National Instruments Reports Double-Digit Growth in Revenue and Earnings; First Quarter Results in Line With Preliminary Announcement

Apr 12, 2001, 01:00 ET from National Instruments

    AUSTIN, Texas, April 12 /PRNewswire/ --
 National Instruments (Nasdaq: NATI) today announced revenue of $108.1 million
 for the first quarter of 2001.  This represents 15 percent revenue growth in
 U.S. dollar terms over the same period last year and 21 percent in local
 currency terms; both are in line with preliminary results released
 April 2, 2001.
     "Our continued strong growth in this current economic climate demonstrates
 the value we offer our customers," said James Truchard, NI President and CEO.
 "I am very excited about the initiatives we have under way right now in R&D,
 both in incremental new product development and in major initiatives that
 represent breakthrough innovation for NI and the industry."
     In the first quarter of this year, the geographic breakdown of revenue
 growth in U.S. dollars as compared to first quarter 2000 was as follows:
 Americas, 16 percent revenue growth; Europe, 6 percent revenue growth; and
 Asia, 30 percent revenue growth. In local currency terms, revenue was up
 16 percent in the Americas, 24 percent in Europe, and 31 percent in Asia.
     Excluding a foreign exchange loss for the quarter of $1.4 million, diluted
 earnings per share for first quarter 2001 was $0.28.  Including this foreign
 exchange loss, diluted earnings per share for first quarter 2001 was $0.26.
     "Because half of our business is done overseas, the renewed strength of
 the U.S. dollar had a negative effect on our results, reducing our revenues by
 $4.0 million sequentially," said Alex Davern, CFO of NI.  "However, we are
 pleased with how we managed the business during this tough quarter.  With a
 15 percent increase in U.S. dollar revenues and a 14 percent increase in
 expenses, we matched our long-term model and delivered an 18.4 percent
 operating margin."
     Currently, NI expects revenue growth in U.S. dollars for the second and
 third quarters of 2001 to be in the range of 7 to 15 percent over the same
 periods in 2000, increasing to a range of 12 to 20 percent growth in the
 fourth quarter.  Depending on the U.S. economy, NI anticipates revenue for the
 year will be in the range of $450 million to $475 million, and diluted
 earnings per share to be in the range of $1.06 to $1.22.  If the economy
 rebounds in the second half of 2001, NI expects to be in the upper end of the
 range; if not, the Company expects to be in the lower end.
     Interested parties can listen to a conference call today, April 12, 2001,
 beginning at 4 p.m. CDT, on ni.com/call.  Replay information will be available
 on the Web or by calling (719) 457-0820, confirmation code #587548, from
 7 p.m. CDT April 12, 2001, through April 19.
     This release contains "forward-looking statements," within the meaning of
 Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 and Exchange Act of 1934, which are intended to be covered by the safe harbors
 created therein and the Safe Harbor Provisions of the Private Securities
 Litigation Reform Act of 1995.  The forward-looking statements contained
 within this release including, among other things, the predictions of future
 financial performance are subject to a number of risks and uncertainties that
 could cause actual results to differ materially from those described in the
 forward-looking statements.  The following factors, among others, could cause
 actual results to differ materially from those described in the forward-
 looking statements:  further deterioration in the global economy, delays in
 release of new products, and foreign exchange fluctuations.  The Company
 directs you to documents filed with the SEC for risks associated with the
 Company's future performance including its Yearly Report on Form 10-K/A filed
 on March 13, 2001.
 
     About NI
     NI leverages commercial technologies, such as industry-standard computers
 and the Internet, to deliver customer-defined measurement and automation
 solutions.  Headquartered in Austin, Texas, NI has more than 2,600 employees
 and direct sales offices in more than 35 countries.  NI is increasing the
 productivity of engineers and scientists worldwide by delivering easy-to-
 integrate software and modular hardware.  In fiscal year 2000, NI recorded its
 24th consecutive year of double-digit growth with net revenue totaling
 $410 million.  For the past two consecutive years, FORTUNE magazine has named
 NI one of the 100 best companies to work for in America.
 
     NI investment information may be obtained from the Company's Investor
 Relations Department at (512) 683-5090, by sending e-mail to nati@ni.com, or
 on the Web at ni.com/nati
     Product and company names listed are trademarks or trade names of their
 respective companies.
 
 
                              National Instruments
                     Condensed Consolidated Balance Sheets
                                 (in thousands)
 
                                                March 31     December 31
                                                   2001         2000
 
     ASSETS
     Current assets:
       Cash and cash equivalents                $  76,561    $  75,277
       Short-term investments                      82,178       79,525
       Accounts receivable, net                    66,133       74,704
       Inventories                                 34,795       33,292
       Other current assets                        29,547       21,761
         Total current assets                     289,214      284,559
 
     Property and equipment, net                   94,231       84,694
     Intangibles and other assets                  19,613       20,097
     Total assets                               $ 403,058    $ 389,350
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                         $  27,014    $  30,365
       Accrued expenses                            33,354       33,986
         Total current liabilities                 60,368       64,351
 
     Deferred income taxes                          4,526        3,976
         Total liabilities                         64,894       68,327
 
     Stockholders' equity:
       Common stock                                   508          506
       Additional paid-in capital                  70,910       69,534
       Retained earnings                          267,953      254,006
       Other                                       (1,207)      (3,023)
         Total stockholders' equity               338,164      321,023
         Total liabilities and stockholders'
          equity                                $ 403,058    $ 389,350
 
 
                              National Instruments
                  Condensed Consolidated Statements of Income
                     (in thousands, except per share data)
 
                                                     Three Months
                                                    Ended March 31
                                                      (unaudited)
                                                   2001         2000
 
     Net sales                                  $ 108,080    $  94,105
     Cost of sales                                 26,873       22,240
       Gross profit                                81,207       71,865
 
     Operating expenses
     Sales and marketing                           38,503       34,762
     Research and development                      15,097       12,346
     General and administrative                     7,717        6,704
       Total operating expenses                    61,317       53,812
 
     Operating income                              19,890       18,053
     Interest income, net                           1,801        1,188
     Foreign exchange (loss) gain, net             (1,378)        (704)
     Other income                                     198           86
 
     Income before income taxes                    20,511       18,623
     Provision for income taxes                     6,564        5,959
 
     Net income                                 $  13,947    $  12,664
 
     Basic Earnings per share                   $    0.28    $    0.25
 
     Diluted Earnings per share                 $    0.26    $    0.24
 
     Weighted average shares
      outstanding -- basic                         50,701       50,112
     Weighted average shares
      outstanding -- diluted                       53,873       53,415
 
      Contacts:  Kimberly Allen                Kathleen Fisher
                 Investor Relations Manager    Business Communications Manager
                 National Instruments          National Instruments
                 (512) 683-6873                (512) 683-5731
 
 

SOURCE National Instruments
    AUSTIN, Texas, April 12 /PRNewswire/ --
 National Instruments (Nasdaq: NATI) today announced revenue of $108.1 million
 for the first quarter of 2001.  This represents 15 percent revenue growth in
 U.S. dollar terms over the same period last year and 21 percent in local
 currency terms; both are in line with preliminary results released
 April 2, 2001.
     "Our continued strong growth in this current economic climate demonstrates
 the value we offer our customers," said James Truchard, NI President and CEO.
 "I am very excited about the initiatives we have under way right now in R&D,
 both in incremental new product development and in major initiatives that
 represent breakthrough innovation for NI and the industry."
     In the first quarter of this year, the geographic breakdown of revenue
 growth in U.S. dollars as compared to first quarter 2000 was as follows:
 Americas, 16 percent revenue growth; Europe, 6 percent revenue growth; and
 Asia, 30 percent revenue growth. In local currency terms, revenue was up
 16 percent in the Americas, 24 percent in Europe, and 31 percent in Asia.
     Excluding a foreign exchange loss for the quarter of $1.4 million, diluted
 earnings per share for first quarter 2001 was $0.28.  Including this foreign
 exchange loss, diluted earnings per share for first quarter 2001 was $0.26.
     "Because half of our business is done overseas, the renewed strength of
 the U.S. dollar had a negative effect on our results, reducing our revenues by
 $4.0 million sequentially," said Alex Davern, CFO of NI.  "However, we are
 pleased with how we managed the business during this tough quarter.  With a
 15 percent increase in U.S. dollar revenues and a 14 percent increase in
 expenses, we matched our long-term model and delivered an 18.4 percent
 operating margin."
     Currently, NI expects revenue growth in U.S. dollars for the second and
 third quarters of 2001 to be in the range of 7 to 15 percent over the same
 periods in 2000, increasing to a range of 12 to 20 percent growth in the
 fourth quarter.  Depending on the U.S. economy, NI anticipates revenue for the
 year will be in the range of $450 million to $475 million, and diluted
 earnings per share to be in the range of $1.06 to $1.22.  If the economy
 rebounds in the second half of 2001, NI expects to be in the upper end of the
 range; if not, the Company expects to be in the lower end.
     Interested parties can listen to a conference call today, April 12, 2001,
 beginning at 4 p.m. CDT, on ni.com/call.  Replay information will be available
 on the Web or by calling (719) 457-0820, confirmation code #587548, from
 7 p.m. CDT April 12, 2001, through April 19.
     This release contains "forward-looking statements," within the meaning of
 Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 and Exchange Act of 1934, which are intended to be covered by the safe harbors
 created therein and the Safe Harbor Provisions of the Private Securities
 Litigation Reform Act of 1995.  The forward-looking statements contained
 within this release including, among other things, the predictions of future
 financial performance are subject to a number of risks and uncertainties that
 could cause actual results to differ materially from those described in the
 forward-looking statements.  The following factors, among others, could cause
 actual results to differ materially from those described in the forward-
 looking statements:  further deterioration in the global economy, delays in
 release of new products, and foreign exchange fluctuations.  The Company
 directs you to documents filed with the SEC for risks associated with the
 Company's future performance including its Yearly Report on Form 10-K/A filed
 on March 13, 2001.
 
     About NI
     NI leverages commercial technologies, such as industry-standard computers
 and the Internet, to deliver customer-defined measurement and automation
 solutions.  Headquartered in Austin, Texas, NI has more than 2,600 employees
 and direct sales offices in more than 35 countries.  NI is increasing the
 productivity of engineers and scientists worldwide by delivering easy-to-
 integrate software and modular hardware.  In fiscal year 2000, NI recorded its
 24th consecutive year of double-digit growth with net revenue totaling
 $410 million.  For the past two consecutive years, FORTUNE magazine has named
 NI one of the 100 best companies to work for in America.
 
     NI investment information may be obtained from the Company's Investor
 Relations Department at (512) 683-5090, by sending e-mail to nati@ni.com, or
 on the Web at ni.com/nati
     Product and company names listed are trademarks or trade names of their
 respective companies.
 
 
                              National Instruments
                     Condensed Consolidated Balance Sheets
                                 (in thousands)
 
                                                March 31     December 31
                                                   2001         2000
 
     ASSETS
     Current assets:
       Cash and cash equivalents                $  76,561    $  75,277
       Short-term investments                      82,178       79,525
       Accounts receivable, net                    66,133       74,704
       Inventories                                 34,795       33,292
       Other current assets                        29,547       21,761
         Total current assets                     289,214      284,559
 
     Property and equipment, net                   94,231       84,694
     Intangibles and other assets                  19,613       20,097
     Total assets                               $ 403,058    $ 389,350
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                         $  27,014    $  30,365
       Accrued expenses                            33,354       33,986
         Total current liabilities                 60,368       64,351
 
     Deferred income taxes                          4,526        3,976
         Total liabilities                         64,894       68,327
 
     Stockholders' equity:
       Common stock                                   508          506
       Additional paid-in capital                  70,910       69,534
       Retained earnings                          267,953      254,006
       Other                                       (1,207)      (3,023)
         Total stockholders' equity               338,164      321,023
         Total liabilities and stockholders'
          equity                                $ 403,058    $ 389,350
 
 
                              National Instruments
                  Condensed Consolidated Statements of Income
                     (in thousands, except per share data)
 
                                                     Three Months
                                                    Ended March 31
                                                      (unaudited)
                                                   2001         2000
 
     Net sales                                  $ 108,080    $  94,105
     Cost of sales                                 26,873       22,240
       Gross profit                                81,207       71,865
 
     Operating expenses
     Sales and marketing                           38,503       34,762
     Research and development                      15,097       12,346
     General and administrative                     7,717        6,704
       Total operating expenses                    61,317       53,812
 
     Operating income                              19,890       18,053
     Interest income, net                           1,801        1,188
     Foreign exchange (loss) gain, net             (1,378)        (704)
     Other income                                     198           86
 
     Income before income taxes                    20,511       18,623
     Provision for income taxes                     6,564        5,959
 
     Net income                                 $  13,947    $  12,664
 
     Basic Earnings per share                   $    0.28    $    0.25
 
     Diluted Earnings per share                 $    0.26    $    0.24
 
     Weighted average shares
      outstanding -- basic                         50,701       50,112
     Weighted average shares
      outstanding -- diluted                       53,873       53,415
 
      Contacts:  Kimberly Allen                Kathleen Fisher
                 Investor Relations Manager    Business Communications Manager
                 National Instruments          National Instruments
                 (512) 683-6873                (512) 683-5731
 
 SOURCE  National Instruments