Tektronix, Inc. (NYSE: TEK) today reported net sales of $257.8 million and net earnings from continuing operations of $26.5 million or $0.31 per share for the fourth quarter ended May 29, 2004. This compares with net sales of $202.3 million and net earnings from continuing operations of $4.3 million or $0.05 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 $0.34 per share for the fourth quarter, as compared with $10.0 million or $0.12 per share for the same period last year.
"For the quarter, all regions showed growth, especially the U.S. and Japan," said Rick Wills, Tektronix Chairman and CEO. "Overall, this was our best quarter for orders in over three years, and the third quarter in a row with 20% or greater order growth, further indicating that the recovery is solidly underway and our customers are responding well to new products. We saw stronger than expected sales growth of 27% in the quarter, to $258 million - our highest quarter in three years."
"Not only were we strong regionally, but we showed gains in all of our product categories. Among the higher performing products in the quarter were our performance oscilloscopes - which include the world's fastest 8Ghz oscilloscope, signal sources - one of our newest product categories, logic analyzers, and RF test," continued Wills.
For fiscal year 2004 the company reported net sales of $920.6 million, 16% growth over sales of $791.0 million in fiscal year 2003. Net earnings from continuing operations were $118.2 million or $1.37 per share for fiscal year 2004, compared with net earnings from continuing operations of $35.1 million or $0.40 per share for fiscal year 2003. Excluding business realignment and one-time items, net earnings from continuing operations for fiscal year 2004 were $93.1 million or $1.08 per share as compared with $48.5 million or $0.56 per share for fiscal year 2003.
"The investments we made over the last few years gave us a strong start to the recovery. We added key members to our executive management team and our employees remained dedicated and focused on executing our plans. The integration of our acquisition in Japan delivered results ahead of expectations. Our continued investment in research and development enabled us to bring new products to market, addressing customer needs head-on. We made changes to our cost structure, which contributed to growth in earnings per share of nearly 100% this year, and should provide significant leverage in our model. And, we had great results across all product categories, with record performance from our logic analyzers and mobile protocol test products," continued Wills.
For the first quarter of fiscal 2005, the company expects net sales to be approximately $235 - $245 million. Earnings per share from continuing operations are expected to be between $0.26 and $0.29.
"As we enter into the new fiscal year, we are seeing evidence that the gains we have made in our four core categories (oscilloscopes, logic analyzers, mobile protocol test and video test) and two new product categories (signal sources and RF test) should further strengthen our leadership position. We have proven our ability to deliver value to our shareholders and we remain focused on delivering the industry-leading products that our customers demand," concluded Wills.
Highlights
Recent highlights include the following:
The introduction of the 8 GHz TDS6000B Digital Storage Oscilloscope (DSO) Series. This ultra-high performance real-time oscilloscope features industry-leading signal fidelity with unique Pinpoint™ triggering, and four channels of concurrent high resolution waveform capture.
The announcement of the P7380 active differential probe using IBM's 0.18um Silicon Germanium (7HP SiGe), which, when used with Tektronix' ultra-high performance oscilloscopes, provides the highest signal fidelity and acquisition performance in the industry and represents a continuation of performance leadership from Tektronix.
The availability of the WFMNLE, a software waveform monitor plug-in for the Avid® Media Composer® Adrenaline™, Avid XPress® Pro, Media Composer, and Symphony™ nonlinear editing and finishing systems. The new plug-in is an easy-to-use, flexible and non-intrusive tool that enables editors to confidently verify signal and picture quality. In addition, the WFMNLE received three "Best of Show" awards which were presented by the editors of Videography magazine, DigitalTV - Television Broadcast magazine, and Government Video magazine, and the Pick Hit Award from Broadcast Engineering magazine at NAB 2004 in Las Vegas, Nevada.
The announcement of new design verification tools for next-generation video compression technologies for the company's leading MPEG Transport Stream Test System. The new tools support H.264 and Microsoft Windows Media 9 Series (WMV9), enabling video equipment manufacturers to perform software and hardware verification of designs using these emerging technologies.
A joint announcement by Tektronix and National Instruments that Tektronix' mid-range and performance oscilloscopes will ship with an evaluation version of LabVIEW 7 Express and an oscilloscope-specific software utility to optimize integration of LabVIEW and Tektronix' oscilloscopes. This latest initiative in the two companies' ongoing collaborative effort to reduce design time for engineers delivers new ease-of-use features of LabVIEW to a wider range of Tektronix' oscilloscopes.
The purchase by Matsushita Electric Industrial Co., Ltd., best known by its Panasonic brand name as one of the world's leading producers of electronic products for consumer, business and industrial use, of Tektronix signal sources and oscilloscopes for Panasonic's first High Definition Multimedia Interface (HDMI) Authorized Testing Center (ATC) in Japan, which was established for HDMI compliance testing.
The award of a multi-million dollar requirements contract from the U.S. Navy to supply Digital Phosphor Oscilloscopes (DPOs). The awarded contract has a Best Estimated Quantity (BEQ) of 500 units over a five-year period.
The decision by Samsung Electronics to use Tektronix' VM5000 Automated Video Measurement Set for measuring High Definition Television (HDTV) and progressive component video signals.
A formal end to our distribution agreement with Rohde and Schwartz following the announcement that the company, whose products we distributed in the U.S. and Canada, began selling their products directly in those markets as of June 1, 2004. This mutually beneficial relationship helped Tektronix develop customer relationships and a direct sales force in support of our strategy to expand our RF product offerings.
In addition, today Tektronix declared a quarterly cash dividend of $0.04 per share on the outstanding common shares of the Company, payable on July 26, 2004 to shareholders of record as of the close of market on July 9, 2004.
Tektronix will be discussing its fourth 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 Friday, June 24, 2005.
Forward-Looking Statements
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 "Reconciliation of Pro Forma Measures to GAAP" 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, cost structure, 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.
The financial results tables for the quarter are available in the Fourth Quarter Fiscal 2004 Financial Report. The complete printable version of the press release and financial results are available in the Fourth Quarter Fiscal 2004 Report.
"For the quarter, all regions showed growth, especially the U.S. and Japan," said Rick Wills, Tektronix Chairman and CEO. "Overall, this was our best quarter for orders in over three years, and the third quarter in a row with 20% or greater order growth, further indicating that the recovery is solidly underway and our customers are responding well to new products. We saw stronger than expected sales growth of 27% in the quarter, to $258 million - our highest quarter in three years."
"Not only were we strong regionally, but we showed gains in all of our product categories. Among the higher performing products in the quarter were our performance oscilloscopes - which include the world's fastest 8Ghz oscilloscope, signal sources - one of our newest product categories, logic analyzers, and RF test," continued Wills.
For fiscal year 2004 the company reported net sales of $920.6 million, 16% growth over sales of $791.0 million in fiscal year 2003. Net earnings from continuing operations were $118.2 million or $1.37 per share for fiscal year 2004, compared with net earnings from continuing operations of $35.1 million or $0.40 per share for fiscal year 2003. Excluding business realignment and one-time items, net earnings from continuing operations for fiscal year 2004 were $93.1 million or $1.08 per share as compared with $48.5 million or $0.56 per share for fiscal year 2003.
"The investments we made over the last few years gave us a strong start to the recovery. We added key members to our executive management team and our employees remained dedicated and focused on executing our plans. The integration of our acquisition in Japan delivered results ahead of expectations. Our continued investment in research and development enabled us to bring new products to market, addressing customer needs head-on. We made changes to our cost structure, which contributed to growth in earnings per share of nearly 100% this year, and should provide significant leverage in our model. And, we had great results across all product categories, with record performance from our logic analyzers and mobile protocol test products," continued Wills.
For the first quarter of fiscal 2005, the company expects net sales to be approximately $235 - $245 million. Earnings per share from continuing operations are expected to be between $0.26 and $0.29.
"As we enter into the new fiscal year, we are seeing evidence that the gains we have made in our four core categories (oscilloscopes, logic analyzers, mobile protocol test and video test) and two new product categories (signal sources and RF test) should further strengthen our leadership position. We have proven our ability to deliver value to our shareholders and we remain focused on delivering the industry-leading products that our customers demand," concluded Wills.
Highlights
Recent highlights include the following:
The introduction of the 8 GHz TDS6000B Digital Storage Oscilloscope (DSO) Series. This ultra-high performance real-time oscilloscope features industry-leading signal fidelity with unique Pinpoint™ triggering, and four channels of concurrent high resolution waveform capture.
The announcement of the P7380 active differential probe using IBM's 0.18um Silicon Germanium (7HP SiGe), which, when used with Tektronix' ultra-high performance oscilloscopes, provides the highest signal fidelity and acquisition performance in the industry and represents a continuation of performance leadership from Tektronix.
The availability of the WFMNLE, a software waveform monitor plug-in for the Avid® Media Composer® Adrenaline™, Avid XPress® Pro, Media Composer, and Symphony™ nonlinear editing and finishing systems. The new plug-in is an easy-to-use, flexible and non-intrusive tool that enables editors to confidently verify signal and picture quality. In addition, the WFMNLE received three "Best of Show" awards which were presented by the editors of Videography magazine, DigitalTV - Television Broadcast magazine, and Government Video magazine, and the Pick Hit Award from Broadcast Engineering magazine at NAB 2004 in Las Vegas, Nevada.
The announcement of new design verification tools for next-generation video compression technologies for the company's leading MPEG Transport Stream Test System. The new tools support H.264 and Microsoft Windows Media 9 Series (WMV9), enabling video equipment manufacturers to perform software and hardware verification of designs using these emerging technologies.
A joint announcement by Tektronix and National Instruments that Tektronix' mid-range and performance oscilloscopes will ship with an evaluation version of LabVIEW 7 Express and an oscilloscope-specific software utility to optimize integration of LabVIEW and Tektronix' oscilloscopes. This latest initiative in the two companies' ongoing collaborative effort to reduce design time for engineers delivers new ease-of-use features of LabVIEW to a wider range of Tektronix' oscilloscopes.
The purchase by Matsushita Electric Industrial Co., Ltd., best known by its Panasonic brand name as one of the world's leading producers of electronic products for consumer, business and industrial use, of Tektronix signal sources and oscilloscopes for Panasonic's first High Definition Multimedia Interface (HDMI) Authorized Testing Center (ATC) in Japan, which was established for HDMI compliance testing.
The award of a multi-million dollar requirements contract from the U.S. Navy to supply Digital Phosphor Oscilloscopes (DPOs). The awarded contract has a Best Estimated Quantity (BEQ) of 500 units over a five-year period.
The decision by Samsung Electronics to use Tektronix' VM5000 Automated Video Measurement Set for measuring High Definition Television (HDTV) and progressive component video signals.
A formal end to our distribution agreement with Rohde and Schwartz following the announcement that the company, whose products we distributed in the U.S. and Canada, began selling their products directly in those markets as of June 1, 2004. This mutually beneficial relationship helped Tektronix develop customer relationships and a direct sales force in support of our strategy to expand our RF product offerings.
In addition, today Tektronix declared a quarterly cash dividend of $0.04 per share on the outstanding common shares of the Company, payable on July 26, 2004 to shareholders of record as of the close of market on July 9, 2004.
Tektronix will be discussing its fourth 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 Friday, June 24, 2005.
Forward-Looking Statements
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 "Reconciliation of Pro Forma Measures to GAAP" 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, cost structure, 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.
The financial results tables for the quarter are available in the Fourth Quarter Fiscal 2004 Financial Report. The complete printable version of the press release and financial results are available in the Fourth Quarter Fiscal 2004 Report.
