National Instruments Corporation (NASDAQ:NATI) Q3 2020 Earnings Conference Call - Final Transcript
Oct 29, 2020 • 05:00 pm ET
because nothing else tells our customers how their products will actually perform in the real world.
We aim to make test a key enabler of product performance by integrating automated test systems and test data analytics to create a digital thread of data that goes across engineering and manufacturing workflows. I believe we are in a unique position to accomplish this goal. Today, we offer the most comprehensive set of driver level software, application software, test operation software and now data analytics in our industry.
We already serve applications from validation through production within each industry focus area, and we have solid expertise in the automation of testing in these systems. As the complexity of our customers' products continues to grow and scale, many of the manual steps will need to be automated by intelligent systems, and I believe we are in the best position to lead that change. This vision is the foundation of our growth strategy, and we are prioritizing our investments to achieve it.
We are focusing our execution on this vision through four strategic pillars: software, systems, services and a more streamlined buying process for our customers. Our plan includes the following. We'll elevate our software position through new offerings, particularly at the enterprise level, and we aspire to increase our software revenue from 20% of revenue today to 30% over time, shifting towards primarily recurring or subscription-based software.
We will expand on our system-level offerings to provide a higher level starting point for our customers and increase our share of wallet. We will increase services where we believe our expertise offers clear differentiation and value. And we will continue to streamline the process of doing business with NI. The focus to streamline, especially for our large base of smaller accounts is the next natural evolution in our sales transformation. We are focused on driving more efficiency in the ways we serve and support our broad-based customers while still helping to ensure their success.
Over the past several years, we have driven scale and leverage in our marketing, sales and support model. We are committed to both reducing our costs and improving the experiences of a large number of smaller accounts we serve. For these customers, we will continue to optimize how they engage with NI, including further utilizing our e-commerce for lower touch and evaluating where distribution can improve efficiency and customer reach. We will continue to focus our expert sales force on system-level opportunities in our top potential accounts.
We remain focused on driving growth through our strategy despite economic uncertainty and are aligning expenses with our expectations. Although we believe a macro tailwind is in our future, we are taking action now to better serve our customers while aligning the capacity needed to achieve our long-term goals. As part of these efforts, we have made the difficult but necessary decision to reduce our global workforce by approximately 9%, with most of that reduction in SG&A.
We believe these efforts will accelerate our growth