Company Delivered on Operating Leverage Target for 2014 and Increases Dividend

Q4 2014 Highlights

• Record quarterly revenue of $333 million
• Revenue up 11 percent year-over-year in U.S. dollar terms and 13 percent in constant currency terms
• Strong revenue growth in LabVIEW, PXI, RF and CompactRIO products
• GAAP operating income up 39 percent year-over-year
• Non-GAAP operating income up 30 percent year-over-year
• Fully diluted GAAP EPS of $0.34 and fully diluted non-GAAP EPS of $0.40
• EBITDA of $73 million or $0.57 per share
• Cash and cash equivalents of $471 million, up $78 million from Dec. 31, 2013

AUSTIN, Texas — (BUSINESS WIRE) — January 29, 2015 — NI (Nasdaq: NATI) today announced Q4 revenue of $333 million, up 11 percent year-over-year. The company’s total orders were up 13 percent for the quarter with orders under $20,000 up 5 percent year-over-year; orders between $20,000 and $100,000 up 13 percent year-over-year; and orders above $100,000 up 36 percent year-over-year. In Q4 2014, NI recognized $7 million in revenue from its largest customer, compared with $4 million recognized in Q4 2013.

GAAP net income for Q4 was $43 million, with fully diluted earnings per share (EPS) of $0.34, and non-GAAP net income was $51 million, with non-GAAP fully diluted EPS of $0.40. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, was $73 million, or $0.57 per share in the fourth quarter.

In Q4, GAAP gross margin was 75 percent and non-GAAP gross margin was 76 percent, up 10 basis points from Q4 2013. Total GAAP operating expenses were $194 million, up 4 percent year-over-year. Total non-GAAP operating expenses were $187 million, up 5 percent year-over-year.

GAAP operating margin was 17 percent in Q4, with GAAP operating income of $55 million, up 39 percent year-over-year. Non-GAAP operating margin was 20 percent in Q4, with non-GAAP operating income of $66 million, up 30 percent year-over-year.

The company’s non-GAAP results exclude the impact of stock-based compensation, amortization of acquisition-related intangibles and acquisition transaction costs and restructuring charges. Reconciliations of the company’s GAAP and non-GAAP results are included as part of this news release.

“We have built and continue to run our company for long-term, sustainable growth,” said Dr. James Truchard, NI president, CEO and cofounder. “Over the course of several decades, we have successfully managed the business through various economic and currency cycles, and we are prepared to navigate the near-term disruptions resulting from currency fluctuations. Our differentiated platform continues to deliver on our strategy of reducing the costs of our customers’ systems, while growing our business in the markets we serve.”

Geographic revenue in U.S. dollar terms for Q4 2014 compared with Q4 2013 was up 5 percent in the Americas, up 8 percent in Europe, up 24 percent in East Asia and up 11 percent in Emerging Markets. In constant currency terms, revenue was up 10 percent in Europe, up 26 percent in East Asia and up 23 percent in Emerging Markets.

As of Dec. 31, NI had $471 million in cash and short-term investments, up $78 million for the year. The NI Board of Directors also approved an increase in the quarterly dividend from $0.15 per share to $0.19 per share on the company’s common stock payable on March 9, 2015, to stockholders of record on Feb. 17, 2015.

FY 2014 Highlights

• Record revenue of $1.24 billion, up 6 percent year-over-year
• Record new product revenue
• Record fully diluted GAAP EPS of $0.99, up 54 percent year-over-year
• Record non-GAAP fully diluted EPS of $1.22, up 39 percent year-over-year
• EBITDA of $213 million, or $1.67 per share
• Dividends paid of $76 million, or $0.60 per share

Full-year 2014 revenue was $1.24 billion, up 6 percent year-over-year. GAAP net income for 2014 was $126 million, with fully diluted GAAP EPS of $0.99, and non-GAAP net income was $156 million, with fully diluted EPS of $1.22.

Guidance for Q1 2015