Product category:
Board-Level Instruments
News Release from: National Instruments
Edited by the Electronicstalk Editorial
Team on 01 May 2007
NI grows income in a tough quarter
National Instruments has reported first quarter revenues of us $172 million.
National Instruments has reported first quarter revenues of us $172 million, up 11% from Q1 2006 Diluted earnings per share (EPS) for Q1 2007 were 23 cents with net income of $19 million
This article was originally published on Electronicstalk on 22 Aug 2008 at 8.00am (UK)
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This represents a 51% increase in net income compared with Q1 2006.
Non-GAAP diluted EPS in Q1 2007 was 28 cents with non-GAAP net income of $22.5 million, up 39% from Q1 2006.
For Q1 2007, non-GAAP operating margin was 15.5%, up from 13% in Q1 2006.
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This 250 basis point increase in Q1 non-GAAP operating margin has positioned the company well to achieve its goal of 18% non-GAAP operating margin for the full year.
The company's non-GAAP results exclude the impact of both stock-based compensation and the amortisation of acquisition-related intangibles.
NI virtual instrument and graphical system design products, which constitute the vast majority of the company's product portfolio, had 13.4% year-over-year revenue growth in Q1.
This represents the third consecutive quarter of strong revenue growth from these products despite three sequential quarterly declines in the Global Purchasing Managers Index.
NI believes this continued strong organic growth validates the company's strategy of increased investment in R and D to drive new product success.
Revenue from NI instrument control products declined by 6% year-over-year in Q1, compared with a 5% decline year-over-year in Q4 2006.
The company believes this decline in revenue from instrument control products reflects the recent slowdown in the traditional test and semiconductor test markets.
Instrument control represented less than 11% of NI revenue in Q1 2007, down from 13% in Q1 last year.
"I am very pleased with the strong revenue growth we saw in Q1 in the areas of LabView FPGA, CompactRIO, USB data acquisition, modular instruments, RF and PXI", said Dr James Truchard, NI President and CEO.
"We believe our strategy of increased investment in R and D over the last six years has allowed us to significantly outperform our competitors during this weaker period for the industry".
Geographically, revenue in US dollar terms for Q1 2007 compared with Q1 2006 was up 4% in the Americas, up 14% in Europe and up 21% in Asia, equaling overall growth of 11%.
In local currency terms, revenue was up 6% in Europe and up 20% in Asia.
"Entering 2007, we focused on achieving double digit revenue growth in the face of a weaker industrial economy, while also continuing to drive operating leverage as we move toward our goal of 18% non-GAAP operating margin for 2007", said Alex Davern, NI CFO.
"We are very pleased to have been able to deliver on these goals in Q1, growing our non-GAAP net income by 39% in what was a tough quarter for our industry".
NI currently expects revenue for Q2 2007 to be in the range of $174 million to $183 million, compared with revenue of $160 million in Q2 last year.
Additionally, for Q2 2007, the company expects GAAP diluted EPS to be in the range of 23 cents to 28 cents per share compared with 21 cents in Q2 last year.
The company also expects non-GAAP fully diluted EPS to be in the range of 28 cents to 33 cents per share compared with 25 cents in Q2 last year.
For the full year management expects to record our fifth consecutive year of record revenue and our third consecutive year of record net income.
Management also currently expects GAAP and non-GAAP effective tax rates for the full year to be 22%.
In Q2 2007, the company expects the combined impact of stock-based compensation and the amortisation of acquisition-related intangibles to be 5 cents per share. Request free introductory details about products from National Instruments ...
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