EX-99.1 2 ex99-1.htm PRESS RELEASE
Contact:
  
Marissa Vidaurri
   
Investor Relations
   
(512) 683-6873


National Instruments Reports Record Revenue for a Second Quarter of $319 Million
Net Income up 49% for First Half of 2017


Q2 2017 Highlights
·
Revenue of $319 million, up 4 percent year over year with core revenue up 7 percent year over year
·
GAAP gross margin of 74 percent
·
Non-GAAP gross margin of 75 percent
·
Fully diluted GAAP EPS of $0.19 and fully diluted non-GAAP EPS of $0.27
·
GAAP net income of $25 million
·
Non-GAAP net income of $35 million, a record for a second quarter
·
EBITDA of $46 million
·
Cash and short-term investments of $368 million as of June 30, 2017

AUSTIN, Texas – July 27, 2017 – National Instruments (Nasdaq: NATI) today announced Q2 2017 revenue of $319 million, up 4 percent year over year with core revenue up 7 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 the year-over-year change in GAAP revenue to the year over year change in core revenue is included with this news release.

In Q2 2017, NI received $12 million in orders from its largest customer compared with $18 million in orders from this customer in Q2 2016. Excluding NI's largest customer, the value of the company's total orders was up 8 percent year over year for the quarter; orders under $20,000 were flat year over year; orders between $20,000 and $100,000 were up 1 percent year over year; and orders above $100,000 were up 42 percent year over year.

GAAP net income for Q2 was $25 million, with fully diluted earnings per share (EPS) of $0.19, and non-GAAP net income was $35 million, a record for a second quarter, with non-GAAP fully diluted EPS of $0.27. Included in NI's GAAP net income for Q2 is $4 million related to restructuring charges. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $46 million for Q2.

In Q2, GAAP gross margin was 74 percent and non-GAAP gross margin was 75 percent. Total GAAP operating expenses were $208 million, up 3 percent year over year. Total non-GAAP operating expenses were flat year over year at $194 million. GAAP operating margin was 9 percent in Q2, with GAAP operating income of $29 million, up 5 percent year over year. Non-GAAP operating margin was 14 percent in Q2, with non-GAAP operating income of $44 million, up 15 percent year over year.

"I am pleased with our Q2 performance and execution as we continue to drive toward our revenue and profitability goals with record revenue for a second quarter and 26% YOY non-GAAP net income growth for the first half of 2017," said Alex Davern, NI president and CEO. "We believe alignment of our product and channel investments toward the growth opportunity in 5G communications, semiconductor test, the connected vehicle, and the Industrial Internet of Things continues to move our platform closer to our users' challenges, which increases our impact within these applications."

Karen Rapp, NI CFO, said, "We are encouraged by the strong order growth and improved trends in the industrial economy.  Our leadership team is focused on executing to the updated leverage model shared at our recent investor day. We are going to do this through deliberate decision making and discipline in managing our expenses. We believe this focus will keep us on the right path as we strive to meet both our growth and profitability goals this year and in 2018."
 
Geographic revenue in U.S. dollar terms for Q2 2017 compared with Q2 2016 was up 6 percent in the Americas, down 1 percent in APAC and up 6 percent in EMEIA. Excluding the impact of foreign currency exchange, revenue was up 6 percent in the Americas, flat in APAC and up 10 percent in EMEIA. Historical revenue from these three regions can be found on NI's investor website at www.ni.com/nati. 

As of June 30, 2017, NI had $368 million in cash and short-term investments. During the second quarter, NI paid $27 million in dividends. The NI Board of Directors approved a quarterly dividend of $0.21 per share payable on Sept. 5, 2017, to stockholders of record on Aug. 14, 2017.
The company's non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, and restructuring charges. Reconciliations of the company's GAAP and non-GAAP results are included as part of this news release.

Guidance
NI currently expects Q3 revenue to be in the range of $304 million to $334 million, which would be a new Q3 record at the midpoint. Based on current exchange rates, the company expects that the impact of foreign exchange on dollar revenue will be minimal in Q3. The company currently expects that GAAP fully diluted EPS will be in the range of $0.16 to $0.30 for Q3, with non-GAAP fully diluted EPS expected to be in the range of $0.22 to $0.36. Included in the company's Q3 2017 GAAP EPS guidance is approximately $1 million of restructuring charges. For the full year, NI estimates the restructuring charges impacting net income to be approximately $7 million to $8 million. For 2017, NI estimates 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 year-over-year change in core revenue, 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-month and six-month periods ending June 30, 2017 and 2016, on a GAAP and non-GAAP basis. NI is also providing guidance on its non-GAAP fully diluted EPS and expected effective tax rate. The company is not able to provide guidance on its GAAP tax rate or a related reconciliation without unreasonable efforts since its future GAAP tax rate depends on its future stock price and related information that is not currently available.
 
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, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, and restructuring charges 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 for the three-month and six-month periods ending June 30, 2017 and 2016. 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 to GAAP net income is included with this news release. This news release also discloses the year over year change in the company's core revenue for the three-month period ending June 30, 2017.  The company believes that including its year-over-year change in core revenue assists investors in assessing the company's operational performance. A reconciliation of its year over year change in GAAP revenue to its year over year change in core revenue is included with this news release.
 
Conference Call Information and Availability of Presentation Materials
Interested parties can listen to the Q2 2017 earnings conference call with NI management today, July 27, at 4:00 p.m. CT at www.ni.com/call. Replay information is available by calling (855) 859-2056, confirmation code 41457332, shortly after the call through July 30 at 11:59 p.m. CT or by visiting the company's website at www.ni.com/call. Presentation materials referred to on the conference call can be found at www.ni.com/nati.


Forward-Looking Statements
This release contains "forward-looking statements" including statements regarding driving towards our revenue and profitability goals, belief that alignment of our product and channel investments will move our platform closer to our users' challenges which increases our impact within these applications, being encouraged by the strong order growth and improved trends in the industrial economy, being focused on executing to the updated leverage model, deliberate decision making and discipline in managing our expenses, that this focus will keep us on the right path as we strive to meet both our growth and profitability goals this year and in 2018, expecting Q3 revenue to be in the range of $304 million to $334 million, that the impact of foreign exchange on dollar revenue will be minimal in Q3, expecting GAAP fully diluted EPS will be in the range of $0.16 to $0.30 for Q3, with non-GAAP fully diluted EPS expected to be in the range of $0.22 to $0.36, expecting about $1 million of restructuring charges in Q3, that restructuring charges impacting net income will be approximately $7 million to $8 million and that non-GAAP effective tax rate to be approximately 21 percent for 2017.  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, fluctuations in demand for NI products including orders from NI's largest customer, component shortages, delays in the release of new products, 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, adverse effects of price changes or 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, 2016, its Form 10-Q for the quarter ended March 31, 2017 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 platform-based systems 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)

National Instruments, NI and ni.com 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)
  
 
  
June 30,
    
December 31,
  
 
  
2017
    
2016
  
 
  
(unaudited)
       
 
            
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
263,150
    
$
285,283
  
Short-term investments
    
105,284
      
73,117
  
Accounts receivable, net
    
230,958
      
228,686
  
Inventories, net
    
186,155
      
193,608
  
Prepaid expenses and other current assets
    
52,568
      
53,953
  
Total current assets
    
838,115
      
834,647
  
 
                
Property and equipment, net
    
256,761
      
260,456
  
Goodwill
    
261,411
      
253,197
  
Intangible assets, net
    
120,327
      
108,663
  
Other long-term assets
    
28,700
      
39,601
  
Total assets
  
$
1,505,314
    
$
1,496,564
  
 
                
Liabilities and Stockholders' Equity
                
Current liabilities:
                
Accounts payable
  
$
54,214
    
$
48,800
  
Accrued compensation
    
36,672
      
27,743
  
Deferred revenue - current
    
120,212
      
115,577
  
Accrued expenses and other liabilities
    
15,341
      
32,997
  
Other taxes payable
    
28,743
      
34,958
  
Total current liabilities
    
255,182
      
260,075
  
 
                
Long-term debt
    
25,000
      
25,000
  
Deferred income taxes
    
35,561
      
45,386
  
Liability for uncertain tax positions
    
12,438
      
11,719
  
Deferred revenue - long-term
    
31,665
      
29,752
  
Other long-term liabilities
    
7,420
      
10,413
  
Total liabilities
    
367,266
      
382,345
  
 
                
Stockholders' equity:
                
Preferred stock
    
-
      
-
  
Common stock
    
1,305
      
1,292
  
Additional paid-in capital
    
800,774
      
771,346
  
Retained earnings
    
359,088
      
376,202
  
Accumulated other comprehensive loss
    
(23,119
)
    
(34,621
)
Total stockholders' equity
    
1,138,048
      
1,114,219
  
Total liabilities and stockholders' equity
  
$
1,505,314
    
$
1,496,564
  


 
National Instruments
  
Condensed Consolidated Statements of Income
  
(in thousands, except per share data, unaudited)
  
 
                  
 
  
Three Months Ended
    
Six Months Ended
  
 
  
June 30,
    
June 30,
  
 
  
  2017
    
  2016
    
  2017
    
  2016
  
 
                        
Net sales:
                        
Product
  
$
289,817
    
$
278,530
    
$
561,328
    
$
537,963
  
Software maintenance
    
28,792
      
27,575
      
57,386
      
55,319
  
Total net sales
    
318,609
      
306,105
      
618,714
      
593,282
  
 
                                
Cost of sales:
                                
Product
    
79,153
      
75,194
      
154,349
      
149,404
  
Software maintenance
    
3,307
      
2,314
      
4,635
      
4,250
  
Total cost of sales
    
82,460
      
77,508
      
158,984
      
153,654
  
 
                                
Gross profit
    
236,149
      
228,597
      
459,730
      
439,628
  
 
    
74
%
    
75
%
    
74
%
    
74
%
Operating expenses:
                                
Sales and marketing
    
124,414
      
116,361
      
241,674
      
229,568
  
Research and development
    
56,913
      
59,839
      
115,175
      
119,179
  
General and administrative
    
26,191
      
25,130
      
51,933
      
49,770
  
Total operating expenses
    
207,518
      
201,330
      
408,782
      
398,517
  
 
                                
Operating income
    
28,631
      
27,267
      
50,948
      
41,111
  
 
    
9
%
    
9
%
    
8
%
    
7
%
Other income (expense):
                                
Interest income
    
509
      
258
      
852
      
511
  
Net foreign exchange gain (loss)
    
447
      
(1,285
)
    
529
      
(711
)
Other (expense) income, net
    
(235
)
    
53
      
197
      
(2,353
)
 
                                
Income before income taxes
    
29,352
      
26,293
      
52,526
      
38,558
  
 
                                
Provision for income taxes
    
4,197
      
6,493
      
9,223
      
9,460
  
 
                                
Net income
  
$
25,155
    
$
19,800
    
$
43,303
    
$
29,098
  
 
                                
Basic earnings per share
  
$
0.19
    
$
0.15
    
$
0.33
    
$
0.23
  
Diluted earnings per share
  
$
0.19
    
$
0.15
    
$
0.33
    
$
0.23
  
 
                                
Weighted average shares outstanding -
                                
basic
    
130,197
      
128,282
      
129,820
      
127,938
  
diluted
    
131,117
      
128,746
      
130,619
      
128,429
  
 
                                
Dividends declared per share
  
$
0.21
    
$
0.20
    
$
0.42
    
$
0.40
  


 
National Instruments
  
Condensed Consolidated Statements of Cash Flows
  
(in thousands, unaudited)
  
   
Six Months Ended June 30,
  
   
2017
    
2016
  
       
Cash flow from operating activities:
            
Net income
  
$
43,303
    
$
29,098
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation and amortization
    
35,915
      
38,217
  
Stock-based compensation
    
13,726
      
13,497
  
Tax expense/(benefit) expense from deferred income taxes
    
(875
)
    
(2,927
)
Net change in operating assets and liabilities
    
(7,284
)
    
2,659
  
Net cash provided by operating activities
    
84,785
      
80,544
  
                 
Cash flow from investing activities:
                
Capital expenditures
    
(15,727
)
    
(20,970
)
Capitalization of internally developed software
    
(24,816
)
    
(15,406
)
Additions to other intangibles
    
(1,124
)
    
(689
)
Acquisitions, net of cash received
    
-
      
(549
)
Purchases of short-term investments
    
(52,807
)
    
(5,008
)
Sales and maturities of short-term investments
    
21,017
      
31,734
  
Net cash used by investing activities
    
(73,457
)
    
(10,888
)
                 
Cash flow from financing activities:
                
Proceeds from revolving line of credit
    
-
      
15,000
  
Principal payments on revolving line of credit
    
-
      
(12,000
)
Proceeds from issuance of common stock
    
15,407
      
14,830
  
Repurchase of common stock
    
-
      
(5,635
)
Dividends paid
    
(54,595
)
    
(51,273
)
Tax benefit from stock option plans
    
-
      
-
  
Net cash used by financing activities
    
(39,188
)
    
(39,078
)
                 
Impact of changes in exchange rates on cash
    
5,727
      
3,554
  
                 
Net change in cash and cash equivalents
    
(22,133
)
    
34,132
  
Cash and cash equivalents at beginning of period
    
285,283
      
251,129
  
Cash and cash equivalents at end of period
  
$
263,150
    
$
285,261
  


 
The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, restructuring charges, foreign exchange loss on acquisitions and taxes levied on the transfer of acquired intellectual property that were recorded in the line items indicated below (unaudited) (in thousands)
  
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
                         
   
  2017
    
  2016
    
  2017
    
  2016
  
Stock-based compensation
                        
Cost of sales
  
$
650
    
$
539
    
$
1,226
    
$
1,087
  
Sales and marketing
    
2,884
      
2,851
      
5,509
      
5,787
  
Research and development
    
2,170
      
2,369
      
4,224
      
4,718
  
General and administrative
    
1,620
      
935
      
2,844
      
1,843
  
Provision for income taxes
    
(3,344
)
    
(2,016
)
    
(5,020
)
    
(4,110
)
Total
  
$
3,980
    
$
4,678
    
$
8,783
    
$
9,325
  
                                 
Amortization of acquisition intangibles
                                
Cost of sales
  
$
1,556
    
$
2,980
    
$
3,146
    
$
6,022
  
Sales and marketing
    
486
      
820
      
964
      
1,639
  
Research and development
    
267
      
278
      
531
      
539
  
Other income, net
    
-
      
-
      
-
      
-
  
Provision for income taxes
    
(556
)
    
237
      
(1,110
)
    
458
  
Total
  
$
1,753
    
$
4,315
    
$
3,531
    
$
8,658
  
                                 
Acquisition transaction costs, restructuring charges, and other
                                
Cost of sales
  
$
574
    
$
74
    
$
909
    
$
179
  
Sales and marketing
    
4,024
      
42
      
6,399
      
99
  
Research and development
    
1,182
      
153
      
1,581
      
411
  
General and administrative
    
419
      
190
      
596
      
220
  
Foreign exchange gain (loss) 1
    
-
      
-
      
-
      
94
  
Other income (loss), net2
    
-
      
-
      
-
      
2,475
  
Provision for income taxes
    
(1,870
)
    
(160
)
    
(2,934
)
    
(1,202
)
Total
  
$
4,329
    
$
299
    
$
6,551
    
$
2,276
  
 
(1) Foreign exchange losses on acquisitions were $0 and $94 for the six month periods ended June 30, 2017 and 2016, respectively
  
(2) Taxes levied on the transfer of acquired intellectual property were $0 and $2,475 for the six month periods ended June 30, 2017 and 2016, respectively
  


 

National Instruments
  
Reconciliation of GAAP to Non-GAAP Measures
  
(in thousands, unaudited)
  
 
                        
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
  2017
    
  2016
    
  2017
    
  2016
  
                         
Reconciliation of Gross Profit to Non-GAAP Gross Profit
              
Gross profit, as reported
  
$
236,149
    
$
228,597
    
$
459,730
    
$
439,628
  
Stock-based compensation
    
650
      
539
      
1,226
      
1,087
  
Amortization of acquisition intangibles
    
1,556
      
2,980
      
3,146
      
6,022
  
Acquisition transaction costs and restructuring charges
    
574
      
74
      
909
      
179
  
Non-GAAP gross profit
  
$
238,929
    
$
232,190
    
$
465,011
    
$
446,916
  
Non-GAAP gross margin
    
75.0
%
    
75.9
%
    
75.2
%
    
75.3
%
                                 
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
                  
Operating expenses, as reported
  
$
207,518
    
$
201,330
    
$
408,782
    
$
398,517
  
Stock-based compensation
    
(6,674
)
    
(6,155
)
    
(12,577
)
    
(12,348
)
Amortization of acquisition intangibles
    
(753
)
    
(1,098
)
    
(1,495
)
    
(2,178
)
Acquisition transaction costs and restructuring charges
    
(5,625
)
    
(385
)
    
(8,576
)
    
(730
)
Non-GAAP operating expenses
  
$
194,466
    
$
193,692
    
$
386,134
    
$
383,261
  
                                 
Reconciliation of Operating Income to Non-GAAP Operating Income
                  
Operating income, as reported
  
$
28,631
    
$
27,267
    
$
50,948
    
$
41,111
  
Stock-based compensation
    
7,324
      
6,694
      
13,803
      
13,435
  
Amortization of acquisition intangibles
    
2,309
      
4,078
      
4,641
      
8,200
  
Acquisition transaction costs and restructuring charges
    
6,199
      
459
      
9,485
      
909
  
Non-GAAP operating income
  
$
44,463
    
$
38,498
    
$
78,877
    
$
63,655
  
Non-GAAP operating margin
    
14.0
%
    
12.6
%
    
12.7
%
    
10.7
%
                                 
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes
                  
Income before income taxes, as reported
  
$
29,352
    
$
26,293
    
$
52,526
    
$
38,558
  
Stock-based compensation
    
7,324
      
6,694
      
13,803
      
13,435
  
Amortization of acquisition intangibles
    
2,309
      
4,078
      
4,641
      
8,200
  
Acquisition transaction costs and restructuring charges
    
6,199
      
459
      
9,485
      
909
  
Foreign exchange loss on acquisitions
    
-
      
-
      
-
      
94
  
Taxes levied on transfer of acquired intellectual property
    
-
      
-
      
-
      
2,474
  
Non-GAAP income before income taxes
  
$
45,184
    
$
37,524
    
$
80,455
    
$
63,670
  
                                 
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes
                  
Provision for income taxes, as reported
  
$
4,197
    
$
6,493
    
$
9,223
    
$
9,460
  
Stock-based compensation
    
3,344
      
2,016
      
5,020
      
4,110
  
Amortization of acquisition intangibles
    
556
      
(237
)
    
1,110
      
(458
)
Acquisition transaction costs, restructuring charges, and other
    
1,870
      
160
      
2,934
      
1,202
  
Non-GAAP provision for income taxes
  
$
9,967
    
$
8,432
    
$
18,287
    
$
14,314
  

 

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
    
Six Months Ended
 
  
June 30,
    
June 30,
 
  
2017
    
2016
    
2017
    
2016
 
                      
Net income, as reported
  
$
25,155
    
$
19,800
    
$
43,303
    
$
29,098
Adjustments to reconcile net income to non-GAAP net income:
                              
  Stock-based compensation, net of tax effect
    
3,980
      
4,678
      
8,783
      
9,325
  Amortization of acquisition intangibles, net of tax effect
    
1,753
      
4,315
      
3,531
      
8,658
  Acquisition transaction costs, restructuring, and other, net of tax effect
    
4,329
      
299
      
6,551
      
2,276
Non-GAAP net income
  
$
35,217
    
$
29,092
    
$
62,168
    
$
49,357
 
                              
Basic EPS, as reported
  
$
0.19
    
$
0.15
    
$
0.33
    
$
0.23
Adjustment to reconcile basic EPS to non-GAAP
                              
basic EPS:
                              
  Impact of stock-based compensation, net of tax effect
    
0.04
      
0.04
      
0.07
      
0.07
  Impact of amortization of acquisition intangibles, net of tax effect
    
0.01
      
0.03
      
0.03
      
0.07
  Impact of acquisition transaction costs, restructuring, and other, net of tax effect
    
0.03
      
0.01
      
0.05
      
0.02
Non-GAAP basic EPS
  
$
0.27
    
$
0.23
    
$
0.48
    
$
0.39
 
                              
 
                              
Diluted EPS, as reported
  
$
0.19
    
$
0.15
    
$
0.33
    
$
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
      
0.07
      
0.07
  Impact of amortization of acquisition intangibles, net of tax effect
    
0.01
      
0.03
      
0.03
      
0.07
  Impact of acquisition transaction costs, restructuring, and other, net of tax effect
    
0.03
      
0.01
      
0.05
      
0.01
Non-GAAP diluted EPS
  
$
0.27
    
$
0.23
    
$
0.48
    
$
0.38
 
                              
Weighted average shares outstanding -
                              
Basic
    
130,197
      
128,282
      
129,820
      
127,938
Diluted
    
131,117
      
128,746
      
130,619
      
128,429


 

National Instruments
  
Reconciliation of Net Income to EBITDA
  
(in thousands, unaudited)
  
 
                        
 
  
Three Months Ended
    
Six Months Ended
  
 
  
June 30,
    
June 30,
  
 
  
2017
    
2016
    
2017
    
2016
  
Net income, as reported
  
$
25,155
    
$
19,800
    
$
43,303
    
$
29,098
  
Adjustments to reconcile net income to EBITDA:
                                
     Interest income
    
(313
)
    
(78
)
    
(399
)
    
(141
)
     Tax expense
    
4,197
      
6,493
      
9,223
      
9,460
  
     Depreciation and amortization
    
17,246
      
18,785
      
35,915
      
38,217
  
EBITDA
  
$
46,285
    
$
45,000
    
$
88,042
    
$
76,634
  
Weighted average shares outstanding - Diluted
    
131,117
      
128,746
      
130,619
      
128,429
  
 
Reconciliation of GAAP to Non-GAAP EPS Guidance
(unaudited)
 
 
  
Three months ended
September 30, 2017
 
      
 
Low
  
High
GAAP Fully Diluted EPS, guidance
  
$
0.16
    
$
0.30
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 and acquisition accounting adjustments, net of tax effect
   
0.01
      
0.01
  Impact of acquisition transaction costs, restructuring, and other, net of tax effect
   
0.01
      
0.01
Non-GAAP diluted EPS, guidance
 $
0.22
    
$
0.36


National Instruments
  
Reconciliation of GAAP Revenue Growth to Core Revenue Growth
  
(unaudited)
  
 
              
 
  
Three Months Ended,
  
 
  
June 30,
  
 
  
2017
  
YoY GAAP revenue growth, as reported
    
4.1
%
Effect of excluding our current largest customer
    
1.5
%
YoY GAAP revenue growth, excluding our largest customer
    
5.6
%
Effect of excluding the impact of foreign currency exchange
    
1.4
%
YoY Core revenue growth
 $ 
 
7.0
%