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We refer you to the documents the company files regularly with the Securities & Exchange Commission including the company’s most recent quarterly report on Form 10Q filed April 30, 2012. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in our forward-looking statements.With that, I will now turn it over to the Chief Executive Officer of National Instruments Corporation, Dr. James Truchard. James L. Truchard, Ph.D. Our key points today are record quarterly revenue, strong growth through large orders, and record quarter for PXI products through a highly differentiated approach with graphical system design. I am pleased to report continued strong revenue growth and an all time revenue record in Q2. We believe the resilience of our business despite a weakened global economy is validation of the value we deliver to our customers through a graphical system design approach to measurement and control. The strong growth in large orders and a record quarter for PXI products illustrate the mainstream acceptance of our technology and I remain optimistic about our position in the industry. In our call today Alex Davern, our Chief Operating Officer will review our results; Erick Starkloff, Vice President of Marketing will discuss our business; and I will close with a few comments before we open up for your questions. Alexander M. Davern Revenue for Q2 was a new all time quarterly record of $292 million up 15% year-over-year in US dollars but up 18% in constant currency terms. Our revenue growth this quarter comes despite the significant weakening of the global industrial economy and the strong 20% year-over-year growth we delivered in Q2 last year. During the quarter AWR and Phase Matrix acquisitions contributed $10 million of revenue on a non-GAAP basis and as we have now passed the one year anniversary of our acquisitions of AWR and Phase Matrix we will no longer be disclosing their revenues separately going forward.
Orders for Q2 were up 24% year-over-year and as a result backlog increased by $16 million and short term deferred revenue increased by $5 million in the quarter. Non-GAAP gross margin in Q2 was 77% down 1% sequentially from Q1. Gross margin was negatively impacted by the weaker Euro as well as the lower than average gross margin on a large order I’ll discuss later.Total non-GAAP operating expenses were $179 million up 14% year-over-year. Non-GAAP operating margin was $44 million, a new record for second quarter. It was up 7% year-over-year and represented an operating margin of 15%. Net income for Q2 was $26 million with fully diluted earnings per share of $0.22 and non-GAAP net income was $33 million with non-GAAP fully diluted earnings per share of $0.27. A reconciliation of our GAAP and non-GAAP results is included in our earnings press release. We believe the diversity of our business, the evolution of our field sales force, and the strength of our product portfolio have been the key drivers of our sustained growth. This can clearly be seen by the strong growth we have delivered over the last five years in our systems used in high performance test and embedded applications. Despite the significant weakness of the global PMI in Q2, we saw strong growth of our orders over $20,000 which grew approximately 40% year-over-year and our average order size reached a new all time record of approximately $5,300 up 20% year-over-year. Orders over $20,000 accounted for 54% of our business in Q2 and we believe the success of our large orders reflects the enhancements we have made in our product and service offerings, our excellent network of system integrators, and the performance of our outstanding sales teams. As we discussed last quarter a significant contributor to the success for us in Q2 was winning the largest application sale in the history of the company. This application involves the use of LabVIEW and the NI PXI platform to rapidly develop a production test solution which offers the customer outstanding performance and accuracy at a very low cost of test per unit. Read the rest of this transcript for free on seekingalpha.com