National Instruments Corporation (NASDAQ:NATI) Q1 2016 Earnings Conference Call - Preliminary Transcript
Apr 28, 2016 • 05:00 pm ET
Good day everyone and welcome to the National Instruments First Quarter 2016 Earnings Conference Call. Today's call is being recorded, you may refer to your press packet for the replay dial in number and pass code. With us today are David Hugley, Vice President and General Counsel; Alex Davern, COO and CFO; Dr. James Truchard, Co-Founder and CEO; and John Graff, Vice President of Marketing for opening remarks. I would like to turn the call over to Mr. David Hugley, Vice President General Counsel. Please go ahead, sir.
Good afternoon. During the course of this conference call, we shall make forward looking statements including statements regarding gaining market share commitment to our leverage plan, our guidance for revenue and earnings per share for the second quarter of 2016 and positioning an NI to become the leader and tested measurement.
We wish to caution you that statements are just predictions and that actually denser results may differ materially. We refer you to the documents the company files regularly with the Securities and Exchange Commission. Including the company's most recent annual report on form 10-K file February 19, 2016. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in our forward looking statements.
With that, I will now turn it over to the Chief Executive Officer of National Instruments Corporation, Dr. James Truchard.
Thank you, David. Good afternoon. And thank you for joining us. Our key points for Q1 are for revenue growth, growth and artists for PSI modular instrumentation. And they expanded market share. In Q1 we saw continued core revenue growth, despite the decline in global PMI, and the slowdown in the wireless supply chain. I remain confident in our business model and our ability to drive long term success for NI and our shareholders. The depth of our software position and the strength of our ecosystem that allowed us to continue to grow market share in the test and measurement market, being able to measure or generate almost any signal and provide control with the same platform gives us a unique position to foster the ecosystem required to address the challenges of the convergence of technology and applications, such as industrial IoT, smart mobile devices, and the connected car.
In our call today, Alex Davern, our Chief Operating Officer will review our financial results. John Graff, Vice President of Marketing will discuss our business. And I will close with a few comments. Before we open up for your question. Alex?
Good afternoon and thank you for joining us today. Today we reported Q1 revenue of $287 million down 1% from Q1 of 2015. Core revenue which we define as GAAP revenue excluding the impact of our largest customer and the impact of foreign currency exchange was up 3.4% year-over-year in Q1. As a reminder, a reconciliation of our GAAP and core revenue is included in our earnings press release.
Deferred revenue increased by $4 million in Q1. Non GAAP gross