So, when will we see an economic recovery? We believe that we have seen the worst of it. And while we must rebuild from 2006 levels, we are expect a modest recovery in the coming years. The good news is that NI is in an even stronger position as we continue to take market share.
Purchasing Managers Index (PMI)
National Instruments often refers to the PMI which has been a good indicator of how our business will perform. The PMI began to decline in 2007, the deteriorated rapidly in 2008-09 with the severity of the economic downturn. But, over the last few months, the global PMI has begin to recover – becoming positive in Q3.
National Instruments Outlook
We have seen our business stabilize over the last several months. We believe that we have ‘hit the bottom’ and are beginning to rebuild from that new level. We saw a return to growth in Q3 and are anticipating sequential growth in Q4 as well.
And, as the economy recovers, we believe that we will be in an even stronger market position. We’ve continued to make strategic investments through this downturn and belive that we are actually gaining market share. So, we will reap the benefits of this position as the market returns.
Our Partner Business
As our system-level business returns, we expect our Alliance Partner business rebound and continue to grow as a percentage of our overall business. Those Alliance Partners that can successfully manage their business will be in a better position for growth.