Tektronix, Inc. (NYSE: TEK) today reported net sales of $243.5 million and net earnings from continuing operations of $43.9 million or $0.50 per share, for the third quarter ended February 28, 2004. This compares with net sales of $186.6 million and net earnings from continuing operations of $1.0 million or $0.01 per share, for the same period a year ago. Excluding business realignment and one-time items, net earnings from continuing operations were $29.1 million or $0.33 per share for the third quarter, as compared with $11.7 million or $0.13 per share for the same period last year.
“We saw orders growth of 20% for the quarter driven by continued strength in the overall market and positive response to new products. Signal sources, oscilloscopes and logic analyzers were especially strong," said Rick Wills, Tektronix Chairman and CEO. “More importantly, it is our second quarter in a row in which we saw growth across all regions and most product lines, consistent with our belief that we are in the midst of the phased recovery.”
“There were several things of note in the quarter from an operational standpoint as well. We successfully implemented a state-of-the-art supply chain enterprise resource planning system with no impact to shipments – the team did a great job,” continued Wills. “We also completed the sale of our Japanese headquarters building in connection with the planned move of our Tokyo headquarter operations to a newer leased facility.”
“In addition, Rohde and Schwarz, whose products we currently distribute in the US and Canada, will begin selling their products directly in those markets and we will not distribute their products after June 1, 2004. This relationship has been mutually beneficial, one that enabled Rohde and Schwarz to develop a presence in the United States and helped Tektronix develop customer relationships and a direct sales force in support of our strategy to expand our RF product offerings. While this will impact revenues next year, we do not expect it to have a negative impact on earnings.”
“This was a great quarter for Tektronix in many respects. We continue to see elements of a phased recovery and continue to grow our four core product categories. The acceptance of new products in the quarter demonstrates this. We are gaining traction in our two new product categories — these represent good, long-term opportunities for growth. And, as we saw this quarter, we have demonstrated our ability to grow earnings faster than revenues,” concluded Wills.
For the fourth quarter of fiscal 2004, the company expects sales to be approximately $230 - $240 million. Earnings per share from continuing operations are expected to be between $0.24 and $0.28.
Highlights for the third quarter of fiscal 2004 include the following:
Tektronix launched the TDS5000B oscilloscope, with innovative features around ease-of-use, immediately following the close of the quarter. The TDS5000B Series significantly improves productivity and simplifies test activities by electrical engineers and technicians. Tektronix announced its new RSA Series of real-time spectrum analyzers that provide the first complete measurement package for engineers developing cutting-edge Radio Frequency (RF) technologies, ranging from RF Identification (ID) tags to sophisticated radar applications. The WCA200A Series, which belongs to Tektronix’ portfolio of real-time spectrum analyzers was selected by the readers of EE-Evaluation Engineering as the Communications Test Product of the Year. Tektronix added compliance testing of UMTS R5 to its K1297-G20 protocol tester, the industry's leading protocol test platform with the ability to address more than one thousand protocols. Tektronix announced its MPEG Test Systems are now available in a new portable form factor for improved ease of use and with a high performance processor that provides greatly increased analysis speeds. Tektronix’ TDS7000B Series was selected as one of 100 top products of 2003 by EDN Magazine and was also nominated for the 2003 Innovation of the Year Award. The TDS7704B was also named Product of the Year by Germany’s Elektronik magazine. The London-based Farm Group's latest facility, Uncle Post Production, installed Tektronix' WVR600 waveform rasterizers to provide advanced quality control editing and colorist resources for the influential London post production industry. In addition, today Tektronix declared a quarterly cash dividend of $0.04 per share on the outstanding common shares of the Company, payable on April 26, 2004 to shareholders of record as of the close of market on April 9, 2004.
Tektronix will be discussing its third 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 Friday, March 18, 2005.
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, orders, earnings per share, expenses, 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; resolution of indemnities relating to certain acquisitions and divestitures; changes in effective tax rates; currency fluctuations; and the ability to develop effective sales channels. 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.
“We saw orders growth of 20% for the quarter driven by continued strength in the overall market and positive response to new products. Signal sources, oscilloscopes and logic analyzers were especially strong," said Rick Wills, Tektronix Chairman and CEO. “More importantly, it is our second quarter in a row in which we saw growth across all regions and most product lines, consistent with our belief that we are in the midst of the phased recovery.”
“There were several things of note in the quarter from an operational standpoint as well. We successfully implemented a state-of-the-art supply chain enterprise resource planning system with no impact to shipments – the team did a great job,” continued Wills. “We also completed the sale of our Japanese headquarters building in connection with the planned move of our Tokyo headquarter operations to a newer leased facility.”
“In addition, Rohde and Schwarz, whose products we currently distribute in the US and Canada, will begin selling their products directly in those markets and we will not distribute their products after June 1, 2004. This relationship has been mutually beneficial, one that enabled Rohde and Schwarz to develop a presence in the United States and helped Tektronix develop customer relationships and a direct sales force in support of our strategy to expand our RF product offerings. While this will impact revenues next year, we do not expect it to have a negative impact on earnings.”
“This was a great quarter for Tektronix in many respects. We continue to see elements of a phased recovery and continue to grow our four core product categories. The acceptance of new products in the quarter demonstrates this. We are gaining traction in our two new product categories — these represent good, long-term opportunities for growth. And, as we saw this quarter, we have demonstrated our ability to grow earnings faster than revenues,” concluded Wills.
For the fourth quarter of fiscal 2004, the company expects sales to be approximately $230 - $240 million. Earnings per share from continuing operations are expected to be between $0.24 and $0.28.
Highlights for the third quarter of fiscal 2004 include the following:
Tektronix launched the TDS5000B oscilloscope, with innovative features around ease-of-use, immediately following the close of the quarter. The TDS5000B Series significantly improves productivity and simplifies test activities by electrical engineers and technicians. Tektronix announced its new RSA Series of real-time spectrum analyzers that provide the first complete measurement package for engineers developing cutting-edge Radio Frequency (RF) technologies, ranging from RF Identification (ID) tags to sophisticated radar applications. The WCA200A Series, which belongs to Tektronix’ portfolio of real-time spectrum analyzers was selected by the readers of EE-Evaluation Engineering as the Communications Test Product of the Year. Tektronix added compliance testing of UMTS R5 to its K1297-G20 protocol tester, the industry's leading protocol test platform with the ability to address more than one thousand protocols. Tektronix announced its MPEG Test Systems are now available in a new portable form factor for improved ease of use and with a high performance processor that provides greatly increased analysis speeds. Tektronix’ TDS7000B Series was selected as one of 100 top products of 2003 by EDN Magazine and was also nominated for the 2003 Innovation of the Year Award. The TDS7704B was also named Product of the Year by Germany’s Elektronik magazine. The London-based Farm Group's latest facility, Uncle Post Production, installed Tektronix' WVR600 waveform rasterizers to provide advanced quality control editing and colorist resources for the influential London post production industry. In addition, today Tektronix declared a quarterly cash dividend of $0.04 per share on the outstanding common shares of the Company, payable on April 26, 2004 to shareholders of record as of the close of market on April 9, 2004.
Tektronix will be discussing its third 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 Friday, March 18, 2005.
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, orders, earnings per share, expenses, 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; resolution of indemnities relating to certain acquisitions and divestitures; changes in effective tax rates; currency fluctuations; and the ability to develop effective sales channels. 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.
