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Safe Harbor Warning
During the course of this presentation, we may make projections or other
forward-looking statements regarding future events or the future financial
performance of the company. We wish to caution you that such statements
are just predictions and that actual events or results may differ materially. We
refer you to the documents the company files regularly with the Securities and
Exchange Commission, specifically the company's most recent Form 10-K and
Form10-Q. These documents contain and identify important factors that could
cause the actual results to differ materially from those contained in our
projections or forward-looking statements.
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National Instruments
We equip engineers and scientists with tools that accelerate productivity, innovation, and discovery
Long-term track record of growth and profitability
Non-GAAP Revenue: $262 M in Q1 2012
•
Global Operations: Approximately 6,300
employees; operations in more than 45
countries
•
Broad customer base: More than 35,000
companies served annually
•
Diversity: No industry >15% of revenue
•
Culture: Ranked among top 25 companies
to work for worldwide by the Great Places
to Work Institute
•
Strong Cash Position: Cash and short-term
investments of $377M at March 31, 2012
Non-GAAP Revenue* in Millions
•
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
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What We Do
Graphical system design combines graphical programming software with modular hardware,
leveraging the latest technologies
Low-Cost Modular Measurement
and Control Hardware
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Productive Software
Development Tools
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Highly Integrated
Systems Platforms
Empowering Users Through Software
Providing unique differentiation and preserving customer investments
LEGO® MINDSTORMS®
NXT
CERN Large Hadron Collider
“the most powerful instrument on
earth”
“the smartest, coolest toy
of the year”
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NI Product and Platform Portfolio Evolution
Our increasing value to customers and shareholders
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Leveraging Commercial Technology
Expanding measurement capability
Phase Matrix
Products
and Technology
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Test and Measurement (T&M)
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Test and Measurement Market
Total Market Size: $17 billion
Electrical/
Electronic
Wireless/ RF
Structural/
Physical
$4.4 billion
$3.8 billion
$4.0 billion
Real-Time Test Semiconductor
Source: Prime Data and NI Estimates
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$2.6 billion
$2.2 billion
T&M: The Traditional Approach
Programmable
Switch
Function
Generator
Communications
Analyzer
Oscilloscope
Logic Analyzer
Pattern Generator
Power Supply
LCR Meter
DMM
Photos Courtesy of Agilent, Keithley, and Nicolet
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Spectrum Analyzer
T&M: NI Graphical System Design Approach
Traditional Solution
PXI Solution
 Lower cost
 Higher performance
 Smaller size
 Flexibility
 Easily upgradable design
 User-defined solution
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Industrial Embedded
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Industrial Embedded Market
Total Market Size: Approximately $40 billion
PLC/PAC
Custom Design
SBC/Embedded
Plants and machine
builders want better
control capabilities in
their automated systems.
Trend toward using
FPGAs and higher-level
tools for a more
integrated tool chain.
Need for open,
PC-based architectures
to quickly develop
solutions
NI provides optimized
automation
NI makes design
easier
NI delivers quality
measurements
>$13 billion
>$24 billion
Source: NI Estimates
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$3 billion
NI IE Opportunity: Areas of Innovation
Areas of Innovation
•Energy
•Medical & Life Sciences
•Custom Machines
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Embedded Devices and Machines
Control Software
Display
Controller and I/O
Drives and Motors
Algorithm IP
Vision
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Financial History
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Diversity of Applications
No Industry >15% of Revenue
Academic
Defense/Aerospace
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Advanced Research
Energy
Automotive
Life Sciences
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Big Physics
Mobile Devices
Consumer Electronics
Semiconductors
Strong Track Record of Growth & Profitability
$1,200
$1,000
Non-GAAP Revenue* in Millions
$800
$600
$400
$200
$0
'77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
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Q1 2012 Highlights
•
Revenue of $261 million, up 10 percent year-over-year
•
Non-GAAP revenue of $262 million, up 10 percent year-over-year
•
Record revenue for a first quarter in software, PXI, and NI CompactRIO products
•
GAAP gross margin of 77 percent and non-GAAP gross margin of 78 percent
•
Fully diluted GAAP EPS of $0.15
•
Fully diluted non-GAAP EPS of $0.22
•
Record EBITDA of $38 million, or $0.31 per share for a first quarter
•
Cash and short-term investments of $377 million as of March 31, 2012
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
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Personnel
Personnel
Driving Future Growth
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Worldwide Large Order* Growth
Orders >$20k YOY Growth
Quarterly orders in millions USD
Q1 2012 large orders* +136% compared to Q1 2007 and were 47% of total orders
*National Instruments defines large orders as orders over $20,000
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Global PMI vs. NI Non-GAAP Revenue* Growth
Global Purchasing Managers Index
Worldwide Non-GAAP Revenue Growth
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
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Quarterly revenue in USD
Strategic Product Revenue Growth
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Non-GAAP Operating Income* and R&D as a % of Revenue
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
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Non-GAAP Gross Margin*
Q1 2012 Non-GAAP gross margin is up approximately 180 basis points compared to Q1 2007
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
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2012 Strategic Goals
Drive Organic Revenue Growth
• Sustain our strategic investments in R&D and field sales
• Broaden and deepen our customer relationships
• Enhancing NI service offerings and partner network
Deliver Strong Profitability
• Optimize NI operating expenses
• Preserve our strong gross margins
• Drive efficiency of resources added in 2011
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