National Instruments Reports Record Quarterly and Annual Revenue

Generally Accepted Accounting Principles (GAAP) fully diluted earnings per share (EPS) for Q4 2006 was 30 cents with record GAAP net income of $24.4 million. Non-GAAP fully diluted EPS was 34 cents with record non-GAAP net income of $28 million, up 23 percent from Q4 2005. The company’s non-GAAP results exclude the impact of both stock-based compensation under the new accounting standard SFAS123R and the amortization of acquisition-related intangibles.

For 2006, revenue totaled $660 million, up 15.5 percent year-over-year in USD terms and 16.1 percent year-over-year in local currency. GAAP fully diluted EPS for 2006 was 89 cents with record annual net income of $72.7 million, an 18 percent increase over 2005. Non-GAAP fully diluted EPS for 2006 was $1.06 with record annual net income of $87 million, a 35 percent increase over 2005. For the year, non-GAAP operating margin increased to 16 percent from 14 percent in 2005 and 12 percent in 2004. GAAP operating margin for 2006 was 13.3 percent.

“I would like to thank all NI employees for another record year in 2006, turning in the 29th year of growth in the company’s 30-year history,” said Dr. James Truchard, NI president and CEO. “We made significant progress in 2006 in system-level design in both virtual instrumentation and in embedded industrial applications with the success of advanced technologies for graphical system design such as LabVIEW FPGA.”