National Instruments reports first quarter 2020 results

  • In the first quarter of 2020, National Instruments recorded revenues of $309 million, down approximately 1% from the same period last year.
  • As the impact of the COVID-19 pandemic is uncertain and difficult to quantify, the Texas-based company is not currently venturing to provide a forecast for the second quarter of 2020.

# NI’s Q1 2020 results

  • Revenue of $309 million, down less than 1% year over year.
  • GAAP gross margin of 73% and non-GAAP gross margin of 76%.
  • GAAP net income of $133 million, including a $123 million capital gain, net of taxes, related to the disposal of its subsidiary AWR to Cadence, which closed on January 15, 2020.
  • Non-GAAP net income of $34 million, down 15% year over year.
  • EBITDA of $189 million.
  • Cash and short-term investments of $584 million as at March 31, 2020.

National Instruments reported revenues of $309 million for the first quarter of 2020, down less than 1% from a year ago. The sale of its subsidiary AWR, a specialist in RF circuit design software, to Cadence closed on January 15, 2020. Organic revenue, defined as GAAP revenue excluding the impact of acquisitions and divestitures over the last twelve months, increased by approximately 2% year-on-year.

For the first quarter, organic order growth, defined as the growth in the value of the company’s orders excluding the impact of the acquisitions and divestitures mentioned above, increased by 1% year-on-year. For the first quarter, the Americas had organic order growth of 8% year over year. Orders in EMEIA (Europe, Middle East, India and Africa) were down 3%, with weakness towards the end of the quarter. In APAC (Asia-Pacific), where COVID-19 was the most disruptive to customers’ buying behavior during the quarter, orders were down 5% year over year in Q1. Orders from Greater China (Mainland China, Hong Kong, Macau) were down 12% year-over-year in the first quarter, but as travel and other restrictions began to be lifted, business returned to more normal levels. In particular, orders were up 3% year-on-year in March 2020.

In the first quarter of 2020, based on organic growth in orders, orders over $20,000 were up 7% year over year. Orders under $20,000 were down 8% year over year.

Revenue by region in U.S. dollars for Q1 2020 compared to Q1 2019 increased by 2% in the Americas, by 5% in APAC and by 8% in EMEIA. Excluding the impact of foreign exchange, revenues increased by 2% in the Americas, 6% in APAC and 7% in EMEIA.

The company’s non-GAAP results exclude, where applicable, the impact of stock-based compensation, amortization of acquisition-related intangible assets, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange losses on acquisitions, restructuring charges, tax reform charges, gains on disposal of real estate and related charitable contributions, tax effects related to businesses held for sale, gains on sale of businesses, and capitalization and amortization of internally developed software costs.