National Instruments Reports Q1 2009 Results

29th April 2009

NI-Emerson

ES Admin

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National Instruments reported quarterly revenue for Q1 2009 of $158 million, representing an 18 percent year-over-year decline. Net income for Q1 was $0.4 million. Non-GAAP net income was $3.1 million, with non-GAAP fully diluted earnings per share (EPS) of $0.04. The company’s non-GAAP results exclude the impact of both stock-based compensation and the amortization of acquisition-related intangibles. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.

“Our commitment to investing in R&D has generated a product portfolio that disrupts traditional approaches and empowers engineers and scientists to improve productivity at a lower cost,” said James Truchard, NI president, co-founder and CEO. “We believe these challenging times will create an opportunity for a long-term shift in industry leadership. I believe by sustaining our investment in R&D and the field sales channel, and by acquiring key new talent, we will be able to gain market share and return to growth in 2010.”

In Q1 2009, NI virtual instrumentation and graphical system design products, which constitute the majority of the company’s product portfolio, experienced a 16 percent year-over-year revenue decline. Sales of NI instrument control products, which now represent approximately 6 percent of NI revenue, were down 42 percent year-over-year in Q1 2009. These instrument control products are the most economically sensitive portion of NI revenue, and the company expects the year-over-year revenue trend in instrument control to continue to be very weak in Q2 and Q3 2009.

In Q1 2009, product revenue was $143 million, down 21 percent from Q1 2008, and software maintenance revenue was $14 million, up 29 percent year-over-year.

With the quarterly average of the global Purchasing Managers Index (PMI) reaching a record low of 36 for Q1, NI saw the effect of the global recession worldwide. Revenue in U.S. dollar terms for Q1 2009 compared to Q1 2008 was down 18 percent in the Americas, down 16 percent in Europe and down 21 percent in Asia, equaling an overall revenue decline of 18 percent. The company believes that European performance was helped by the shift in Easter from Q1 in 2008 to Q2 in 2009, and that this shift will have a corresponding negative impact on Europe in Q2 2009. In local currency terms, revenue was down 14 percent in Europe and down 15 percent in the Americas and Asia for an overall local currency decline of 15 percent.

Total operating expenses for the quarter were down 5 percent year-over-year, illustrating the strong fiscal discipline that has been exercised throughout the organization in response to the severe downturn in the global industry economy.