Tektronix Reports Results for the First Quarter of Fiscal 2008
Sales Growth Fuels Strong Earnings and Cash Flow

Tektronix, Inc. today reported net sales of $291.5 million and net earnings from continuing operations of $20.1 million or $0.26 per share for the first quarter ended September 1, 2007. This compares with net sales of $268.1 million and net earnings from continuing operations of $20.1 million or $0.24 per share for the same period last year. Excluding acquisition-related costs, business realignment costs, and share-based compensation expense, net earnings from continuing operations were $30.5 million or $0.40 per share for the first quarter as compared with $29.2 million or $0.35 per share for the same period last year.

"Sales were up 9% over last year resulting in strong earnings and cash flow," said Rick Wills, Tektronix Chairman and CEO. "Orders were down 5%, primarily due to a decline in our Japan region which was impacted by our order policy changes and some economic uncertainty. In addition, we saw continued market softness for network diagnostic communications products. These factors were partially offset by growth in other geographies and by improvement in orders for our network management products."

Instruments business orders were down 7%, with modest growth in all geographies except Japan. "We saw continued good demand for oscilloscopes driven by new products, with particular strength in value oscilloscopes. Sales were up 14% as we delivered against the new product backlog built last year," continued Wills.

Orders in the Communications business were flat year-over-year with strong growth in network management products offset by a decline in network diagnostic products. "Although we continue to see the ongoing impact of both the market consolidation and slow operator spending for network diagnostic products, we are encouraged by signs of strengthening in the market for our network management products," said Wills. "Communications business sales declined 5% on a difficult comparison to last year but were up sequentially from the fourth quarter."

Looking forward, we believe this will be our low point for orders for the year and subsequent quarters should show good improvement. We expect this improvement will be driven in our Instruments business by strong new products already introduced and those that we expect to introduce in the next several quarters. In our Communications business, we believe order improvement will be driven by growing strength in demand for network management products. In addition we expect to have completed the Japan order booking policy change which had a negative impact in the first quarter.

During the quarter we issued $345 million of convertible debt, and repurchased $164 million -- or nearly five million shares -- of common stock reflecting our commitment to optimize our capital structure, reduce our cost of capital and improve earnings per share through our share repurchase program.

Second Quarter Guidance

For the second quarter of fiscal 2008, the company expects net sales to be approximately $270 - $280 million. Earnings per share from continuing operations are expected to be between $0.38 and $0.42 before mostly non-cash acquisition-related costs, business realignment costs, one-time items and share-based compensation expense.

  Recent highlights include the following:

  New product introductions, including:

  -- Tektronix Ultra-Wideband Software (Tektronix UWB) for the ultra
     performance  DPO/DSA70000 oscilloscopes. The expanded capabilities
     include real-time analysis of Ultra-Wideband RF and electrical signals
     to support the test and measurement requirements of digital RF
     applications such as ultra-wideband communications, ultra-wideband
     radar and high-speed serial data.
  -- RFXpress™, a new software package that performs RF/IF/IQ waveform
     creation and editing of digitally modulated signals for AWG5000 and
     AWG7000 arbitrary waveform generators. This new package simplifies
     debug and conformance test and improves productivity with a user
     interface that makes creation and management of general purpose digital
     RF waveforms far more intuitive when testing emerging digital RF
  -- Unified Assurance for Converged Networks, a next-generation service
     assurance platform that addresses the service assurance performance
     monitoring and management needs of multi-technology, multi-service
     fixed and wireless network operators. The new platform provides end-to-
     end service level views for all user sessions across multiple access
     and core network technologies.
  -- Enhancements to the GeoProbe Network Assurance solution, part of the
     industry-leading Unified Assurance suite of applications for management
     of next generation converged networks. The enhancements enable network
     operators to monitor new mobile interfaces for IP converged networks,
     building on the extensive capability of the GeoProbe platform to
     perform real-time, multi-protocol, cross-architecture performance

  Key customer wins, including:
  -- Allion Test Labs Inc., a leading IT testing organization headquartered
     in Taiwan, selected Tektronix for its new high-speed serial test bench
     consisting of high performance real-time oscilloscopes and arbitrary
     waveform generators for SATA II compliance testing.
  -- Rai Way, the owner and operator of Italian public broadcaster RAI
     Group's broadcasting division, installed Tektronix MTM400 MPEG
     Transport Stream Monitors in numerous locations to monitor transport
     stream quality in its digital terrestrial television network.
  -- London's "Glassworks," one of the largest visual effects and computer
     animation studios in Europe, installed dual-link capabilities in its
     telecine suite using Tektronix' WVR7120 waveform rasterizer. The
     flagship rasterizer will be used to quickly detect, isolate, and
     diagnose multi-format video quality problems in the transfer of motion
     picture film into electronic form.
  -- SaskTel, the leading full-service communications provider in
     Saskatchewan, Canada deployed GeoProbe Network Assurance solution to
     monitor TDM, VoIP and mobile voice and messaging applications
     throughout its network.

  Several product awards, including:
  -- Tektronix' DPO/DSA72004 Ultra-High Performance Oscilloscope received
     the 'Electron d'Or' award and was voted Best Test and Measurement
     Product of the Year 2007 in the test and measurement category as chosen
     by a jury of industry experts, in conjunction with the editors of
     Electronique, the leading French electronics monthly magazine.
  -- Tektronix' RSA6114A Real-Time Spectrum Analyzer was awarded the 2007
     Canadian Technical Security Conference Award by the Professional
     Development TSCM Group Inc. for significant industry contribution,
     research and engineering design.

  In addition,
  -- Tektronix issued $345 million of five-year, senior convertible notes at
     a 1.625% interest rate and $34.57 issue price.  In addition, Tektronix
     purchased a bond hedge and issued warrants to increase the conversion
     premium from 15% to 42.5%.  In connection with the debt issuance, the
     Board of Directors increased the share repurchase authorization by an
     additional $350 million. Tektronix spent $164 million during the
     quarter to repurchase approximately 4.8 million shares.
  -- China Electronics Standardization Institution (CESI) partnered with
     Tektronix to set up a joint lab for advanced research and assessment of
     digital RF and digital TV standards in China, key drivers of the new
     digital world. The new lab will be a key research facility for the
     development of China's new DTV and digital RF standards.
  -- Tektronix announced it will develop an automated Compliance Test Suite
     for high-speed serial standards using test management software from
     National Instruments. The combination of Tektronix instruments and the
     open nature of NI TestStand software gives customers a platform to
     rapidly characterize new products and bring them to market faster.
  -- Neil Huddlestone was named President of Tektronix China.  Huddlestone
     is the senior executive responsible for Tektronix business in China and
     will lead the senior management team in China with specific
     responsibility for sales and business development in the country.
     Huddlestone is based at the company's regional headquarters in

Tektronix also today declared a quarterly cash dividend of $.06 per share on the outstanding common shares of the Company, payable on October 29, 2007 to shareholders of record as of the close of market on October 5, 2007.

Tektronix will be discussing its first quarter results and future guidance on a conference call today, beginning at 1:30 p.m. Pacific. A live Webcast of the conference call will be available at http://www.tektronix.com/ir. A replay of the Webcast will be available at the same Web site for one year.

In addition, Tektronix will hold its Annual Meeting of Shareholders on Thursday, September 27, 2007, at 10:00 a.m. Pacific at the company's headquarters in Beaverton, Oregon.

Tektronix presents non-GAAP measures of net earnings and net earnings per share from continuing operations that exclude the effects of acquisition-related costs, business realignment costs, share-based compensation and one-time items. The "Reconciliation of GAAP to Non-GAAP Results" reconciles net earnings in accordance with generally accepted accounting principles (GAAP) to the non-GAAP net earnings. Tektronix presents non-GAAP net earnings to help readers differentiate the results of ongoing activity from results that include acquisition-related costs, business realignment costs, share-based compensation and one-time items. Some of these items pertain to events that have not yet occurred and are not possible to ascertain with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP for projected amounts is provided. In addition, in line with common industry practice and in order to enable comparison with other technology companies, guidance for non-GAAP net earnings excludes the effects of share-based compensation under FAS123R. Management of Tektronix uses these non-GAAP measures to evaluate the Company's results of operations and for forecasting purposes, as well as to compensate employees.

Statements and information in this press release that relate to future events or results (including the Company's statements and expectations regarding sales and earnings per share, orders, markets, market position and market growth opportunities, strategic direction and the introduction of 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; current and future business conditions in the electronics, communications, computer and advanced technologies industries; changes in order rates and customer cancellations, including changes in seasonal buying habits and timing of large orders, as well as the application of a global order booking policy; competitive factors, including pricing pressures, loss of key employees, technological developments and new products offered by competitors; changes in product and sales mix, and the related effects on gross margins; customer acceptance of large orders with delayed acceptance criteria; the Company's ability to deliver a timely flow of competitive new products, and market acceptance of these products; risks related to our information technology systems; the availability of parts and supplies from third-party suppliers on a timely basis and at reasonable prices; risks associated with compliance with the "Restriction of Hazardous Substances" worldwide regulatory provisions, including the associated conversion of current and future product designs and manufacturing processes to procure or produce lead-free products, and with export regulations; inventory risks due to changes in market demand or the Company's business strategies; 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.

About Tektronix

Tektronix is a leading supplier of test, measurement, and monitoring products, solutions and services for the communications, computer, and semiconductor industries -- as well as military/aerospace, consumer electronics, education and a broad range of other industries worldwide. With 60 years of experience, Tektronix enables its customers to design, build, deploy, and manage next-generation global communications networks, advanced and pervasive technologies. Headquartered in Beaverton, Oregon, Tektronix has operations in 19 countries worldwide. Tektronix' Web address is http://www.tektronix.com/.

                    Consolidated Statements of Operations

                                                      Quarter Ended
                                              September 1,        August 26,
  (In thousands, except per share amounts)        2007               2006

  Net sales                                     $291,494           $268,113
  Cost of sales                                  124,559            104,763

      Gross profit                               166,935            163,350

  Research and development expenses               49,163             50,869
  Selling, general and administrative
   expenses                                       86,518             79,873
  Business realignment costs                       1,057              2,596
  Acquisition related costs and
   amortization                                    1,720              1,471
  Loss on disposition of assets, net                   3                554

      Operating income                            28,474             27,987

  Interest income                                  5,533              4,670
  Interest expense                                (1,415)               (99)
  Other non-operating expense, net                (1,102)            (1,011)

      Earnings before taxes                       31,490             31,547

  Income tax expense                              11,434             11,434

      Net earnings from continuing
       operations                                 20,056             20,113

  Gain from discontinued operations,
      net of income taxes                             20                  7

  Net earnings                                   $20,076            $20,120

  Earnings per share:

      Continuing operations - basic                $0.27              $0.25
      Continuing operations - diluted              $0.26              $0.24

      Discontinued operations - basic               $-                 $-
      Discontinued operations - diluted             $-                 $-

      Net earnings - basic                         $0.27              $0.25
      Net earnings - diluted                       $0.26              $0.24

  Weighted average shares outstanding:
      Basic                                       75,237             82,074
      Diluted                                     77,078             83,542

  Cash dividend declared per share                 $0.06              $0.06

  Note:  The first quarter of fiscal year 2008 includes an extra week to
  accommodate our fiscal calendar.

                         Consolidated Balance Sheets

  (In thousands)                           September 1, 2007    May 26, 2007

    Current assets:
      Cash and cash equivalents                $453,986            $95,887
      Short-term marketable investments          26,903             87,873
      Trade accounts receivable, net            156,261            188,070
      Inventories                               166,716            176,267
      Other current assets                       69,011             71,743
       Total current assets                     872,877            619,840

    Property, plant and equipment, net          128,955            129,914
    Long-term marketable investments             91,583            174,307
    Deferred tax assets                          43,818             21,464
    Goodwill, net                               329,045            326,468
    Pension asset                                34,050             32,115
    Other long-term assets                      113,911            105,190
      Total assets                           $1,614,239         $1,409,298

    Current liabilities:
     Accounts payable and accrued liabilities   $91,608           $134,349
     Accrued compensation                        61,560             75,761
     Deferred revenue                            88,203             89,340
      Total current liabilities                 241,371            299,450

    Convertible notes                           345,000                -
    Pension and postretirement
     benefit liabilities                         71,043             70,103
    Long-term liabilities                        72,056             49,899

    Shareholders' equity:
      Common stock                              546,415            539,799
      Retained earnings                         426,204            545,399
      Accumulated other comprehensive loss      (87,850)           (95,352)
        Total shareholders' equity              884,769            989,846
        Total liabilities and
         shareholders' equity                $1,614,239         $1,409,298

    Shares outstanding                           75,062             78,488

  Selected Additional Financial Data

                                                        Quarter Ended

  (In thousands, except per share amounts)    %    September 1,  August 26,
                                            Growth     2007         2006
  Orders Data:

  Orders                                     (5%)   $241,809     $255,399

    U.S.                                      4%      99,723       96,194
    International                           (11%)    142,086      159,205

    Instruments Business                     (7%)    184,840      198,279
    Communications Business                  (0%)     56,969       57,120

  Sales Data:

  Net Sales                                   9%    $291,494     $268,113

    U.S.                                     28%     125,620       97,979
    International                            (3%)    165,874      170,134

    Instruments Business                     14%     225,340      198,212
    Communications Business                  (5%)     66,154       69,901

  Reconciliation of GAAP to Non-GAAP

  Net earnings - GAAP                                $20,076      $20,120
  Discontinued operations, net of
   income taxes                                          (20)          (7)

  Net earnings from continuing
   operations                                         20,056       20,113

    Business realignment costs                         1,057        2,596
    Acquisition related costs                          7,415        7,444
    Shared based compensation costs                    7,322        4,201
    Tax effect of above items                         (5,372)      (5,119)

  Net earnings - non-GAAP                            $30,478      $29,235

  Diluted EPS - non-GAAP                               $0.40        $0.35

  Income Statement Items as a Percentage of Net Sales:

  Cost of sales                                          43%          39%
  Research and development expenses                      17%          19%
  Selling, general and administrative
   expenses                                              30%          30%
  Business realignment costs                              0%           1%
  Acquisition related costs and
   amortization                                           1%           1%
  Loss on disposition of assets, net                      0%           0%
  Operating income                                       10%          10%

  Capital Expenditures and Depreciation:

  Capital expenditures                                $4,668       $6,124
  Depreciation and amortization expense               $7,363       $7,297

  Balance Sheet and Cash Flow:                       Quarter      Quarter
                                                      Ended        Ended
                                                   September 1,   May 26,
                                                       2007         2007

  Cash and Marketable Investments:
     Cash and cash equivalents                      $453,986      $95,887
     Short-term marketable investments                26,903       87,873
     Long-term marketable investments                 91,583      174,307
       Cash and Marketable Investments              $572,472     $358,067
  Cash Flow from Operations                          $45,765      $43,279

  Accounts receivable as a percentage
   of net sales                                        15.6%        15.1%
  Days sales outstanding                               52.5         57.3
  Countback days sales outstanding                     46.5         46.8

  Inventory as a percentage of net
   sales                                               15.5%        14.4%
  Inventory turns                                       2.7          2.7

First Call Analyst:
FCMN Contact: beth.p.woodward@tektronix.com

SOURCE: Tektronix, Inc.

CONTACT: media, Alisha Goff, +1-503-627-7075, alisha.goff@tektronix.com,
or analysts, Paul Oldham, +1-503-627-4027, paul.r.oldham@tektronix.com, both
of Tektronix

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