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Tektronix posts net sales of $1.04B, up 12%, and net earnings from continuing operations of $78.9M, or $0.89 per share
June 24, 2005
BEAVERTON, Ore. -- Tektronix, Inc. (NYSE: TEK - News) today reported net sales of $1.035 billion and net earnings from continuing operations of $78.9 million or $0.89 per share for the fiscal year ended May 28, 2005. This compares with net sales of $920.6 million and net earnings from continuing operations of $118.2 million or $1.37 per share for the prior fiscal year. Excluding acquisition-related costs, business realignment and one-time items, net earnings from continuing operations was $126.9 million or $1.44 per share for the fiscal year ended May 28, 2005, as compared with $93.1 million or $1.08 per share for the prior fiscal year. Included in acquisition-related costs for the year ended May 28, 2005 are mostly non-cash expenses related to the acquisition of Inet Technologies, Inc., including the write-off of in-process R&D and amortization of acquisition-related items, and other acquisition-related expenses. Included in acquisition-related credits in the prior fiscal year are a non-cash gain resulting from the settlement of the historical defined benefit pension plan at the company's subsidiary in Japan and a gain on sale of the headquarters property in Japan.
"This was a great year for Tektronix. Sales exceeded $1 billion and pro forma earnings grew over 35%," said Rick Wills, Tektronix Chairman and CEO. "The Inet acquisition is yielding much stronger growth than we initially projected. We are excited about the opportunity we see in that business. In addition, the increased investments in engineering in the rest of the business over the last few years have enabled us to make great progress in new product development and contributed to our ability to take market share in several product categories. During the year, we strengthened the management team through internal promotions and external hiring and enhanced the quality and reach of our world-class distribution system."
For the fourth quarter ended May 28, 2005, Tektronix reported net sales of $261.0 million and net earnings from continuing operations of $21.6 million or $0.25 per share. This compares with net sales of $257.8 million and net earnings from continuing operations of $26.5 million or $0.31 per share for the same period last year. Excluding acquisition-related costs, business realignment and one-time items, net earnings from continuing operations were $27.4 million or $0.31 per share for the fourth quarter ended May 28, 2005, as compared with $29.1 million or $0.34 per share for the same period last year.
"A strong finish to the quarter enabled us to deliver solid orders and sales above the high end of our revised guidance, despite some mid-quarter softness in demand," said Wills.
"Although down from last year, the Americas and the Pacific regions had their best quarter of the fiscal year for orders and we continue to see growth in Japan," continued Wills. "Our two newest product categories are gaining traction with strong growth in the quarter and good progress in new product development."
For the first quarter of fiscal 2006, the company expects net sales to be approximately $230 - $240 million. Earnings per share from continuing operations are expected to be between $0.20 and $0.26 before mostly non-cash costs related to the acquisition of Inet Technologies and other one-time costs. Assuming stable markets, normal seasonality and the strength of new products in the second half, the company expects the first quarter to represent the low point for the year in terms of both sales and earnings per share.
"As we move into our new fiscal year, the strength of the markets remains a question. We see evidence of softness in some markets and strength in others. However, we remain very encouraged by the progress we are making with respect to our new products. As a result of our significant increase in engineering investments, this should be one of the strongest years for new product introductions, with new product activity expected in all of our product categories," concluded Wills.
Recent highlights include the following:
The TDS6000C, the world's fastest real-time oscilloscope family, received the Ultimate Product Award from the readers of EE Times and eeProductCenter.
The U.S. Air Force awarded Tektronix a five-year requirements contract to supply digital oscilloscopes which will be used in the installation, maintenance and support of an array of electronic equipment and systems ranging from low-end radio systems to highly sophisticated radar and EW systems.
The purchase by a number of leading Chinese universities over several years of more than two thousand Tektronix TDS1000 and TDS2000 oscilloscopes which will be used to upgrade the research facilities of their engineering labs.
Tektronix announced new oscilloscope software and logic analyzer test solutions to facilitate development and implementation of advanced serial data standards such as Fully Buffered DIMM (FB-DIMM) and PCI Express -- high speed serial data standards that require robust test and validation.
Tektronix introduced several new products to support next-generation video technology including the MTS400 Series Compressed Video Test System which provides the highest performance analysis engine on the market along with real-time Video over IP monitoring, the addition of the VC-1 advanced compression video codec and upgrades to the WVR7100 Rasterizer which add Dolby® E and Dolby® Digital capabilities to meet audio quality demands.
The introduction of several significant logic analyzer products including the TLA7012 portable mainframe and TLA7016 benchtop mainframe which work in combination with automated features and an improved user interface. Tektronix also announced that it achieved market share leadership with just over 50% of logic analyzer sales worldwide in 2004.
Just after the end of the quarter, Tektronix acquired TDA Systems, a maker of time domain software tools for high speed serial data customers based in Lake Oswego, Oregon. The TDA Systems business will be integrated into Tektronix' sampling oscilloscope product line.
In addition, today Tektronix declared a quarterly cash dividend of $0.06 per share on the outstanding common shares of the Company, payable on July 25, 2005 to shareholders of record as of the close of market on July 8, 2005.
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