National Instruments has reported quarterly revenue for Q3 2010 of $220million, representing a 34 per cent year-on-year increase and a 4 per cent sequential increase. For the first nine months of 2010, the company reported a 31 per cent year-on-year increase in revenue and a significant year-on-year increase in operating margins.
Net income for Q3 2010 was $28.1million, with GAAP fully diluted earnings per share (EPS) of $0.36. Non-GAAP net income was $32.3million, with non-GAAP fully diluted EPS of $0.41. GAAP and non-GAAP operating income set a record for a third quarter, and operating margins improved significantly over Q3 2009. The company's non-GAAP results exclude the impact of both stock-based compensation and the amortization of acquisition-related intangibles. Reconciliations of the company's GAAP and non-GAAP results are included as part of this news release.
In Q3, GAAP gross margin increased 1.9 percentage points year-over-year to 76.5 per cent. Non-GAAP gross margin increased by 1.7 percentage points year-over-year to 77.0 per cent.
James Truchard, co-founder, president and CEO, comments: "I am extremely pleased with our Q3 performance and believe our long-term focus on innovation and operational excellence has helped differentiate NI from other players in the markets we serve. I believe the many new opportunities created by our expanding product and services portfolio, together with the strong business momentum we saw in Q3, validate our strategy in the marketplace."
NI virtual instrumentation and graphical system design product sales were up 34 per cent year-over-year. NI instrument control product sales were up 25 per cent year-over-year but remain 11 per cent below Q3 2008 levels. Product revenue was $203million, up 34 per cent year-over-year, and software maintenance revenue was $17million, up 34 per cent year-on-year.