Delaware
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000-25426
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74-1871327
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value
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NATI
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The Nasdaq Stock Market LLC
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Item 2.02
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Results of Operations and Financial Condition.
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Item 5.02
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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Item 9.01
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Financial Statements and Exhibits
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Exhibit No.
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Description
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10.1
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99.1
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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NATIONAL INSTRUMENTS CORPORATION
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By:
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/s/ R. Eddie Dixon, Jr.
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Name: R. Eddie Dixon, Jr.
Title: Vice President, General Counsel and Secretary
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•
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Revenue of $367 million, up 2 percent year over year
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•
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Orders up 9 percent year over year
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•
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GAAP gross margin of 75 percent
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•
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Non-GAAP gross margin of 78 percent
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•
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GAAP net income of $59 million
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•
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Non-GAAP net income of $73 million
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•
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Diluted GAAP EPS of $0.45
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•
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Diluted non-GAAP EPS of $0.56
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•
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EBITDA of $71 million
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•
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Cash and short-term investments of $433 million as of Dec. 31, 2019
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•
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Revenue of $1.35 billion, flat year over year
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•
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GAAP gross margin of 75 percent
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•
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Non-GAAP gross margin of 78 percent
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•
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GAAP net income of $162 million, up 5 percent year over year
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•
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Non-GAAP net income of $217 million, up 4 percent year over year
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•
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Diluted GAAP EPS of $1.22
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•
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Diluted non-GAAP EPS of $1.63
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•
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EBITDA of $246 million
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•
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Dividends paid of $132 million, or $1.00 per share
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National Instruments
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||||||
Condensed Consolidated Balance Sheets
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||||||
(in thousands)
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||||||
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December 31,
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December 31,
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||||
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2019
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2018
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||||
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(unaudited)
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||||
ASSETS
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||||
Current assets:
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||||
Cash and cash equivalents
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$
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194,616
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$
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259,386
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Short-term investments
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237,983
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271,396
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||
Accounts receivable, net
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248,872
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242,955
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Inventories, net
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200,410
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194,146
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Prepaid expenses and other current assets
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65,477
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54,337
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Total current assets
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947,358
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1,022,220
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||||
Property and equipment, net
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243,717
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245,201
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Goodwill
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262,242
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264,530
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Intangible assets, net
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84,083
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110,783
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Operating lease right-of-use assets
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70,407
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—
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Other long-term assets
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44,082
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28,501
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Total assets
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1,651,889
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1,671,235
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||||
LIABILITIES AND EQUITY
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Current liabilities:
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||||
Accounts payable and accrued liabilities
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52,192
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48,388
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Accrued compensation
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47,732
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45,821
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Deferred revenue - current
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131,445
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127,288
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Other lease liabilities - current
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13,431
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—
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Other taxes payable
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40,607
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35,574
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Other current liabilities
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20,716
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25,913
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Total current liabilities
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306,123
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282,984
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Deferred income taxes
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14,065
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25,457
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Liability for uncertain tax positions
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6,652
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9,775
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Income tax payable - long-term
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69,151
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74,546
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Deferred revenue - long-term
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33,480
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32,636
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Operating lease liabilities - non-current
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40,650
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—
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Other long-term liabilities
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5,418
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7,479
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Total liabilities
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475,539
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432,877
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Stockholders' equity:
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||||
Preferred stock
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—
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—
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Common stock
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1,305
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1,327
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Additional paid-in capital
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953,578
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897,544
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Retained earnings
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242,537
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356,418
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Accumulated other comprehensive loss
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(21,070
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)
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(16,931
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)
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Total stockholders' equity
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1,176,350
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1,238,358
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Total liabilities and stockholders' equity
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$
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1,651,889
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$
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1,671,235
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National Instruments
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|||||||||||||
Condensed Consolidated Statements of Income
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|||||||||||||
(in thousands, except per share data, unaudited)
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|||||||||||||
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|||||||||
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Three Months Ended
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Years Ended
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||||||||||
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December 31,
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December 31,
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||||||||||
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2019
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2018
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2019
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2018
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||||||||
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||||||||
Net sales:
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||||||||
Product
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$
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332,267
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$
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322,672
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$
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1,215,014
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$
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1,220,027
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Software maintenance
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35,201
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37,427
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138,201
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139,105
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||||
Total net sales
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367,468
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360,099
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1,353,215
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1,359,132
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||||
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||||||||
Cost of sales:
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||||||||
Product
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89,308
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86,003
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329,364
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325,208
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||||
Software maintenance
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1,827
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2,026
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7,527
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8,519
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||||
Total cost of sales
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91,135
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88,029
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336,891
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333,727
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||||
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||||||||
Gross profit
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276,333
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272,070
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1,016,324
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1,025,405
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75%
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76%
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75%
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75%
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||||||||
Operating expenses:
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||||||||
Sales and marketing
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121,052
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117,102
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473,392
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482,576
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Research and development
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71,471
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66,151
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272,452
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261,072
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||||
General and administrative
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30,129
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26,996
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122,768
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108,878
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||||
Gain on sale of asset
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—
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—
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(26,842
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)
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—
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Total operating expenses
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222,652
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210,249
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841,770
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852,526
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||||
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||||||||
Operating income
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53,681
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61,821
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174,554
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172,879
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||||
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||||||
Other income (expense):
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|||||||
Interest income
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1,942
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2,051
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8,129
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5,896
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||||
Net foreign exchange (loss) gain
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(223
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)
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(1,341
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)
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(1,846
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)
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(3,423
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)
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||||
Other (loss) income, net
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(1,108
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)
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932
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(293
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)
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1,101
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||||
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||||||||
Income before income taxes
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54,292
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63,463
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180,544
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176,453
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||||
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||||||||
(Benefit) Provision for income taxes
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(4,304
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)
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6,922
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18,393
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21,396
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||||
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||||||||
Net income
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$
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58,596
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$
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56,541
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$
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162,151
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$
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155,057
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||||||||
Basic earnings per share
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$
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0.45
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$
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0.43
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$
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1.23
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$
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1.17
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Diluted earnings per share
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$
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0.45
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$
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0.42
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$
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1.22
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$
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1.16
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||||||||
Weighted average shares outstanding -
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||||||||
Basic
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130,776
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132,565
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131,722
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131,987
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Diluted
|
131,432
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133,617
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132,734
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133,274
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||||||||
Dividends declared per share
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$
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0.25
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$
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0.23
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$
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1.00
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$
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0.92
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National Instruments
|
||||||
Condensed Consolidated Statements of Cash Flows
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||||||
(in thousands)
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||||||
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Years Ended December 31,
|
|||||
|
2019
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2018
|
||||
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(unaudited)
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|
||||
Cash flow from operating activities:
|
|
|
||||
Net income
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$
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162,151
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$
|
155,057
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Adjustments to reconcile net income to net cash provided by operating activities:
|
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|
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Depreciation and amortization
|
73,541
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70,667
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Stock-based compensation
|
51,438
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|
37,616
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|
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Disposal gain on sale of asset
|
(26,842
|
)
|
—
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|
||
Tax benefit from deferred income taxes
|
(12,680
|
)
|
(11,738
|
)
|
||
Net change in operating assets and liabilities
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(23,203
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)
|
22,978
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Net cash provided by operating activities
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224,405
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|
274,580
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|
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|
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|
||||
Cash flow from investing activities:
|
|
|
||||
Purchases of property, plant, and equipment
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(60,857
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)
|
(34,659
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)
|
||
Proceeds from sale of office building
|
32,492
|
|
—
|
|
||
Capitalization of internally developed software
|
(9,065
|
)
|
(14,208
|
)
|
||
Additions to other intangibles
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(1,209
|
)
|
(5,399
|
)
|
||
Acquisitions of equity-method investments
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(13,670
|
)
|
—
|
|
||
Acquisitions, net of cash received
|
—
|
|
(5,534
|
)
|
||
Purchases of short-term investments
|
(185,267
|
)
|
(313,726
|
)
|
||
Sales and maturities of short-term investments
|
219,628
|
|
163,530
|
|
||
Net cash used by investing activities
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(17,948
|
)
|
(209,996
|
)
|
||
|
|
|
||||
Cash flow from financing activities:
|
|
|
||||
Proceeds from issuance of common stock
|
33,191
|
|
31,601
|
|
||
Repurchase of common stock
|
(171,316
|
)
|
—
|
|
||
Dividends paid
|
(131,855
|
)
|
(121,537
|
)
|
||
Other
|
(837
|
)
|
(907
|
)
|
||
Net cash used by financing activities
|
(270,817
|
)
|
(90,843
|
)
|
||
|
|
|
|
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Impact of changes in exchange rates on cash
|
(410
|
)
|
(4,519
|
)
|
||
|
|
|
||||
Net change in cash and cash equivalents
|
(64,770
|
)
|
(30,778
|
)
|
||
Cash and cash equivalents at beginning of period
|
259,386
|
|
290,164
|
|
||
Cash and cash equivalents at end of period
|
$
|
194,616
|
|
$
|
259,386
|
|
Reconciliation of GAAP to Non-GAAP Diluted EPS Guidance
|
||||||
(unaudited)
|
||||||
|
Three Months Ended
|
|||||
|
March 31, 2020
|
|||||
|
|
|
||||
|
Low
|
High
|
||||
Estimated GAAP Diluted EPS
|
$
|
0.99
|
|
$
|
1.13
|
|
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS:
|
|
|
||||
Impact of stock-based compensation, net of tax effect
|
0.09
|
|
0.09
|
|
||
Impact of amortization of acquisition intangibles, net of tax effect
|
0.01
|
|
0.01
|
|
||
Impact of acquisition transaction costs and restructuring charges, net of tax effect
|
0.05
|
|
0.05
|
|
||
Impact of net amortization of software development costs, net of tax effect
|
0.03
|
|
0.03
|
|
||
Impact of gain on divestment, net of tax effect
|
(0.93
|
)
|
(0.93
|
)
|
||
Estimated Non-GAAP Diluted EPS
|
$
|
0.24
|
|
$
|
0.38
|
|
Reconciliation of Estimated GAAP Revenue Growth to GAAP Revenue Growth (excluding AWR) at Midpoint of Guidance
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
March 31, 2020
|
Estimated YoY GAAP Revenue Growth at midpoint
|
4%
|
plus: Impact of excluding recently divested business (AWR)
|
2%
|
Estimated YoY GAAP Revenue Growth (excluding AWR) at midpoint
|
6%
|