Shares of NI (NATI -2.71%), formerly National Instruments, slumped on Friday after the provider of measurement and automation products reported its second-quarter results. While the company beat analyst estimates for earnings, revenue declined by more than expected. The stock was down about 11.3% at 11:30 a.m. EDT.
NI reported second-quarter revenue of $301 million, down 10% year over year and about $3.5 million below the average analyst estimate. Revenue slumped by 8% on an organic basis. Product revenue was down 11.2% to $266.3 million, while software maintenance revenue was up 1.8% to $35.1 million.
Non-GAAP (adjusted) earnings per share came in at $0.26, down from $0.35 in the prior-year period and $0.01 higher than analysts were expecting. Adjusted gross margin declined by 3 percentage points to 74.4%.
For the third quarter, NI expects to produce adjusted revenue between $285 million and $325 million. That figure excludes the impact of purchase price accounting related to acquisitions. Adjusted EPS is expected between $0.14 and $0.28.
NI's management is optimistic that the company can ride out the current downturn. "I believe we are in a stronger position strategically as compared to past industrial recessions with a focus on the parts of the market where our customers continue to invest," said CEO Eric Starkloff in a press release.
Including Friday's plunge, shares of National Instruments are down about 21% since the start of the year.