NI Holdings | research notes

Introducing NI Holdings: A Global Technology Innovator

Overview

NI Holdings (NASDAQ: NI) is a global leader in data acquisition systems, automated test equipment, and software for engineers and scientists. Headquartered in Austin, Texas, the company has over 4,000 employees worldwide and serves customers in more than 40 countries.

History

NI was founded in 1976 by two engineers, Bill Nowlin and Rod Smith. The company initially focused on developing data acquisition boards for personal computers. Over the years, NI has expanded its product portfolio and entered new markets, becoming a leading provider of solutions for a wide range of industries.

Products and Services

NI's core products include:

• Data Acquisition Systems: Hardware and software for capturing, analyzing, and visualizing data from sensors and test equipment.
• Automated Test Equipment: Software and hardware for testing electronic devices and circuits.
• Software Tools: Development environments, simulation tools, and data analysis software for engineers and scientists.
• Consultancy and Support: NI provides expert technical support, training, and engineering services to its customers.

Industries Served

NI's products and services are used in a variety of industries, including:

• Aerospace and Defense
• Automotive
• Consumer Electronics
• Healthcare
• Industrial Automation
• Semiconductor
• Telecommunications

Research and Development

NI invests heavily in research and development, with a commitment to innovation and customer satisfaction. The company has a strong team of engineers and scientists who are constantly working to develop new products and technologies.

Financial Performance

NI has consistently performed well financially. In fiscal 2023, the company reported revenue of $1.7 billion and net income of $352 million. The company has a strong balance sheet and generates significant cash flow.

Environmental, Social, and Governance (ESG)

NI is committed to sustainability and responsible business practices. The company has implemented programs to reduce its environmental impact, promote employee well-being, and support local communities.

Conclusion

NI Holdings is a leading global technology innovator that provides engineers and scientists with the tools they need to solve complex problems. With its strong product portfolio, experienced team, and commitment to research and development, NI is well-positioned for continued growth and success in the years to come.

Business Model of NI Holdings Company

NI Holdings Company, formerly known as National Instruments (NI), is a global technology company that provides automated test and measurement systems for engineering, scientific, and industrial applications. Its business model can be summarized as follows:

• Hardware and Software Products: NI develops and manufactures a wide range of hardware and software products, including data acquisition devices, control systems, test instruments, and software for analysis, visualization, and data management.
• Vertical Solutions: NI offers specialized solutions tailored to specific industries, such as semiconductor, automotive, and aerospace. These solutions include hardware, software, and consulting services designed to address the unique challenges of each industry.
• Ecosystem and Partnerships: NI fosters a strong ecosystem of integrators, partners, and customers who provide complementary products, services, and support. This ecosystem extends the reach and value proposition of NI's offerings.
• Consulting and Services: NI provides consulting and engineering services to help customers design, deploy, and maintain their test and measurement systems. This expertise ensures successful implementations and ongoing support.

Advantages Over Competitors

NI Holdings Company has several key advantages over its competitors in the test and measurement market:

• Comprehensive Hardware and Software Suite: NI offers a complete hardware and software platform that covers a wide range of applications and industries. This integrated approach provides customers with a comprehensive solution for their test and measurement needs.
• Vertical Expertise: NI's specialized solutions for specific industries allow it to address the unique challenges and requirements of those sectors. This depth of knowledge and experience gives NI an edge in providing tailored solutions.
• Robust Ecosystem: NI's strong ecosystem of partners and integrators enables customers to access a broader range of products, services, and support. This ecosystem also fosters innovation and collaboration.
• Strong Brand Reputation: NI has a well-established brand reputation for reliability, quality, and innovation. Its products and solutions are trusted by leading companies in various industries worldwide.
• Continuous Innovation: NI is committed to ongoing research and development, investing heavily in its hardware, software, and ecosystem. This dedication to innovation ensures that customers can access the latest technologies and solutions.

NI Holdings Company Overview

Company Name: NI Holdings, Inc.

Ticker Symbol: NIHD

Industry: Healthcare

Headquarters: Brentwood, Tennessee

Established: 2019

Website: https://www.niholdings.com/

Business Model:

NI Holdings is a healthcare services company that provides a range of services to patients in the United States. The company's core offerings include:

• Surgery: NI Holdings owns and operates a network of surgical hospitals and ambulatory surgery centers.
• Pain Management: The company offers pain management services through its network of pain clinics.
• Urgent Care: NI Holdings provides urgent care services through its network of urgent care centers.
• Diagnostics: The company offers diagnostic imaging and laboratory services through its network of imaging centers and laboratories.

Outlook

NI Holdings has a positive outlook for the future. The company's core businesses are all in high demand, and the company is well-positioned to benefit from the growing demand for healthcare services in the United States.

Key Growth Drivers:

• Aging Population: The U.S. population is aging, which is leading to an increase in the demand for healthcare services.
• Rising Healthcare Costs: The cost of healthcare is rising, which is making it more difficult for patients to afford their care.
• Provider Shortage: There is a shortage of healthcare providers in the United States, which is making it more difficult for patients to access care.

NI Holdings is well-positioned to capitalize on these growth drivers. The company's network of surgical hospitals, pain clinics, urgent care centers, and imaging centers are conveniently located in areas with high demand for healthcare services.

Financial Performance:

NI Holdings has been growing its revenue and earnings in recent years. In 2022, the company reported revenue of $1.6 billion and earnings per share of $1.45. The company's financial performance is expected to continue to improve in the future.

Risks:

NI Holdings faces a number of risks, including:

• Competition: The healthcare industry is highly competitive, and NI Holdings faces competition from a number of other companies.
• Reimbursement: NI Holdings' revenue is dependent on the reimbursement it receives from insurance companies. If reimbursement rates decline, NI Holdings' revenue could decline.
• Litigation: NI Holdings is subject to litigation, which could have a negative impact on the company's financial performance.

Overall:

NI Holdings has a positive outlook for the future. The company's core businesses are all in high demand, and the company is well-positioned to benefit from the growing demand for healthcare services in the United States. However, the company does face a number of risks, including competition, reimbursement, and litigation.

Companies Similar to NI Holdings that Customers May Also Like:

1. Keysight Technologies (https://www.keysight.com/)

• Customer appeal: Offers a wide range of test and measurement solutions for electronic devices, wireless communications, and industrial applications. Known for its high-accuracy and reliable instruments.

2. National Instruments (https://www.ni.com/)

• Customer appeal: Focuses on providing software-defined platforms, data acquisition devices, and engineering tools for engineers and scientists. Known for its flexible and customizable solutions.

3. Tektronix (https://www.tek.com/)

• Customer appeal: Specializes in oscilloscopes, signal generators, and other test and measurement equipment. Offers innovative solutions for high-speed and precision applications.

4. Rohde & Schwarz (https://www.rohde-schwarz.com/us/)

• Customer appeal: Provides a comprehensive range of test and measurement solutions for the wireless communications, aerospace, and defense industries. Known for its expertise in RF and signal analysis.

5. Agilent Technologies (https://www.keysight.com/us/en/about/who-we-are.html)

• Customer appeal: A global leader in test and measurement solutions. Offers a wide portfolio of products, including digital multimeters, spectrum analyzers, and signal generators. Known for its high-quality and affordable instruments.

6. Anritsu (https://www.anritsu.com/)

• Customer appeal: Provides high-performance test and measurement solutions for the telecommunications, aerospace, and automotive industries. Known for its expertise in RF and microwave technology.

7. Viavi Solutions (https://viavisolutions.com/)

• Customer appeal: Offers a complete range of test and measurement solutions for the telecommunications, cloud, and enterprise markets. Known for its innovative products and customer-focused support.

Establishment and Initial Years (1955-1962)

• 1955: NI Holdings was founded as National Instruments Corporation by James Truchard, Bill Nowlin, and Jeff Kodosky in Austin, Texas.
• The company initially focused on developing electronic test and measurement instruments.

Early Growth and Diversification (1962-1980)

• 1962: NI went public, offering its shares on the NASDAQ.
• The company expanded beyond test and measurement into data acquisition, control, and automation.
• NI acquired several companies, including Measurement Systems, Inc. (MSI) and Solana Labs.

Leading Edge Computing and the World Wide Web (1980-1995)

• 1980s: NI pioneered the use of compact personal computers (PCs) in instrumentation and data acquisition.
• The company released the first graphical programming environment for data acquisition, LabVIEW, in 1986.
• NI played a significant role in the early development of the World Wide Web, providing hardware and software for web data acquisition and control.

Extension of Software Capabilities (1995-2010)

• 1995: NI acquired MacNeal-Schwendler Corporation (MSC), a leading provider of finite element analysis (FEA) software.
• The company continued to expand LabVIEW's capabilities, making it a versatile platform for various engineering applications.
• NI also invested heavily in cloud computing and internet of things (IoT) technologies.

Global Expansion and Industry Leadership (2010-Present)

• 2010: NI acquired Accelerated Technology (ATI) and expanded its presence in the automotive industry.
• The company established operations in new regions, including China, India, and Europe.
• NI became a global leader in software-defined instrumentation and automated test solutions.

Name Change and Focus on Acquisition and Innovation

• 2015: The company changed its name to NI Holdings Corporation to reflect its broader portfolio.
• NI continued to acquire companies, such as PXIone and VitalLink, to enhance its offerings.
• The company invested in research and development, developing innovative technologies in areas such as AI and machine learning.

Present and Future Outlook

Today, NI Holdings is a diversified technology company with a focus on four main areas:

• Software-defined instrumentation
• Automated test
• Data acquisition
• Embedded control

The company remains committed to innovation and providing cutting-edge solutions for various industries, including automotive, aerospace, defense, and semiconductor.

2020

• January 2020: NI Holdings announces plans to acquire Tideworks Technology, a provider of terminal operating systems for marine terminals.
• March 2020: NI Holdings closes the acquisition of Tideworks Technology.

2021

• January 2021: NI Holdings announces plans to acquire GateKeeper Systems, a provider of security solutions for critical infrastructure.
• March 2021: NI Holdings closes the acquisition of GateKeeper Systems.
• June 2021: NI Holdings announces plans to acquire Intelliradar, a provider of radar-based solutions for traffic management.
• September 2021: NI Holdings closes the acquisition of Intelliradar.

2022

• January 2022: NI Holdings announces plans to acquire Sensys Networks, a provider of wireless sensor networks for industrial applications.
• March 2022: NI Holdings closes the acquisition of Sensys Networks.
• June 2022: NI Holdings announces plans to acquire Metronome Technology Group, a provider of network performance monitoring and management solutions.
• September 2022: NI Holdings closes the acquisition of Metronome Technology Group.

Recent Timelines

• October 2022: NI Holdings announces plans to acquire Jardine Matheson's stake in Hongkong Electric Holdings Limited (HEH).
• November 2022: NI Holdings closes the acquisition of Jardine Matheson's stake in HEH.
• December 2022: NI Holdings announces plans to acquire Alliant Energy Corporation's electric transmission assets in Iowa.
• January 2023: NI Holdings closes the acquisition of Alliant Energy Corporation's electric transmission assets in Iowa.

Exceptional Financial Solutions with NI Holdings

I am thrilled to express my highest praise for NI Holdings, a leading financial services provider that has consistently exceeded my expectations. Their unwavering commitment to customer satisfaction and innovative solutions has made them a true industry standout.

Customer-Centric Approach:

NI Holdings believes that the customer comes first. Every interaction I've had with their team has been professional, courteous, and tailored to my specific needs. They take the time to understand my financial situation and goals, ensuring personalized solutions that truly benefit me.

Innovative Products and Services:

NI Holdings offers a comprehensive suite of financial products and services designed to meet the diverse requirements of today's investors. From investment management to lending solutions, they have something for every financial need. Their innovative platform makes accessing and managing my accounts a breeze.

Exceptional Performance:

The performance of my investments managed by NI Holdings has been consistently impressive. Their skilled investment team leverages rigorous analysis and a deep understanding of market dynamics to generate solid returns. I have full confidence that my financial future is in good hands.

Financial Stability and Security:

NI Holdings is a financially stable company with a strong track record in the industry. Their prudent risk management practices give me peace of mind, knowing that my funds are safe and secure.

Professionalism and Expertise:

The entire NI Holdings team is highly professional, knowledgeable, and experienced. They are always available to answer my questions, provide guidance, and support me through every step of my financial journey.

Unrivaled Customer Service:

Exceptional customer service is at the heart of NI Holdings' business. Their dedicated customer support team is responsive, efficient, and always goes the extra mile to ensure my satisfaction.

Conclusion:

If you are seeking a trusted partner for your financial needs, look no further than NI Holdings. Their commitment to customer satisfaction, innovative solutions, exceptional performance, and unwavering professionalism make them the ideal choice for investors of all levels. I highly recommend their services and extend my sincere appreciation for the outstanding experience I have had with this remarkable company.

Discover the World of NI Holdings: Your Gateway to Innovation and Growth

NI Holdings is a leading provider of innovative technology solutions that empower businesses of all sizes to achieve unprecedented success. Our comprehensive portfolio of services and products caters to the evolving needs of the modern enterprise, driving innovation, efficiency, and growth.

A Symphony of Solutions

At NI Holdings, we firmly believe that technology should not be a barrier but an enabler. Our suite of solutions seamlessly integrates with your existing systems, empowering you to:

• Accelerate Digital Transformation: Empower your workforce with cutting-edge solutions that streamline workflows, enhance collaboration, and optimize decision-making.
• Enhance Cyber Security: Safeguard your valuable data and assets with robust cyber security measures, ensuring peace of mind and business continuity.
• Boost Productivity and Efficiency: Automate repetitive tasks, streamline processes, and maximize output, freeing up valuable time for innovation and strategic initiatives.
• Gain Competitive Edge: Leverage innovative technologies to differentiate your business and gain a competitive advantage in today's rapidly evolving market landscape.

Industry-Leading Expertise

Our team of seasoned experts brings together decades of experience in technology, business, and innovation. We understand the unique challenges and opportunities facing your industry, enabling us to provide tailored solutions that drive tangible results.

Unleash Your Potential

Whether you're a small business seeking to establish a strong online presence, a mid-sized enterprise aiming to optimize operations, or a large corporation looking to reshape your digital strategy, NI Holdings has the solutions and expertise to empower your success.

Discover the NI Holdings Advantage

Join the growing number of businesses who are realizing the transformative power of NI Holdings solutions. Visit our website at niholdings.com today to explore our comprehensive offerings and learn how we can help you:

• Innovate: Leverage cutting-edge technologies to drive growth and gain a competitive edge.
• Grow: Optimize operations, streamline processes, and scale your business to new heights.
• Succeed: Partner with NI Holdings and empower your enterprise for long-term success.

Don't settle for the status quo. Discover the NI Holdings Advantage and unleash the limitless possibilities for your business. Visit our website today and let us help you create a technology-driven future that exceeds your expectations.

Main Suppliers of NI Holdings, Inc.

NI Holdings, Inc. (NIHD) is an insurance holding company that operates through its subsidiaries. Its primary business is providing a broad range of insurance products to individuals and businesses.

NIHD's main suppliers are companies that provide it with the necessary products and services to operate its insurance business. These suppliers include:

Name | Website ---|---| Berkshire Hathaway | https://www.berkshirehathaway.com/ Progressive Corporation | https://www.progressive.com/ The Travelers Companies, Inc. | https://www.travelers.com/ Allstate Corporation | https://www.allstate.com/ Chubb | https://www.chubb.com/ Nationwide Mutual Insurance Company | https://www.nationwide.com/ State Farm Mutual Automobile Insurance Company | https://www.statefarm.com/ Farmers Insurance Group | https://www.farmers.com/ USAA | https://www.usaa.com/

These suppliers provide NIHD with a variety of products and services, including reinsurance, underwriting services, claims processing, and customer service.

Reinsurance

Reinsurance is a form of insurance that insurance companies purchase to protect themselves from the risk of large losses. NIHD purchases reinsurance from Berkshire Hathaway, Progressive Corporation, and The Travelers Companies, Inc.

Underwriting Services

Underwriting is the process of assessing and pricing insurance risks. NIHD uses underwriting services provided by Progressive Corporation, The Travelers Companies, Inc., and Allstate Corporation to help it determine the appropriate premiums to charge for its insurance policies.

Claims Processing

Claims processing is the process of handling and paying insurance claims. NIHD uses claims processing services provided by Chubb, Nationwide Mutual Insurance Company, and State Farm Mutual Automobile Insurance Company to help it efficiently process claims.

Customer Service

Customer service is an important aspect of the insurance business. NIHD provides customer service through its own employees and through its relationships with Farmers Insurance Group, USAA, and other suppliers.

NIHD's relationships with its suppliers are essential to its ability to operate its insurance business. The company works closely with its suppliers to ensure that it has access to the necessary products and services to provide its customers with the best possible insurance experience.

Main Customers (Downstream Companies) of NI Holdings Company

NI Holdings, Inc. (Nasdaq: NIHD), formerly known as The Navigators Group, Inc., is a holding company for a group of insurance and reinsurance companies. The company's primary downstream customers (policyholders) are businesses and individuals who purchase insurance coverage from NI Holdings or its subsidiaries.

Key Downstream Customers

NI Holdings' main downstream customers include a wide range of businesses and individuals, including:

• Commercial businesses: Small, medium, and large businesses across various industries, such as manufacturing, construction, healthcare, technology, and retail. These businesses purchase insurance coverage to protect against risks such as property damage, liability, workers' compensation, and business interruption.
• Individuals: Individuals and families who purchase insurance policies for personal protection, including homeowners' insurance, auto insurance, health insurance, and life insurance.
• Public entities: State and local governments, as well as non-profit organizations, which purchase insurance to protect against risks specific to their operations.

Subsidiary Websites

NI Holdings offers insurance coverage through its various subsidiaries, each with their own website:

• Navigators Management Company: https://www.navigators.com
• Starr Companies: https://www.starrcompanies.com
• Mosaic Insurance: https://www.mosaicinsurance.com
• Berkley Reinsurance Group: https://www.berkleyre.com
• Peak Reinsurance Company: https://www.peakre.com

Specific Examples of Downstream Customers

Some notable downstream customers of NI Holdings include:

• Porsche Cars North America: Automotive manufacturer
• General Electric: Industrial conglomerate
• CVS Health: Pharmacy chain
• The Hershey Company: Food manufacturer
• American Red Cross: Non-profit organization
• State of California: Public entity

Key Revenue Streams of NI Holdings

NI Holdings (National Instruments) generates revenue through several key business segments:

1. Hardware (58% of total revenue)

• Data Acquisition and Control devices: Modules and accessories used to capture, analyze, and control data from physical systems. Estimated annual revenue: $960 million.
• Automated Test Systems devices: Software and hardware for testing electronic components and devices. Estimated annual revenue: $540 million.
• Motion Control devices: Components and systems for controlling the movement of machines. Estimated annual revenue: $270 million.
• Instrumentation devices: Precision measurement and analysis instruments for various industries. Estimated annual revenue: $180 million.

2. Software (26% of total revenue)

• Development and Deployment Tools software: Software for designing, developing, and testing electronic systems. Estimated annual revenue: $430 million.
• Test Management software: Software for managing and automating the testing process. Estimated annual revenue: $270 million.
• Data Analytics software: Software for analyzing and visualizing data from physical systems. Estimated annual revenue: $180 million.

3. Services (16% of total revenue)

• Consulting and Engineering services: Expert guidance and support for system design, development, and integration. Estimated annual revenue: $260 million.
• Training and Education services: Classes, workshops, and online courses on NI products and technologies. Estimated annual revenue: $180 million.
• Calibration and Repair services: Maintenance and calibration of NI hardware and software. Estimated annual revenue: $130 million.

Estimated Annual Revenue Breakdown

• Hardware: $1.95 billion
• Software: $880 million
• Services: $570 million

Total Estimated Annual Revenue: $3.4 billion

Key Partners of NI Holdings, Inc.

NI Holdings, Inc. (NIHD), formerly known as National Instruments Corporation, is a leading provider of automated test and measurement systems. The company's key partners play a crucial role in its operations, providing essential services and support that enable NIHD to deliver innovative solutions to its customers.

Hardware and Software Partners

• Advantech Co., Ltd. (https://www.advantech.com/): A leading manufacturer of industrial computer hardware, including embedded boards, industrial PCs, and data acquisition systems.
• Analog Devices, Inc. (https://www.analog.com/): A provider of high-performance semiconductor products, including analog-to-digital converters, digital-to-analog converters, and amplifiers.
• Keysight Technologies, Inc. (https://www.keysight.com/): A manufacturer of electronic test and measurement equipment, including oscilloscopes, signal generators, and network analyzers.
• MathWorks, Inc. (https://www.mathworks.com/): A developer of mathematical software, including MATLAB and Simulink, used for scientific and engineering applications.
• Microsoft Corporation (https://www.microsoft.com/): A provider of operating systems, software applications, and cloud computing services.
• National Instruments Alliance Partners (https://www.ni.com/en-us/partners/alliance-partner-program.html): A network of third-party companies that offer complementary products and services to enhance NIHD's offerings.

Distribution and Reseller Partners

• Avnet, Inc. (https://www.avnet.com/): A global distributor of electronic components and embedded systems.
• Digi-Key Electronics (https://www.digikey.com/): A leading online distributor of electronic components and related products.
• Mouser Electronics, Inc. (https://www.mouser.com/): A global distributor of electronic components and authorized distributor for NIHD.
• Value Added Resellers (VARs): A network of authorized resellers that provide local sales and support to NIHD customers.

System Integration Partners

• Applied Technical Systems, Inc. (https://www.atsautomation.com/): A provider of automation and test solutions for various industries.
• CSS Corp. (https://www.csscorp.com/): A leading provider of IT services and business process outsourcing solutions.
• Honeywell International Inc. (https://www.honeywell.com/): A diversified technology and manufacturing company that offers solutions for industrial automation and control.
• Siemens AG (https://www.siemens.com/): A global technology company that provides solutions for energy, automation, and digitalization.

Research and Development Partners

• National Science Foundation (https://www.nsf.gov/): A U.S. federal agency that supports research and development in science and engineering.
• University of Texas at Austin (https://www.utexas.edu/): A major research university that collaborates with NIHD on advanced technologies.
• Stanford University (https://www.stanford.edu/): A world-renowned university that partners with NIHD on research and innovation.

These key partners enable NIHD to leverage their expertise and resources to deliver comprehensive solutions that meet the evolving needs of its customers. The company's strong relationships with its partners are essential to its continued success and growth in the automated test and measurement industry.

Key Cost Structure of NI Holdings

NI Holdings, Inc. (NASDAQ: NIHD) is a diversified holding company with operations in the automotive, beverage, financial services, media, and technology sectors. The following are the key cost components of the company's operations:

1. Cost of Goods Sold (COGS)

COGS is the largest expense category for NI Holdings, accounting for approximately 65-70% of total operating expenses. COGS includes the cost of raw materials, direct labor, and manufacturing overhead. The automotive segment is the primary contributor to COGS, as it involves the manufacturing and distribution of vehicles.

Estimated Annual Cost: $1.5-$1.7 billion

2. Selling, General and Administrative (SG&A) Expenses

SG&A expenses encompass a wide range of costs related to marketing, sales, administration, and research and development. These expenses are incurred across all segments of the company.

Estimated Annual Cost: $300-$350 million

3. Depreciation and Amortization

Depreciation and amortization represent the non-cash expense associated with the allocation of the cost of long-term assets over their useful lives. NI Holdings has significant capital investments in property, plant, and equipment, particularly in the automotive and beverage segments.

Estimated Annual Cost: $100-$120 million

4. Interest Expense

Interest expense is incurred on the company's outstanding debt obligations. NI Holdings has historically maintained a moderate level of debt to finance its operations.

Estimated Annual Cost: $40-$50 million

5. Other Operating Expenses

Other operating expenses consist of costs that do not fit into the other categories, such as professional fees, insurance premiums, and regulatory compliance costs.

Estimated Annual Cost: $50-$70 million

Total Operating Expenses

The combination of the above cost components results in the total operating expenses of NI Holdings. The company's operating expenses have generally increased in recent years, primarily due to rising raw material costs, labor expenses, and investments in new products and technologies.

Estimated Annual Total Operating Expenses: $2.0-$2.3 billion

Additional Considerations

It's important to note that the estimated annual costs provided above are based on the company's historical financial data and may vary depending on factors such as economic conditions, industry trends, and management decisions. NI Holdings does not provide detailed breakdowns of its cost structure in its financial statements.

Sales Channels

NI Holdings primarily generates revenue through the following sales channels:

• Online: NI's website, where customers can purchase products and access support materials.
• Distributors: NI collaborates with a network of distributors that resell its products to end-users.
• System Integrators: NI partners with system integrators who incorporate its products into larger systems and solutions.
• Direct Sales: NI employs a direct sales force that targets large enterprises and government agencies.

Estimated Annual Sales

NI Holdings' estimated annual sales for 2023 are approximately $1.3 billion, according to industry analysts. This revenue is generated through the following business segments:

• Electronic Test and Measurement: This segment includes products for testing electronic circuits and systems, with estimated sales of $800 million.
• Machine Vision: This segment includes products for image acquisition, processing, and analysis, with estimated sales of $300 million.
• Data Acquisition and Control: This segment includes products for interfacing with physical systems, with estimated sales of $200 million.

Sales Channel Mix

The approximate sales channel mix for NI Holdings is as follows:

• Online: 25%
• Distributors: 40%
• System Integrators: 20%
• Direct Sales: 15%

Key Sales Strategies

NI Holdings employs several key sales strategies to drive growth:

• Focus on niche markets: NI targets specific industry verticals where its products provide unique value.
• Invest in research and development: NI continuously innovates to stay ahead of the curve and introduce new products that meet customer needs.
• Build strong customer relationships: NI emphasizes customer satisfaction and provides ongoing support to build long-term partnerships.
• Expand into new geographies: NI has a global presence and is actively expanding into emerging markets.
• Utilize digital channels: NI leverages its website and social media platforms to reach and engage with potential customers.

Customer Segments of NI Holdings

1. Semiconductor Companies

• Estimated annual sales: $1.5 billion
• Description: Companies that design, manufacture, and sell semiconductors, including integrated circuits, microprocessors, and memory devices.

2. Electronics Manufacturers

• Estimated annual sales: $1 billion
• Description: Companies that produce electronic devices, such as smartphones, computers, and medical devices.

3. Automotive Companies

• Estimated annual sales: $500 million
• Description: Companies that manufacture automobiles, including cars, trucks, and buses.

4. Aerospace and Defense Companies

• Estimated annual sales: $250 million
• Description: Companies that develop and manufacture aerospace and defense systems, including aircraft, missiles, and satellites.

5. Industrial Automation Companies

• Estimated annual sales: $250 million
• Description: Companies that provide industrial automation solutions, such as programmable logic controllers (PLCs), motors, and drives.

6. Test and Measurement Companies

• Estimated annual sales: $200 million
• Description: Companies that provide test and measurement instruments, such as oscilloscopes, spectrum analyzers, and power meters.

7. Education and Research Institutions

• Estimated annual sales: $100 million
• Description: Universities, colleges, and research laboratories that use NI products for teaching and research purposes.

8. Government Agencies

• Estimated annual sales: $100 million
• Description: Government agencies that use NI products for military, defense, and scientific research applications.

9. Other Industrial Segments

• Estimated annual sales: $250 million
• Description: A variety of other industrial segments, such as healthcare, energy, and telecommunications.

Value Proposition of NI Holdings Company

Executive Summary

NI Holdings Company (NI) is a leading provider of test and measurement solutions. NI's value proposition stems from its comprehensive portfolio of products and services that enables customers to develop, integrate, and deploy test and measurement systems. NI's value proposition is further enhanced by its commitment to innovation, customer support, and global reach.

Key Value Proposition Elements

1. Comprehensive Product Portfolio:

• NI offers a broad range of hardware, software, and accessories for test and measurement applications.
• Products include data acquisition devices, modular instruments, software platforms, and measurement modules.
• NI's products are designed to meet the needs of various industries, including automotive, aerospace, electronics, and energy.

2. Integrated Software Platform:

• NI's LabVIEW software platform provides a graphical programming environment for instrument control, data acquisition, and analysis.
• LabVIEW simplifies the integration of hardware and software components, enabling faster development and deployment.
• NI's software also includes libraries for specific applications, such as automotive testing and power electronics.

3. Open Architecture:

• NI's hardware and software are designed to be open and modular, allowing for easy integration with third-party products.
• Users can choose from a wide ecosystem of NI partners and add-on modules to enhance their systems.
• This open architecture provides flexibility and scalability to meet evolving test and measurement needs.

4. Innovation Driven:

• NI is committed to continuous innovation and regularly releases new products and software updates.
• NI's R&D team focuses on developing solutions that address emerging challenges and industry trends.
• NI's investment in innovation ensures that its customers stay at the forefront of technology advancements.

5. Customer Support:

• NI provides comprehensive customer support through its global network of offices and certified partners.
• NI offers training, technical assistance, and online support resources to help customers maximize the value of their NI products.
• NI's customer support is highly responsive and committed to resolving issues quickly and effectively.

6. Global Reach:

• NI has a global presence with offices and partners in over 50 countries.
• NI's global footprint ensures that customers have access to local support and resources.
• This global reach enables NI to serve customers in diverse regions and time zones.

Value to Customers

NI's value proposition provides significant benefits to its customers:

• Reduced development time: NI's integrated software platform and open architecture accelerate system development and deployment.
• Increased flexibility: NI's modular products and open architecture allow customers to adapt their systems to changing needs.
• Improved accuracy: NI's high-precision hardware and software ensure accurate and reliable measurement results.
• Enhanced productivity: NI's user-friendly software and support resources enable engineers to work efficiently and effectively.
• Lower cost of ownership: NI's open architecture, modular products, and comprehensive support help customers reduce maintenance and upgrade costs.

Conclusion

NI Holdings Company's value proposition is anchored in its comprehensive product portfolio, integrated software platform, open architecture, innovation, customer support, and global reach. NI empowers its customers with the solutions and resources they need to develop, integrate, and deploy test and measurement systems that optimize their operations and drive innovation.

Risk of NI Holdings, Inc.

NI Holdings, Inc. (NIHD) is a publicly traded company that owns and operates National Indemnity Company (NIC). NIC is a mortgage insurer that provides private mortgage insurance (PMI) to lenders. PMI protects lenders against losses if a borrower defaults on their mortgage loan.

NI Holdings is exposed to a number of risks, including:

• Credit risk: The risk that borrowers will default on their mortgage loans. This is the primary risk that NI Holdings faces, as it is the insurer of the loans. If a borrower defaults, NI Holdings is obligated to pay the lender the amount of the default.
• Interest rate risk: The risk that interest rates will rise, which could lead to a decline in the demand for PMI. If interest rates rise, borrowers may be more likely to refinance their loans at lower rates, which would reduce the need for PMI.
• Economic risk: The risk that the economy will experience a downturn, which could lead to an increase in defaults. If the economy slows down, borrowers may be more likely to lose their jobs or have their incomes reduced, which could make it difficult for them to make their mortgage payments.
• Regulatory risk: The risk that regulations will change, which could impact the demand for PMI. Regulations could be changed in a way that makes PMI less attractive to borrowers, which could reduce the demand for NI Holdings' products.

NI Holdings has a number of strategies in place to manage these risks, including:

• Maintaining a diversified portfolio of loans.
• Hedging against interest rate risk.
• Maintaining a strong capital position.
• Monitoring the economy for signs of a downturn.
• Staying up-to-date on regulatory changes.

Despite these strategies, NI Holdings is still exposed to a number of risks. Investors should be aware of these risks before investing in the company.

Recent Events

In recent years, NI Holdings has been facing a number of challenges, including:

• A decline in the demand for PMI.
• An increase in defaults.
• A rise in interest rates.
• A downturn in the economy.

These challenges have led to a decline in NI Holdings' earnings and stock price. The company is currently working to address these challenges, but it is unclear whether it will be successful.

Investors should be aware of these challenges before investing in NI Holdings.