National Instruments has announced Q2 revenue of $296 million, a 1 per cent increase from Q2 2012. In Q2, the company's orders under $20,000 declined 4 per cent year-over-year; orders between $20,000 and $100,000 grew 4 per cent year-over-year; and orders above $100,000 declined 30 per cent year-over-year after growing approximately 130 per cent in Q2 2012.
GAAP net income for Q2 was $14 million, with fully diluted earnings per share (EPS) of $0.12, and non-GAAP net income was $22 million.
Geographic revenue in US dollar terms for Q2 2013 compared to Q2 2012 was down 1 per cent in the Americas, up 2 per cent in Europe, up 10 per cent in East Asia and down 15 per cent in emerging markets.
‘Although Q2 was a difficult quarter for our industry and for National Instruments, we believe NI was able to gain market share,’ said Alex Davern, NI COO and CFO. ‘On the expense side, we delivered on reducing our spending and are adjusting our future spending plans to align with the industry's current weakness.’
National Instruments continues to be conservative in planning for Q3 due to the weak industry conditions. As a result, NI expects revenue for Q3 2013 to be between $265 million and $295 million, a decrease of 3 per cent year-over-year at the midpoint of guidance. For perspective, the company registered approximately $27 million in revenue from its largest customer in Q3 2012 and the company anticipates recognising less than $5 million in revenue from this customer in Q3 2013.
Looking out to Q4, National Instruments is adjusting its spending plans to reflect the more difficult industry conditions. The company currently expects its total non-GAAP operating expenses will decline sequentially in Q4 and that non-GAAP operating expenses will be approximately $181million, plus or minus $3 million in Q4. NI expects this to result in a significantly improved operating margin in Q4.
