"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.
We made 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 discontinued operations.
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 printer business.
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.
"The 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 industry-leading products.
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.
