Difficult environment for Tektronix: News from Tektronix

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Tektronix has reported net sales of $204.6 million and net earnings from continuing operations, before nonrecurring items, of $10.2 million or $0.12 per share, for the second quarter ending 30th November 2002. This compares with net sales of $207.6 million and net earnings from continuing operations, before nonrecurring items, of $10.2 million or $0.11 per share, for the same period last year. Including nonrecurring items, net income from continuing operations for the second quarter was $6.9 million or $0.08 per share, as compared with $7.4 million or $0.08 per share, for the same period a year ago.

"We continue to operate in a difficult environment.

With little notable improvement in our markets, we continue to drive profitability and generate cash - as can be seen by our solid results again this quarter", said Rick Wills, Tektronix Chairman and CEO.

"We believe our long-standing investment in product development, which enabled us to be the first to market on performance leading products, has positioned us well to take market share in our core market areas".

"We continued to sharpen our focus with the completion of several strategic transactions.

During the quarter, we completed the transaction to acquire Sony's interest in our Japanese joint venture, Sony/Tektronix, a long-term strategic investment that will give us better access to the Japanese market and enable us to leverage engineering resources.

We divested nonstrategic businesses with the sale of our VideoTele.com subsidiary and the sale of selected optical test products.

And, as we have throughout the downturn, we remain committed to making further investments in the areas where we have particular strength", said Wills.

"Although the downturn is longer and steeper than we originally anticipated, we continue to structure our business to drive operational efficiency and increase market share", concluded Wills.

For the third quarter of fiscal 2003, the company expects sales to be down approximately 3%, compared with the same period a year ago.

Operating margins are expected to be in the low-to-mid single digits, excluding nonrecurring items of around $15 million.

The company expects nonrecurring costs in the third quarter largely associated with reductions in staffing levels in Japan.

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Difficult environment for Tektronix

Tektronix has reported net sales of $204.6 million and net earnings from continuing operations of $10.2 million for the quarter to 30th November 2002.