Texas-based National Instruments, which makes automated test equipment and virtual instrumentation software, yesterday announced its 2014 results revealing total net income up 56.9% from $80.5m in 2013 to $126.3m in 2014.
Underlying the profit results were record revenues of $1.24bn, up 6% on 2013.
“2014 was a year of great progress for NI,” said Alex Davern, National Instruments COO and CFO.
“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.”
Mr Davern said National Instruments would remain cautious given the macroeconomic environment but said the company would remain focused on leveraging its previous investments and remained confident in the company’s ability to continue to make progress toward our non-GAAP operating margin target of 18%.
National Instruments’ non-GAAP net income for 2014 was $156 million representing a margin of 12.5%.
According to a statement from the company, National Instruments expects to see a significant headwind to its US revenue growth in 2015 due to the impact of the strengthening of the USD. The company expects this impact to reduce its YOY USD revenue growth by approximately 5% in Q1. As a result, National Instruments said it expected revenue for Q1 to be in the range of $280m to $310m and down from Q4 2014 revenue of $333 million.
| National Instruments | |||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||
| (in thousands, except per share data, unaudited) | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Net sales: | |||||||||||||||||
| Product | $ | 305,176 | $ | 280,523 | $ | 1,143,000 | $ | 1,091,186 | |||||||||
| Software maintenance | 27,600 | 20,283 | 100,862 | 81,372 | |||||||||||||
| Total net sales | 332,776 | 300,806 | 1,243,862 | 1,172,558 | |||||||||||||
| Cost of sales: | |||||||||||||||||
| Product | 83,094 | 74,900 | 312,623 | 299,854 | |||||||||||||
| Software maintenance | 1,066 | 1,082 | 5,509 | 5,389 | |||||||||||||
| Total cost of sales | 84,160 | 75,982 | 318,132 | 305,243 | |||||||||||||
| Gross profit | 248,616 | 224,824 | 925,730 | 867,315 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing | 113,819 | 109,916 | 461,845 | 447,800 | |||||||||||||
| Research and development | 57,351 | 54,276 | 227,433 | 234,796 | |||||||||||||
| General and administrative | 22,411 | 21,055 | 91,265 | 87,418 | |||||||||||||
| Acquisition related adjustment | – | – | – | (1,316 | ) | ||||||||||||
| Total operating expenses | 193,581 | 185,247 | 780,543 | 768,698 | |||||||||||||
| Operating income | 55,035 | 39,577 | 145,187 | 98,617 | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest income | 340 | 184 | 1,133 | 679 | |||||||||||||
| Net foreign exchange loss | (1,245 | ) | (521 | ) | (2,250 | ) | (2,578 | ) | |||||||||
| Other (loss) income, net | (352 | ) | (278 | ) | (69 | ) | 450 | ||||||||||
| Income before income taxes | 53,778 | 38,962 | 144,001 | 97,168 | |||||||||||||
| Provision for income taxes | 10,393 | 7,234 | 17,668 | 16,655 | |||||||||||||
| Net income | $ | 43,385 | $ | 31,728 | $ | 126,333 | $ | 80,513 | |||||||||
| Basic earnings per share | $ | 0.34 | $ | 0.25 | $ | 0.99 | $ | 0.65 | |||||||||
| Diluted earnings per share | $ | 0.34 | $ | 0.25 | $ | 0.99 | $ | 0.64 | |||||||||
| Weighted average shares outstanding – | |||||||||||||||||
| basic | 127,755 | 125,489 | 127,030 | 124,558 | |||||||||||||
| diluted | 128,233 | 126,217 | 127,799 | 125,571 | |||||||||||||
| Dividends declared per share | $ | 0.15 | $ | 0.14 | $ | 0.60 | $ | 0.56 | |||||||||
