National Instruments (NI) announced Q1 revenue of $289 million, up 2 percent year over year (YOY) in U.S. dollar terms and up 8 percent YOY in constant currency terms. In Q1 2015, NI received $3 million in orders from its largest customer compared with $12 million in orders from this customer in Q1 2014. Excluding NI's largest customer, the company's total orders were up 2 percent for the quarter with orders under $20,000 down 5 percent YOY; orders between $20,000 and $100,000 down 4 percent YOY; and orders above $100,000 up 37 percent YOY.

"While we continue to adapt to the impact of the U.S. dollar on our results, I am optimistic about our long-term position in the industry and our ability to continue to gain market share," 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 Q1 was $15 million, with fully diluted earnings per share (EPS) of $0.12, and non-GAAP net income was $23 million, with non-GAAP fully diluted EPS of $0.18. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $37million, or $0.29 per share in the first quarter.

In Q1, GAAP gross margin was 74 percent and non-GAAP gross margin was 75 percent. Total GAAP operating expenses were $193 million, up 2 percent YOY. Total non-GAAP operating expenses were $186 million, up 2 percent YOY.

GAAP operating margin was 7 percent in Q1, with GAAP operating income of $20million, down 15 percent YOY. Non-GAAP operating margin was 11 percent in Q1, with non-GAAP operating income of $31million, down 10 percent YOY.

The company's non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles and acquisition transaction costs and restructuring charges. Reconciliations of the company's GAAP and non-GAAP results are included as part of this news release.

Geographic revenue in U.S. dollar terms for Q1 2015 compared with Q1 2014 was up 3 percent in the Americas, down 4 percent in Europe, up 5 percent in East Asia and up 6 percent in Emerging Markets. In constant currency terms, revenue was up in all regions, with the Americas up 4 percent, Europe up 10percent, East Asia up 7 percent and the Emerging Markets up 19 percent.

As of March 31, 2015, NI had $443 million in cash and short-term investments. The NI Board of Directors approved a quarterly dividend of $0.19 per share payable on June 1, 2015, to stockholders of record on May 11, 2015.

Guidance for Q2 2015

"Despite a challenging first quarter due to the rapid strengthening of the U.S. dollar, I am pleased to see all regions delivering revenue growth on a constant currency basis. In Q2, we will continue 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."

The company expects to see a significant headwind on its U.S. dollar revenue growth for the rest of 2015 due to the impact of the strengthening of the U.S. dollar. Currently, NI expects this impact to reduce its YOY U.S. dollar revenue growth by approximately 700 basis points in Q2, so that its constant currency growth would be 7 percentage points higher than its U.S. dollar revenue growth. This estimate is based on current exchange rates and this estimate can change as exchange rates fluctuate over the rest of the quarter.

As a result, NI currently expects Q2 revenue to be in the range of $290 million to $320 million. Included in its revenue guidance is an expectation that revenue from NI's largest customer will be between $5 million and $10 million in Q2 and Q3, compared to $20 million and $17 million in Q2 and Q3 last year respectively. At the midpoint, NI's guidance represents a 2 percent YOY revenue decline in U.S. dollars and an approximately 5 percent YOY revenue growth in constant currency. The company currently expects that GAAP fully diluted EPS will be in the range of $0.14 to $0.26 for Q2, with non-GAAP fully diluted EPS expected to be in the range of $0.20 to $0.32.

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 periods ending March 31, 2015 and 2014, on a GAAP and non-GAAP basis. NI is also providing guidance on its non-GAAP fully diluted EPS.

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 and restructuring 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 also discloses the company's EBITDA and EBITDA diluted EPS for the three-month periods ending March 31, 2015 and 2014. 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 and EBITDA diluted EPS to GAAP net income and GAAP diluted EPS is included with this news release.

For more information visit www.ni.com.