| Tektronix Reports Results for the Third Quarter of Fiscal 2006Strong Results Fueled by New Products and Significant Customer WinsBEAVERTON, Ore., March 16, 2006 - Tektronix, Inc. (NYSE: TEK) today reported net sales of $262.1 million and net earnings from continuing operations of $24.9 million or $0.30 per share for the third quarter ended February 25, 2006. This compares with net sales of $256.3 million and net earnings from continuing operations of $23.4 million or $0.26 per share for the same period last year. Excluding acquisition-related costs, business realignment costs and one-time items, net earnings from continuing operations were $31.1 million or $0.37 per share for the third quarter, as compared with $28.1 million or $0.31 per share for the same period last year. "This was an outstanding quarter for us," said Rick Wills, Tektronix Chairman and CEO. "A modestly improving market, strength in new products and continued success in the communication sector led to strong orders, sales, earnings and cash flow." "Overall, orders in the quarter grew 14%. Our instruments business orders grew 8% driven by our continued wave of new products - including two new oscilloscope families introduced this quarter. In addition, we again saw solid growth from our two newer instrument product categories, signal sources and real-time spectrum analyzers," said Wills. "We also had excellent year-over-year order growth of 30% in our communications business driven by several significant customer wins in a continued strong market." "In addition to our strong financial performance, we had a great quarter operationally with the successful introduction and shipment of two new oscilloscope families - the DPO7000 and DPO4000 - both based on next generation ASIC technology and highly-leveraged platforms that will be expanded in the future," Wills continued. "Early response to these exceptional products has been very positive. The DPO7000 delivers unmatched product specifications and eliminates the traditional trade-offs found in other oscilloscopes. The DPO4000 similarly delivers unmatched performance in its category and includes breakthrough innovations such as the Wave Inspector™ search capability. Finally, several of our products were selected for industry awards, highlighting our commitment to innovation and to solving customer problems." For the fourth quarter of fiscal 2006, the company expects net sales to be approximately $275 - $285 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, and one-time items. "We continue to deliver on our growth strategy in both our instruments and communications businesses. By continuing to introduce new products and offer new capabilities, we expect to gain share, expand our market and win new customers," concluded Wills. Recent highlights include the following: New product introductions, including: - Two new oscilloscope platforms, the DPO7000 — with models ranging from 500 MHz to 2.5 GHz on a next generation platform that makes broad use of IBM7HP silicon germanium (SiGe) technology to provide higher performance for demanding applications, and the DPO4000 - with models ranging from 350 MHz to 1 GHz featuring the groundbreaking Wave Inspector™, an unprecedented set of easy-to-use tools for discovery and efficient viewing, navigating, and analyzing of waveform data.
- New monitoring capabilities for the WVR7100 and WVR6100 video rasterizers that will enable engineers and operators to quickly and reliably determine video signal and content quality for high-definition and standard-definition digital broadcast signals.
- The introduction of IPTV Video Quality Measurement (VQM) capabilities for our Spectra2 internet protocol diagnostic tools. This package helps network operators identify the causes of poor digital image quality and is the first portable monitoring solution with support for multiple-level Quality of Service scores and analysis for carriers and cable networks in the emerging video over IP opportunity.
Customer wins including: - NBC's use of Tektronix HD Video Monitoring Equipment for their coverage of the Olympic Winter Games.
- China Electronics Standardization Institution's choice of Tektronix as the premier test instrument vendor for upgrading its IT testing and certification center. Tektronix instruments will be used for enhanced conformance testing and certification to support emerging technical standards and next generation digital TV.
- Freescale Semiconductor's selection of Tektronix TLA7000 Series logic analyzers to enable engineers to perform debug operations for the latest high-speed busses including Serial RapidIO®, PCI-Express and DDRS Memory.
Several products won awards including: - The RSA3408A Real-Time Spectrum Analyzer won a Best in Test award from the editors of Test and Measurement World. The RSA3408A also won the Readers' Choice Award in the Instrumentation category, an award given for the best of 2005, as determined by the readers of EE-Evaluation Engineering magazine.
- The AFG3000 Series arbitrary function generator received Honorable Mention for Best in Test by Test and Measurement World.
- The TLA7000 Series logic analyzer with application software version 5.0 was selected as a finalist for the 16th annual EDN Innovation Awards, an exclusive awards program that honors people, products and technology that have demonstrated innovation resulting in a significant advance in technology and/or product development.
- Tektronix oscilloscopes won the 2006 Readers' Choice Award for the third consecutive year from Electronics For You (EFY) magazine, one of Asia's leading publications for the electronics industry.
- Tektronix and TMN, the largest mobile network operator in Portugal, were awarded the Best Network Quality Initiative by the GSM Association for TMN's Customer Centric Service Quality Management solution, a service management system that uses technology from Tektronix' Unified Assurance suite to proactively detect, identify and rectify network and service degradations in real time.
In addition, today Tektronix declared a quarterly cash dividend of $0.06 per share on the outstanding common shares of the Company, payable on April 24, 2006 to shareholders of record as of the close of market on April 7, 2006. 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 for one year. In addition, Tektronix will hold an investor event on April 12, 2006 in New York, New York. The event will provide an update on the Company's instruments and communications businesses and will provide an opportunity for discussions with business leadership. Tektronix presents pro forma measures of net earnings and net earnings per share from continuing operations that exclude the effects of acquisition-related costs, business realignment costs 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 acquisition-related costs, 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 statements and expectations regarding sales and earnings per share, market position and market growth opportunities, 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; 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; 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. The financial results tables for the quarter are available in the Third Quarter of Fiscal 2006 Financial Report. The complete printable version of the press release and financial results are available in the Third Quarter of Fiscal 2006 Report. About Tektronix Tektronix, Inc. is a test, measurement, and monitoring company providing measurement solutions to the communications, computer, and semiconductor industries worldwide. With 60 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 19 countries worldwide. Tektronix' Web address is www.tektronix.com. Media Contact:
Alisha Goff
503/627-7075
alisha.goff@tektronix.com
Analyst Contact:
Paul Oldham
503/627-4027
paul.r.oldham@tektronix.com |
