NI beats revenues record in 2014

30th January 2015

NI-Emerson

Mick Elliott

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NI has reported record revenues of $1,24bn, up 6 per cent on 2013 and a profit of $126m. Strong revenue growth in LabVIEW, PXI, RF and CompactRIO products in the fourth quarter drove sales up 11 per cent year on year to $333m. The company posted a profit of $43m for the quarter.

The company's total orders were up 13 percent for the quarter with orders under $20,000 up 5 percent year-over-year; orders between $20,000 and $100,000 up 13 percent year-over-year; and orders above $100,000 up 36 percent year-over-year. In Q4 2014, NI recognised $7 million in revenue from its largest customer, compared with $4 million recognized in Q4 2013.

"We have built and continue to run our company for long-term, sustainable growth," said Dr. James Truchard, NI president, CEO and cofounder. "Over the course of several decades, we have successfully managed the business through various economic and currency cycles, and we are prepared to navigate the near-term disruptions resulting from currency fluctuations. Our differentiated platform continues to deliver on our strategy of reducing the costs of our customers' systems, while growing our business in the markets we serve."

Geographic revenue in U.S. dollar terms for Q4 2014 compared with Q4 2013 was up 5 percent in the Americas, up 8 percent in Europe, up 24 percent in East Asia and up 11 percent in Emerging Markets. In constant currency terms, revenue was up 10 percent in Europe, up 26 percent in East Asia and up 23 percent in Emerging Markets.

"2014 was a year of great progress for NI. We delivered a strong finish to the year with record revenue, record profit and record cash. Our employees executed well, and the strength of our differentiated platform continued to gain market share," said Alex Davern, NI COO and CFO. "Though we are cautious given the macroeconomic environment, we remain focused on leveraging our previous investments to drive sustained revenue growth. We are confident in our ability to continue to make progress toward our non-GAAP operating margin target of 18 percent."

Citing a strong dollar NI expects to see a significant headwind to its USD revenue in 2015. Q1 revenues are forecast to be in the range of $280m to $310m. At the midpoint this represents 4 percent YOY revenue growth in USD and approximately 9 percent YOY revenue growth in constant currency.