National Instruments has announced Q2 revenue of $313 million, up 6 per cent year-over-year. Backlog increased by $5 million and deferred revenue increased by $5 million from the first quarter. The company’s orders under $20,000 grew 4 per cent year-over-year; orders between $20,000 and $100,000 increased 6 per cent year-over-year; and orders above $100,000 increased 43 per cent year-over-year. In Q2 2014, NI recognised $20 million in revenue from its largest customer, compared with $23 million recognised in Q2 2013. Year-to-date, through July 29, NI has received $49 million in orders from this customer, compared with $33 million at this point last 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 $32 million, with non-GAAP fully diluted EPS of $0.25. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortisation, was $48 million, or $0.38 per share in the second quarter.
In Q2, GAAP gross margin was 74 per cent and non-GAAP gross margin was 75 per cent, up 210 basis points from Q2 2013. Total GAAP operating expenses were $199 million, up 3 per cent year-over-year. Total non-GAAP operating expenses were $192 million, up 4 per cent year-over-year.
GAAP operating margin was 10 per cent in Q2, with GAAP operating income of $32 million, up 67 per cent year-over-year. Non-GAAP operating margin was 13.5 per cent in Q2, with non-GAAP operating income of $42 million, up 40 per cent year-over-year.
The company’s non-GAAP results exclude the impact of stock-based compensation, amortisation of acquisition-related intangibles, acquisition-related adjustments and acquisition-related transaction costs. Reconciliations of the company’s GAAP and non-GAAP results are included here.
Dr James Truchard, NI president, CEO and cofounder, says: “I am pleased to see our platform-based approach advancing our leadership position in test and measurement and industrial applications. I am optimistic about our long-term position in the industry. The differentiation we deliver to our customers through graphical system design positions us well to solve the applications our customers face in areas such as the Internet of Things.”
Geographic revenue in US dollar terms for Q2 2014 compared with Q2 2013 was up 7 per cent in the Americas, up 12 per cent in Europe, down 1 per cent in East Asia and up 4 per cent in Emerging Markets. In local currency terms, revenue was up 7 per cent in Europe, down 1 per cent in East Asia and up 11 per cent in Emerging Markets.
Q2 2014 highlights:
- Quarterly revenue of $313 million, up 6 per cent year-over-year
- Strong order growth for CompactRIO and PXI products
- GAAP operating income up 67 per cent year-over-year
- Non-GAAP operating income up 40 per cent year-over-year
- Fully diluted GAAP EPS of $0.19 and fully diluted non-GAAP EPS of $0.25
- EBITDA of $48 million or $0.38 per share
- Cash and cash equivalents of $402 million
For further information about National Instruments, please visit www.ni.com.