National Instruments Corp. (NATI, Financial) filed Quarterly Report for the period ended 2010-03-31.
National Instruments Corp. has a market cap of $2.57 billion; its shares were traded at around $32.81 with a P/E ratio of 43.1 and P/S ratio of 3.8. 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.
Research and Development. Research and development expenses were $39 million and $35 million for the three month periods ended March 31, 2010, and 2009, respectively, an increase of 11%. As a percentage of net sales, research and development expenses were 20% and 22% over the same periods. The decrease in research and development expenses as a percentage of revenue was due to the 21% increase in revenue during the three months ended March 31, 2010, compared to the three months ended March 31, 2009. The increase in research and development expenses in absolute dollars was due to an increase in personnel related expenses of $3.1 million which primarily consist of benefits and variable compensation as well as an increase caused by the net impact of changes in foreign currency exchange rates of $740,000. The suspension of temporary cost cutting measures implemented during 2009, which included a company-wide wage reduction as well as a reduction in the number of accrued vacation hours that employees were allowed to carry beyond the end of a fiscal year, resulted in an additional cost increase of $955,000 compared to the first quarter of 2009. We plan to continue to make additional investments in our research and development group during the remainder of 2010. However, our research and development expansion during the remainder of 2010 will likely be targeted to strategic areas of need.
General and Administrative. General and administrative expenses were $15 million and $16 million for the three month periods ended March 31, 2010 and 2009, respectively, a decrease of 3%. As a percentage of net sales, general and administrative expenses were 8% and 10% over the same periods. The decrease in general and administrative expenses as a percentage of revenue was driven by the 21% increase in revenue during the three months ended March 31, 2010, compared to the three months ended March 31, 2009. During the three months ended March 31, 2010, we 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. This decrease was offset to some extent by personnel related expenses consisting of variable compensation had the effect of increasing general and administrative expenses by $400,000 and the net impact of changes in foreign currency exchange rates had the effect of increasing our general and administrative expenses by $541,000. We expect that general and administrative expenses in future periods will fluctuate in absolute dollars and as a percentage of revenue.
Our operating activities provided cash of $42 million and $25 million for the three month periods ended March 31, 2010 and 2009, respectively, a 68% increase. For the three months ended March 31, 2010, cash provided by operating activities was the result of $18 million of net income, $18 million in net non-cash operating expenses which consisted of depreciation and amortization, stock-based compensation and benefits from deferred income taxes, and by $6 million in net cash provided by changes in operating assets and liabilities, principally a $10 million increase in accounts payable, deferred revenue and tax and other liabilities, offset by a $3.9 million increase in accounts receivable, inventories and prepaid expenses and other assets. For the three months ended March 31, 2009, cash provided by operating activities was the result of $12 million in net non-cash operating expenses which consisted of depreciation and amortization, stock-based compensation, benefits from deferred income taxes, and by $12 million in net cash provided by changes in operating assets and liabilities, principally a $31 million decrease in accounts receivable.
Investing activities used cash of $38 million during the three months ended March 31, 2010, which was the result of the net purchase of $27 million of short-term investments, the purchase of property and equipment of $5 million, and capitalization of internally developed software of $3.4 million. Investing activities used cash of $15 million during the three months ended March 31, 2009, which was the result of the net purchase of $8 million of short-term investments, the purchase of property and equipment of $3.0 million, capitalization of internally developed software of $3.1 million and the acquisition of other intangibles of $1.3 million.
Financing activities used $20 million during the three months ended March 31, 2010, which was the result of $31 million used to repurchase our common stock and $10 million used to pay dividends to our stockholders, offset by $22 million received as a result of the issuance of our common stock from the exercise of stock options and our employee stock purchase plan. The repurchase of our common stock resulted in a reduction to common stock of $10,000, a reduction to paid in capital of $4.4 million and a reduction to retained earnings of $27 million. Financing activities used $11 million during the three months ended March 31, 2009, which was the result of $9 million used to repurchase our common stock and $9 million used to pay dividends to our stockholders, offset by $7 million received as a result of the issuance of our common stock from the exercise of stock options and our employee stock purchase plan.
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National Instruments Corp. has a market cap of $2.57 billion; its shares were traded at around $32.81 with a P/E ratio of 43.1 and P/S ratio of 3.8. 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:
Sales in the Americas were $79 million and $68 million for the three month periods ended March 31, 2010 and 2009, respectively, an increase of 16%. Sales outside of the Americas, as a percentage of consolidated sales, increased to 59% for the three months ended March 31, 2010 compared to 57% for the comparable period in 2009. Sales in Europe were $58 million and $49 million for the three month periods ended March 31, 2010 and 2009, respectively, an increase of 17%. Sales in Asia were $54 million and $40 million for the three month periods ended March 31, 2010, and 2009, respectively, an increase of 35%. 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.Research and Development. Research and development expenses were $39 million and $35 million for the three month periods ended March 31, 2010, and 2009, respectively, an increase of 11%. As a percentage of net sales, research and development expenses were 20% and 22% over the same periods. The decrease in research and development expenses as a percentage of revenue was due to the 21% increase in revenue during the three months ended March 31, 2010, compared to the three months ended March 31, 2009. The increase in research and development expenses in absolute dollars was due to an increase in personnel related expenses of $3.1 million which primarily consist of benefits and variable compensation as well as an increase caused by the net impact of changes in foreign currency exchange rates of $740,000. The suspension of temporary cost cutting measures implemented during 2009, which included a company-wide wage reduction as well as a reduction in the number of accrued vacation hours that employees were allowed to carry beyond the end of a fiscal year, resulted in an additional cost increase of $955,000 compared to the first quarter of 2009. We plan to continue to make additional investments in our research and development group during the remainder of 2010. However, our research and development expansion during the remainder of 2010 will likely be targeted to strategic areas of need.
General and Administrative. General and administrative expenses were $15 million and $16 million for the three month periods ended March 31, 2010 and 2009, respectively, a decrease of 3%. As a percentage of net sales, general and administrative expenses were 8% and 10% over the same periods. The decrease in general and administrative expenses as a percentage of revenue was driven by the 21% increase in revenue during the three months ended March 31, 2010, compared to the three months ended March 31, 2009. During the three months ended March 31, 2010, we 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. This decrease was offset to some extent by personnel related expenses consisting of variable compensation had the effect of increasing general and administrative expenses by $400,000 and the net impact of changes in foreign currency exchange rates had the effect of increasing our general and administrative expenses by $541,000. We expect that general and administrative expenses in future periods will fluctuate in absolute dollars and as a percentage of revenue.
Our operating activities provided cash of $42 million and $25 million for the three month periods ended March 31, 2010 and 2009, respectively, a 68% increase. For the three months ended March 31, 2010, cash provided by operating activities was the result of $18 million of net income, $18 million in net non-cash operating expenses which consisted of depreciation and amortization, stock-based compensation and benefits from deferred income taxes, and by $6 million in net cash provided by changes in operating assets and liabilities, principally a $10 million increase in accounts payable, deferred revenue and tax and other liabilities, offset by a $3.9 million increase in accounts receivable, inventories and prepaid expenses and other assets. For the three months ended March 31, 2009, cash provided by operating activities was the result of $12 million in net non-cash operating expenses which consisted of depreciation and amortization, stock-based compensation, benefits from deferred income taxes, and by $12 million in net cash provided by changes in operating assets and liabilities, principally a $31 million decrease in accounts receivable.
Investing activities used cash of $38 million during the three months ended March 31, 2010, which was the result of the net purchase of $27 million of short-term investments, the purchase of property and equipment of $5 million, and capitalization of internally developed software of $3.4 million. Investing activities used cash of $15 million during the three months ended March 31, 2009, which was the result of the net purchase of $8 million of short-term investments, the purchase of property and equipment of $3.0 million, capitalization of internally developed software of $3.1 million and the acquisition of other intangibles of $1.3 million.
Financing activities used $20 million during the three months ended March 31, 2010, which was the result of $31 million used to repurchase our common stock and $10 million used to pay dividends to our stockholders, offset by $22 million received as a result of the issuance of our common stock from the exercise of stock options and our employee stock purchase plan. The repurchase of our common stock resulted in a reduction to common stock of $10,000, a reduction to paid in capital of $4.4 million and a reduction to retained earnings of $27 million. Financing activities used $11 million during the three months ended March 31, 2009, which was the result of $9 million used to repurchase our common stock and $9 million used to pay dividends to our stockholders, offset by $7 million received as a result of the issuance of our common stock from the exercise of stock options and our employee stock purchase plan.
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