9/22/2003 - Tektronix, Inc. (NYSE: TEK) reported net sales of $201.4 million and net earnings from continuing operations of $11.4 million or $0.13 per share, for the first quarter ended August 30, 2003. This compares with net sales of $198.5 million and net earnings from continuing operations of $21.5 million or $0.24 per share, for the same period a year ago. Excluding business realignment and one-time items, net earnings from continuing operations were $15.7 million or $0.18 per share for the first quarter, as compared with $15.2 million or $0.17 per share for the same period last year.
"We are particularly pleased with our operating results compared to last year, which had the benefit of an extra week and a significant tax credit," said Rick Wills, Tektronix Chairman and CEO. "We saw orders growth of 11% driven by several large orders and continued stability in our base business. Also, we improved gross margins and continued to manage expenses, both of which contributed to strong operating results."
"We saw good customer response to products as well as strength in key geographic regions, most notably in Japan. Demand was high for our mobile protocol testing tools, our industry-leading logic analyzers and our video test products that support the advancement of digital and high-definition signals," continued Wills. "While we are certainly encouraged about our performance this quarter and are seeing some strength in the mobile and government sectors, we are still cautious about the timing and slope of a broad-based recovery."
For the second quarter of fiscal 2004, the company expects sales to be approximately $205 - $210 million. Earnings per share from continuing operations are expected to be between $0.14 and $0.16, excluding business realignment and one-time charges of $10 - $15 million.
"While we can't call a recovery yet, we are well positioned with a strong product pipeline and continued investment in developing the advanced technologies to meet the future roadmaps of our customers. We continue to focus on strengthening our market position in our four core markets and on developing our position in two key new product markets. Additionally, we have built leverage into our business model which should allow us to grow earnings faster than revenues as we see growth," concluded Wills.
Key highlights for the first quarter of fiscal 2004 include the following:
Tektronix will be discussing its first quarter results and future guidance on a conference call today, beginning at 1:30 p.m. Pacific Daylight Time (PDT). 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, December 18, 2003.
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 six 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, 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, including the length and severity of the current downturn, which is unknown; the ability to reduce expenditures to adjust to the current downturn while at the same time maintaining the capacity and resources to quickly ramp up if, and when, a recovery occurs; 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; 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.
The financial results tables for the quarter are available in the First Quarter Fiscal 2004 Financial Report. The complete printable version of the press release and financial results are available in the First Quarter Fiscal 2004 Report.
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 more than 20 countries worldwide. Tektronix' Web address is www.tektronix.com.
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