(5,081)
|
||||
Total
|
$
|
2,428
|
$
|
2,514
|
$
|
9,828
|
$
|
10,419
|
Acquisition related transaction costs and restructuring charges
|
||||||||
Cost of sales
|
$
|
742
|
$
|
21
|
$
|
1,289
|
$
|
28
|
Sales and marketing
|
37
|
189
|
189
|
595
|
||||
Research and development
|
178
|
410
|
442
|
1,101
|
||||
General and administrative
|
96
|
80
|
241
|
326
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Provision for income taxes
|
(286)
|
(133)
|
(674)
|
(545)
|
||||
Total
|
$
|
767
|
$
|
567
|
$
|
1,487
|
$
|
189
|
National Instruments
|
||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Year Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
248,616
|
$
|
224,824
|
$
|
925,730
|
$
|
867,315
|
Stock-based compensation
|
447
|
439
|
1,711
|
1,658
|
||||
Amortization of acquisition intangibles
|
2,660
|
2,673
|
10,651
|
10,718
|
||||
Acquisition transaction costs and restructuring charges
|
742
|
21
|
1,289
|
28
|
||||
Non-GAAP gross profit
|
$
|
252,465
|
$
|
227,957
|
$
|
939,381
|
$
|
879,719
|
Non-GAAP gross margin
|
76%
|
76 %
|
76%
|
75%
|
||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
193,581
|
$
|
185,247
|
$
|
780,543
|
$
|
768,698
|
Stock-based compensation
|
(5,835)
|
(6,500)
|
(24,047)
|
(27,277)
|
||||
Amortization of acquisition intangibles
|
(802)
|
(887)
|
(3,351)
|
(4,031)
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
1,316
|
||||
Acquisition transaction costs and restructuring charges
|
(311)
|
(679)
|
(872)
|
(2,022)
|
||||
Non-GAAP operating expenses
|
$
|
186,633
|
$
|
177,181
|
$
|
752,273
|
$
|
736,684
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
55,035
|
$
|
39,577
|
$
|
145,187
|
$
|
98,617
|
Stock-based compensation
|
6,282
|
6,939
|
25,758
|
28,935
|
||||
Amortization of acquisition intangibles
|
3,462
|
3,560
|
14,002
|
14,749
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition transaction costs and restructuring charges
|
1,053
|
700
|
2,161
|
2,050
|
||||
Non-GAAP operating income
|
$
|
65,832
|
$
|
50,776
|
$
|
187,108
|
$
|
143,035
|
Non-GAAP operating margin
|
20%
|
17%
|
15%
|
12%
|
||||
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
|
||||||||
Income before income taxes, as reported
|
$
|
53,778
|
$
|
38,962
|
$
|
144,001
|
$
|
97,168
|
Stock-based compensation
|
6,282
|
6,939
|
25,758
|
28,935
|
||||
Amortization of acquisition intangibles
|
3,627
|
3,745
|
14,674
|
15,500
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition transaction costs and restructuring charges
|
1,053
|
700
|
2,161
|
2,050
|
||||
Non-GAAP income before income taxes
|
$
|
64,740
|
$
|
50,346
|
$
|
186,594
|
$
|
142,337
|
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
10,393
|
$
|
7,234
|
$
|
17,668
|
$
|
16,655
|
Stock-based compensation
|
1,497
|
3,216
|
7,414
|
9,801
|
||||
Amortization of acquisition intangibles
|
1,199
|
1,231
|
4,846
|
5,081
|
||||
Acquisition transaction costs and restructuring charges
|
286
|
133
|
674
|
545
|
||||
Non-GAAP provision for income taxes
|
$
|
13,375
|
$
|
11,814
|
$
|
30,602
|
$
|
32,082
|
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Non-GAAP Basic EPS and Non-GAAP Diluted EPS
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Year Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net income, as reported
|
$
|
43,385
|
$
|
31,728
|
$
|
126,333
|
$
|
80,513
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Stock-based compensation, net of tax effect
|
4,785
|
3,723
|
18,344
|
19,134
|
||||
Amortization of acquisition intangibles, net of tax effect
|
2,428
|
2,514
|
9,828
|
10,419
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(1,316)
|
||||
Acquisition transaction costs and restructuring charges, net of tax effect
|
767
|
567
|
1,487
|
1,505
|
||||
Non-GAAP net income
|
$
|
51,365
|
$
|
38,532
|
$
|
155,992
|
$
|
110,255
|
Basic EPS, as reported
|
$
|
0.34
|
$
|
0.25
|
$
|
0.99
|
$
|
0.65
|
Adjustment to reconcile basic EPS to non-GAAP basic EPS
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.03
|
0.15
|
0.16
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.08
|
0.08
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(0.01)
|
||||
Impact of acquisition transaction costs and restructuring charges, net of tax effect
|
-
|
0.01
|
0.01
|
0.01
|
||||
Non-GAAP basic EPS
|
$
|
0.40
|
$
|
0.31
|
$
|
1.23
|
$
|
0.89
|
Diluted EPS, as reported
|
$
|
0.34
|
$
|
0.25
|
$
|
0.99
|
$
|
0.64
|
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.03
|
0.14
|
0.16
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.08
|
0.08
|
||||
Acquisition related adjustment
|
-
|
-
|
-
|
(0.01)
|
||||
Impact of acquisition transaction costs and restructuring charges, net of tax effect
|
-
|
0.01
|
0.01
|
0.01
|
||||
Non-GAAP diluted EPS
|
$
|
0.40
|
$
|
0.31
|
$
|
1.22
|
$
|
0.88
|
Weighted average shares outstanding -
|
||||||||
Basic
|
127,755
|
125,489
|
127,030
|
124,558
|
||||
Diluted
|
128,233
|
126,217
|
127,799
|
125,571
|
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
|
Year Ended
|
|||||||
December 31,
|
December 31,
|
|||||||
2014
|
2013
|
2014
|
2013
|
|||||
Net income, as reported
|
$
|
43,385
|
$
|
31,728
|
$
|
126,333
|
$
|
80,513
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(340)
|
(184)
|
(1,133)
|
(679)
|
||||
Tax expense
|
10,393
|
7,234
|
17,668
|
16,655
|
||||
Depreciation and amortization
|
19,195
|
17,077
|
70,206
|
67,974
|
||||
EBITDA
|
$
|
72,633
|
$
|
55,855
|
$
|
213,074
|
$
|
164,463
|
Diluted EPS, as reported
|
$
|
0.34
|
$
|
0.25
|
$
|
0.99
|
$
|
0.64
|
Adjustment to reconcile diluted EPS to EBITDA
|
||||||||
Interest income
|
-
|
-
|
(0.01)
|
-
|
||||
Taxes
|
0.08
|
0.05
|
0.14
|
0.13
|
||||
Depreciation and amortization
|
0.15
|
0.14
|
0.55
|
0.54
|
||||
EBITDA diluted EPS
|
$
|
0.57
|
$
|
0.44
|
$
|
1.67
|
$
|
1.31
|
Weighted average shares outstanding - Diluted
|
128,233
|
126,217
|
127,799
|
125,571
|
||||
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
||||
(unaudited)
|
||||
Three months ended
|
||||
March 31, 2015
|
||||
Low
|
High
|
|||
GAAP Fully Diluted EPS, guidance
|
$
|
0.11
|
$
|
0.23
|
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
|
$
|
0.17
|
$
|
0.29
|