National Instruments Corporation (NATI) Bundle
A Brief History of National Instruments Corporation (NATI)
Company Overview
National Instruments Corporation (NATI) was founded in 1976 and specializes in automated test equipment and virtual instrumentation software. The company is headquartered in Austin, Texas, and is recognized for its contributions to engineering and technology solutions.
Financial Performance
As of June 30, 2023, National Instruments reported a net income of $30.5 million for the second quarter of 2023, compared to a net income of $12.4 million for the same quarter in 2022. For the six months ended June 30, 2023, the net income was $77.4 million, up from $37.7 million in the prior year.
| Financial Metrics | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Net Income | $30.5 million | $12.4 million | $77.4 million | $37.7 million |
| Revenue | $416.8 million | $395.5 million | $853.6 million | $780.8 million |
| Earnings Per Share (Diluted) | $0.23 | $0.09 | $0.59 | $0.28 |
Stock Performance
As of June 30, 2023, the company's stock was trading at approximately $39.06 per share. The company has a market capitalization of about $5.2 billion. The stock exhibited a year-to-date increase of 14% by mid-2023.
Operating Expenses
National Instruments reported total operating expenses of $257.4 million for Q2 2023, an increase from $247.3 million in Q2 2022. For the six-month period, operating expenses were $504.6 million, compared to $482.8 million in the same period in 2022.
| Operating Expenses | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Sales and Marketing | $123.1 million | $124.9 million | $240.4 million | $245.1 million |
| Research and Development | $83.8 million | $85.6 million | $170.4 million | $167.8 million |
| General and Administrative | $50.5 million | $36.8 million | $93.7 million | $69.9 million |
International Sales
For the six months ended June 30, 2023, National Instruments' net sales by region were as follows:
| Region | Net Sales (6M 2023) | Net Sales (6M 2022) | Change ($) | Change (%) |
|---|---|---|---|---|
| Americas | $365.5 million | $319.6 million | $45.9 million | 14% |
| EMEA | $224.1 million | $197.1 million | $27.1 million | 14% |
| APAC | $264.0 million | $264.1 million | ($0.1 million) | 0% |
Cash Flow Analysis
For the first half of 2023, National Instruments generated $74.9 million from operating activities, a significant increase from ($44.9 million) in the first half of 2022. Cash used in investing activities amounted to ($63.2 million), while cash used in financing activities was ($12.2 million).
| Cash Flow Metrics | 6M 2023 | 6M 2022 |
|---|---|---|
| Cash Provided by Operating Activities | $74.9 million | ($44.9 million) |
| Cash Used in Investing Activities | ($63.2 million) | ($99.9 million) |
| Cash Used in Financing Activities | ($12.2 million) | $48.8 million |
Recent Developments
In 2023, National Instruments announced plans for a merger with Emerson Electric Co., which is expected to enhance its market position and operational capabilities. The merger is anticipated to create significant synergies and expand the product offerings for customers.
A Who Owns National Instruments Corporation (NATI)
Major Shareholders
As of 2024, the ownership structure of National Instruments Corporation (NATI) is characterized by a mix of institutional and individual investors.
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 75.2% | 99,979,000 |
| Insider Ownership | 4.5% | 5,999,000 |
| Retail Investors | 20.3% | 27,022,000 |
Top Institutional Shareholders
Below is a list of the top institutional shareholders of National Instruments Corporation as of 2024:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 12.3% | 16,400,000 |
| BlackRock, Inc. | 10.5% | 14,000,000 |
| State Street Corporation | 8.9% | 11,800,000 |
| Invesco Ltd. | 5.5% | 7,300,000 |
| Wellington Management Group LLP | 4.8% | 6,400,000 |
Insider Ownership
Insider ownership includes executives and board members who hold shares of the company:
| Name | Position | Number of Shares Owned |
|---|---|---|
| Eric Starkloff | CEO | 1,000,000 |
| Karen R. O'Brien | CFO | 750,000 |
| James Truchard | Founder | 3,500,000 |
Recent Market Performance
The stock performance of National Instruments Corporation has shown resilience in the past year:
| Metric | Value |
|---|---|
| Current Stock Price | $46.75 |
| 52-Week High | $55.00 |
| 52-Week Low | $40.00 |
| Market Capitalization | $6.2 Billion |
| Dividend Yield | 1.2% |
Recent Changes in Ownership
In 2024, there have been notable changes in the ownership landscape:
- Vanguard increased its stake by 2% over the last quarter.
- BlackRock reduced its stake by 1.5% as part of a portfolio rebalancing.
- Insider buying activity has increased, particularly among senior executives, reflecting confidence in the company’s future.
Conclusion
Overall, National Instruments Corporation's ownership is predominantly held by institutional investors, with significant insider ownership demonstrating a strong alignment of interests between management and shareholders. The company’s stock performance, coupled with strategic ownership adjustments, positions it favorably within the technology sector.
National Instruments Corporation (NATI) Mission Statement
Overview of Mission Statement
The mission of National Instruments Corporation (NATI) is to enable engineers and scientists to solve the world’s greatest engineering challenges. The company aims to provide a comprehensive platform that allows for the integration of hardware and software, fostering innovation across various industries.
Core Values and Objectives
- Commitment to Innovation: NATI continuously invests in research and development to enhance its product offerings.
- Customer-Centric Approach: The company emphasizes understanding customer needs to deliver tailored solutions.
- Integrity and Responsibility: NATI strives to conduct its business with ethical practices and social responsibility.
- Collaboration and Partnership: Building strong relationships with customers and partners to drive mutual success.
Financial Performance Metrics
As of June 30, 2023, National Instruments reported the following key financial metrics:
| Metric | Q2 2023 | Q2 2022 | Change (%) |
|---|---|---|---|
| Net Sales (in millions) | $416.8 | $395.5 | 5% |
| Gross Profit (in millions) | $298.3 | $268.0 | 11.3% |
| Operating Income (in millions) | $40.9 | $20.8 | 96.5% |
| Net Income (in millions) | $30.5 | $12.4 | 145% |
| Earnings per Share (EPS) | $0.23 | $0.09 | 155% |
Market Position and Strategy
NATI operates in a highly competitive market, focusing on the following strategies to maintain its leadership:
- Expanding Product Portfolio: Continuous development of new products and solutions tailored to emerging technology trends.
- Global Market Reach: Leveraging international markets to increase sales and customer engagement.
- Strategic Acquisitions: Targeting acquisitions that complement existing technologies and expand capabilities.
Recent Developments
In 2023, National Instruments made significant strides in leveraging its mission through:
- Investment in AI and machine learning technologies to enhance product functionalities.
- Partnership with educational institutions to foster STEM education and innovation.
- Launch of new product lines that integrate IoT capabilities for smarter solutions.
Conclusion of Mission Alignment
National Instruments Corporation's mission statement is deeply embedded in its operational strategies and financial performance. The company’s commitment to innovation, customer satisfaction, and ethical practices drives its success and aligns with its core mission to empower engineers and scientists.
How National Instruments Corporation (NATI) Works
Company Overview
National Instruments Corporation (NATI) specializes in automated test equipment and virtual instrumentation software. The company is well-known for providing solutions that enhance productivity in engineering and scientific research.
Financial Performance
As of June 30, 2023, National Instruments reported a net income of $30.5 million for the second quarter, compared to $12.4 million in the same period of the previous year. For the first half of 2023, the net income was $77.4 million compared to $37.7 million in 2022.
Revenue Breakdown
The total net sales for the three months ended June 30, 2023, amounted to $416.8 million, reflecting a 5% increase from $395.5 million in Q2 2022. The breakdown by region is as follows:
| Region | Q2 2023 Net Sales (in millions) | Q2 2022 Net Sales (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Americas | $187.5 | $160.4 | $27.1 | 17% |
| EMEA | $111.9 | $96.7 | $15.2 | 15.7% |
| APAC | $117.3 | $138.4 | ($21.1) | (15.2%) |
| Total | $416.8 | $395.5 | $21.3 | 5% |
Cost of Sales and Gross Profit
For the six months ending June 30, 2023, the total cost of sales was $251.2 million, leading to a gross profit of $602.4 million, which is an increase from $534.1 million in the previous year. The gross profit margin increased to 70.6% from 68.4%.
Operating Expenses
NATI's operating expenses for the three months ended June 30, 2023, totaled $257.4 million, compared to $247.3 million in the same period of 2022. The breakdown is as follows:
| Expense Type | Q2 2023 (in thousands) | Q2 2022 (in thousands) | Change |
|---|---|---|---|
| Sales and Marketing | $123,101 | $124,908 | (1%) |
| Research and Development | $83,801 | $85,589 | (2%) |
| General and Administrative | $50,504 | $36,772 | 37% |
| Total Operating Expenses | $257,406 | $247,269 | 4.6% |
Cash Flow and Liquidity
As of June 30, 2023, National Instruments reported cash and cash equivalents of $139.2 million. The cash flow from operating activities for the six months ended June 30, 2023, was $74.9 million, compared to ($44.9 million) in the same period of 2022.
Debt and Interest Expenses
The interest expense for the three months ended June 30, 2023, was approximately $9.7 million, an increase from $2.5 million in the same period of the previous year. For the six months ended June 30, 2023, the interest expense totaled $18.1 million, compared to $3.8 million in 2022.
Stockholder Equity
The total stockholders' equity as of June 30, 2023, amounted to $1.2 billion, with common stock shares outstanding at 132.8 million.
Acquisitions
On March 6, 2023, National Instruments acquired the remaining 75.1% of SET for approximately $24 million, with an estimated goodwill of $18.7 million recognized as part of the acquisition.
Effective Tax Rate
The effective tax rate for the three months ended June 30, 2023, was 6%, down from 28% in the same period of the previous year, reflecting changes in global income tax positions and benefits from R&D activities.
How National Instruments Corporation (NATI) Makes Money
Revenue Streams
National Instruments Corporation generates revenue primarily through the sale of products and software solutions used for automated test and measurement. The company's revenue is segmented into two main categories: product sales and software maintenance sales.
| Category | Q2 2023 Revenue (in millions) | Q2 2022 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Product Sales | $379.4 | $354.8 | 7% |
| Software Maintenance Sales | $37.4 | $40.7 | (8)% |
| Total Net Sales | $416.8 | $395.5 | 5% |
Geographic Breakdown of Sales
The geographic distribution of National Instruments' sales is critical for understanding its market dynamics. The following table details net sales by region for Q2 2023 and Q2 2022.
| Region | Q2 2023 Sales (in millions) | Q2 2022 Sales (in millions) | Change (%) |
|---|---|---|---|
| Americas | $187.5 | $160.4 | 17% |
| EMEA | $112.0 | $96.7 | 16% |
| APAC | $117.3 | $138.4 | (15)% |
| Total | $416.8 | $395.5 | 5% |
Gross Profit Analysis
National Instruments reported a gross profit of $298.3 million for Q2 2023, reflecting a gross profit margin of 71.6%, compared to 67.8% in Q2 2022.
| Metric | Q2 2023 | Q2 2022 |
|---|---|---|
| Gross Profit (in millions) | $298.3 | $268.0 |
| Gross Margin (%) | 71.6% | 67.8% |
Operating Expenses
For the first half of 2023, National Instruments incurred operating expenses of $504.6 million, with the following breakdown:
| Expense Type | Q2 2023 (in millions) | Q2 2022 (in millions) |
|---|---|---|
| Sales and Marketing | $123.1 | $124.9 |
| Research and Development | $83.8 | $85.6 |
| General and Administrative | $50.5 | $36.8 |
| Total Operating Expenses | $504.6 | $482.8 |
Net Income
National Instruments achieved a net income of $30.5 million for Q2 2023, a significant increase compared to $12.4 million in Q2 2022.
| Period | Net Income (in millions) | EPS (Basic) | EPS (Diluted) |
|---|---|---|---|
| Q2 2023 | $30.5 | $0.23 | $0.23 |
| Q2 2022 | $12.4 | $0.09 | $0.09 |
Cash Flow and Liquidity
As of June 30, 2023, National Instruments reported cash and cash equivalents of $139.2 million. The company's cash flow from operating activities for the six months ended June 30, 2023, was $74.9 million.
| Cash Flow Activity | 2023 (in millions) | 2022 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $74.9 | ($44.9) |
| Net Cash Used in Investing Activities | ($63.2) | ($100.0) |
| Net Cash Used in Financing Activities | ($12.2) | $48.8 |
| Cash and Cash Equivalents at End of Period | $139.2 | $110.9 |
Summary of Recent Acquisitions
In March 2023, National Instruments acquired a 75.1% ownership interest in SET for approximately $24 million, enhancing its capabilities in aerospace and defense test systems.
| Acquisition | Acquisition Date | Cash Consideration (in millions) |
|---|---|---|
| SET | March 6, 2023 | $24 |
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