QUOTE AND NEWS
Market Intelligence Center  Feb 6  Comment 
National Instruments Corp (NATI) presents a trading opportunity that offers a 4.06% return in just 133 days. A covered call on National Instruments at the $30.00 level expiring on Jun. '15 offers an assigned return rate of 4.06% or 11.14%...
Motley Fool  Jan 29  Comment 
The maker of scientific tools for the test and measurement industry got a nice bump in its fourth-quarter results; but will the good times last?
Market Intelligence Center  Jan 8  Comment 
After closing Wednesday at $30.29, National Instruments Corp (NATI) presents an attractive opportunity to get a 3.66% return in just 71 days, which is an annualized return of 18.83% (for comparison purposes only). To enter this trade, sell one...
Forbes  Nov 6  Comment 
One would have to have been living under a rock to not realize how the Internet of Things (IoT) is changing the world around us.  But what you may not consider is how the growing need for devices to be both connected and intelligent impacts the...
DailyFinance  Sep 29  Comment 
NI (Nasdaq: NATI), the provider of solutions that enable engineers and scientists to solve the world’s greatest engineering challenges, today announced a compact solution for high-speed vision applications. The NI CVS-1459RT...
SeekingAlpha  Jul 30  Comment 
National Instruments Corporation (NASDAQ:NATI) Q2 2014 Earnings Conference Call July 29, 2014 05:00 AM ET Executives David Hugley - VP, General Counsel and Secretary James Truchard - President, CEO and Co-founder Alex Davern -...




 

National Instruments Corporation (NATI) is a supplier of products that engineers and scientists use in a range of industries. These industries consist of a diverse market for design, control and test applications. The company provides graphical application software and modular hardware to create measurement, automation and embedded systems. Its segment is based on geographic regions, which include the Americas, Europe and Asia Pacific.[1] National Instruments' growth comes primarily from Asia while Europe and America provide a stable source of revenue. The test and measurement industry is mature, with a 90% market penetration of the industry's target audience.[2]

Business Growth

While the most recent recession was one of the most challenging financial periods in history, National Instruments continued to invest in research and development and its field sales force, which has produced a pipeline of innovative products and strengthened relationships with key customers. Due to a commitment to maintaining its growth in its core business, NATI has improved its net margin from 2.5% in 2009 and 10.3% in 2008 to 12.5% in 2010.

Key Trends and Forces

Growth is primarily in Asia

About 30% of NATI's revenues come from Asia.[3] Asia has lower overhead costs, and it is also convenient to be located near major electronics markets such as Japan and China. The large growth potential in China could be a major factor for semiconductor demand in years to come. In comparison to a 22% growth in America and 24% growth in Europe, NATI's Asian business grew at 45%.[3]

Industry Maturation and Macroeconomic Slowdowns

Overall, this diversified business model is expected to net gains, and is expected act as a buffer against economic slowdowns or changes in customer industries. However, the test and measurement industry is relatively mature, with greater than 90% penetration in many of its market segments.[2] Its growth will probably derive mainly from the growth of its end markets, estimated to be 6.5% per year in the long term.[2] While National Instruments' diversified model will help the company weather any moderate economic slowdowns, it, like many other companies in any industry, would feel the effects of a significant economic slowdown.

Competition

National Instruments' competitors are:

Agilent Technologies (A) competes with National Instruments on all of its segments. The others have divisions that compete with National Instruments. Agilent Technologies and National Instruments are the largest companies focused only in the test and measurement industry.

References

  1. Reuters: Company Profile - NATI
  2. 2.0 2.1 2.2 Dr. Rajender Thusu, Team Leader-Sensors Measurement & Instrumentation Practice, Frost & Sullivan -- Test & Measurement World, 8/1/2010
  3. 3.0 3.1 Wikinvest SEC Files: NATI 2010 10-K, Item 8
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