National Instruments Corporation (NASDAQ:NATI) Q1 2019 Earnings Conference Call Transcript
Apr 30, 2019 • 05:00 pm ET
Good day, ladies and gentlemen, and thank you for standing by. Welcome to National Instruments First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) Later, we will have a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded.
Now, it's my pleasure to turn the call to Marissa Vidaurri, Head of Investor Relations.
Good afternoon. Thank you for joining our Q1 2019 earnings call. Speakers today are Alex Davern, Chief Executive Officer; Eric Starkloff, President and Chief Operating Officer; and Karen Rapp, Chief Financial Officer. We will start with an update on our business and then take your questions.
During the course of this conference call, we shall make forward-looking statements, including statements regarding future growth and profitability, our focus, plans, vision and strategic direction, our customers continuing to innovate, our cash deployment and our guidance for revenue and EPS for Q2. We wish to caution you that such statements are just predictions and that actual events or results may differ materially, and could be negatively affected by numerous factors, including any weakness in global economies, fluctuations in revenue from our large customers, foreign exchange fluctuations, expense overruns, manufacturing inefficiencies, adverse effective price changes and effective tax rates. We refer you to the documents the Company files regularly with the Security and Exchange Commission, including the Company's Annual Report on Form 10-K filed on February 21, 2019. 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 Chief Executive Officer, Alex Davern.
Thank you, Marissa. Good afternoon, everyone and thank you for joining our first quarter conference call. Key financial updates from today are, revenue of $311 million with backlog up $10 million in Q1. Record non-GAAP net income for first quarter up 21% year-over-year and we repurchased approximately 1 million shares of common stock at an average price of approximately $45 per share.
I'm proud of our team's execution in the first quarter despite a weakening industrial economy, especially in Europe. Orders were slightly ahead of our expectations in Q1, but revenue came in below the midpoint of guidance. Backlog increased by $10 million as a result of timing and mix of orders in Q1. Despite the shortfall in revenue, we achieved the midpoint of our earnings guidance, as a result of strong gross margins and the ability to scale our operating expenses.
In Q1 2019, the value of the Company's total orders was up 1% year-over-year with orders over $20,000 being up 6% year-over-year as we saw a continued growth in our system level business. And orders under $20,000 were down 6% year-over-year, in line with the weakening global PMI and the stronger dollar. Combined, the impact of foreign exchange, changes and the impact of the change software revenue recognition standard reduced our comparable orders by $12 million year-over-year, or 4%. While we're cautious about