NI clocks up record revenues

National Instruments has reported second quarter revenue of $141 million, an increase of 11% compared with the second quarter of 2004 and up 9% sequentially.

National Instruments has reported second quarter revenue of $141 million, an increase of 11% compared with the second quarter of 2004 and up 9% sequentially.

Fuelled by record revenue from new products released in the last two years, this represents the highest quarterly revenue in the company's history.

GAAP fully diluted earnings per share (EPS) for Q2 were $0.19 with GAAP net income of $15 million, up 32% from Q2 2004.

Included in GAAP net income for Q2 2005 are a number of items related to acquisitions.

These include a $400,000 noncash charge to cost of goods sold and a $200,000 noncash charge to R and D, related to the amortisation of acquisition-related intangibles.

Additionally, as the NI patent litigation with Measurement Computing was settled on acquisition, the company reversed its remaining accrual of $1.9 million.

This is netted with other NI patent litigation expenses on the company's income statement.

The company also announced a quarterly dividend of $0.05 per share on its common stock payable on 25th August 2005, to shareholders of record on 8th August 2005.

As of 30th June 2005, the company had $157 million of cash and short-term investments.

In Q2 2005, the company repurchased 1.7 million shares of its common stock, equivalent to 2.2% of the company's outstanding stock at an average price of $23.85 per share.

"I am pleased to see our continued R and D investments pay off in Q2 with the highest percentage of revenue from new products in many years", said Dr James Truchard, NI President and CEO.

"Our new product success has been built on LabView's success as a system design tool for instrumentation".

"At NIWeek on 16th to 18th August, we will show how LabView is expanding into a new role as a graphical system design tool for industrial control and embedded design".

"We delivered record revenue in Q2 despite the weakening of the global industrial economy in April and May", said Alex Davern, NI CFO.

"We are pleased with our sequential profit growth in Q2, and we will continue to focus on managing our expenses in the second half of 2005 to drive operating leverage".

Geographically, the growth of revenue in US dollar terms for Q2 2005 compared with Q2 2004 was as follows: up 8% in the Americas, up 11% in Europe and up 19% in Asia, giving overall growth of 11%.

In local currency terms, revenue was down 1% in Europe, up 10% in Asia and up 7% in the Americas, for an overall local currency growth of 5%.

National Instruments will hold its Annual Investor Conference on 16th August in Austin in conjunction with the NIWeek user conference, a key event for launching new products and meeting with NI customers and strategic partners.

Early NIWeek registration is at record levels, with more than 20% growth compared with last year.

The investor conference will kick off with a new products keynote address by Tim Dehne, Senior Vice President of R and D.

Dr James Truchard and other senior management will follow with presentations on the opportunities created by new NI products and the company's expanding vision for virtual instrumentation.

Given the typical NI Q3 seasonal pattern and the recent weakness of the Euro which will have a negative impact on revenue in Q3, NI expects Q3 2005 revenue to be between $135 million and $141 million and to report fully diluted EPS of between $0.13 and $0.17.

The company expects to report record revenue for the full year of 2005.

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