National Instruments reports a revenue for 2017 first quarter of $300 Million, up 5 percent year over year. NI expects Q2 revenue to be in the range of $305 million to $335 million.
Q1 2017 highlights :
- Revenue of $300 million, up 5% year over year
- GAAP net income of $18 million
- EBITDA of $42 million
National Instruments announced Q1 2017 revenue of $300 million, up 5 percent year over year with core revenue up 7 percent year over year. The company’s definition of core revenue is GAAP revenue excluding the impact of NI’s largest customer and the impact of foreign currency exchange.
In Q1 2017, NI received $5 million in orders from its largest customer compared with $6 million in orders from this customer in Q1 2016. Excluding NI’s largest customer, the value of the company’s total orders was up 9 percent year over year for the quarter; orders under $20,000 were up 4 percent year over year; orders between $20,000 and $100,000 were up 9 percent year over year; and orders above $100,000 were up 22 percent year over year.
GAAP net income for Q1 was $18 million, and non-GAAP net income was $27 million. Included in our GAAP net income for Q1 is $2 million related to restructuring charges. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $42 million.
In Q1, GAAP gross margin was 74.5 percent and non-GAAP gross margin was 75.3 percent. Total GAAP operating expenses were $201 million, up 2 percent year over year. Total non-GAAP operating expenses were up 1 percent year over year at $192 million. GAAP operating margin was 7 percent in Q1, with GAAP operating income of $22 million, up 61 percent year over year. Non-GAAP operating margin was 11.5 percent in Q1, with non-GAAP operating income of $34 million , up 37 percent year over year.
Geographic revenue in U.S. dollar terms for Q1 2017 compared with Q1 2016 was up 7 percent in the Americas , up 3 percent in APAC, and up 3 percent in EMEIA. Excluding the impact of foreign currency exchange, revenue was up 7 percent in the Americas, up 3 percent in APAC, and up 5 in EMEIA.
As of March 31, 2017 , NI had $365 million in cash and short-term investments. During the quarter, NI paid $27 million in dividends.
The company’s non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, acquisition-related fair value adjustments, and restructuring charges. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.
NI currently expects Q2 revenue to be in the range of $305 million to $335 million, up 5 percent year-over-year at the midpoint. Based on current exchange rates, the company expects that the impact of foreign exchange will reduce the company’s year-over-year dollar revenue growth rate by approximately 1 percent in Q2.