Austin-based National Instruments warned investors today that its sales so far this year were lower than expected, sending its share price plummeting in after-hours trading by nearly 9 percent.
The stock closed at $30.02 on Monday.
The company, which makes testing and measurement hardware and software systems, said in a written statement that its preliminary estimate for revenue in the first quarter is $288 million.
That's about $2 million below what the company told investors it might earn in January. More detailed financial information about its first quarter performance will be released later this month.
On January 28, National Instruments said it expected to earn between $290 million to $320 million in the first quarter, which would have been an improvement in year-over-year revenue growth. During a conference call with analysts, Chief Financial Officer Alex Davern said the company was poised for record revenue and profit this year.
In Monday's statement, the company cited "further weakness in the industrial economy" with the lowest global PMI (which is an economic indicator for manufacturing) in three years.
"Additionally, we saw a marked slow-down in our semiconductor accounts that are part of the wireless supply chain," the company said. "The weakness during the quarter was most pronounced in the Americas, with revenue down approximately 5 percent year-over-year."
The company also lowered its expectations for profit in the first quarter, saying it expected its earnings per share would be between 6 cents to 7 cents a share, with its non-GAAP earnings in the range of 14 to 15 cents a share.
Going forward, National Instruments said it will be "very disciplined in managing our expenses."
National Instruments employs 2,700 in the Austin area.
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