NI soars to record revenues in Q3

2nd November 2014

NI-Emerson

Mick Elliott

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NI racked up record revenues of $314m in Q3, an increase of 8 percent year-on-year. Profit grew to $40m compared to $15.7m in Q3 last year. NI’s largest customer contributed $17m of revenues in the quarter up from $4m last year. Year to year up to October 30 the same customer had placed orders worth $56m compared to $35m at the same time last year.

Orders under $20,000 grew 3 percent year on year; orders between $20,000 and $100,000 increased 9 percent against last year; and orders above $100,000 increased 10 percent year on year.

"I am pleased with the record revenue delivered in the third quarter and the significant progress made toward improving our operating margin," said Dr. James Truchard, NI president, CEO and cofounder. "I remain optimistic about our long-term position in the industry, with new products released in Q3 adding capability to our platform to further differentiate our approach in automated test and address new opportunities in areas such as the Industrial Internet of Things."

Geographic revenue in U.S. dollar terms for Q3 2014 compared with Q3 2013 was up 2 percent in the Americas, up 8 percent in Europe, up 34 percent in East Asia and down 14 percent in Emerging Markets. In local currency terms, revenue was up 5percent in Europe, up 33 percent in East Asia and down 12 percent in Emerging Markets.

"I am pleased with the operating leverage we have delivered so far this year and we expect to continue to deliver year-over-year revenue growth and operating leverage in Q4," said Alex Davern, NI COO and CFO. "Looking forward we are working hard to take advantage of our opportunity and remain committed to driving organic growth."

Gross margins are expected to be up sequentially in Q4. NI currently expects revenue for Q4 2014 to be between $312 million and $342 million, up 9 percent year on year at the midpoint.