| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Stock-based compensation | ||||||||||
| Cost of sales | $ | 575 | $ | 548 | ||||||
| Sales and marketing | 2,626 | 2,937 | ||||||||
| Research and development | 2,054 | 2,349 | ||||||||
| General and administrative | 1,224 | 908 | ||||||||
| Provision for income taxes | (1,675 | ) | (2,093 | ) | ||||||
| Total | $ | 4,804 | $ | 4,649 | ||||||
| Amortization of acquisition intangibles | ||||||||||
| Cost of sales | $ | 1,590 | $ | 3,042 | ||||||
| Sales and marketing | 478 | 819 | ||||||||
| Research and development | 263 | 261 | ||||||||
| Other income, net | - | - | ||||||||
| Provision for income taxes | (554 | ) | 221 | |||||||
| Total | $ | 1,777 | $ | 4,343 | ||||||
| Acquisition transaction costs, restructuring charges, and other | ||||||||||
| Cost of sales | $ | 336 | $ | 106 | ||||||
| Sales and marketing | 2,375 | 57 | ||||||||
| Research and development | 399 | 258 | ||||||||
| General and administrative | 177 | 30 | ||||||||
| Foreign exchange loss on acquisition | - | 94 | ||||||||
| Taxes levied on transfer of acquired intellectual property | - | 2,474 | ||||||||
| Provision for income taxes | (1,065 | ) | (1,041 | ) | ||||||
| Total | $ | 2,222 | $ | 1,978 | ||||||
| National Instruments | ||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||||||||
| (in thousands, unaudited) | ||||||||||
| Reconciliation of Gross Profit to Non-GAAP Gross Profit | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Gross profit, as reported | $ | 223,582 | $ | 211,031 | ||||||
| Stock-based compensation | 575 | 548 | ||||||||
| Amortization of acquisition intangibles | 1,590 | 3,042 | ||||||||
| Acquisition transaction costs, restructuring charges and other | 336 | 106 | ||||||||
| Non-GAAP gross profit | $ | 226,083 | $ | 214,727 | ||||||
| Non-GAAP gross margin | 75 | % | 75 | % | ||||||
| Reconciliation of Operating Expenses to Non-GAAP Operating Expenses | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Operating expenses, as reported | $ | 201,264 | $ | 197,187 | ||||||
| Stock-based compensation | (5,904 | ) | (6,194 | ) | ||||||
| Amortization of acquisition intangibles | (741 | ) | (1,080 | ) | ||||||
| Acquisition transaction costs, restructuring charges and other | (2,951 | ) | (345 | ) | ||||||
| Non-GAAP operating expenses | $ | 191,668 | $ | 189,568 | ||||||
| Reconciliation of Operating Income to Non-GAAP Operating Income | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Operating income, as reported | $ | 22,318 | $ | 13,844 | ||||||
| Stock-based compensation | 6,479 | 6,742 | ||||||||
| Amortization of acquisition intangibles | 2,331 | 4,122 | ||||||||
| Acquisition transaction costs, restructuring charges and other | 3,287 | 451 | ||||||||
| Non-GAAP operating income | $ | 34,415 | $ | 25,159 | ||||||
| Non-GAAP operating margin | 11.5 | % | 8.8 | % | ||||||
|
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes |
||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Income before income taxes, as reported | $ | 23,174 | $ | 12,265 | ||||||
| Stock-based compensation | 6,479 | 6,742 | ||||||||
| Amortization of acquisition intangibles | 2,331 | 4,122 | ||||||||
| Acquisition transaction costs, restructuring charges and other | 3,287 | 451 | ||||||||
| Foreign exchange loss on acquisitions | - | 94 | ||||||||
| Taxes levied on transfer of acquired intellectual property | - | 2,474 | ||||||||
| Non-GAAP income before income taxes | $ | 35,271 | $ | 26,148 | ||||||
| Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Provision for income taxes, as reported | $ | 5,026 | $ | 2,967 | ||||||
| Stock-based compensation | 1,675 | 2,093 | ||||||||
| Amortization of acquisition intangibles | 554 | (221 | ) | |||||||
| Acquisition transaction costs, restructuring charges and other | 1,065 | 1,041 | ||||||||
| Non-GAAP provision for income taxes | $ | 8,320 | $ | 5,880 | ||||||
| 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 | ||||||||
| March 31, | ||||||||
| 2017 | 2016 | |||||||
| Net income, as reported | $ | 18,148 | $ | 9,298 | ||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||
| Stock-based compensation, net of tax effect | 4,804 | 4,649 | ||||||
| Amortization of acquisition intangibles, net of tax effect | 1,777 | 4,343 | ||||||
| Acquisition transaction costs, restructuring charges and other, net of tax effect | 2,222 | 1,978 | ||||||
| Non-GAAP net income | $ | 26,951 | $ | 20,268 | ||||
| Basic EPS, as reported | $ | 0.14 | $ |
0.07 |
||||
| Adjustment to reconcile basic EPS to non-GAAP basis EPS: | ||||||||
| Impact of stock-based compensation, net of tax effect | 0.04 | 0.04 | ||||||
| Impact of amortization of acquisition intangibles, net of tax effect | 0.01 | 0.03 | ||||||
| Impact of acquisition transaction costs, restructuring charges and other, net of tax effect | 0.02 | 0.02 | ||||||
| Non-GAAP basic EPS | $ | 0.21 | $ | 0.16 | ||||
| Diluted EPS, as reported | $ | 0.14 | $ | 0.07 | ||||
| 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 | 0.01 | 0.03 | ||||||
| Impact of acquisition transaction costs, restructuring charges and other, net of tax effect | 0.02 | 0.02 | ||||||
| Non-GAAP diluted EPS | $ | 0.21 | $ | 0.16 | ||||
| Weighted average shares outstanding - | ||||||||
| Basic | 129,438 | 127,595 | ||||||
| Diluted | 130,108 | 128,103 | ||||||
| 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 | ||||||||||
| March 31, | ||||||||||
| 2017 | 2016 | |||||||||
| Net income, as reported | $ | 18,148 | $ | 9,298 | ||||||
| Adjustments to reconcile net income to EBITDA: | ||||||||||
| Interest income, net of interest expense | (86 | ) | (62 | ) | ||||||
| Tax expense | 5,026 | 2,967 | ||||||||
| Depreciation and amortization | 18,669 | 19,432 | ||||||||
| EBITDA | $ | 41,757 | $ | 31,635 | ||||||
| Weighted average shares outstanding - Diluted | 130,108 | 128,103 | ||||||||
| Reconciliation of GAAP to Non-GAAP EPS Guidance | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
| June 30, 2017 | ||||||||
| Low | High | |||||||
| GAAP Fully Diluted EPS, guidance | $ | 0.12 | $ | 0.26 | ||||
| Adjustment to reconcile diluted EPS to non-GAAP diluted EPS: | ||||||||
| Impact of stock-based compensation, net of tax effect |
0.03 |
0.03 |
||||||
| Impact of amortization of acquisition intangibles, restructuring charges and other, net of tax effect |
0.04 |
0.04 |
||||||
| Non-GAAP diluted EPS, guidance | $ | 0.19 | $ | 0.33 | ||||
| National Instruments | |||||
| Reconciliation of GAAP Revenue Growth to Core Revenue Growth | |||||
| (unaudited) | |||||
| Three Months Ended | |||||
| March 31, | |||||
| 2017 | |||||
| YoY GAAP revenue growth, as reported |
|
4.5 | % | ||
| Effect of excluding our current largest customer | 1.7 | % | |||
| YoY GAAP revenue growth, excluding our largest customer | 6.2 | % | |||
| Effect of excluding the impact of foreign currency exchange | 0.4 | % | |||
| YoY Core revenue growth |
|
6.6 | % | ||
| National Instruments | |||||
| Reconciliation of GAAP Revenue Growth Guidance to Core Revenue Growth Guidance | |||||
| (unaudited) | |||||
| Three Months Ended | |||||
| June 30, | |||||
| 2017 | |||||
| Expected YoY GAAP revenue growth |
|
5 | % | ||
| Expected effect of excluding our current largest customer | 2 | % | |||
| Expected YoY GAAP revenue growth, excluding our largest customer | 7 | % | |||
| Expected effect of excluding the impact of foreign currency exchange | 1 | % | |||
| Expected YoY Core revenue growth |
|
8 | % | ||
