AUSTIN, Texas--(BUSINESS WIRE)--National Instruments (Nasdaq: NATI) today announced Q4 2017 revenue of $350 million, up 6 percent year over year.
GAAP net loss for Q4 was $(24) million, with fully diluted loss per share of $(0.18), and non-GAAP net income was $56 million, with non-GAAP fully diluted earnings per share ("EPS") of $0.43. Because of the Tax Cuts and Jobs Act of 2017, NI recognized a one-time charge of $70 million in Q4 from the estimated impact of the inclusion of foreign earnings and revaluation of deferred tax assets and liabilities. This one-time charge is being excluded from NI's non-GAAP results. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $74 million for Q4.
In Q4, GAAP and non-GAAP gross margin was 76 percent and total GAAP operating expenses were $207 million, up 5 percent year over year. Total non-GAAP operating expenses were up 2 percent year over year at $193 million. GAAP operating margin was 16 percent in Q4, with GAAP operating income of $57 million, up 16 percent year over year. Non-GAAP operating margin was 21 percent in Q4, the highest quarterly result in 20 years. Non-GAAP operating income was $73 million, up 22 percent year over year.
“I am proud of what we accomplished in 2017. We set goals to drive revenue and make significant progress toward our operating model, and through focus we met those goals,” said Alex Davern, NI president and CEO. “Our employees did a tremendous job in 2017 executing on key business decisions. I believe we have an opportunity to continue to drive both growth and improved profitability in 2018.”
Karen Rapp, NI CFO, said, “I am pleased with our record performance in Q4 and for the year. We delivered record revenue and operating income, made significant progress toward our operating model, and reported the highest non-GAAP net income in company history. We plan to continue executing on our disciplined capital allocation strategy.”
Geographic revenue in U.S. dollar terms for Q4 2017 compared with Q4 2016 was up 3 percent in the Americas, up 9 percent in APAC and up 8 percent in EMEIA. Excluding the impact of foreign currency exchange, revenue was up 3 percent in the Americas, up 8 percent in APAC and up 5 percent in EMEIA. Historical revenue from these three regions can be found on NI’s investor website at www.ni.com/nati.
In Q4 2017, the value of the company’s total orders was up 5 percent year over year; orders under $20,000 were up 3 percent year over year; and orders over $20,000 were up 7 percent year over year.
As of Dec. 31, 2017, NI had $412 million in cash and short-term investments. During Q4, NI paid $27 million in dividends. The NI Board of Directors approved a dividend of $0.23 per share payable on March 5, 2018, to stockholders of record on Feb. 12, 2018.
The company’s non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, and tax reform charges. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.
FY 2017 Highlights
- Revenue of $1.29 billion, up 5 percent year over year
- GAAP and non-GAAP gross margin of 75 percent
- GAAP net income of $52 million, down 37 percent year over year
- Non-GAAP net income of $160 million, up 33 percent year over year
- Fully diluted GAAP EPS of $0.40
- Fully diluted non-GAAP EPS of $1.22
- EBITDA of $219 million
- Dividends paid of $110 million, or $0.84 per share
In 2017, GAAP operating expenses were $815 million, up 3 percent year over year, and non-GAAP operating expenses were $769 million, flat year over year. GAAP net income in 2017 was $52 million, down 37 percent year over year, and non-GAAP net income in 2017 was $160 million, up 33 percent year over year.
Guidance
NI currently expects Q1 revenue to be in the range of $305 million to $335 million, which would be a new Q1 record at the midpoint. The company currently expects that GAAP fully diluted EPS will be in the range of $0.11 to $0.25 for Q1, with non-GAAP fully diluted EPS expected to be in the range of $0.19 to $0.33. For 2018, NI estimates its non-GAAP effective tax rate to be approximately 17 percent.
Non-GAAP Presentation
In addition to disclosing results determined in accordance with GAAP, NI discloses certain non-GAAP operating results and non-GAAP information that exclude certain charges. In this news release, the company has presented its gross profit, gross margin, operating expenses, operating income, operating margin, income before income taxes, provision for income taxes, net income and basic and fully diluted EPS for the three-month and 12-month periods ending Dec. 31, 2017 and 2016, on a GAAP and non-GAAP basis. NI is also providing guidance on its non-GAAP fully diluted EPS and expected effective tax rate. The company is not able to provide guidance on its GAAP tax rate or a related reconciliation without unreasonable efforts since its future GAAP tax rate depends on its future stock price and related information that is not currently available.
When presenting non-GAAP information, the company includes a reconciliation of the non-GAAP results to the GAAP results. Management believes that including the non-GAAP results assists investors in assessing the company’s operational performance and its performance relative to its competitors. The company presents these non-GAAP results as a complement to results provided in accordance with GAAP, and these results should not be regarded as a substitute for GAAP. Management uses these non-GAAP measures to manage and assess the profitability and performance of its business and does not consider stock-based compensation expense, amortization of acquisition-related intangibles, acquisition-related transaction costs, taxes levied on the transfer of acquired intellectual property, foreign exchange loss on acquisitions, restructuring charges, and tax reform charges in managing its operations. Specifically, management uses non-GAAP measures to plan and forecast future periods; to establish operational goals; to compare with its business plan and individual operating budgets; to measure management performance for the purposes of executive compensation, including payments to be made under bonus plans; to assist the public in measuring the company’s performance relative to the company’s long-term public performance goals; to allocate resources; and, relative to the company’s historical financial performance, to enable comparability between periods. Management also considers such non-GAAP results to be an important supplemental measure of its performance.
This news release discloses the company’s EBITDA for the three-month and 12-month periods ending Dec. 31, 2017 and 2016. The company believes that including the EBITDA results assists investors in assessing the company’s operational performance relative to its competitors. A reconciliation of EBITDA to GAAP net income is included with this news release.
Conference Call Information and Availability of Presentation Materials
Interested parties can listen to the Q4 2017 earnings conference call with NI management today, Jan. 30, at 4:00 p.m. CT at www.ni.com/call. Replay information is available by calling (855) 859-2056, confirmation code 9473778, shortly after the call through Feb. 2 at 10:00 p.m. CT or by visiting the company’s website at www.ni.com/call. Presentation materials referred to on the conference call can be found at www.ni.com/nati.
Forward-Looking Statements
This release contains “forward-looking statements” including statements regarding believing we have an opportunity to continue to drive both growth and improved profitability in 2018, our plan to continue executing on our disciplined capital allocation strategy, our Q1 revenue guidance, expecting that GAAP fully diluted EPS will be in the range of $0.11 to $0.25 for Q1, with non-GAAP fully diluted EPS expected to be in the range of $0.19 to $0.33, and estimating its non-GAAP effective tax rate to be approximately 17 percent in 2018. These statements are subject to a number of risks and uncertainties, including the risk of adverse changes or fluctuations in the global economy, foreign exchange fluctuations, fluctuations in demand for NI products including orders from NI’s largest customer, component shortages, delays in the release of new products, the company’s ability to effectively manage its operating expenses, manufacturing inefficiencies and the level of capacity utilization, the impact of any recent or future acquisitions by NI, expense overruns, adverse effects of price changes or effective tax rates. Actual results may differ materially from the expected results.
The company directs readers to its Form 10-K for the year ended Dec. 31, 2016, its Form 10-Q for the quarter ended Sept. 30, 2017 and the other documents it files with the SEC for other risks associated with the company’s future performance.
About NI
NI (www.ni.com) empowers engineers and scientists with a software-centric platform that incorporates modular hardware and an expansive ecosystem. This proven approach puts users firmly in control of defining what they need to accelerate their system design within test, measurement and control. NI’s solution helps build high-performance systems that exceed requirements, quickly adapt to change and ultimately improve the world. (NATI-F)
National Instruments, NI and ni.com are trademarks of National Instruments. Other product and company names listed are trademarks or trade names of their respective companies.
National Instruments | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
December 31, | December 31, | |||||||||
2017 | 2016 | |||||||||
(unaudited) | ||||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 290,164 | $ | 285,283 | ||||||
Short-term investments | 121,888 | 73,117 | ||||||||
Accounts receivable, net | 248,825 | 228,686 | ||||||||
Inventories, net | 184,592 | 193,608 | ||||||||
Prepaid expenses and other current assets | 48,621 | 53,953 | ||||||||
Total current assets | 894,090 | 834,647 | ||||||||
Property and equipment, net | 249,715 | 260,456 | ||||||||
Goodwill | 266,783 | 253,197 | ||||||||
Intangible assets, net | 123,293 | 108,663 | ||||||||
Other long-term assets | 32,553 | 39,601 | ||||||||
Total assets | $ | 1,566,434 | $ | 1,496,564 | ||||||
Liabilities and Stockholders' Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued liabilities | $ | 49,733 | $ | 48,800 | ||||||
Accrued compensation | 43,309 | 27,743 | ||||||||
Deferred revenue - current | 120,638 | 115,577 | ||||||||
Other current liabilities | 23,782 | 32,997 | ||||||||
Other taxes payable | 31,793 | 34,958 | ||||||||
Total current liabilities | 269,255 | 260,075 | ||||||||
Long-term debt | $ | — | $ | 25,000 | ||||||
Deferred income taxes | 33,609 | 45,386 | ||||||||
Liability for uncertain tax positions | 10,158 | 11,719 | ||||||||
Income tax payable - long-term | 81,515 | — | ||||||||
Deferred revenue - long-term | 33,742 | 29,752 | ||||||||
Other long-term liabilities | 10,134 | 10,413 | ||||||||
Total liabilities | $ | 438,413 | $ | 382,345 | ||||||
Stockholders' equity: | ||||||||||
Preferred stock | $ | — | $ | — | ||||||
Common stock | 1,310 | 1,292 | ||||||||
Additional paid-in capital | 829,979 | 771,346 | ||||||||
Retained earnings | 313,241 | 376,202 | ||||||||
Accumulated other comprehensive loss | (16,509 | ) | (34,621 | ) | ||||||
Total stockholders' equity | 1,128,021 | 1,114,219 | ||||||||
Total liabilities and stockholders' equity | $ | 1,566,434 | $ | 1,496,564 | ||||||
National Instruments | |||||||||||||||||||||
Condensed Consolidated Statements of Income | |||||||||||||||||||||
(in thousands, except per share data, unaudited) | |||||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net sales: | |||||||||||||||||||||
Product | $ | 320,257 | $ | 300,218 | $ | 1,173,476 | $ | 1,116,703 | |||||||||||||
Software maintenance | 29,494 | 28,314 | 115,910 | 111,476 | |||||||||||||||||
Total net sales | 349,751 | 328,532 | 1,289,386 | 1,228,179 | |||||||||||||||||
Cost of sales: | |||||||||||||||||||||
Product | 82,874 | 81,468 | 318,863 | 306,730 | |||||||||||||||||
Software maintenance | 2,717 | 1,264 | 9,461 | 6,391 | |||||||||||||||||
Total cost of sales | 85,591 | 82,732 | 328,324 | 313,121 | |||||||||||||||||
Gross profit | 264,160 | 245,800 | 961,062 | 915,058 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Sales and marketing | 119,586 | 115,006 | 477,921 | 461,236 | |||||||||||||||||
Research and development | 60,060 | 57,461 | 231,761 | 235,706 | |||||||||||||||||
General and administrative | 27,202 | 24,082 | 105,602 | 98,390 | |||||||||||||||||
Total operating expenses | 206,848 | 196,549 | 815,284 | 795,332 | |||||||||||||||||
Operating income | 57,312 | 49,251 | 145,778 | 119,726 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income | 767 | 335 | 2,276 | 1,122 | |||||||||||||||||
Net foreign exchange (loss) gain | (732 | ) | (3,162 | ) | 892 | (4,632 | ) | ||||||||||||||
Other (expense) income, net | (609 | ) | 471 | (1,566 | ) | (1,581 | ) | ||||||||||||||
Income before income taxes | 56,738 | 46,895 | 147,380 | 114,635 | |||||||||||||||||
Provision for income taxes | 81,020 | 17,746 | 94,969 | 31,901 | |||||||||||||||||
Net (loss) income | $ | (24,282 | ) | $ | 29,149 | $ | 52,411 | $ | 82,734 | ||||||||||||
Basic (loss) earnings per share | $ | (0.19 | ) | $ | 0.23 | $ | 0.40 | $ | 0.64 | ||||||||||||
Diluted (loss) earnings per share | $ | (0.18 | ) | $ | 0.23 | $ | 0.40 | $ | 0.64 | ||||||||||||
Weighted average shares outstanding - | |||||||||||||||||||||
Basic | 130,886 | 129,108 | 130,300 | 128,453 | |||||||||||||||||
Diluted | 132,113 | 129,503 | 131,387 | 129,008 | |||||||||||||||||
Dividends declared per share | $ | 0.21 | $ | 0.20 | $ | 0.84 | $ | 0.80 | |||||||||||||
National Instruments | ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(in thousands, unaudited) | ||||||||||
Years Ended December 31, | ||||||||||
2017 | 2016 | |||||||||
Cash flow from operating activities: | ||||||||||
Net income | $ | 52,411 | $ | 82,734 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 72,695 | 73,390 | ||||||||
Stock-based compensation | 29,145 | 25,832 | ||||||||
Tax benefit from deferred income taxes | (5,774 | ) | (5,430 | ) | ||||||
Purchase price adjustment | — | 1,585 | ||||||||
Net change in operating assets and liabilities | 75,965 | 22,088 | ||||||||
Net cash provided by operating activities | 224,442 | 200,199 | ||||||||
Cash flow from investing activities: | ||||||||||
Capital expenditures | (30,256 | ) | (44,425 | ) | ||||||
Capitalization of internally developed software | (41,662 | ) | (31,859 | ) | ||||||
Additions to other intangibles | (2,384 | ) | (2,342 | ) | ||||||
Acquisitions, net of cash received | — | (549 | ) | |||||||
Purchases of short-term investments | (87,735 | ) | (39,097 | ) | ||||||
Sales and maturities of short-term investments | 39,627 | 47,769 | ||||||||
Net cash used by investing activities | (122,410 | ) | (70,503 | ) | ||||||
Cash flow from financing activities: | ||||||||||
Proceeds from revolving line of credit | — | 15,000 | ||||||||
Principal payments on revolving line of credit | (25,000 | ) | (27,000 | ) | ||||||
Proceeds from issuance of common stock | 29,094 | 28,907 | ||||||||
Repurchase of common stock | — | (5,635 | ) | |||||||
Dividends paid | (109,551 | ) | (102,897 | ) | ||||||
Other | (842 | ) | — | |||||||
Net cash used by financing activities | (106,299 | ) | (91,625 | ) | ||||||
Impact of changes in exchange rates on cash | 9,148 | (3,917 | ) | |||||||
Net change in cash and cash equivalents | 4,881 | 34,154 | ||||||||
Cash and cash equivalents at beginning of period | 285,283 | 251,129 | ||||||||
Cash and cash equivalents at end of period | $ | 290,164 | $ | 285,283 | ||||||
The following tables provide details with respect to the amount of GAAP charges related to stock-based compensation, amortization of acquisition-related intangibles, acquisition-related transaction costs, restructuring charges, foreign exchange loss on acquisitions, taxes levied on the transfer of acquired intellectual property and tax reform charges that were recorded in the line items indicated below (unaudited) (in thousands) |
|||||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||
Cost of sales | $ | 714 | $ | 568 | $ | 2,628 | $ | 2,210 | |||||||||||||
Sales and marketing | 3,035 | 2,636 | 11,559 | 11,057 | |||||||||||||||||
Research and development | 2,462 | 2,131 | 9,014 | 8,876 | |||||||||||||||||
General and administrative | 1,585 | 859 | 5,944 | 3,623 | |||||||||||||||||
Provision for income taxes | (2,934 | ) | (1,125 | ) | (10,322 | ) | (7,322 | ) | |||||||||||||
Total | $ | 4,862 | $ | 5,069 | $ | 18,823 | $ | 18,444 | |||||||||||||
Amortization of acquisition intangibles | |||||||||||||||||||||
Cost of sales | $ | 1,444 | $ | 1,725 | $ | 6,092 | $ | 9,346 | |||||||||||||
Sales and marketing | 529 | 497 | 2,009 | 2,638 | |||||||||||||||||
Research and development | 204 | 273 | 1,017 | 1,088 | |||||||||||||||||
Other income, net | — | — | — | — | |||||||||||||||||
Provision for income taxes | (491 | ) | 855 | (2,148 | ) | 2,162 | |||||||||||||||
Total | $ | 1,686 | $ | 3,350 | $ | 6,970 | $ | 15,234 | |||||||||||||
Acquisition transaction costs, restructuring charges, and other | |||||||||||||||||||||
Cost of sales | $ | 222 | $ | 74 | $ | 1,210 | $ | 327 | |||||||||||||
Sales and marketing | 2,972 | 42 | 10,990 | 183 | |||||||||||||||||
Research and development | 1,693 | 170 | 3,509 | 818 | |||||||||||||||||
General and administrative | 1,097 | 50 | 1,900 | 367 | |||||||||||||||||
Foreign exchange gain (loss) 1 | — | — | — | 94 | |||||||||||||||||
Other income (loss), net2 | — | — | — | 2,475 | |||||||||||||||||
Provision for income taxes | (1,754 | ) | (94 | ) | (5,407 | ) | (1,452 | ) | |||||||||||||
Total | $ | 4,230 | $ | 242 | $ | 12,202 | $ | 2,812 | |||||||||||||
(1) Foreign exchange losses on acquisitions were $0 and $94 for the years ended December 31, 2017 and 2016, respectively | |||||||||||||||||||||
(2) Taxes levied on the transfer of acquired intellectual property were $0 and $2,475 for the years ended December 31, 2017 and 2016, respectively | |||||||||||||||||||||
Acquisition-related fair value adjustments1 | |||||||||||||||||||||
Net sales | $ | — | $ | 904 | $ | — | $ | 904 | |||||||||||||
Cost of sales | — | 681 | — | 681 | |||||||||||||||||
Provision for income taxes | — | (567 | ) | — | (567 | ) | |||||||||||||||
Total | $ | — | $ | 1,018 | $ | — | $ | 1,018 | |||||||||||||
(1) Acquisition-related fair value adjustments includes effects of our finalization of the business combination accounting for our Micropross acquisition including reduction in revenue and increase in cost of sales due to the respective write-down of acquired deferred revenue and step-up of acquired inventory | |||||||||||||||||||||
National Instruments | |||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Reconciliation of Net Sales to Non-GAAP Net Sales | |||||||||||||||||||||
Net sales, as reported |
$ |
349,751 | $ | 328,532 | $ | 1,289,386 | $ | 1,228,179 | |||||||||||||
Acquisition-related fair value adjustments | — | 904 | — | 904 | |||||||||||||||||
Non-GAAP net sales |
$ |
349,751 | $ | 329,436 | $ | 1,289,386 | $ | 1,229,083 | |||||||||||||
Reconciliation of Gross Profit to Non-GAAP Gross Profit | |||||||||||||||||||||
Gross profit, as reported | $ | 264,160 | 245,800 | 961,062 | 915,058 | ||||||||||||||||
Stock-based compensation | 714 | 568 | 2,628 | 2,210 | |||||||||||||||||
Amortization of acquisition intangibles | 1,444 | 1,725 | 6,092 | 9,346 | |||||||||||||||||
Acquisition transaction costs and restructuring charges | 222 | 74 | 1,210 | 327 | |||||||||||||||||
Acquisition-related fair value adjustments | — | 1,585 | — | 1,585 | |||||||||||||||||
Non-GAAP gross profit | $ | 266,540 | 249,752 | 970,992 | 928,526 | ||||||||||||||||
Non-GAAP gross margin | 76 | % | 76 | % | 75 | % | 76 | % | |||||||||||||
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses | |||||||||||||||||||||
Operating expenses, as reported | $ | 206,848 | 196,549 | 815,284 | 795,332 | ||||||||||||||||
Stock-based compensation | (7,082 | ) | (5,626 | ) | (26,517 | ) | (23,556 | ) | |||||||||||||
Amortization of acquisition intangibles | (733 | ) | (770 | ) | (3,026 | ) | (3,726 | ) | |||||||||||||
Acquisition transaction costs and restructuring charges | (5,762 | ) | (262 | ) | (16,399 | ) | (1,368 | ) | |||||||||||||
Non-GAAP operating expenses | $ | 193,271 | 189,891 | 769,342 | 766,682 | ||||||||||||||||
Reconciliation of Operating Income to Non-GAAP Operating Income | |||||||||||||||||||||
Operating income, as reported | $ | 57,312 | 49,251 | 145,778 | 119,726 | ||||||||||||||||
Stock-based compensation | 7,796 | 6,194 | 29,145 | 25,766 | |||||||||||||||||
Amortization of acquisition intangibles | 2,177 | 2,495 | 9,118 | 13,072 | |||||||||||||||||
Acquisition transaction costs and restructuring charges | 5,984 | 336 | 17,609 | 1,695 | |||||||||||||||||
Acquisition-related fair value adjustments | — | 1,585 | — | 1,585 | |||||||||||||||||
Non-GAAP operating income | $ | 73,269 | 59,861 | 201,650 | 161,844 | ||||||||||||||||
Non-GAAP operating margin | 21 | % | 18 | % | 16 | % | 13 | % | |||||||||||||
Reconciliation of Income before income taxes to Non-GAAP Income before income taxes | |||||||||||||||||||||
Income before income taxes, as reported | $ | 56,738 | 46,895 | 147,380 | 114,635 | ||||||||||||||||
Stock-based compensation | 7,796 | 6,194 | 29,145 | 25,766 | |||||||||||||||||
Amortization of acquisition intangibles | 2,177 | 2,495 | 9,118 | 13,072 | |||||||||||||||||
Acquisition transaction costs and restructuring charges | 5,984 | 336 | 17,609 | 1,695 | |||||||||||||||||
Acquisition-related fair value adjustments | — | 1,585 | — | 1,585 | |||||||||||||||||
Foreign exchange loss on acquisitions | — | — | — | 94 | |||||||||||||||||
Taxes levied on transfer of acquired intellectual property | — | — | — | 2,475 | |||||||||||||||||
Non-GAAP income before income taxes | $ | 72,695 | 57,505 | 203,252 | 159,322 | ||||||||||||||||
Reconciliation of Provision for income taxes to Non-GAAP Provision for income taxes | |||||||||||||||||||||
Provision for income taxes, as reported | $ | 81,020 | 17,746 | 94,969 | 31,901 | ||||||||||||||||
Stock-based compensation | 2,934 | 1,125 | 10,322 | 7,322 | |||||||||||||||||
Amortization of acquisition intangibles | 491 | (855 | ) | 2,148 | (2,162 | ) | |||||||||||||||
Acquisition transaction costs, restructuring charges, and other | 1,754 | 661 | 5,407 | 2,019 | |||||||||||||||||
Tax reform charge | (69,902 | ) | — | (69,902 | ) | — | |||||||||||||||
Non-GAAP provision for income taxes | $ | 16,297 | 18,677 | 42,944 | 39,080 | ||||||||||||||||
Reconciliation of GAAP Net Income, Basic EPS and Diluted EPS to Non-GAAP Net Income, Non-GAAP Basic EPS and Non-GAAP Diluted EPS | ||||||||||||||||||
(in thousands, except per share data, unaudited) | ||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||
Net (loss) income, as reported | $ | (24,282 | ) | $ | 29,149 | $ | 52,411 | $ | 82,734 | |||||||||
Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||||
Stock-based compensation, net of tax effect | 4,862 | 5,069 | 18,823 | 18,444 | ||||||||||||||
Amortization of acquisition intangibles, net of tax effect | 1,686 | 3,350 | 6,970 | 15,234 | ||||||||||||||
Acquisition transaction costs, restructuring, and other, net of tax effect | 4,230 | 242 | 12,202 | 2,812 | ||||||||||||||
Acquisition-related fair value adjustments | — | 1,018 | — | 1,018 | ||||||||||||||
Tax reform charge | 69,902 | — | 69,902 | — | ||||||||||||||
Non-GAAP net income | $ | 56,398 | $ | 38,828 | $ | 160,308 | $ | 120,242 | ||||||||||
Basic EPS, as reported | $ | (0.19 | ) | $ | 0.23 | $ | 0.40 | $ | 0.64 | |||||||||
Adjustment to reconcile basic EPS to non-GAAP basic EPS: |
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Impact of stock-based compensation, net of tax effect | 0.04 | 0.03 | 0.14 | 0.14 | ||||||||||||||
Impact of amortization of acquisition intangibles, net of tax effect | 0.01 | 0.03 | 0.05 | 0.12 | ||||||||||||||
Impact of acquisition transaction costs, restructuring, and other, net of tax effect | 0.03 | 0.01 | 0.09 | 0.03 | ||||||||||||||
Impact of tax reform charge | 0.53 | — | 0.54 | — | ||||||||||||||
Non-GAAP basic EPS | $ | 0.42 | $ | 0.30 | $ | 1.22 | $ | 0.93 | ||||||||||
Diluted EPS, as reported | $ | (0.18 | ) | 0.23 | $ | 0.40 | $ | 0.64 | ||||||||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS: |
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Impact of stock-based compensation, net of tax effect | 0.04 | 0.03 | 0.14 | 0.14 | ||||||||||||||
Impact of amortization of acquisition intangibles, net of tax effect | 0.01 | 0.03 | 0.05 | 0.12 | ||||||||||||||
Impact of acquisition transaction costs, restructuring, and other, net of tax effect | 0.03 | 0.01 | 0.09 | 0.03 | ||||||||||||||
Impact of tax reform charge | 0.53 | — | 0.54 | — | ||||||||||||||
Non-GAAP diluted EPS | $ | 0.43 | $ | 0.30 | $ | 1.22 | $ | 0.93 | ||||||||||
Weighted average shares outstanding - | ||||||||||||||||||
Basic | 130,886 | 129,108 | 130,300 | 128,453 | ||||||||||||||
Diluted | 132,113 | 129,503 | 131,387 | 129,008 | ||||||||||||||
National Instruments | |||||||||||||||||||||
Reconciliation of Net Income to EBITDA | |||||||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
Net (loss) income, as reported | $ | (24,282 | ) | $ | 29,149 | $ | 52,411 | $ | 82,734 | ||||||||||||
Adjustments to reconcile net income to EBITDA: | |||||||||||||||||||||
Interest income, net | (628 | ) | (155 | ) | (1,491 | ) | (349 | ) | |||||||||||||
Tax expense | 81,020 | 17,746 | 94,969 | 31,901 | |||||||||||||||||
Depreciation and amortization | 17,901 | 18,226 | 72,695 | 73,390 | |||||||||||||||||
EBITDA | $ | 74,011 | $ | 64,966 | $ | 218,584 | $ | 187,676 | |||||||||||||
Weighted average shares outstanding - Diluted | 132,113 | 129,503 | 131,387 | 129,008 | |||||||||||||||||
Reconciliation of GAAP to Non-GAAP EPS Guidance | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||
Low | High | ||||||||||||||||||||
GAAP Fully Diluted EPS, guidance | $ | 0.11 | $ | 0.25 | |||||||||||||||||
Adjustment to reconcile diluted EPS to non-GAAP diluted EPS: |
|||||||||||||||||||||
Impact of stock-based compensation, net of tax effect | 0.05 | 0.05 | |||||||||||||||||||
Impact of amortization of acquisition intangibles and acquisition accounting adjustments, net of tax effect | 0.01 | 0.01 | |||||||||||||||||||
Impact of acquisition transaction costs, restructuring, and other, net of tax effect | 0.02 | 0.02 | |||||||||||||||||||
Non-GAAP diluted EPS, guidance | $ | 0.19 | $ | 0.33 | |||||||||||||||||