0000935494-16-000033.txt : 20160128 0000935494-16-000033.hdr.sgml : 20160128 20160128163516 ACCESSION NUMBER: 0000935494-16-000033 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160128 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160128 DATE AS OF CHANGE: 20160128 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: 161369369 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 form8-k.htm NATIONAL INSTRUMENTS CORPORATION - FORM 8-K form8-k.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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)

January 28, 2016

____________________

National Instruments Corporation
(Exact name of registrant as specified in its charter)

Delaware
 
000-25426
 
74-1871327
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)

11500 North MoPac Expressway
Austin, Texas 78759
(Address of principal executive offices, including zip code)

(512) 338-9119
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 
 
[  ] 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))



 
 
 


 

Item 2.02.  Results of Operations and Financial Conditions
 
Attached hereto as Exhibit 99.1 and incorporated by reference herein is the text of the registrant's press release, dated January 28, 2016, regarding financial results for the registrant's fourth fiscal quarter ended December 31, 2015.
 
 
The information in this Current Report on Form 8-K is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.
 

Item 9.01.  Financial Statements and Exhibits

(d)  Exhibits.

Exhibit No.
 
Description
     
99.1
 
Press Release dated January 28, 2016
     

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.

   
NATIONAL INSTRUMENTS CORPORATION
     
 
By:
/s/ DAVID G. HUGLEY
 
   
David  G. Hugley
Vice President & General Counsel; Secretary

Date:  January 28, 2016
EX-99.1 2 ex99-1.htm PRESS RELEASE ex99-1.htm
Contact:             Marissa Vidaurri, Investor Relations, marissa.vidaurri@ni.com
 
NI Reports Q4 Revenue of $334 Million
Continued Year-Over-Year Core Revenue Growth

Q4 2015 Highlights

 
Record revenue of $334 million, up 0.5 percent year over year in U.S. dollar terms with core revenue up 4.3 percent year over year
 
Record bookings for software
 
GAAP operating margin of 15 percent
 
Non-GAAP operating margin of 18.5 percent
 
Fully diluted GAAP EPS of $0.25 and fully diluted non-GAAP EPS of $0.34
 
EBITDA of $63 million or $0.49 per share
 
Cash and short-term investments of $333 million as of Dec. 31, 2015

AUSTIN, Texas – Jan. 28, 2016 – NI (Nasdaq: NATI) today announced Q4 revenue of $334 million, up 0.5 percent year over year in U.S. dollar terms with core revenue up 4.3 percent year over year. The company’s definition of core revenue is GAAP revenue excluding the impact of NI’s largest customer and the impact of foreign currency exchange. A reconciliation of GAAP revenue to core revenue is included with this news release.
 
In Q4 2015, NI received $10 million in orders from its largest customer compared with $8 million in orders from this customer in Q4 2014. Excluding NI’s largest customer, the company’s total order growth was flat for the quarter with orders under $20,000 down 5 percent year over year; orders between $20,000 and $100,000 up 1 percent year over year; and orders above $100,000 up 9 percent year over year.
 
“Despite the revenue headwinds, the strength of our business model has allowed us to deliver strong gross and operating margins for the year. Our platform-based approach, built around highly differentiated software, has created a large ecosystem of customers, partners and technologies that are key drivers to the long-term growth and profitability of the company,” said Dr. James Truchard, NI president, CEO and co-founder. “The recent convergence of technology has led to an explosion in the amount of data required to characterize systems. Our differentiated software-defined platform puts us at the forefront as we empower engineers to solve their unique challenges through our flexible tools designed specifically to measure, process and connect to these sources of Big Analog Data.”
 
GAAP net income for Q4 was $32 million, with fully diluted earnings per share (EPS) of $0.25, and non-GAAP net income was $43 million, with non-GAAP fully diluted EPS of $0.34. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $63 million, or $0.49 per share in the fourth quarter.
 
In Q4, GAAP gross margin was 74 percent and non-GAAP gross margin was 75 percent. Total GAAP operating expenses were $198 million, up 2 percent year over year. Total non-GAAP operating expenses were $190 million, up 2 percent year over year.
 
GAAP operating margin was 15 percent in Q4, with GAAP operating income of $50 million, down 9 percent year over year. Non-GAAP operating margin was 18.5 percent in Q4, with non-GAAP operating income of $62 million, down 6 percent year over year.
 
“While our results for 2015 were below our expectations coming into the year, I am proud of our execution. Given the revenue headwinds that developed due to currency, a weak PMI and other issues, I am proud that we were able to essentially maintain our revenue and operating profitability in 2015,” said Alex Davern, NI COO and CFO. “We remain committed to our goal of driving operating leverage to achieve our long-term operating margin targets.”
 
Geographic revenue in U.S. dollar terms for Q4 2015 compared with Q4 2014 was down 4 percent in the Americas, up 3 percent in EMEIA and up 3 percent in APAC. In constant currency terms, revenue was down 1 percent in the Americas, up 8 percent in EMEIA and up 9 percent in APAC. Historical revenue from these three regions can be found on NI’s investor website at www.ni.com/nati.
 
As of Dec. 31, 2015, NI had $333 million in cash and short-term investments. For the year, the company paid $98 million in dividends, used $75 million to repurchase 2.6 million shares of NI’s common stock at an average price of $29.04 per share and used $126 million in net cash for acquisitions. The NI Board of Directors approved a quarterly dividend of $0.20 per share payable on March 7, 2016, to stockholders of record on Feb. 16, 2016.

The company’s non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles and acquisition transaction costs and restructuring charges. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.
 
FY 2015 Highlights
 
 
Revenue of $1.23 billion, down 1.5 percent year over year
 
Core revenue up 6 percent year-over-year
 
Fully diluted GAAP EPS of $0.74
 
Non-GAAP fully diluted EPS of $1.00
 
EBITDA of $204 million, or $1.59 per share
 
Dividends paid of $98 million, or $0.76 per share

Full-year 2015 revenue was $1.23 billion, down 1.5 percent year-over-year. GAAP net income for 2015 was $95 million, with fully diluted GAAP EPS of $0.74, and non-GAAP net income was $128 million, with fully diluted EPS of $1.00.
 
Guidance for Q1 2016
 
NI currently expects Q1 revenue to be in the range of $290 million to $320 million. Based on current exchange rates the company expects that the impact of the strengthening of the U.S dollar will reduce the company’s year over year dollar revenue growth rate by approximately 400 basis points in Q1 and approximately 200 basis points for Q2 through Q4. At the midpoint, NI’s guidance reflects a 5 percent increase in U.S. dollars and approximately 9 percent year over year core revenue growth. The company currently expects that GAAP fully diluted EPS will be in the range of $0.09 to $0.21 for Q1, with non-GAAP fully diluted EPS expected to be in the range of $0.17 to $0.29. In Q1, NI currently expects its non-GAAP effective tax rate to be approximately 21 percent.
 
Non-GAAP Presentation
 
In addition to disclosing results determined in accordance with GAAP, NI discloses certain non-GAAP operating results and non-GAAP information that exclude certain charges. In this news release, the company has presented its gross profit, gross margin, operating expenses, operating income, operating margin, income before income taxes, provision for income taxes, net income and basic and fully diluted EPS for the three- and twelve-month periods ending December 31, 2015 and 2014, on a GAAP and non-GAAP basis. NI is also providing guidance on its non-GAAP fully diluted EPS and non-GAAP effective tax rate.
 
When presenting non-GAAP information, the company includes a reconciliation of the non-GAAP results to the GAAP results. Management believes that including the non-GAAP results assists investors in assessing the company’s operational performance and its performance relative to its competitors. The company presents these non-GAAP results as a complement to results provided in accordance with GAAP, and these results should not be regarded as a substitute for GAAP. Management uses these non-GAAP measures to manage and assess the profitability and performance of its business and does not consider stock-based compensation expense, amortization of acquisition-related intangibles, acquisition-related transaction costs, restructuring charges, foreign exchange loss on acquisitions and impairment of minority cost basis investments in managing its operations. Specifically, management uses non-GAAP measures to plan and forecast future periods; to establish operational goals; to compare with its business plan and individual operating budgets; to measure management performance for the purposes of executive compensation, including payments to be made under bonus plans; to assist the public in measuring the company’s performance relative to the company’s long-term public performance goals; to allocate resources; and, relative to the company’s historical financial performance, to enable comparability between periods. Management also considers such non-GAAP results to be an important supplemental measure of its performance.
 
This news release discloses the company’s EBITDA and EBITDA diluted EPS for the three- and twelve-month periods ending December 31, 2015 and 2014. The company believes that including the EBITDA results assists investors in assessing the company’s operational performance relative to its competitors. A reconciliation of EBITDA and EBITDA diluted EPS to GAAP net income and GAAP diluted EPS is included with this news release. This news release also discloses the company’s core revenue for the three- and twelve-month periods ending December 31, 2015 and 2014. The company believes that including its core revenue assists investors in assessing the company’s operational performance. A reconciliation of core revenue to GAAP revenue is included with this news release.

Conference Call Information and Availability of Presentation Materials
 
Interested parties can listen to the Q4 2015 earnings conference call with NI management today, Jan. 28, at 4:00 p.m. CT at ni.com/call. Replay information is available by calling (855) 212-2361, confirmation code 10953888 shortly after the call through Jan. 31, at 11:00 p.m. CT, or by visiting the company’s website at ni.com/call. Presentation materials referred to on the conference call can also be found at ni.com/nati.
 
Forward-Looking Statements
 
This release contains “forward-looking statements,” including statements regarding continued year over year core revenue growth; that our platform-based approach has created a large ecosystem of customers, partners, and technologies that are key drivers to long-term growth and profitability; that our platform puts us at the forefront as we empower engineers to solve their unique challenges; that we remain committed to our goal of driving operating leverage to achieve our long-term operating margin targets; that NI expects the impact of the strengthening of the U.S. dollar to reduce its year-over-year dollar revenue growth rate by approximately 400 basis points in Q1; expected revenue from NI’s largest customer in Q1; and NI’s guidance for Q1 revenue and GAAP and non-GAAP fully diluted EPS and non-GAAP tax rate. These statements are subject to a number of risks and uncertainties, including the risk of adverse changes or fluctuations in the global economy, foreign exchange fluctuations, component shortages, delays in the release of new products, fluctuations in demand for NI products including orders from NI’s largest customer, the company’s ability to effectively manage its operating expenses, manufacturing inefficiencies and the level of capacity utilization, the impact of any recent or future acquisitions by NI, expense overruns and adverse effect of price changes and effective tax rates. Actual results may differ materially from the expected results.
 
The company directs readers to its Form 10-K for the year ended Dec. 31, 2014; its Form 10-Q for the quarter ended September 30, 2015; and the other documents it files with the SEC for other risks associated with the company’s future performance.
 
About NI
Since 1976, NI (www.ni.com) has made it possible for engineers and scientists to solve the world’s greatest engineering challenges with powerful, flexible technology solutions that accelerate productivity and drive rapid innovation. Customers from a wide variety of industries – from healthcare to automotive and from consumer electronics to particle physics – use NI’s integrated hardware and software platform to improve the world we live in. (NATI-F)
 
Big Analog Data, LabVIEW, National Instruments, NI, ni.com and NIWeek are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies.
 
 
 

 

 
             
National Instruments
 
Condensed Consolidated Balance Sheets
 
(in thousands, unaudited)
 
             
   
December 31,
   
December 31,
 
   
2015
   
2014
 
             
             
Assets
           
Current assets:
           
Cash and cash equivalents
    251,129       274,030  
Short-term investments
    81,789       197,163  
Accounts receivable, net
    216,244       202,329  
Inventories, net
    185,197       173,052  
Prepaid expenses and other current assets
    65,381       70,075  
Deferred income taxes, net
    -       31,171  
Total current assets
    799,740       947,820  
                 
Property and equipment, net
    257,853       264,086  
Goodwill
    257,718       144,325  
Intangible assets, net
    108,196       78,282  
Other long-term assets
    30,349       20,978  
Total assets
    1,453,856       1,455,491  
                 
Liabilities and Stockholders' Equity
               
Current liabilities:
               
Accounts payable
    50,970       58,603  
Accrued compensation
    27,956       33,774  
Deferred revenue - current
    112,283       105,964  
Accrued expenses and other liabilities
    11,755       14,714  
Other taxes payable
    37,250       34,602  
Total current liabilities
    240,214       247,657  
                 
Long-term debt
    37,000       -  
Deferred income taxes
    44,673       47,406  
Liability for uncertain tax positions
    11,974       10,127  
Deferred revenue - long-term
    27,708       26,452  
Other long-term liabilities
    10,565       6,353  
Total liabilities
    372,134       337,995  
                 
Stockholders' equity:
               
Preferred stock
    -       -  
Common stock
    1,275       1,278  
Additional paid-in capital
    717,706       662,889  
Retained earnings
    400,831       464,993  
Accumulated other comprehensive income (loss)
    (38,090)       (11,664)  
Total stockholders' equity
    1,081,722       1,117,496  
Total liabilities and stockholders' equity
    1,453,856       1,455,491  

 
 

 
                   
National Instruments
Condensed Consolidated Statements of Income
(in thousands, except per share data, unaudited)
               
   
Three Months Ended
   
Year Ended
   
December 31,
   
December 31,
   
2015
 
2014
   
2015
 
2014
                   
Net sales:
                 
Product
$
306,350
$
305,176
 
$
1,113,590
$
1,143,000
Software maintenance
 
27,989
 
27,600
   
111,866
 
100,862
Total net sales
 
334,339
 
332,776
   
1,225,456
 
1,243,862
                   
Cost of sales:
                 
Product
 
85,575
 
83,094
   
311,226
 
312,623
Software maintenance
 
1,200
 
1,066
   
5,730
 
5,509
Total cost of sales
 
86,775
 
84,160
   
316,956
 
318,132
                   
Gross profit
 
247,564
 
248,616
   
908,500
 
925,730
   
74.0%
 
74.7%
   
74.1%
 
74.4%
Operating expenses:
                 
Sales and marketing
 
116,348
 
113,819
   
452,263
 
461,845
Research and development
 
56,670
 
57,351
   
225,131
 
227,433
General and administrative
 
24,544
 
22,411
   
93,935
 
91,265
Total operating expenses
 
197,562
 
193,581
   
771,329
 
780,543
                   
Operating income
 
50,002
 
55,035
   
137,171
 
145,187
                   
Other income (expense):
                 
Interest income
 
314
 
340
   
1,403
 
1,133
Net foreign exchange loss
 
(5,110)
 
(1,245)
   
(7,075)
 
(2,250)
Other (expense) income, net
 
(1,014)
 
(352)
   
(221)
 
(69)
                   
Income before income taxes
 
44,192
 
53,778
   
131,278
 
144,001
                   
Provision for income taxes
 
12,058
 
10,393
   
36,016
 
17,668
                   
Net income
$
32,134
$
43,385
 
$
95,262
$
126,333
                   
Basic earnings per share
$
0.25
$
0.34
 
$
0.74
$
0.99
Diluted earnings per share
$
0.25
$
0.34
 
$
0.74
$
0.99
                   
Weighted average shares outstanding -
                 
basic
 
127,341
 
127,755
   
127,997
 
127,030
diluted
 
127,798
 
128,233
   
128,668
 
127,799
                   
Dividends declared per share
$
0.19
$
0.15
 
$
0.76
$
0.60

 
 

 

 
         
National Instruments
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
         
   
2015
 
2014
Cash flow from operating activities:
       
Net income
 
$
95,262
 
126,333
Adjustments to reconcile net income to net cash provided by operating activities:
       
Depreciation and amortization
 
 74,090
 
70,206
Stock-based compensation
 
 24,572
 
25,759
Tax expense/(benefit) expense from deferred income taxes
 
9,361
 
5,886
Tax benefit from stock option plans
 
 (967)
 
(1,242)
Net change in operating assets and liabilities
 
(39,586)
 
(31,836)
Net cash provided by operating activities
 
162,732
 
195,106
         
Cash flow from investing activities:
       
Capital expenditures
 
 (33,984)
 
(44,944)
Capitalization of internally developed software
 
 (31,356)
 
(25,781)
Additions to other intangibles
 
(2,811)
 
(2,834)
Acquisitions, net of cash received
 
 (125,710)
 
-
Purchases of short-term investments
 
 (29,649)
 
(123,849)
Sales and maturities of short-term investments
 
 145,023
 
89,835
Net cash used by investing activities
 
(78,487)
 
(107,573)
         
Cash flow from financing activities:
       
Proceeds from revolving line of credit
 
54,000
 
-
Principal payments on revolving line of credit
 
(17,000)
 
-
Proceeds from issuance of common stock
 
27,785
 
31,277
Repurchase of common stock
 
(75,255)
 
-
Dividends paid
 
(97,643)
 
(76,285)
Tax benefit from stock option plans
 
967
 
1,242
Net cash used by financing activities
 
(107,146)
 
(43,766)
         
Net change in cash and cash equivalents
 
(22,901)
 
43,767
Cash and cash equivalents at beginning of period
 
274,030
 
230,263
Cash and cash equivalents at end of period
$
251,129
 
274,030
 
 
 

 

Detail of GAAP charges related to stock-based compensation, amortization of acquisition intangibles, acquisition related transaction costs, restructuring charges, foreign exchange loss on acquisitions and impairment of minority cost basis investments (unaudited)
                 
   
Three Months Ended
 
Year Ended
   
December 31,
 
December 31,
                 
   
2015
 
2014
 
2015
 
2014
Stock-based compensation
               
Cost of sales
 $
           509
 $
           447
 $
      1,936
 $
       1,711
Sales and marketing
         2,701
 
        2,597
 
    11,003
 
     10,931
Research and development
 
         2,240
 
        2,428
 
      9,004
 
       9,649
General and administrative
 
           888
 
           810
 
      3,544
 
       3,467
Provision for income taxes
 
       (1,870)
 
       (1,497)
 
    (7,289)
 
     (7,414)
Total
 $
         4,468
 $
        4,785
 $
    18,198
 $
     18,344
                 
Amortization of acquisition intangibles
               
Cost of sales
 $
         3,080
 $
        2,660
 $
    10,938
 $
     10,651
Sales and marketing
 
           740
 
           433
 
      2,039
 
       1,784
Research and development
 
           316
 
           369
 
      1,299
 
       1,567
Other income, net
 
             93
 
           165
 
        542
 
         672
Provision for income taxes
       (1,398)
 
       (1,199)
 
    (4,867)
 
     (4,846)
Total
$
         2,831
 $
        2,428
 $
      9,951
 $
       9,828
                 
Acquisition transaction costs, restructuring charges, and other
Cost of sales
 $
           296
 $
           742
 $
      1,269
 $
       1,289
Sales and marketing
 
           123
 
            37
 
        123
 
         189
Research and development
 
           198
 
           178
 
        198
 
         442
General and administrative
           593
 
            96
 
      1,035
 
         241
Foreign exchange loss on acquisition
 
3,111
 
             -
 
3,111
 
           -
Impairment of minority cost basis investment
 
         1,000
 
             -
 
      1,000
 
           -
Provision for income taxes
       (1,453)
 
         (286)
 
    (1,843)
 
        (674)
 
$
         3,868
 $
           767
 $
      4,893
 $
       1,487
                 
 
 
 

 

 
                   
Reconciliation of Gross Profit to Non-GAAP Gross Profit
         
                   
   
Three Months Ended
 
Year Ended
 
   
December 31,
 
December 31,
 
                   
   
2015
 
2014
 
2015
 
2014
 
                   
Gross profit, as reported
$
247,564
$
248,616
$
908,500
$
925,730
 
Stock-based compensation
 
509
 
447
 
1,936
 
1,711
 
Amortization of acquisition intangibles
 
3,080
 
2,660
 
10,938
 
10,651
 
Acquisition transaction costs, restructuring charges and other
 
296
 
742
 
1,269
 
1,289
 
Non-GAAP gross profit
$
251,449
$
252,465
$
922,643
$
939,381
 
Non-GAAP gross margin
 
75.2%
 
75.9%
 
75.3%
 
75.5%
 
                   
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
         
                   
   
Three Months Ended
 
Year Ended
 
   
December 31,
 
December 31,
 
                   
   
2015
 
2014
 
2015
 
2014
 
                   
Operating expenses, as reported
$
197,562
$
193,581
$
771,329
$
780,543
 
Stock-based compensation
 
(5,829)
 
(5,835)
 
(23,551)
 
(24,047)
 
Amortization of acquisition intangibles
 
(1,056)
 
(802)
 
(3,338)
 
(3,351)
 
Acquisition transaction costs, restructuring charges and other
 
(914)
 
(311)
 
(1,356)
 
(872)
 
Non-GAAP operating expenses
$
189,763
$
186,633
$
743,084
$
752,273
 
                   
Reconciliation of Operating Income to Non-GAAP Operating Income
         
                   
   
Three Months Ended
 
Year Ended
 
   
December 31,
 
December 31,
 
                   
   
2015
 
2014
 
2015
 
2014
 
                   
Operating income, as reported
$
50,002
$
55,035
$
137,171
$
145,187
 
Stock-based compensation
 
6,338
 
6,282
 
25,487
 
25,758
 
Amortization of acquisition intangibles
 
4,136
 
3,462
 
14,276
 
14,002
 
Acquisition transaction costs, restructuring charges and other
 
1,210
 
1,053
 
2,625
 
2,161
 
Non-GAAP operating income
$
61,686
$
65,832
$
179,559
$
187,108
 
Non-GAAP operating margin
 
18.5%
 
19.8%
 
14.7%
 
15.0%
 
                   
                   
 
 
 

 
 
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
         
                   
   
Three Months Ended
 
Year Ended
 
   
December 31,
 
December 31,
 
                   
   
2015
 
2014
 
2015
 
2014
 
                   
Income before income taxes, as reported
$
44,192
$
53,778
$
131,278
$
144,001
 
Stock-based compensation
 
6,338
 
6,282
 
25,487
 
25,758
 
Amortization of acquisition intangibles
 
4,229
 
3,627
 
14,818
 
14,674
 
Acquisition transaction costs, restructuring charges and other
 
5,321
 
1,053
 
6,736
 
2,161
 
Non-GAAP income before income taxes
$
60,080
$
64,740
$
178,319
$
186,594
 
                   
                   
                   
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes
         
                   
   
Three Months Ended
 
Year Ended
 
   
December 31,
 
December 31,
 
                   
   
2015
 
2014
 
2015
 
2014
 
                   
Provision for income taxes, as reported
$
12,058
$
10,393
$
36,016
$
17,668
 
Stock-based compensation
 
1,870
 
1,497
 
7,289
 
7,414
 
Amortization of acquisition intangibles
 
1,398
 
1,199
 
4,867
 
4,846
 
Acquisition transaction costs, restructuring charges and other
 
1,453
 
286
 
1,843
 
674
 
Non-GAAP provision for income taxes
$
16,779
$
13,375
$
50,015
$
30,602
 
                   
                   
 
 
 

 

             
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Non-GAAP Basic EPS and Non-GAAP Diluted EPS (unaudited)
             
                     
     
Three Months Ended
 
Year Ended
 
     
December 31,
 
December 31,
 
                     
     
2015
 
2014
 
2015
 
2014
 
                     
Net income, as reported
$
32,134
$
43,385
$
95,262
$
126,333
 
Adjustments to reconcile net income to non-GAAP net income:
                 
  Stock-based compensation, net of tax effect
 
4,468
 
4,785
 
18,198
 
18,344
 
  Amortization of acquisition intangibles, net of tax effect
 
2,831
 
2,428
 
9,951
 
9,828
 
  Acquisition transaction costs, restructuring charges and other, net of tax effect
 
3,868
 
767
 
4,893
 
1,487
 
Non-GAAP net income
$
43,301
$
51,365
$
128,304
$
155,992
 
                     
Basic EPS, as reported
$
0.25
$
0.34
$
0.74
$
0.99
 
Adjustment to reconcile basic EPS to non-GAAP basis EPS:
                 
                     
  Impact of stock-based compensation, net of tax effect
 
        0.04
 
0.04
 
0.14
 
0.14
 
  Impact of amortization of acquisition intangibles, net of tax effect
 
0.02
 
0.02
 
0.08
 
0.08
 
  Impact of acquisition transaction costs, restructuring charges and other, net of tax effect
 
0.03
 
-
 
0.04
 
0.02
 
Non-GAAP basic EPS
$
0.34
$
0.40
$
1.00
$
1.23
 
                     
                     
Diluted EPS, as reported
$
0.25
$
0.34
$
0.74
$
0.99
 
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
                 
                     
  Impact of stock-based compensation, net of tax effect
 
       0.04
 
0.04
 
0.14
 
0.14
 
  Impact of amortization of acquisition intangibles, net of tax effect
 
0.02
 
0.02
 
0.08
 
0.08
 
  Impact of acquisition transaction costs, restructuring charges and other, net of tax effect
 
0.03
 
-
 
0.04
 
0.01
 
Non-GAAP diluted EPS
$
0.34
$
0.40
$
1.00
$
1.22
 
                     
Weighted average shares outstanding -
                 
Basic
 
127,341
 
127,755
 
127,997
 
127,030
 
Diluted
 
127,798
 
128,233
 
128,668
 
127,799
 
                     

 
 
 

 
 
 
National Instruments
Reconciliation of Net Income and Diluted EPS to EBITDA and EBITDA Diluted EPS
(unaudited)
                 
   
Three Months Ended
 
Year Ended
   
December 31,
 
December 31,
   
2015
 
2014
 
2015
 
2014
Net income, as reported
$
 32,134
$
 43,385
$
 95,262
$
 126,333
Adjustments to reconcile net income to EBITDA:
               
     Interest income, net of interest expense
 
 (167)
 
 (306)
 
 (1,099)
 
 (991)
     Tax expense
 
 12,058
 
 10,393
 
 36,016
 
 17,668
     Depreciation and amortization
 
 18,933
 
 19,195
 
 74,090
 
 70,206
EBITDA
$
 62,958
$
 72,667
$
 204,269
$
 213,216
                 
Diluted EPS, as reported
$
 0.25
$
 0.34
$
 0.74
$
 0.99
Adjustment to reconcile diluted EPS to EBITDA
               
     Interest income, net of interest expense
 
 -
 
 -
 
 (0.01)
 
 (0.01)
     Taxes
 
 0.09
 
 0.08
 
 0.28
 
 0.14
     Depreciation and amortization
 
 0.15
 
 0.15
 
 0.58
 
 0.55
EBITDA diluted EPS
$
            0.49
$
            0.57
$
            1.59
$
            1.67
                 
Weighted average shares outstanding - Diluted
 
       127,798
 
       128,233
 
       128,668
 
       127,799


Reconciliation of GAAP to Non-GAAP EPS Guidance
(unaudited)
 
Three Months Ended
 
March 31, 2016
         
   
Low
 
High
GAAP Fully Diluted EPS, guidance
$
0.09
$
0.21
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
 
0.03
 
0.03
  Impact of acquisition restructuring costs, net of tax effect
 
0.01
 
0.01
Non-GAAP diluted EPS, guidance
$
            0.17
$
            0.29
 
 
 

 
 
National Instruments
 
Reconciliation of GAAP Revenue to Core Revenue
 
(unaudited)
 
     
   
Three Months Ended
   
December 31,
   
2015
 
YoY GAAP revenue growth, as reported
$
0.5%
 
Effect of excluding our current largest customer
 
-0.7%
 
YoY GAAP revenue growth, excluding our largest customer
 
-0.2%
 
Effect of excluding the impact of foreign currency exchange
 
4.5%
 
YoY Core revenue growth
$
4.3%
 
       
National Instruments
 
Reconciliation of GAAP Revenue to Core Revenue
 
(unaudited)
 
     
   
Year Ended
   
December 31,
   
2015
 
YoY GAAP revenue growth, as reported
$
-1.5%
 
Effect of excluding our current largest customer
 
1.8%
 
YoY GAAP revenue growth, excluding our largest customer
 
.3%
 
Effect of excluding the impact of foreign currency exchange
 
5.8%
 
YoY Core revenue growth
$
6.1%
 
       
National Instruments
 
Reconciliation of GAAP Revenue to Core Revenue Guidance
 
(unaudited)
 
     
   
Three Months Ended
 
   
March 31,
   
2016
 
Estimated YoY GAAP revenue growth, as reported
$
5.3%
 
Estimated effect of excluding our current largest customer
 
-0.3%
 
Estimated YoY GAAP revenue growth, excluding our largest customer
 
5.0%
 
Estimated effect of excluding the impact of foreign currency exchange
 
4.0%
 
Estimated YoY Core revenue growth
$
9.0%