NI Reports Record Revenue for a Second Quarter

About NI

LabVIEW, NI (ni.com) develops high-performance automated test and automated measurement systems to help you solve your engineering challenges now and into the future. Our open, software-defined platform uses modular hardware and an expansive ecosystem to help you turn powerful possibilities into real solutions. (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,

 

2021

2020

 

(unaudited)

 

Assets

 

 

Cash and cash equivalents

$

250,421

 

$

260,232

 

Short-term investments

14,110

 

59,923

 

Accounts receivable, net

258,641

 

266,869

 

Inventories, net

211,023

 

194,012

 

Prepaid expenses and other current assets

80,121

 

68,470

 

Total current assets

814,316

 

849,506

 

Property and equipment, net

250,761

 

254,399

 

Goodwill

483,136

 

467,547

 

Intangible assets, net

149,126

 

172,719

 

Operating lease right-of-use assets

57,812

 

67,674

 

Other long-term assets

76,878

 

72,643

 

Total assets

$

1,832,029

 

$

1,884,488

 

 

 

 

Liabilities and Stockholders' Equity

 

 

Accounts payable and accrued expenses

$

56,477

 

$

51,124

 

Accrued compensation

68,932

 

87,068

 

Deferred revenue - current

125,986

 

132,151

 

Operating lease liabilities - current

13,389

 

15,801

 

Other taxes payable

39,339

 

48,129

 

Debt, current

 

5,000

 

Other current liabilities

26,854

 

42,578

 

Total current liabilities

330,977

 

381,851

 

Deferred income taxes

28,359

 

25,288

 

Income tax payable - non-current

54,195

 

61,623

 

Deferred revenue - non-current

34,624

 

36,335

 

Operating lease liabilities - non-current

29,512

 

35,854

 

Debt, noncurrent

100,000

 

92,036

 

Other long-term liabilities

18,710

 

26,630

 

Total liabilities

$

596,377

 

$

659,617

 

Stockholders' equity:

 

 

Common stock

1,330

 

1,312

 

Additional paid-in capital

1,087,622

 

1,033,284

 

Retained earnings

161,475

 

211,101

 

Accumulated other comprehensive loss

(14,775

)

(20,826

)

Total stockholders' equity

1,235,652

 

1,224,871

 

Total liabilities and stockholders' equity

$

1,832,029

 

$

1,884,488

 

National Instruments

Condensed Consolidated Statements of Income

(in thousands, except per share data, unaudited)

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

2021

2020

2021

2020

 

 

 

 

 

Net sales:

 

 

 

 

Product

$

306,490

 

$

266,261

 

$

601,583

 

$

540,239

 

Software maintenance

40,206

 

35,068

 

80,295

 

70,470

 

Total net sales

346,696

 

301,329

 

681,878

 

610,709

 

 

 

 

 

 

Cost of sales:

 

 

 

 

Product

95,722

 

83,795

 

187,379

 

165,866

 

Software maintenance

3,516

 

2,106

 

7,273

 

3,796

 

Total cost of sales

99,238

 

85,901

 

194,652

 

169,662

 

 

 

 

 

 

Gross profit

247,458

 

215,428

 

487,226

 

441,047

 

 

71.4%

 

 

71.5%

 

 

71.5%

 

 

72.2%

 

 

Operating expenses:

 

 

 

 

Sales and marketing

111,199

 

105,419

 

227,983

 

221,165

 

Research and development

81,434

 

64,225

 

161,520

 

135,846

 

General and administrative

30,277

 

29,369

 

63,636

 

55,549

 

Total operating expenses

222,910

 

199,013

 

453,139

 

412,560

 

Gain on sale of business/assets

 

 

 

159,753

 

Operating income

24,548

 

16,415

 

34,087

 

188,240

 

Other expense

(2,963

)

(1,143

)

(8,031

)

(583

)

Income before income taxes

21,585

 

15,272

 

26,056

 

187,657

 

Provision for income taxes

4,279

 

4,383

 

4,254

 

44,113

 

Net income

$

17,306

 

$

10,889

 

$

21,802

 

$

143,544

 

 

 

 

 

 

Basic earnings per share

$

0.13

 

$

0.08

 

$

0.17

 

$

1.10

 

Diluted earnings per share

$

0.13

 

$

0.08

 

$

0.16

 

$

1.09

 

 

 

 

 

 

Weighted average shares outstanding -

 

 

 

 

Basic

132,498

 

131,014

 

131,996

 

130,813

 

Diluted

133,539

 

131,602

 

133,157

 

131,499

 

 

 

 

 

 

Dividends declared per share

$

0.27

 

$

0.26

 

$

0.54

 

$

0.52

 

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

Six Months Ended June 30,

 

2021

2020

 

 

Cash flow from operating activities:

 

 

Net income

$

21,802

 

$

143,544

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Disposal gains on sale of business/asset

 

(159,753

)

Depreciation and amortization

50,024

 

38,341

 

Stock-based compensation

37,208

 

27,335

 

Loss from equity-method investees

5,360

 

1,932

 

Deferred income taxes

1,301

 

2,711

 

Net change in operating assets and liabilities

(63,372

)

47,388

 

Net cash provided by operating activities

52,323

 

101,498

 

 

 

 

Cash flow from investing activities:

 

 

Acquisitions, net of cash received

(19,784

)

 

Capital expenditures

(17,411

)

(25,362

)

Proceeds from sale of assets/business, net of cash divested

 

160,266

 

Capitalization of internally developed software

(721

)

(3,108

)

Additions to other intangibles

(1,519

)

(630

)

Payments to acquire equity-method investments

(12,551

)

 

Purchases of short-term investments

 

(206,330

)

Sales and maturities of short-term investments

45,671

 

306,955

 

Net cash (used in) provided by investing activities

(6,315

)

231,791

 

 

 

 

Cash flow from financing activities:

 

 

Proceeds from revolving loan facility

100,000

 

20,000

 

Proceeds from term loan

 

70,000

 

Payments on term loan

(98,750

)

 

Debt issuance costs

(1,993

)

(1,480

)

Proceeds from issuance of common stock

17,239

 

17,252

 

Repurchase of common stock

 

(23,680

)

Dividends paid

(71,428

)

(68,156

)

Net cash (used in) provided by financing activities

(54,932

)

13,936

 

 

 

 

Impact of changes in exchange rates on cash

(887

)

(636

)

 

 

 

Net change in cash and cash equivalents

(9,811

)

346,589

 

Cash and cash equivalents at beginning of period

260,232

 

194,616

 

Cash and cash equivalents at end of period

$

250,421

 

$

541,205

 

The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles and fair value adjustments, acquisition-related transaction and integration costs, capitalization and amortization of internally developed software costs, restructuring charges, gains on sale of business/assets, and other that were recorded in the line items indicated below (unaudited) (in thousands)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

 

 

 

 

 

2021

2020

2021

2020

Stock-based compensation

 

 

 

 

Cost of sales

$

1,191

 

$

932

 

$

2,305

 

$

1,736

 

Sales and marketing

6,922

 

6,467

 

12,617

 

11,642

 

Research and development

6,180

 

4,428

 

11,893

 

7,947

 

General and administrative

5,854

 

3,404

 

10,520

 

6,008

 

Provision for income taxes

(3,916

)

(2,905

)

(7,241

)

(4,406

)

Total

$

16,231

 

$

12,326

 

$

30,094

 

$

22,927

 

 

 

 

 

 

Amortization of acquisition-related intangibles and fair value adjustments

 

 

 

 

Net sales

$

738

 

$

 

$

1,551

 

$

 

Cost of sales

4,226

 

635

 

8,497

 

1,381

 

Sales and marketing

2,357

 

480

 

4,528

 

966

 

Research and development

 

28

 

 

55

 

Other expense

554

 

117

 

948

 

241

 

Provision for income taxes

(979

)

(133

)

(1,969

)

(290

)

Total

$

6,896

 

$

1,127

 

$

13,555

 

$

2,353

 

 

 

 

 

 

Acquisition transaction and integration costs, restructuring charges, and other (1)(2)

 

 

 

 

Cost of sales

$

(118

)

$

 

$

(43

)

$

20

 

Sales and marketing

839

 

1,239

 

5,487

 

7,612

 

Research and development

548

 

147

 

1,036

 

4,816

 

General and administrative

873

 

3,399

 

6,539

 

2,385

 

Gain on sale of business/assets

 

 

 

(159,753

)

Other expense

280

 

 

4,006

 

128

 

Provision for income taxes

(578

)

(78

)

(3,463

)

34,676

 

Total

$

1,844

 

$

4,707

 

$

13,562

 

$

(110,116

)

(1): During the first quarter of 2020, we recognized a gain of approximately $160 million related to the divestiture of AWR, presented within "Gain on sale of business/assets".

(2): During the first quarter of 2021, we recognized a $3.5 million impairment loss related to one of our equity-method investments.

 

 

 

 

 

Capitalization and amortization of internally developed software costs

 

 

 

 

Cost of sales

$

6,227

 

$

7,144

 

$

13,101

 

$

14,226

 

Research and development

(495

)

(1,181

)

(721

)

(3,095

)

Provision for income taxes

(1,204

)

(1,252

)

(2,600

)

(2,337

)

Total

$

4,528

 

$

4,711

 

$

9,780

 

$

8,794

 

National Instruments

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, unaudited)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

2021

2020

2021

2020

 

 

 

 

 

Reconciliation of Net sales to Non-GAAP Net sales

 

 

 

 

Net sales, as reported

$

346,696

 

$

301,329

 

$

681,878

 

$

610,709

 

plus: Impact of acquisition-related fair value adjustments

 

738

 

 

 

 

1,551

 

 

 

Non-GAAP net sales

$

347,434

 

 

301,329

 

 

683,429

 

$

610,709

 

 

 

 

 

 

Reconciliation of Gross Profit to Non-GAAP Gross Profit

 

 

 

 

Gross profit, as reported

$

247,458

 

$

215,428

 

$

487,226

 

$

441,047

 

Stock-based compensation

 

1,191

 

 

932

 

 

2,305

 

 

1,736

 

Amortization of acquisition-related intangibles and fair value adjustments

 

4,964

 

 

635

 

 

10,048

 

 

1,381

 

Acquisition transaction and integration costs, restructuring charges and other

 

(118

)

 

 

 

(43

)

 

20

 

Amortization of internally developed software costs

 

6,227

 

 

7,144

 

 

13,101

 

 

14,226

 

Non-GAAP gross profit

$

259,722

 

$

224,139

 

$

512,637

 

$

458,410

 

Non-GAAP gross margin

74.8%

74.4%

75.0%

75.1%

 

 

 

 

 

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

 

 

 

 

Operating expenses, as reported

$

222,910

 

$

199,013

 

$

453,139

 

$

412,560

 

Stock-based compensation

 

(18,956

)

 

(14,299

)

 

(35,030

)

 

(25,597

)

Amortization of acquisition-related intangibles and fair value adjustments

 

(2,357

)

 

(508

)

 

(4,528

)

 

(1,021

)

Acquisition transaction and integration costs, restructuring charges and other

 

(2,260

)

 

(4,785

)

 

(13,062

)

 

(14,813

)

Capitalization of internally developed software costs

 

495

 

 

1,181

 

 

721

 

 

3,095

 

Non-GAAP operating expenses

$

199,832

 

$

180,602

 

$

401,240

 

$

374,224

 

 

 

 

 

 

Reconciliation of Operating Income to Non-GAAP Operating Income

 

 

 

 

Operating income, as reported

$

24,548

 

$

16,415

 

$

34,087

 

$

188,240

 

Stock-based compensation

 

20,147

 

 

15,231

 

 

37,335

 

 

27,333

 

Amortization of acquisition-related intangibles and fair value adjustments

 

7,321

 

 

1,143

 

 

14,576

 

 

2,402

 

Acquisition transaction and integration costs, restructuring charges and other

 

2,142

 

 

4,785

 

 

13,019

 

 

14,833

 

Net amortization of internally developed software costs

 

5,732

 

 

5,963

 

 

12,380

 

 

11,131

 

Gain on sale of business/assets

 

 

 

 

 

 

 

(159,753

)

Non-GAAP operating income

$

59,890

 

$

43,537

 

$

111,397

 

$

84,186

 

Non-GAAP operating margin

17.2%

14.4%

16.3%

13.8%

 

 

 

 

 

Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes (1)

 

 

 

 

Provision for income taxes, as reported

$

4,279

 

$

4,383

 

$

4,254

 

$

44,113

 

Stock-based compensation

 

3,916

 

 

2,905

 

 

7,241

 

 

4,406

 

Amortization of acquisition-related intangibles and fair value adjustments

 

979

 

 

133

 

 

1,969

 

 

290

 

Acquisition transaction and integration costs, restructuring charges and other

 

578

 

 

466

 

 

3,463

 

 

2,083

 

Net amortization of internally developed software costs

 

1,204

 

 

1,252

 

 

2,600

 

 

2,337

 

Gain on sale of business/assets

 

 

 

(388

)

 

 

 

(36,759

)

Non-GAAP provision for income taxes (1)

$

10,956

 

$

8,751

 

$

19,527

 

$

16,470

 

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.

Reconciliation of GAAP Net Income and Diluted EPS to Non-GAAP Net Income, Non-GAAP Diluted EPS, and EBITDA

(in thousands, except per share data, unaudited)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

 

2021

2020

2021

2020

 

 

 

 

 

Net income, as reported

$

17,306

 

$

10,889

 

$

21,802

 

$

143,544

 

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

Stock-based compensation

20,147

 

15,231

 

37,335

 

27,333

 

Amortization of acquisition-related intangibles and fair value adjustments

7,875

 

1,260

 

15,524

 

2,643

 

Acquisition transaction and integration costs, restructuring charges and other

2,422

 

4,785

 

17,025

 

14,981

 

Net amortization of internally developed software costs

5,732

 

5,963

 

12,380

 

11,131

 

Gain on sale of business/assets

 

 

 

(159,753

)

Income tax effects and adjustments (1)

(6,677

)

(4,368

)

(15,273

)

27,643

 

Non-GAAP net income

$

46,805

 

$

33,760

 

$

88,793

 

$

67,522

 

Non-GAAP net margin

13.5%

11.2%

13.0%

11.1%

 

Diluted EPS, as reported

$

0.13

 

$

0.08

 

$

0.16

 

$

1.09

 

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS

 

 

 

 

Stock-based compensation

0.15

 

0.12

 

0.28

 

0.21

 

Amortization of acquisition-related intangibles and fair value adjustments

0.06

 

0.01

 

0.12

 

0.02

 

Acquisition transaction and integration costs, restructuring charges and other

0.02

 

0.04

 

0.13

 

0.11

 

Net amortization of internally developed software costs

0.04

 

0.05

 

0.09

 

0.08

 

Gain on sale of business/assets

 

 

 

(1.21

)

Income tax effects and adjustments (1)

(0.05

)

(0.04

)

(0.11

)

0.21

 

Non-GAAP diluted EPS

$

0.35

 

$

0.26

 

$

0.67

 

$

0.51

 

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2021

 

2020

 

 

2021

 

2020

 

Net income, as reported

 

$

17,306

 

 

$

10,889

 

 

 

$

21,802

 

 

$

143,544

 

 

Adjustments to reconcile net income to EBITDA:

 

 

 

 

 

 

 

 

Interest expense (income), net

 

1,110

 

 

(945

)

 

 

1,653

 

 

(3,168

)

 

Tax expense

 

4,279

 

 

4,383

 

 

 

4,254

 

 

44,113

 

 

Depreciation and amortization

 

26,152

 

 

19,076

 

 

 

50,024

 

 

38,341

 

 

EBITDA

 

$

48,847

 

 

$

33,403

 

 

 

$

77,733

 

 

$

222,830

 

 

Weighted average shares outstanding - Diluted

 

133,539

 

 

131,602

 

 

 

133,157

 

 

131,499

 

 

Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS Guidance

(unaudited)

 

Three Months Ended

 

September 30, 2021

 

 

 

 

Low

High

GAAP Diluted EPS, guidance

$

0.10

 

$

0.24

 

Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:

 

 

Stock-based compensation

0.14

 

0.14

 

Amortization of acquisition-related intangibles and fair value adjustments

0.06

 

0.06

 

Acquisition transaction and integration costs, restructuring charges, and other

0.01

 

0.01

 

Net amortization of software development costs

0.04

 

0.04

 

Income tax effects and adjustments (1)

(0.04

)

(0.04

)

Non-GAAP Diluted EPS, guidance

$

0.31

 

$

0.45

 

(1): The income tax effect related to each non-GAAP item is calculated based on the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment, and considers the current and deferred tax impact of those adjustments.





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