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© cacaroot dreamstime.com Business | July 30, 2015

NI expects currency headwinds to drag revenues in Q3

National Instruments' Q2 revenue amounted to USD 302 million, down 3 percent year over year in USD terms and up 3 percent year over year in constant currency terms.
In Q2 2015, NI received USD 10 million in orders from its largest customer compared with USD 27 million in orders from this customer in Q2 2014. Excluding NI's largest customer, the company's total orders were down 1 percent for the quarter with orders under USD 20,000 down 2 percent year over year; orders between USD 20,000 and USD 100,000 down 5 percent year over year; and orders above USD 100,000 up 9 percent year over year.

"The strength of our business model allowed us to adapt to the impact of the stronger U.S. dollar during Q2, allowing us to deliver record non-GAAP operating profit for a second quarter," said Dr. James Truchard, NI president, CEO and cofounder. "I am confident we are building the new product pipeline, channel and operational excellence necessary to drive the long-term growth and profitability of the company. I am particularly excited about our early success in 5G wireless, where our innovative technology platform is enabling researchers to prototype algorithms for next-generation wireless networks."

GAAP net income for Q2 was USD 25 million, and non-GAAP net income was USD 32 million. EBITDA was USD 53 million.

GAAP operating margin was 11 percent in Q2, with GAAP operating income of USD 35 million, up 8 percent year over year. Non-GAAP operating margin was 15 percent in Q2, with non-GAAP operating income of USD 45 million, up 6 percent year over year.

"Despite significant headwinds related to the strength of the U.S. dollar and the decline in the Global PMI, I am pleased to see the company deliver record non-GAAP operating profit for a second quarter. This past quarter, we continued to execute on our long-term strategy for mitigating the impact of the strengthening U.S. dollar," said Alex Davern, NI COO and CFO. "We expect to continue to experience a drag on our revenue through Q3 because of currency headwinds and lower orders from our largest customer; however, entering Q4, we expect to have more favorable compares on both factors, which should allow the strength of our broad-based business to show through."
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