National Instruments Corp. (NATI, Financial) filed Quarterly Report for the period ended 2010-06-30.
National Instruments Corp. has a market cap of $2.51 billion; its shares were traded at around $32.32 with a P/E ratio of 32 and P/S ratio of 3.7. The dividend yield of National Instruments Corp. stocks is 1.6%. National Instruments Corp. had an annual average earning growth of 4.2% over the past 10 years.NATI is in the portfolios of Chuck Royce of Royce& Associates, Ron Baron of Baron Funds.
Almost all sales made by our direct sales offices in the non U.S. Americas, in Europe and in Asia Pacific are denominated in local currencies, and accordingly, the U.S. dollar equivalent of these sales is affected by changes in foreign currency exchange rates. For the three months ended June 30, 2010, in local currency terms, our consolidated sales increased by $49 million or 32%, Americas sales increased by $21 million or 30%, European sales increased by $9 million or 19%, and sales in Asia Pacific increased by $20 million or 52% compared to the three months ended June 30, 2009. During this same period, the change in exchange rates had the effect of increasing our consolidated sales by $9 million or 6%, increasing Americas sales by $1.4 million or 2%, increasing European sales by $2.4 million or 5%, and increasing sales in Asia Pacific by $4.9 million or 13% compared to the three months ended June 30, 2009.
For the six months ended June 30, 2010, in local currency terms, our consolidated sales increased by $73 million or 24%, Americas sales increased by $30 million or 22%, European sales increased by $13 million or 14%, and sales in Asia Pacific increased by $30 million or 39% compared to the six months ended June 30, 2009. During this same period, the change in exchange rates had the effect of increasing our consolidated sales by $17 million or 5%, increasing Americas sales by $2.9 million or 2%, increasing European sales by $5.5 million or 6%, and increasing sales in Asia Pacific by $8 million or 11% compared to the six months ended June 30, 2009.
Sales and Marketing. Sales and marketing expenses were $79 million and $65 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 22%. For the six month periods ended June 30, 2010 and 2009, sales and marketing expenses were $154 million and $134 million, respectively, an increase of 15%. As a percentage of net sales, sales and marketing expenses were 37% and 43% for the three month periods ended June 30, 2010 and 2009, respectively and 38% and 43% for the six month periods ended June 30, 2010 and 2009, respectively. Overall, the decrease in sales and marketing expense as a percentage of net sales were due to the 39% increase in net sales during the three months ended June 30, 2010, and the 30% increase in net sales during the six months ended June 30, 2010, compared to the comparable periods in 2009.
Research and Development. Research and development expenses were $36 million and $29 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 24%. For the six month periods ended June 30, 2010 and 2009, research and development expenses were $75 million and $64 million, respectively, an increase of 17%. As a percentage of net sales, research and development expenses were 17% and 19% for the three month periods ended June 30, 2010 and 2009, respectively and 19% and 21% for the six month periods ended June 30, 2010 and 2009, respectively. Overall, the decreases in research and development expense as a percentage of net sales were due to the 39% increase in net sales during the three months ended June 30, 2010, and the 30% increase in net sales during the six months ended June 30, 2010, compared to the comparable periods in 2009.
General and Administrative. General and administrative expenses were $17 million and $15 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 15%. For the six month periods ended June 30, 2010 and 2009, general and administrative expenses were $32 million and $31 million, respectively, an increase of 6%. As a percentage of net sales, general and administrative expenses were 8% and 10% for the three month periods ended June 30, 2010 and 2009, respectively and 8% and 10% for the six month periods ended June 30, 2010 and 2009, respectively. For the three months ended June 30, 2010, the increase in general and administrative in absolute dollars was due to an increase in personnel related expenses of $1.5 million which includes commissions, variable compensation and benefits, as well as an increase caused by the net impact of changes in foreign currency exchange rates of $438,000. For the six months ended June 30, 2010, the increase in general and administrative expenses in absolute dollars was due to an increase in personnel related expenses of $2 million which includes commissions, variable compensation and benefits, as well as an increase caused by the net impact of changes in foreign currency exchange rates of $979,000. During the six months ended June 30, 2010, we also recorded a reduction of our patent litigation accrual which resulted in a non-cash decrease to our general and administrative expenses of $1.1 million.
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National Instruments Corp. has a market cap of $2.51 billion; its shares were traded at around $32.32 with a P/E ratio of 32 and P/S ratio of 3.7. The dividend yield of National Instruments Corp. stocks is 1.6%. National Instruments Corp. had an annual average earning growth of 4.2% over the past 10 years.NATI is in the portfolios of Chuck Royce of Royce& Associates, Ron Baron of Baron Funds.
Highlight of Business Operations:
Net Sales. Net sales were $212 million and $152 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 39%. For the six month periods ended June 30, 2010 and 2009, net sales were $403 million and $310 million, respectively, an increase of 30%. These increases can be attributed to increases in sales volume across all areas of our business. Products in the areas of virtual instrumentation and graphical system design, which comprised approximately 93% of our revenue in the three and six month periods ended June 30, 2010, saw year-over-year revenue increases of 38% and 29%, respectively. Instrument control products, which comprised approximately 7% of our revenue in the three and six month periods ended June 30, 2010, saw year-over-year revenue increases of 54% and 51%, respectively. For the three and six month periods ended June 30, 2009, instrument control products comprised 6% and 6% of our revenues, respectively, while virtual instrumentation and graphical system design comprised 94% and 94% of our revenues, respectively. Our instrument control products are the most economically sensitive portion of our revenue. We did not take any significant action with regard to product pricing during the six months ended June 30, 2010, and thus, the increase in revenues is attributable to an increase in customer orders.Almost all sales made by our direct sales offices in the non U.S. Americas, in Europe and in Asia Pacific are denominated in local currencies, and accordingly, the U.S. dollar equivalent of these sales is affected by changes in foreign currency exchange rates. For the three months ended June 30, 2010, in local currency terms, our consolidated sales increased by $49 million or 32%, Americas sales increased by $21 million or 30%, European sales increased by $9 million or 19%, and sales in Asia Pacific increased by $20 million or 52% compared to the three months ended June 30, 2009. During this same period, the change in exchange rates had the effect of increasing our consolidated sales by $9 million or 6%, increasing Americas sales by $1.4 million or 2%, increasing European sales by $2.4 million or 5%, and increasing sales in Asia Pacific by $4.9 million or 13% compared to the three months ended June 30, 2009.
For the six months ended June 30, 2010, in local currency terms, our consolidated sales increased by $73 million or 24%, Americas sales increased by $30 million or 22%, European sales increased by $13 million or 14%, and sales in Asia Pacific increased by $30 million or 39% compared to the six months ended June 30, 2009. During this same period, the change in exchange rates had the effect of increasing our consolidated sales by $17 million or 5%, increasing Americas sales by $2.9 million or 2%, increasing European sales by $5.5 million or 6%, and increasing sales in Asia Pacific by $8 million or 11% compared to the six months ended June 30, 2009.
Sales and Marketing. Sales and marketing expenses were $79 million and $65 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 22%. For the six month periods ended June 30, 2010 and 2009, sales and marketing expenses were $154 million and $134 million, respectively, an increase of 15%. As a percentage of net sales, sales and marketing expenses were 37% and 43% for the three month periods ended June 30, 2010 and 2009, respectively and 38% and 43% for the six month periods ended June 30, 2010 and 2009, respectively. Overall, the decrease in sales and marketing expense as a percentage of net sales were due to the 39% increase in net sales during the three months ended June 30, 2010, and the 30% increase in net sales during the six months ended June 30, 2010, compared to the comparable periods in 2009.
Research and Development. Research and development expenses were $36 million and $29 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 24%. For the six month periods ended June 30, 2010 and 2009, research and development expenses were $75 million and $64 million, respectively, an increase of 17%. As a percentage of net sales, research and development expenses were 17% and 19% for the three month periods ended June 30, 2010 and 2009, respectively and 19% and 21% for the six month periods ended June 30, 2010 and 2009, respectively. Overall, the decreases in research and development expense as a percentage of net sales were due to the 39% increase in net sales during the three months ended June 30, 2010, and the 30% increase in net sales during the six months ended June 30, 2010, compared to the comparable periods in 2009.
General and Administrative. General and administrative expenses were $17 million and $15 million for the three month periods ended June 30, 2010 and 2009, respectively, an increase of 15%. For the six month periods ended June 30, 2010 and 2009, general and administrative expenses were $32 million and $31 million, respectively, an increase of 6%. As a percentage of net sales, general and administrative expenses were 8% and 10% for the three month periods ended June 30, 2010 and 2009, respectively and 8% and 10% for the six month periods ended June 30, 2010 and 2009, respectively. For the three months ended June 30, 2010, the increase in general and administrative in absolute dollars was due to an increase in personnel related expenses of $1.5 million which includes commissions, variable compensation and benefits, as well as an increase caused by the net impact of changes in foreign currency exchange rates of $438,000. For the six months ended June 30, 2010, the increase in general and administrative expenses in absolute dollars was due to an increase in personnel related expenses of $2 million which includes commissions, variable compensation and benefits, as well as an increase caused by the net impact of changes in foreign currency exchange rates of $979,000. During the six months ended June 30, 2010, we also recorded a reduction of our patent litigation accrual which resulted in a non-cash decrease to our general and administrative expenses of $1.1 million.
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