Amid increased demand for test and measurement equipment for LTE networks, three companies in the testing space reported solid results.
National Instruments announced record annual and quarterly income for the fourth quarter of 2012. Revenue for the quarter was $300 million, up eight percent year-over-year on a GAAP basis, with gross margin of 75.2 percent. Revenue for the year was $1.14 billion, up 12 percent year-over-year, with net income for the year of $90 million.
The company reported EBITDA of $45 million and net income of $21 million for the quarter.
NI noted that its business is highly diversified; no single area constitutes more than 15 percent of its business, including its wireless and communications test and measurement products and its semiconductor unit. The company said that its 2013 strategic goals include sustaining its investments in research and development and field sales; broadening and deepening customer relationships; and enhancing its service offerings and partner networks.
JDSU ended its second fiscal quarter ending Dec. 29, 2012 with net revenue of nearly $430 million, and net income of $4.1 million.
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Across the company’s three operating segments, communications test and measurement equipment was its largest net revenue producer, generating $195.4 million in the quarter; that was down slightly from the same period in 2011. Test and measurement contributed $35.3 million in operating income, up from $28 million in the quarter of 2011. Communications and commercial optical products generated $185.8 million in the quarter, up from $163.2 million in the prior year’s fiscal second quarter. The remaining $48.2 million in net revenue came from JDSU’s optical security and performance products.
Tom Waechter, president and CEO of JDSU, said that the company is “pleased with the progress we’ve made in aligning our product portfolio with customer spending priorities, resulting in a high percentage of revenue from new products and a positive impact on financial results. We are well-positioned for growth opportunities in 2013.”
Anritsu Corp. noted in its results that it saw increased demand for telecom testing equipment during its fiscal third quarter ending Dec. 31, and a subsequent rise in segment revenue of 1.7 percent year-over-year. The company noted that it also focused on investment in research and development for future business expansion, and on strengthening customer support; operating profit was down 3.2 percent from the same period in the previous year.
Sixty percent of Anritsu’s test and measurement sales are in the Asia-Pacific region, with half that figure in Japan. The Americas account for about 25 percent, according to the company.
“In particular, development demand for LTE, smartphone and tablet development, markets for various manufacturing applications, frequency realignment, and maintenance investment for improving the connection quality of wireless networks are the growth drivers,” CEO and President Hirokazu Hashimoto noted in his presentation to investors.