12/22/2003 - Tektronix, Inc. (NYSE: TEK) reported net sales of $217.9 million and net earnings from continuing operations of $36.5 million or $0.42 per share, for the second quarter ended November 29, 2003. This compares with net sales of $203.6 million and net earnings from continuing operations of $8.4 million or $0.10 per share, for the same period a year ago. Excluding business realignment and one-time items, net earnings from continuing operations were $19.3 million or $0.22 per share for the second quarter, as compared with $11.7 million or $0.13 per share for the same period last year. Included in one-time items is a non-cash gain resulting from the settlement of the historical defined benefit pension plan at our recently acquired Japanese subsidiary.
"At 25% growth, this was our strongest order level in more than two and a half years, due primarily to strengthening in the overall market and good response to new products," said Rick Wills, Tektronix Chairman and CEO. "During our first quarter, we saw pockets of stronger demand in selected sectors and regions, and this quarter the improvement continued with growth across all of our core product areas and regions. Finally, earnings outpaced sales growth as expected, due in part to the leverage we have built into our business model during the past two years."
"There was strength across all of our major product categories. We saw very good demand for our entire line of oscilloscope products, including the TDS7704B, the world's fastest digital oscilloscope, which we announced this quarter. Our signal source products have been well received in our key markets, and our industry-leading video products continued to provide broadcasters and system integrators with the tools to support the digital evolution," continued Wills. "In addition, we made excellent progress on new products which will be introduced in the second half of this fiscal year."
"We believe Tektronix is well positioned to benefit from a recovery. We have a strong market position in our four core product areas, and our two developing product categories, Signal Sources and RF Test, represent good opportunities for growth. We have structured our business model to enable us to grow earnings faster than revenues as orders strengthen. And, as the markets recover, we remain diligently focused on managing the business - deliberately managing operations, carefully investing in future products and technology, and remaining attentive to the changes in our customer needs," concluded Wills.
For the third quarter of fiscal 2004, the company expects sales to be approximately $220 to $230 million. Earnings per share from continuing operations are expected to be between $0.23 and $0.25, excluding a net credit of $15 - $20 million from business realignment costs and one-time items. The projected credit includes an estimated gain on the sale of real estate in Japan.
Key announcements for the second quarter of fiscal 2004 include the following:
In addition, Tektronix declared a quarterly cash dividend of four cents (4¢) per share on the outstanding common shares of the Company, payable on January 26, 2004 to shareholders of record as of the close of market on January 9, 2004.
Tektronix also announced a mid-year payout in connection with its employee results share program. "Our employees helped to differentiate Tektronix during the difficult technology market over the last few years," said Wills. "We are delighted to be able to provide our employees with a way to share in the success of the company, especially during the holiday season."
Tektronix will be discussing its second quarter results and future guidance on a conference call today, beginning at 1:30 p.m. Pacific Standard Time (PST). A live Webcast of the conference call will be available at www.tektronix.com/ir. A replay of the Webcast will be available at the same Web site through Thursday, March 18, 2004.
Tektronix presents pro forma measures of net earnings and net earnings per share from continuing operations that exclude the effects of business realignment and one-time items. The schedule provided on page seven reconciles the results of operations in accordance with generally accepted accounting principles (GAAP) to the pro forma results of operations. Tektronix presents pro forma results of operations to help readers differentiate the results of ongoing operating activity from results that include business realignment costs and one-time items. Management of Tektronix uses these pro forma measures to evaluate the Company's results of operations and for forecasting purposes.
Statements and information in this press release that relate to future events or results (including the Company's expectations as to sales, orders, earnings per share, expenses, including business realignment and one-time charges, market position, market growth opportunities and new products) are based on the Company's current expectations. They constitute forward-looking statements subject to a number of risk factors, which could cause actual results to differ materially from those currently expected or desired. Those factors include: worldwide geopolitical and economic conditions; business conditions in the electronics, communications, computer and advanced technologies industries, changes in order rates and customer cancellations, including changes in seasonal buying habits; competitive factors, including pricing pressures, technological developments and new products offered by competitors; changes in product and sales mix, and the related effects on gross margins; the Company's ability to deliver a timely flow of competitive new products, and market acceptance of these products; the availability of parts and supplies from third-party suppliers on a timely basis and at reasonable prices; inventory risks due to changes in market demand or the Company's business strategies; risks associated with a planned third quarter implementation of an Oracle software-based manufacturing material and resource planning system; resolution of indemnities relating to certain acquisitions and divestitures; changes in effective tax rates; currency fluctuations; the ability to develop effective sales channels; and the ability to successfully integrate the Sony/Tektronix acquisition. Further information on factors that could cause actual results to differ from those anticipated is included in filings made by the Company from time to time with the Securities and Exchange Commission, including but not limited to, annual reports on Form 10-K and the quarterly reports on Form 10-Q.
Tektronix, Inc. is a test, measurement, and monitoring company providing measurement solutions to the communications, computer, and semiconductor industries worldwide. With more than 55 years of experience, Tektronix enables its customers to design, build, deploy, and manage next-generation global communications networks and advanced technologies. Headquartered in Beaverton, Oregon, Tektronix has operations in 19 countries worldwide. Tektronix' Web address is www.tektronix.com.
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