• NI (formerly National Instruments) reported revenue of $308 million for the third quarter of 2020, down 9% from the previous year.
• TheTexan company expects fourth quarter revenue to be between $333 million and $363 million.

 
# Q3 2020 Summary
– GAAP Revenue of $308 million, down 9 percent year over year
– EBITDA of $19 million for the third quarter

# First Three Quarters of 2020 Summary
– GAAP Revenue of $919 million, down 7 percent year over year
– EBITDA of $242 million for the first nine months of 2020
 
In Q3 2020 the value of the company’s orders was down 7 percent year over year; orders over $20,000 were down 4 percent year over year; and orders under $20,000 were down 11 percent year over year. For Q3, year over year orders in the Americas region were relatively flat, in EMEA orders were down 16 percent, and in APAC orders were down 7 percent during the quarter.

Before the second quarter of 2020, NI has included the value of orders and net sales attributable to its Indian operations in EMEA. During Q2 2020, the US company began including these amounts in the APAC geographic region to reflect recent changes in its organizational structure.

Geographic revenue in U.S. dollar terms for Q3 2020 compared with Q3 2019 was down 11 percent in the Americas, down 5 percent in APAC and down 12 percent in EMEA. Excluding the impact of foreign currency exchange, revenue was down 11 percent in the Americas, down 3 percent in APAC and down 13 percent in EMEA.

In Q3, GAAP gross margin was 70 percent and non-GAAP gross margin was 74 percent. Total GAAP operating expenses were $218 million, up 1 percent year over year. Total non-GAAP operating expenses were down 3 percent year over year at $189 million. GAAP operating loss was $(2) million with non-GAAP operating income of $40 million. GAAP net loss for Q3 was $(5) million and non-GAAP net income was $30 million, above the midpoint of our guidance. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $19 million for Q3.

For the first nine months of 2020, GAAP revenue was $919 million, down 7 percent year over year, the value of the company’s total orders was down 6 percent year over year, with GAAP net income of $139 million, up 34% year over year.

“We delivered third quarter revenue above the midpoint of guidance despite the current economic environment. While we have seen positive signs in our business, we remain cautious to the uncertainty that lies ahead,” said Karen Rapp, NI CFO. “We remain committed to the execution of our growth and profitability strategy in pursuit of our long-term financial targets. We believe our strong balance sheet and cash position provide us the capability to keep our capital allocation priorities unchanged as we stay committed to shareholder value.”

The company’s non-GAAP results exclude, as applicable, the impact of purchase accounting fair value adjustments, stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction and integration costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, tax reform charges, disposal gains on buildings and related charitable contributions, tax effects related to businesses held for sale, gain on sale of businesses, and capitalization and amortization of internally developed software costs. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.