QUOTE AND NEWS
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 -...
The Hindu Business Line  Jul 16  Comment 
Texas-headquartered electronic systems manufacturer National Instruments has introduced a programmable chip with a Linux operating system, a device that can automate processes in automobile...
Forbes  Jun 30  Comment 
National Instruments Corp. (NASDAQ:NATI) has been primarily known by engineers and scientists as one of the premiere test and measurement equipment companies. In my nearly 25 years experience in high tech, I’ve spent a lot of time in many labs,...
Cloud Computing  Jun 30  Comment 
TreeHouse Interactive (www.treehousei.com), the technology leader in SaaS-based partner relationship management (PRM) and marketing automation platform (MAP) solutions, announced today the availability of the latest...
The Hindu Business Line  Jun 24  Comment 
Nasdaq-listed National Instruments has launched VirtualBench, an all-in-one devices testing instrument that integrates a mixed-signal oscilloscope, function generator, digital multimeter, programm...
The Hindu Business Line  Jun 20  Comment 
US-based computer hardware and software applications supplier National Instruments (NI) said that it will be betting big on India, especially in the field of education. The company said it would t...
Market Intelligence Center  Jun 20  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with National Instruments Corp (NATI) that should provide a 3.34% return in just 183 days. Sell one Dec. '14 call at the $30.00 level for each 100...
Cloud Computing  Jun 12  Comment 
TreeHouse Interactive (www.treehousei.com), the technology leader in SaaS-based partner relationship management (PRM) and marketing automation platform (MAP) solutions, is pleased to present its next webinar in the...
Market Intelligence Center  Jun 11  Comment 
For a hedged play on National Instruments Corp (NATI), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Sep. '14 $30.00 covered call for a net debit in the $28.88 area. That is also the break-even stock price for the...




 

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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