"In spite of the challenging economic climate, I am pleased with the quarter's results" says the CEO, reflecting on falling sales and profits
Tektronix reported net sales of $188.3 million and net earnings
from continuing operations of $0.9 million or $0.01 per share,
for the third quarter ended 1 March 2003.
This compares with net
sales of $199.3 million and net earnings from continuing
operations of $11.9 million or $0.13 per share, for the same
period a year ago.
Excluding business realignment and one-time
items, net income from continuing operations would have been
$11.5 million or $0.13 per share for the third quarter, as
compared with $13.4 million or $0.15 per share for the same
period last year.
"During the quarter, we saw stronger
demand in Europe, Asia-Pacific and Japan.
We continued to build
on our success in China - highlighted by key customer wins in the
mobile protocol test area and partnerships with key government
agencies," said Rick Wills, Tektronix chairman and CEO.
"However, we saw softer demand in the United States across
most product lines resulting from caution caused by geopolitical
uncertainty and the continued sluggishness of our underlying
markets." "In spite of the challenging economic
climate, I am pleased with the quarter's results.
progress on several fronts including improved gross margins and
continued expense control.
Another important accomplishment in
the quarter was the progress we made toward the integration of
our Japan acquisition.
We are already seeing the positive results
of streamlining and focusing the sales force, and restructuring
our operations in Tokyo," Wills continued.
This quarter the
company recorded two significant non-cash transactions in
The first was the write-off of assets,
primarily goodwill, associated with a specific optical product
line now held for sale.
The second was the reversal of reserves
associated with estimated liabilities related to the sale of the
For the fourth quarter of fiscal 2003, the
company expects sales to be down approximately 5%, compared to
the same period a year ago.
Earnings per share are expected to be
between $0.08 and $0.10, excluding anticipated business
realignment and one-time charges of $10-$12 million.
management team remains committed to business fundamentals while
building on our position of strength in our core product areas.
Our sales and marketing staff around the world is focused on
taking market share.
Our customers are responding well to our
And, while it may be some time before
the test and measurement industry returns to normal growth
levels, we have proven we can be successful in this challenging
environment," concluded Wills.