NI annual revenue down 12% but high R & D investment continues

Emerson reported earnings today, with it coming in above expectations.  Test & Measurement (formerly reported as NI) is gradually being integrated in Emerson’s metrics.

Following are quotes regarding National Instruments from the earnings call:

“Test & Measurement, which was excluded from the underlying metric, contributed $1.46 billion to our net sales, down 12% for the year and within our expectations.”

“Test & Measurement delivered an adjusted segment EBITDA margin of 24%, including the realization of $100 million of synergies”

“Test & Measurement exceeded our initial expectations and delivered $0.45 (earnings per share) as increased and accelerated synergies offset lower than originally expected sales volume.”

“Emerson was recently awarded a large enterprise contract for Test & Measurement software with a semiconductor company that is a leader in the GPU space driving the proliferation of AI. This multiyear contract will support an enterprise-wide semiconductor and electronics production analytics platform to help maximize this customer’s production capacity and product quality.”

“…our Test & Measurement business will benefit from further synergy actions in the year, and we are now targeting $200 million by year three from our previous target of $185 million due to faster execution of our overall synergy plan.”

“Both Test & Measurement and AspenTech spent around 20% of their sales on RD&E and growth opportunities in these businesses, which is a reflection of our commitment to realize these growth opportunities.”

The entire Earnings Call transcript with Q & A can be read at here.

The official press release and associated financial statements are here.