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 27, 2015
|
|
NATIONAL INSTRUMENTS CORPORATION
|
|||
By:
|
/s/ DAVID G. HUGLEY
|
||
David G. Hugley
Vice President & General Counsel; Secretary
|
●
|
Revenue of $300 million, down 4 percent year over year in U.S. dollar terms with core revenue up 5 percent year over year
|
|
●
|
Growth in LabVIEW seats driven by NI’s success in enterprise agreements and the continued broad adoption of PXI
|
|
●
|
GAAP operating margin of 11 percent
|
|
●
|
Non-GAAP operating margin of 14 percent
|
|
●
|
Fully diluted GAAP EPS of $0.18 and fully diluted non-GAAP EPS of $0.24
|
|
●
|
EBITDA of $51 million or $0.40 per share
|
|
●
|
Cash and short-term investments of $411 million as of Sept. 30, 2015
|
National Instruments
|
||||
Condensed Consolidated Balance Sheets
|
||||
(in thousands)
|
||||
September 30,
|
December 31,
|
|||
2015
|
2014
|
|||
(unaudited)
|
||||
Assets
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$
|
229,235
|
$
|
274,030
|
Short-term investments
|
182,060
|
197,163
|
||
Accounts receivable, net
|
185,658
|
202,329
|
||
Inventories, net
|
189,992
|
173,052
|
||
Prepaid expenses and other current assets
|
58,410
|
70,075
|
||
Deferred income taxes, net
|
33,675
|
31,171
|
||
Total current assets
|
879,030
|
947,820
|
||
Property and equipment, net
|
260,775
|
264,086
|
||
Goodwill
|
169,770
|
144,325
|
||
Intangible assets, net
|
82,245
|
78,282
|
||
Other long-term assets
|
21,487
|
20,978
|
||
Total assets
|
$
|
1,413,307
|
$
|
1,455,491
|
Liabilities and Stockholders' Equity
|
||||
Current liabilities:
|
||||
Accounts payable
|
$
|
53,762
|
$
|
58,603
|
Accrued compensation
|
28,946
|
33,774
|
||
Deferred revenue - current
|
104,509
|
105,964
|
||
Accrued expenses and other liabilities
|
14,078
|
14,714
|
||
Other taxes payable
|
34,636
|
34,602
|
||
Total current liabilities
|
235,931
|
247,657
|
||
Long-term debt
|
25,000
|
-
|
||
Deferred income taxes
|
44,093
|
47,406
|
||
Liability for uncertain tax positions
|
10,379
|
10,127
|
||
Deferred revenue - long-term
|
26,427
|
26,452
|
||
Other long-term liabilities
|
11,874
|
6,353
|
||
Total liabilities
|
353,704
|
337,995
|
||
Stockholders' equity:
|
||||
Preferred stock
|
-
|
-
|
||
Common stock
|
1,269
|
1,278
|
||
Additional paid-in capital
|
694,817
|
662,889
|
||
Retained earnings
|
395,154
|
464,993
|
||
Accumulated other comprehensive income (loss)
|
(31,637)
|
(11,664)
|
||
Total stockholders' equity
|
1,059,603
|
1,117,496
|
||
Total liabilities and stockholders' equity
|
$
|
1,413,307
|
$
|
1,455,491
|
National Instruments
|
||||||||
Condensed Consolidated Statements of Income
|
||||||||
(in thousands, except per share data, unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
2015
|
2014
|
|||||
Net sales:
|
||||||||
Product
|
$
|
271,683
|
$
|
287,336
|
$
|
807,064
|
$
|
837,824
|
Software maintenance
|
28,129
|
26,365
|
84,053
|
73,262
|
||||
Total net sales
|
299,812
|
313,701
|
891,117
|
911,086
|
||||
|
|
|||||||
Cost of sales:
|
||||||||
Product
|
75,144
|
79,266
|
225,646
|
229,529
|
||||
Software maintenance
|
2,022
|
1,683
|
4,531
|
4,443
|
||||
Total cost of sales
|
77,166
|
80,949
|
230,177
|
233,972
|
||||
|
|
|||||||
Gross profit
|
222,646
|
232,752
|
660,940
|
677,114
|
||||
Operating expenses:
|
||||||||
Sales and marketing
|
114,507
|
116,736
|
335,916
|
348,026
|
||||
Research and development
|
52,533
|
58,972
|
168,462
|
170,082
|
||||
General and administrative
|
23,255
|
22,741
|
69,391
|
68,854
|
||||
Total operating expenses
|
190,295
|
198,449
|
573,769
|
586,962
|
||||
Operating income
|
32,351
|
34,303
|
87,171
|
90,152
|
||||
Other income (expense):
|
||||||||
Interest income
|
396
|
362
|
1,089
|
793
|
||||
Net foreign exchange loss
|
286
|
(452)
|
(1,965)
|
(1,005)
|
||||
Other income, net
|
133
|
(70)
|
787
|
283
|
||||
Income before income taxes
|
33,166
|
34,143
|
87,082
|
90,223
|
||||
Provision for income taxes
|
9,988
|
(5,559)
|
23,958
|
7,275
|
||||
Net income
|
$
|
23,178
|
$
|
39,702
|
$
|
63,124
|
$
|
82,948
|
Basic earnings per share
|
$
|
0.18
|
$
|
0.31
|
$
|
0.49
|
$
|
0.65
|
Diluted earnings per share
|
$
|
0.18
|
$
|
0.31
|
$
|
0.49
|
$
|
0.65
|
Weighted average shares outstanding -
|
||||||||
basic
|
127,935
|
127,478
|
128,219
|
126,785
|
||||
diluted
|
128,229
|
127,903
|
128,856
|
127,529
|
||||
Dividends declared per share
|
$
|
0.19
|
$
|
0.15
|
$
|
0.57
|
$
|
0.45
|
Condensed Consolidated Statements of Cash Flows
|
|||||
(in thousands, unaudited)
|
|||||
Nine Months Ended September 30,
|
|||||
2015
|
2014
|
||||
Cash flow from operating activities:
|
|||||
Net income
|
$
|
63,124
|
$
|
82,948
|
|
Adjustments to reconcile net income to net cash provided
|
|||||
by operating activities:
|
|||||
Depreciation and amortization
|
55,157
|
51,011
|
|||
Stock-based compensation
|
19,151
|
19,531
|
|||
Tax expense/(benefit) expense from deferred income taxes
|
(7,404)
|
|
2,222
|
||
Tax benefit from stock option plans
|
(944)
|
(1,189)
|
|||
Net change in operating assets and liabilities
|
(8,603)
|
(13,807)
|
|||
Net cash provided by operating activities
|
120,481
|
140,716
|
|||
Cash flow from investing activities:
|
|||||
Capital expenditures
|
(28,102)
|
(30,645)
|
|||
Capitalization of internally developed software
|
(22,639)
|
(22,055)
|
|||
Additions to other intangibles
|
(2,240)
|
(2,238)
|
|||
Acquisitions, net of cash received
|
(28,629)
|
-
|
|||
Purchases of short-term investments
|
(29,649)
|
(107,664)
|
|||
Sales and maturities of short-term investments
|
44,752
|
82,514
|
|||
Net cash used by investing activities
|
(66,507)
|
(80,088)
|
|||
Cash flow from financing activities:
|
|||||
Proceeds from revolving line of credit
|
42,000
|
-
|
|||
Principal payments on revolving line of credit
|
(17,000)
|
-
|
|||
Proceeds from issuance of common stock
|
21,252
|
24,483
|
|||
Repurchase of common stock
|
(72,559)
|
-
|
|||
Dividends paid
|
(73,406)
|
(57,108)
|
|||
Tax benefit from stock option plans
|
944
|
1,189
|
|||
Net cash used by financing activities
|
(98,769)
|
(31,436)
|
|||
Net change in cash and cash equivalents
|
(44,795)
|
29,192
|
|||
Cash and cash equivalents at beginning of period
|
274,030
|
230,263
|
|||
Cash and cash equivalents at end of period
|
$
|
229,235
|
$
|
259,455
|
National Instruments
|
||||||||
Detail of GAAP charges related to stock-based compensation, amortization of acquisition intangibles and acquisition related transaction costs
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
2015
|
2014
|
|||||
Stock-based compensation
|
||||||||
Cost of sales
|
$
|
499
|
$
|
465
|
$
|
1,427
|
$
|
1,264
|
Sales and marketing
|
2,854
|
2,756
|
8,303
|
8,334
|
||||
Research and development
|
2,132
|
2,497
|
6,764
|
7,221
|
||||
General and administrative
|
921
|
877
|
2,656
|
2,657
|
||||
Provision for income taxes
|
(1,933)
|
(2,284)
|
(5,420)
|
(5,917)
|
||||
Total
|
$
|
4,473
|
$
|
4,311
|
$
|
13,730
|
$
|
13,559
|
Amortization of acquisition intangibles
|
||||||||
Cost of sales
|
$
|
2,643
|
$
|
2,662
|
$
|
7,858
|
$
|
7,991
|
Sales and marketing
|
423
|
433
|
1,299
|
1,351
|
||||
Research and development
|
322
|
392
|
983
|
1,198
|
||||
General and administrative
|
-
|
-
|
-
|
-
|
||||
Other income, net
|
145
|
170
|
448
|
507
|
||||
Provision for income taxes
|
(1,152)
|
(1,207)
|
(3,469)
|
(3,647)
|
||||
Total
|
$
|
2,381
|
$
|
2,450
|
$
|
7,119
|
$
|
7,400
|
Acquisition transaction costs and restructuring charges
|
||||||||
Cost of sales
|
$
|
169
|
$
|
547
|
$
|
974
|
$
|
547
|
Sales and marketing
|
-
|
(24)
|
-
|
152
|
||||
Research and development
|
-
|
(42)
|
-
|
264
|
||||
General and administrative
|
238
|
38
|
442
|
145
|
||||
Provision for income taxes
|
(59)
|
(182)
|
(390)
|
(388)
|
||||
Total
|
$
|
348
|
$
|
337
|
$
|
1,026
|
$
|
720
|
|
National Instruments
|
||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||
(in thousands, unaudited)
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
2015
|
2014
|
|||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
|
||||||||
Gross profit, as reported
|
$
|
222,646
|
$
|
232,752
|
$
|
660,940
|
$
|
677,114
|
Stock-based compensation
|
499
|
465
|
1,427
|
1,264
|
||||
Amortization of acquisition intangibles
|
2,643
|
2,662
|
7,858
|
7,991
|
||||
Acquisition related transaction costs
|
169
|
547
|
974
|
547
|
||||
Non-GAAP gross profit
|
$
|
225,957
|
$
|
236,426
|
$
|
671,199
|
$
|
686,916
|
Non-GAAP gross margin
|
75%
|
75%
|
75%
|
75%
|
||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
|
||||||||
Operating expenses, as reported
|
$
|
190,295
|
$
|
198,449
|
$
|
573,769
|
$
|
586,962
|
Stock-based compensation
|
(5,907)
|
(6,130)
|
(17,723)
|
(18,212)
|
||||
Amortization of acquisition intangibles
|
(745)
|
(825)
|
(2,282)
|
(2,549)
|
||||
Acquisition related transaction costs
|
(238)
|
28
|
(442)
|
(561)
|
||||
Non-GAAP operating expenses
|
$
|
183,405
|
$
|
191,522
|
$
|
553,322
|
$
|
565,640
|
Reconciliation of Operating Income to Non-GAAP Operating Income
|
||||||||
Operating income, as reported
|
$
|
32,351
|
$
|
34,303
|
$
|
87,171
|
$
|
90,152
|
Stock-based compensation
|
6,406
|
6,595
|
19,150
|
19,476
|
||||
Amortization of acquisition intangibles
|
3,388
|
3,487
|
10,140
|
10,540
|
||||
Acquisition related transaction costs
|
407
|
519
|
1,416
|
1,108
|
||||
Non-GAAP operating income
|
$
|
42,552
|
$
|
44,904
|
$
|
117,877
|
$
|
121,276
|
Non-GAAP operating margin
|
14%
|
14%
|
13%
|
13%
|
||||
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
|
||||||||
Income before income taxes, as reported
|
$
|
33,166
|
$
|
34,143
|
$
|
87,082
|
$
|
90,223
|
Stock-based compensation
|
6,406
|
6,595
|
19,150
|
19,476
|
||||
Amortization of acquisition intangibles
|
3,533
|
3,657
|
10,588
|
11,047
|
||||
Acquisition related transaction costs
|
407
|
519
|
1,416
|
1,108
|
||||
Non-GAAP income before income taxes
|
$
|
43,512
|
$
|
44,914
|
$
|
118,236
|
$
|
121,854
|
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes
|
||||||||
Provision for income taxes, as reported
|
$
|
9,988
|
$
|
(5,559)
|
$
|
23,958
|
$
|
7,275
|
Stock-based compensation
|
1,933
|
2,284
|
5,420
|
5,917
|
||||
Amortization of acquisition intangibles
|
1,152
|
1,207
|
3,469
|
3,647
|
||||
Acquisition related adjustment and transaction costs
|
59
|
182
|
390
|
388
|
||||
Non-GAAP provision for income taxes
|
$
|
13,132
|
$
|
(1,886)
|
$
|
33,237
|
$
|
17,227
|
National Instruments
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
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
2015
|
2014
|
|||||
Net income, as reported
|
$
|
23,178
|
$
|
39,702
|
$
|
63,124
|
$
|
82,948
|
Adjustments to reconcile net income to non-GAAP net income:
|
||||||||
Stock-based compensation, net of tax effect
|
4,473
|
4,311
|
13,730
|
13,559
|
||||
Amortization of acquisition intangibles, net of tax effect
|
2,381
|
2,450
|
7,119
|
7,400
|
||||
Acquisition related transaction costs, net of tax effect
|
348
|
337
|
1,026
|
720
|
||||
Non-GAAP net income
|
$
|
30,380
|
$
|
46,800
|
$
|
84,999
|
$
|
104,627
|
Basic EPS, as reported
|
$
|
0.18
|
$
|
0.31
|
$
|
0.49
|
$
|
0.65
|
Adjustment to reconcile basic EPS to non-GAAP
|
||||||||
basic EPS:
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.11
|
0.11
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.06
|
0.06
|
||||
Impact of acquisition related transaction costs, net of tax effect
|
-
|
-
|
-
|
0.01
|
||||
Non-GAAP basic EPS
|
$
|
0.24
|
$
|
0.37
|
$
|
0.66
|
$
|
0.83
|
Diluted EPS, as reported
|
$
|
0.18
|
$
|
0.31
|
$
|
0.49
|
$
|
0.65
|
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS
|
||||||||
Impact of stock-based compensation, net of tax effect
|
0.04
|
0.04
|
0.11
|
0.11
|
||||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.02
|
0.02
|
0.06
|
0.06
|
||||
Impact of acquisition related transaction costs, net of tax effect
|
-
|
-
|
-
|
-
|
||||
Non-GAAP diluted EPS
|
$
|
0.24
|
$
|
0.37
|
$
|
0.66
|
$
|
0.82
|
Weighted average shares outstanding -
|
||||||||
Basic
|
127,935
|
127,478
|
128,219
|
126,785
|
||||
Diluted
|
128,229
|
127,903
|
128,856
|
127,529
|
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
|
|||||||
September 30,
|
September 30,
|
|||||||
2015
|
2014
|
2015
|
2014
|
|||||
Net income, as reported
|
$
|
23,178
|
$
|
39,702
|
$
|
63,124
|
$
|
82,948
|
Adjustments to reconcile net income to EBITDA:
|
||||||||
Interest income
|
(396)
|
(362)
|
(1,089)
|
(793)
|
||||
Tax expense
|
9,988
|
(5,559)
|
23,958
|
7,275
|
||||
Depreciation and amortization
|
18,655
|
17,654
|
55,157
|
51,011
|
||||
EBITDA
|
$
|
51,425
|
$
|
51,435
|
$
|
141,150
|
$
|
140,441
|
Diluted EPS, as reported
|
$
|
0.18
|
$
|
0.31
|
$
|
0.49
|
$
|
0.65
|
Adjustment to reconcile diluted EPS to EBITDA
|
||||||||
Interest income
|
(0.01)
|
(0.01)
|
(0.01)
|
(0.01)
|
||||
Taxes
|
0.08
|
(0.04)
|
0.19
|
0.06
|
||||
Depreciation and amortization
|
0.15
|
0.14
|
0.43
|
0.40
|
||||
EBITDA diluted EPS
|
$
|
0.40
|
$
|
0.40
|
$
|
1.10
|
$
|
1.10
|
Weighted average shares outstanding - Diluted
|
128,229
|
127,903
|
128,856
|
127,529
|
||||
National Instruments
Reconciliation of GAAP to Non-GAAP EPS Guidance
|
||||
(unaudited)
|
||||
Three Months Ended
|
||||
December 31, 2015
|
||||
Low
|
High
|
|||
GAAP Fully Diluted EPS, guidance
|
$
|
0.21
|
$
|
0.33
|
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
|
||
Impact of acquisition transaction costs and restructuring, net of tax effect
|
||||
Non-GAAP diluted EPS, guidance
|
$
|
0.27
|
$
|
0.39
|
National Instruments
Reconciliation of GAAP Revenue to Core Revenue
|
||
(unaudited)
|
||
Three Months Ended
|
||
September 30,
|
||
2015
|
||
YoY GAAP revenue growth, as reported
|
-4.4%
|
|
Effect of excluding our current largest customer
|
3.5%
|
|
YoY GAAP revenue growth, excluding our largest customer
|
-0.9%
|
|
Effect of excluding the impact of foreign currency exchange
|
5.5%
|
|
YoY Core revenue growth
|
4.6%
|
National Instruments
Reconciliation of GAAP Revenue to Core Revenue Guidance
(unaudited)
|
||
Three Months Ended
|
||
December 31,
|
||
2015
|
||
Estimated YoY GAAP revenue growth
|
-0.8%
|
|
Estimated effect of excluding our current largest customer
|
0.7%
|
|
Estimated YoY GAAP revenue growth, excluding our largest customer
|
-0.1%
|
|
Estimated effect of excluding the impact of foreign currency exchange
|
5.0%
|
|
Estimated YoY Core revenue growth
|
4.9%
|