2. Safe Harbor Warning
During the course of this presentation, we may make
projections or other forward-looking statements regarding
future events or the future financial performance of the
company. We wish to caution you that such statements are
just predictions and that actual events or results may differ
materially. We refer you to the documents the company files
regularly with the Securities and Exchange Commission,
specifically the company's most recent Form 10-K and 10-Q.
These documents contain and identify important factors that
could cause the actual results to differ materially from those
contained in our projections or forward-looking statements.
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3. Profile
• Leaders in Computer-based
Net Revenue in Millions
Record Revenue of
Measurement and Automation
$821 Million in 2008
• Long-term Track Record of
Growth and Profitability
• $821M Revenue in 2008
• $158 M Revenue in Q1 2009
•More than 5,000 employees;
operations in 40+ countries
•Fortune’s 100 Best Companies to
Work For 10th Consecutive Year
• Cash and short-term investments
$241 million
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4. What We Do
Low-Cost Modular Productive Software Highly Integrated
Measurement and Development Tools Systems Platforms
Control Hardware
Used By Engineers and Scientists for Test, Design and Control
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5. Empowering Users Through Software
CERN Large Hadron Collider
LEGO Mindstorms NXT
“the most powerful instrument
“the smartest, coolest toy
on earth”
of the year”
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6. NI’s Increased Value to Customers
Control Traditional Complete
Simple PC-Based
Instruments System Solutions
Measurements
PXI System Platform
LabVIEW
Software
Compact FieldPoint
System Platform
LabVIEW Real-Time
GPIB Instrument Control
CompactRIO Industrial
PC Data
System Platform
Acquisition
$10 K-$100 K+
$1 K - $15 K
< $2 K
1980s 1990s 2000s
Typical Order Size
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7. Test and Measurement – a $12 Billion Market
General Purpose Test Communications Test Semiconductor ATE
• Products used in • Communications • Manufacturing focused,
electronic design and test equipment design and Semiconductor and board
test test
•Measurement needs
•Trend to software-based • Low volume, high dollar
increasingly met by
commercial technologies systems and increasing systems sales (cyclic)
complexity
Growing market share Large NI growth
in automated test potential NI is an OEM supplier
$4.2B $3.9B
$3.8B
Source: Frost and Sullivan, 2006
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8. Today’s Challenges: The Traditional Approach
Function
Programmable Switch
Generator
Oscilloscope
Communications Analyzer
Pattern Generator
Logic Analyzer
Power Supply
Spectrum Analyzer
LCR Meter
DMM
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12. Graphical System Design Examples
In-Vehicle Data Acquisition
Machine Monitoring
Machine Control
• In-Vehicle Data Acquisition
Packaging/Processing • Machine Condition Monitoring
– Automobiles, motorcycles,
High-speed motion control, – Bearing order analysis, lubrication
recreational vehicles, research
batch control, discrete control monitoring, cooling, combustion, … aircraft, trains
Heavy Machinery Control • Mobile/portable DSA, NVH • Engine and ECU test cells
Real-time signal processing and
– Noise, vibration, harshness, dynamic – HIL testing of engines and engine
control of power electronics, signal analysis, acoustics controllers, sensor simulation using
hydraulic systems
FPGA
• Distributed Acquisition
Semiconductor/Biomed
• Rapid Control Prototyping
– Central controller with distributed I/O
Custom motion and vision
nodes over Ethernet/wireless
inspection, material handling – Automotive/aerospace control
prototyping
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13. Diversity of Applications
No industry is greater than 15% of revenue
Academic Computers
Automotive Semiconductors Electronics
Telecom
Advanced Food
ATE Petrochemical Textiles
Military/Aerospace
Research Processing
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15. Strong Track Record of Growth and Profitability
Record Revenue of $821 Million in 2008
Net Revenue in Millions
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16. Success Defined
• Goals
Sustained revenue growth >20%
Sustained operating income ~18%
• Strategies for the 2000’s economic era
Get R&D to 16% to fund the long term
Gross Margin ~76%
Get operating Income back to 18%
Be able to grow >10% through moderate industrial recessions
Invest incremental leverage to drive revenue growth >20%
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17. Strategic Plan for the Current Environment
Mitigating threats and exploiting opportunities created by the recession
Prudent Financial Management Focusing on the Long-term
• Strong cash position • Deepen customer relationships
• Maintaining stable gross margins • Continue strategic R&D investment
• Flexible manufacturing cost structure • Acquire key technical expertise
• Use strength to achieve lower component costs • Enter large new adjacent markets where our
disruptive technology offers significant cost
• Foster strong employee productivity and
savings over traditional solutions
innovation
• Serve our existing markets as they focus on
• Optimize operating expenses
efficiency gains and cost reduction.
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19. Growth in Strategic Product Revenues
Success with Virtual Instrumentation and Graphical System Design
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20. NI’s Revenue Compared to US Public T&M and Semi Test Companies*
*Agilent electronic measurements, Cognex, Keithley, LeCroy, LTX-Credence, Teradyne
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24. Non-GAAP Gross Margin
Reconciliation of the company’s GAAP and non-GAAP results can be found at
ni.com/pdf/nati/us/grossmarginreconciliation.pdf
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26. Financial Plan for the Current Environment
a prudent and realistic approach to the economy
TTaking
• Sustained investment in R&D
• Moderating field sales force expansion
• Budgeting for full year 2009 total operating expenses to decline 10%
year-over-year, compared to 14% YOY growth in 2008.
• Manage costs with a focus on balancing our short-term operational
needs while making the strategic investments that best ensure our
future success.
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