National Instruments Corp. (NATI, Financial) filed Quarterly Report for the period ended 2010-09-30.
National Instruments Corp. has a market cap of $2.71 billion; its shares were traded at around $34.82 with a P/E ratio of 34.2 and P/S ratio of 4. The dividend yield of National Instruments Corp. stocks is 1.5%. 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.
For the nine month periods ended September 30, 2010 and 2009, sales in the Americas were $266 million and $212 million, respectively, an increase of 26%, sales in Europe were $178 million and $143 million, respectively, an increase of 24% and sales in Asia were $179 million and $120 million, respectively, an increase of 49%. Sales outside of the Americas, as a percentage of consolidated sales, increased to 57% for the nine months ended September 30, 2010 compared to 55% for the comparable period in 2009.
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 September 30, 2010, in local currency terms, our consolidated sales increased by $59 million or 36%, Americas sales increased by $21 million or 28%, European sales increased by $19 million or 40%, and sales in Asia Pacific increased by $19 million or 45% compared to the three months ended September 30, 2009. During this same period, the change in exchange rates had the effect of decreasing our consolidated sales by $5 million or 3%, increasing Americas sales by $602,000 or 1%, decreasing European sales by $7 million or 15%, and increasing sales in Asia Pacific by $1.6 million or 4% compared to the three months ended September 30, 2009.
For the nine months ended September 30, 2010, in local currency terms, our consolidated sales increased by $132 million or 28%, Americas sales increased by $51 million or 24%, European sales increased by $32 million or 23%, and sales in Asia Pacific increased by $50 million or 41% compared to the nine months ended September 30, 2009. During this same period, the change in exchange rates had the effect of increasing our consolidated sales by $12 million or 3%, increasing Americas sales by $3 million or 2%, decreasing European sales by $2 million or 1%, and increasing sales in Asia Pacific by $10 million or 8% compared to the nine months ended September 30, 2009.
We capitalize software development costs in accordance with FASB ASC 985. We amortize such costs over the related product s estimated economic life, generally three years, beginning when a product becomes available for general release. Software amortization expense included in cost of goods sold totaled $2.8 million and $2.5 million during the three month periods ended September 30, 2010 and 2009, respectively, and $8 million and $7 million during the nine month periods ended September 30, 2010 and 2009, respectively. Internally developed software costs capitalized during the three month periods ended September 30, 2010 and 2009, were $3.4 million and $1.3 million, respectively, and $15 million and $11 million during the nine month periods ended September 30, 2010 and 2009, respectively. Capitalization of internally developed software costs varies depending on the timing of when each project reaches technological feasibility and the length and scope of the development cycle of each individual project. (See Note 7 - Intangibles of Notes to Consolidated Financial Statements for a description of intangibles).
General and Administrative. General and administrative expenses were $17 million and $12 million for the three month periods ended September 30, 2010 and 2009, respectively, an increase of 41%. For the nine month periods ended September 30, 2010 and 2009, general and administrative expenses were $50 million and $43 million, respectively, an increase of 16%. As a percentage of net sales, general and administrative expenses were 8% for each of the three month periods ended September 30, 2010 and 2009, and 8% and 9% for the nine month periods ended September 30, 2010 and 2009, respectively. For the three months ended September 30, 2010, the increase in general and administrative expenses in absolute dollars was due to an increase in personnel related expenses of $2.0 million which includes variable compensation and benefits, as well as an increase in legal expenses of $2.0 million. This was partially offset by a decrease caused by the net impact of changes in foreign currency exchange rates of $367,000. For the nine months ended September 30, 2010, the increase in general and administrative expenses in absolute dollars was due to an increase in personnel related expenses of $4.1 million which includes, variable compensation and benefits, as well as an increase in legal expenses and outside services of $2 million. In addition, there was an increase due to net impact of changes in foreign currency exchange rates of $562,000.
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National Instruments Corp. has a market cap of $2.71 billion; its shares were traded at around $34.82 with a P/E ratio of 34.2 and P/S ratio of 4. The dividend yield of National Instruments Corp. stocks is 1.5%. 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:
For the three month periods ended September 30, 2010 and 2009, sales in the Americas were $97 million and $75 million, respectively, an increase of 29%, sales in Europe were $60 million and $47 million, respectively, an increase of 28% and sales in Asia were $64 million and $43 million, respectively, an increase of 48%. We expect sales outside of the Americas to continue to represent a significant portion of our revenue. We intend to continue to expand our international operations by increasing our presence in existing markets, adding a presence in some new geographical markets and continuing the use of distributors to sell our products in some countries. Sales outside of the Americas, as a percentage of consolidated sales, increased to 56% for the three months ended September 30, 2010, from 54% for the same period in 2009.For the nine month periods ended September 30, 2010 and 2009, sales in the Americas were $266 million and $212 million, respectively, an increase of 26%, sales in Europe were $178 million and $143 million, respectively, an increase of 24% and sales in Asia were $179 million and $120 million, respectively, an increase of 49%. Sales outside of the Americas, as a percentage of consolidated sales, increased to 57% for the nine months ended September 30, 2010 compared to 55% for the comparable period in 2009.
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 September 30, 2010, in local currency terms, our consolidated sales increased by $59 million or 36%, Americas sales increased by $21 million or 28%, European sales increased by $19 million or 40%, and sales in Asia Pacific increased by $19 million or 45% compared to the three months ended September 30, 2009. During this same period, the change in exchange rates had the effect of decreasing our consolidated sales by $5 million or 3%, increasing Americas sales by $602,000 or 1%, decreasing European sales by $7 million or 15%, and increasing sales in Asia Pacific by $1.6 million or 4% compared to the three months ended September 30, 2009.
For the nine months ended September 30, 2010, in local currency terms, our consolidated sales increased by $132 million or 28%, Americas sales increased by $51 million or 24%, European sales increased by $32 million or 23%, and sales in Asia Pacific increased by $50 million or 41% compared to the nine months ended September 30, 2009. During this same period, the change in exchange rates had the effect of increasing our consolidated sales by $12 million or 3%, increasing Americas sales by $3 million or 2%, decreasing European sales by $2 million or 1%, and increasing sales in Asia Pacific by $10 million or 8% compared to the nine months ended September 30, 2009.
We capitalize software development costs in accordance with FASB ASC 985. We amortize such costs over the related product s estimated economic life, generally three years, beginning when a product becomes available for general release. Software amortization expense included in cost of goods sold totaled $2.8 million and $2.5 million during the three month periods ended September 30, 2010 and 2009, respectively, and $8 million and $7 million during the nine month periods ended September 30, 2010 and 2009, respectively. Internally developed software costs capitalized during the three month periods ended September 30, 2010 and 2009, were $3.4 million and $1.3 million, respectively, and $15 million and $11 million during the nine month periods ended September 30, 2010 and 2009, respectively. Capitalization of internally developed software costs varies depending on the timing of when each project reaches technological feasibility and the length and scope of the development cycle of each individual project. (See Note 7 - Intangibles of Notes to Consolidated Financial Statements for a description of intangibles).
General and Administrative. General and administrative expenses were $17 million and $12 million for the three month periods ended September 30, 2010 and 2009, respectively, an increase of 41%. For the nine month periods ended September 30, 2010 and 2009, general and administrative expenses were $50 million and $43 million, respectively, an increase of 16%. As a percentage of net sales, general and administrative expenses were 8% for each of the three month periods ended September 30, 2010 and 2009, and 8% and 9% for the nine month periods ended September 30, 2010 and 2009, respectively. For the three months ended September 30, 2010, the increase in general and administrative expenses in absolute dollars was due to an increase in personnel related expenses of $2.0 million which includes variable compensation and benefits, as well as an increase in legal expenses of $2.0 million. This was partially offset by a decrease caused by the net impact of changes in foreign currency exchange rates of $367,000. For the nine months ended September 30, 2010, the increase in general and administrative expenses in absolute dollars was due to an increase in personnel related expenses of $4.1 million which includes, variable compensation and benefits, as well as an increase in legal expenses and outside services of $2 million. In addition, there was an increase due to net impact of changes in foreign currency exchange rates of $562,000.
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