• |
Record GAAP revenue for a third quarter of $367 million, up 19 percent year over year
|
• |
All-time record for orders, up 30 percent year over year
|
• |
Strong GAAP operating income of $34 million
|
• |
Non-GAAP operating income of $67 million
|
• |
Strong diluted GAAP EPS of $0.20 and diluted non-GAAP EPS of $0.42, up 83 percent year over year
|
• |
Cash and short-term investments of $231 million as of September 30, 2021
|
• |
Record GAAP revenue of $1,049 million, up 14 percent year over year
|
• |
Strong GAAP operating income of $68 million
|
• |
Record non-GAAP operating income of $178 million
|
• |
Strong diluted GAAP EPS of $0.37 and diluted non-GAAP EPS of $1.08
|
• |
Q4 GAAP revenue to be in the range of $385 million to $425 million, up 10 percent year over year at the midpoint
|
• |
GAAP diluted EPS to be in the range of $0.17 to $0.31 for Q4, up 20 cents year over year at the midpoint
|
• |
Non-GAAP diluted EPS expected to be in the range of $0.47 to $0.61, up 6 percent year over year at the midpoint
|
September 30,
2021
(unaudited)
|
December 31,
2020
| |||||||
Assets
| ||||||||
Cash and cash equivalents
|
$
|
230,697
|
$
|
260,232
| ||||
Short-term investments
|
-
|
59,923
| ||||||
Accounts receivable, net
|
279,196
|
266,869
| ||||||
Inventories, net
|
236,733
|
194,012
| ||||||
Prepaid expenses and other current assets
|
89,152
|
68,470
| ||||||
Total current assets
|
835,778
|
849,506
| ||||||
Property and equipment, net
|
248,712
|
254,399
| ||||||
Goodwill
|
480,489
|
467,547
| ||||||
Intangible assets, net
|
136,938
|
172,719
| ||||||
Operating lease right-of-use assets
|
56,644
|
67,674
| ||||||
Other long-term assets
|
79,850
|
72,643
| ||||||
Total assets
|
$
|
1,838,411
|
$
|
1,884,488
| ||||
Liabilities and Stockholders' Equity
| ||||||||
Accounts payable and accrued expenses
|
$
|
63,568
|
$
|
51,124
| ||||
Accrued compensation
|
87,802
|
87,068
| ||||||
Deferred revenue - current
|
120,762
|
132,151
| ||||||
Operating lease liabilities - current
|
12,360
|
15,801
| ||||||
Other taxes payable
|
43,673
|
48,129
| ||||||
Debt, current
|
-
|
5,000
| ||||||
Other current liabilities
|
25,162
|
42,578
| ||||||
Total current liabilities
|
353,327
|
381,851
| ||||||
Deferred income taxes
|
26,023
|
25,288
| ||||||
Income tax payable - non-current
|
54,195
|
61,623
| ||||||
Deferred revenue - non-current
|
32,278
|
36,335
| ||||||
Operating lease liabilities - non-current
|
29,206
|
35,854
| ||||||
Debt, noncurrent
|
100,000
|
92,036
| ||||||
Other long-term liabilities
|
16,910
|
26,630
| ||||||
Total liabilities
|
$
|
611,939
|
$
|
659,617
| ||||
Stockholders' equity:
| ||||||||
Common stock
|
1,326
|
1,312
| ||||||
Additional paid-in capital
|
1,109,918
|
1,033,284
| ||||||
Retained earnings
|
132,404
|
211,101
| ||||||
Accumulated other comprehensive loss
|
(17,176
|
)
|
(20,826
|
)
| ||||
Total stockholders' equity
|
1,226,472
|
1,224,871
| ||||||
Total liabilities and stockholders' equity
|
$
|
1,838,411
|
$
|
1,884,488
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Net sales:
| ||||||||||||||||
Product
|
$
|
325,724
|
$
|
269,651
|
$
|
927,307
|
$
|
809,890
| ||||||||
Software maintenance
|
41,438
|
38,473
|
121,733
|
108,944
| ||||||||||||
Total net sales
|
367,162
|
308,124
|
1,049,040
|
918,834
| ||||||||||||
Cost of sales:
| ||||||||||||||||
Product
|
99,072
|
88,370
|
286,485
|
254,236
| ||||||||||||
Software maintenance
|
3,643
|
3,893
|
10,882
|
7,689
| ||||||||||||
Total cost of sales
|
102,715
|
92,263
|
297,367
|
261,925
| ||||||||||||
Gross profit
|
264,447
|
215,861
|
751,673
|
656,909
| ||||||||||||
72.0
|
%
|
70.1
|
%
|
71.7
|
%
|
71.5
|
%
| |||||||||
Operating expenses:
| ||||||||||||||||
Sales and marketing
|
117,065
|
109,774
|
345,048
|
330,939
| ||||||||||||
Research and development
|
82,165
|
70,802
|
243,685
|
206,648
| ||||||||||||
General and administrative
|
31,037
|
37,431
|
94,672
|
92,980
| ||||||||||||
Total operating expenses
|
230,267
|
218,007
|
683,405
|
630,567
| ||||||||||||
Gain on sale of business/assets
|
-
|
-
|
-
|
159,753
| ||||||||||||
Operating income
|
34,180
|
(2,146
|
)
|
68,268
|
186,095
| |||||||||||
Other expense
|
(1,820
|
)
|
(2,001
|
)
|
(9,851
|
)
|
(2,584
|
)
| ||||||||
Income before income taxes
|
32,360
|
(4,147
|
)
|
58,417
|
183,511
| |||||||||||
Provision for income taxes
|
5,183
|
475
|
9,438
|
44,588
| ||||||||||||
Net income
|
$
|
27,177
|
$
|
(4,622
|
)
|
$
|
48,979
|
$
|
138,923
| |||||||
Basic earnings per share
|
$
|
0.20
|
$
|
(0.04
|
)
|
$
|
0.37
|
$
|
1.06
| |||||||
Diluted earnings per share
|
$
|
0.20
|
$
|
(0.04
|
)
|
$
|
0.37
|
$
|
1.06
| |||||||
Weighted average shares outstanding -
| ||||||||||||||||
Basic
|
133,031
|
131,419
|
132,657
|
131,017
| ||||||||||||
Diluted
|
133,686
|
131,419
|
133,829
|
131,671
| ||||||||||||
Dividends declared per share
|
$
|
0.27
|
$
|
0.26
|
$
|
0.81
|
$
|
0.78
|
Nine Months Ended September 30,
| ||||||||
2021
|
2020
| |||||||
Cash flow from operating activities:
| ||||||||
Net income
|
$
|
48,979
|
$
|
138,923
| ||||
Adjustments to reconcile net income to net cash provided by operating activities:
| ||||||||
Disposal gains on sale of business/asset
|
-
|
(159,753
|
)
| |||||
Depreciation and amortization
|
73,418
|
61,228
| ||||||
Stock-based compensation
|
56,064
|
42,556
| ||||||
Loss from equity-method investees
|
5,082
|
2,559
| ||||||
Deferred income taxes
|
(2,030
|
)
|
(932
|
)
| ||||
Net change in operating assets and liabilities
|
(95,477
|
)
|
24,203
| |||||
Net cash provided by operating activities
|
86,036
|
108,784
| ||||||
Cash flow from investing activities:
| ||||||||
Acquisitions, net of cash received
|
(19,784
|
)
|
(334,981
|
)
| ||||
Capital expenditures
|
(26,147
|
)
|
(36,573
|
)
| ||||
Proceeds from sale of assets/business, net of cash divested
|
-
|
160,266
| ||||||
Capitalization of internally developed software
|
(1,246
|
)
|
(2,806
|
)
| ||||
Additions to other intangibles
|
(2,317
|
)
|
(1,045
|
)
| ||||
Payments to acquire equity-method and other investments
|
(15,753
|
)
|
(7,502
|
)
| ||||
Purchases of short-term investments
|
-
|
(206,330
|
)
| |||||
Sales and maturities of short-term investments
|
59,714
|
351,597
| ||||||
Net cash used in investing activities
|
(5,533
|
)
|
(77,374
|
)
| ||||
Cash flow from financing activities:
| ||||||||
Proceeds from revolving loan facility
|
100,000
|
20,000
| ||||||
Proceeds from term loan
|
-
|
70,000
| ||||||
Payments on term loan
|
(98,750
|
)
|
(875
|
)
| ||||
Debt issuance costs
|
(1,993
|
)
|
(1,480
|
)
| ||||
Proceeds from issuance of common stock
|
25,438
|
24,971
| ||||||
Repurchase of common stock
|
(25,000
|
)
|
(39,244
|
)
| ||||
Dividends paid
|
(107,397
|
)
|
(102,396
|
)
| ||||
Net cash used in financing activities
|
(107,702
|
)
|
(29,024
|
)
| ||||
Impact of changes in exchange rates on cash
|
(2,336
|
)
|
317
| |||||
Net change in cash and cash equivalents
|
(29,535
|
)
|
2,703
| |||||
Cash and cash equivalents at beginning of period
|
260,232
|
194,616
| ||||||
Cash and cash equivalents at end of period
|
$
|
230,697
|
$
|
197,319
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Stock-based compensation
| ||||||||||||||||
Cost of sales
|
$
|
1,183
|
$
|
1,051
|
$
|
3,487
|
$
|
2,787
| ||||||||
Sales and marketing
|
6,332
|
5,184
|
18,949
|
16,826
| ||||||||||||
Research and development
|
5,811
|
4,692
|
17,704
|
12,640
| ||||||||||||
General and administrative
|
5,530
|
4,293
|
16,050
|
10,301
| ||||||||||||
Provision for income taxes
|
(2,798
|
)
|
(3,854
|
)
|
(10,036
|
)
|
(8,260
|
)
| ||||||||
Total
|
$
|
16,058
|
$
|
11,366
|
$
|
46,154
|
$
|
34,294
| ||||||||
Amortization of acquisition-related intangibles and fair value adjustments
| ||||||||||||||||
Net sales
|
$
|
421
|
$
|
1,299
|
$
|
1,971
|
$
|
1,299
| ||||||||
Cost of sales
|
4,194
|
4,198
|
12,691
|
5,579
| ||||||||||||
Sales and marketing
|
2,331
|
2,334
|
6,859
|
3,300
| ||||||||||||
Research and development
|
-
|
28
|
-
|
84
| ||||||||||||
Other expense
|
529
|
121
|
1,476
|
363
| ||||||||||||
Provision for income taxes
|
(917
|
)
|
(1,658
|
)
|
(2,870
|
)
|
(1,948
|
)
| ||||||||
Total
|
$
|
6,558
|
$
|
6,322
|
$
|
20,127
|
$
|
8,677
| ||||||||
Acquisition transaction and integration costs, restructuring charges, and other(1)(2) | ||||||||||||||||
Cost of sales
|
$
|
(7
|
)
|
$
|
(13
|
)
|
$
|
(50
|
)
|
$
|
7
| |||||
Sales and marketing
|
584
|
1,158
|
6,071
|
8,771
| ||||||||||||
Research and development
|
386
|
374
|
1,422
|
5,190
| ||||||||||||
General and administrative
|
850
|
10,210
|
7,388
|
12,595
| ||||||||||||
Gain on sale of business/assets
|
-
|
-
|
-
|
(159,753
|
)
| |||||||||||
Other expense
|
316
|
270
|
4,322
|
397
| ||||||||||||
Provision for income taxes
|
(238
|
)
|
(712
|
)
|
(3,701
|
)
|
33,965
| |||||||||
Total
|
$
|
1,891
|
$
|
11,287
|
$
|
15,452
|
$
|
(98,828
|
)
|
Capitalization and amortization of internally developed software costs
| ||||||||||||||||
Cost of sales
|
$
|
5,532
|
$
|
6,769
|
$
|
18,633
|
$
|
20,995
| ||||||||
Research and development
|
(525
|
)
|
302
|
(1,246
|
)
|
(2,794
|
)
| |||||||||
Provision for income taxes
|
(1,192
|
)
|
(1,485
|
)
|
(3,792
|
)
|
(3,822
|
)
| ||||||||
Total
|
$
|
3,815
|
$
|
5,586
|
$
|
13,595
|
$
|
14,379
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Reconciliation of Net sales to Non-GAAP Net sales
| ||||||||||||||||
Net sales, as reported
|
$
|
367,162
|
308,124
|
1,049,040
|
$
|
918,834
| ||||||||||
plus: Impact of acquisition-related fair value adjustments
|
421
|
1,299
|
1,971
|
1,299
| ||||||||||||
Non-GAAP net sales
|
$
|
367,583
|
309,423
|
1,051,011
|
$
|
920,133
| ||||||||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit
| ||||||||||||||||
Gross profit, as reported
|
$
|
264,447
|
$
|
215,861
|
$
|
751,673
|
$
|
656,909
| ||||||||
Stock-based compensation
|
1,183
|
1,051
|
3,487
|
2,787
| ||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
4,615
|
5,497
|
14,662
|
6,878
| ||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
(7
|
)
|
(13
|
)
|
(50
|
)
|
7
| |||||||||
Amortization of internally developed software costs
|
5,532
|
6,769
|
18,633
|
20,995
| ||||||||||||
Non-GAAP gross profit
|
$
|
275,770
|
$
|
229,165
|
$
|
788,405
|
$
|
687,576
| ||||||||
Non-GAAP gross margin
|
75.0
|
%
|
74.1
|
%
|
75.0
|
%
|
74.7
|
%
| ||||||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
| ||||||||||||||||
Operating expenses, as reported
|
$
|
230,267
|
$
|
218,007
|
$
|
683,405
|
$
|
630,567
| ||||||||
Stock-based compensation
|
(17,673
|
)
|
(14,169
|
)
|
(52,703
|
)
|
(39,767
|
)
| ||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
(2,331
|
)
|
(2,362
|
)
|
(6,859
|
)
|
(3,384
|
)
| ||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
(1,820
|
)
|
(11,742
|
)
|
(14,881
|
)
|
(26,556
|
)
| ||||||||
Capitalization of internally developed software costs
|
525
|
(302
|
)
|
1,246
|
2,794
| |||||||||||
Non-GAAP operating expenses
|
$
|
208,968
|
$
|
189,432
|
$
|
610,208
|
$
|
563,654
| ||||||||
Reconciliation of Operating Income to Non-GAAP Operating Income
| ||||||||||||||||
Operating income, as reported
|
$
|
34,180
|
$
|
(2,146
|
)
|
$
|
68,268
|
$
|
186,095
| |||||||
Stock-based compensation
|
18,856
|
15,220
|
56,190
|
42,554
| ||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
6,946
|
7,859
|
21,521
|
10,262
| ||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
1,813
|
11,729
|
14,831
|
26,563
| ||||||||||||
Net amortization of internally developed software costs
|
5,007
|
7,071
|
17,387
|
18,201
| ||||||||||||
Gain on sale of business/assets
|
-
|
-
|
-
|
(159,753
|
)
| |||||||||||
Non-GAAP operating income
|
$
|
66,802
|
$
|
39,733
|
$
|
178,197
|
$
|
123,922
| ||||||||
Non-GAAP operating margin
|
18.2
|
%
|
12.8
|
%
|
17.0
|
%
|
13.5
|
%
| ||||||||
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes(1) | ||||||||||||||||
Provision for income taxes, as reported
|
$
|
5,183
|
$
|
475
|
$
|
9,438
|
$
|
44,588
| ||||||||
Stock-based compensation
|
2,798
|
3,854
|
10,036
|
8,260
| ||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
917
|
1,658
|
2,870
|
1,948
| ||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
238
|
712
|
3,701
|
2,794
| ||||||||||||
Net amortization of internally developed software costs
|
1,192
|
1,485
|
3,792
|
3,822
| ||||||||||||
Gain on sale of business/assets
|
-
|
-
|
-
|
(36,759
|
)
| |||||||||||
Non-GAAP provision for income taxes(1) |
$
|
10,328
|
$
|
8,184
|
$
|
29,837
|
$
|
24,653
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Net income, as reported
|
$
|
27,177
|
$
|
(4,622
|
)
|
$
|
48,979
|
$
|
138,923
| |||||||
Adjustments to reconcile net income to non-GAAP net income:
| ||||||||||||||||
Stock-based compensation
|
18,856
|
15,220
|
56,190
|
42,554
| ||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
7,475
|
7,980
|
22,997
|
10,625
| ||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
2,129
|
11,999
|
19,153
|
26,960
| ||||||||||||
Net amortization of internally developed software costs
|
5,007
|
7,071
|
17,387
|
18,201
| ||||||||||||
Gain on sale of business/assets
|
-
|
-
|
-
|
(159,753
|
)
| |||||||||||
Income tax effects and adjustments(1) |
(5,145
|
)
|
(7,709
|
)
|
(20,399
|
)
|
19,935
| |||||||||
Non-GAAP net income
|
$
|
55,499
|
$
|
29,939
|
$
|
144,307
|
$
|
97,445
| ||||||||
Non-GAAP net margin
|
15.1
|
%
|
9.7
|
%
|
13.7
|
%
|
10.6
|
%
| ||||||||
Diluted EPS, as reported
|
$
|
0.20
|
$
|
(0.04
|
)
|
$
|
0.37
|
$
|
1.06
| |||||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS
| ||||||||||||||||
Stock-based compensation
|
0.14
|
0.12
|
0.42
|
0.32
| ||||||||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
0.06
|
0.06
|
0.17
|
0.08
| ||||||||||||
Acquisition transaction and integration costs, restructuring charges and other
|
0.02
|
0.10
|
0.14
|
0.20
| ||||||||||||
Net amortization of internally developed software costs
|
0.04
|
0.05
|
0.13
|
0.14
| ||||||||||||
Gain on sale of business/assets
|
-
|
-
|
-
|
(1.21
|
)
| |||||||||||
Income tax effects and adjustments(1) |
(0.04
|
)
|
(0.06
|
)
|
(0.15
|
)
|
0.15
| |||||||||
Non-GAAP diluted EPS
|
$
|
0.42
|
$
|
0.23
|
$
|
1.08
|
$
|
0.74
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
| |||||||||||||||
2021
|
2020
|
2021
|
2020
| |||||||||||||
Net income, as reported
|
$
|
27,177
|
$
|
(4,622
|
)
|
$
|
48,979
|
$
|
138,923
| |||||||
Adjustments to reconcile net income to EBITDA:
| ||||||||||||||||
Interest expense (income), net
|
643
|
560
|
2,296
|
(2,608
|
)
| |||||||||||
Tax expense
|
5,183
|
475
|
9,438
|
44,588
| ||||||||||||
Depreciation and amortization
|
23,394
|
22,887
|
73,418
|
61,228
| ||||||||||||
EBITDA
|
$
|
56,397
|
$
|
19,300
|
$
|
134,131
|
$
|
242,131
| ||||||||
Weighted average shares outstanding - Diluted
|
133,686
|
131,419
|
133,829
|
131,671
|
Three Months Ended
December 31, 2021
| ||||||||
Low
|
High
| |||||||
GAAP Diluted EPS, guidance
|
$
|
0.17
|
$
|
0.31
| ||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
| ||||||||
Stock-based compensation
|
0.14
|
0.14
| ||||||
Amortization of acquisition-related intangibles and fair value adjustments
|
0.08
|
0.08
| ||||||
Acquisition transaction and integration costs, restructuring charges, and other
|
0.09
|
0.09
| ||||||
Net amortization of software development costs
|
0.05
|
0.05
| ||||||
Income tax effects and adjustments(1) |
(0.06
|
)
|
(0.06
|
)
| ||||
Non-GAAP Diluted EPS, guidance
|
$
|
0.47
|
$
|
0.61
|
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Disclaimer
National Instruments Corporation published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 20:14:22 UTC.