TEKTRONIX REPORTS FIRST-QUARTER RESULTS
TEKTRONIX REPORTS FIRST-QUARTER RESULTS WILSONVILLE, Ore., Sept. 16 /PRNewswire/ -- Tektronix Inc.
(NYSE: TEK) reported earnings for its first fiscal quarter, which ended on Aug. 29, 1992, of $9,482,000, or 32 cents per share, compared with $9,625,000, or 33 cents per share, in last year's first quarter. Net sales were $304,624,000, up 6 percent from the prior year's first-quarter sales of $288,564,000. Customer orders also increased in the quarter by 5 percent from $295 million to $311 million.
The company implemented several accounting changes in the quarter, as previously disclosed in its annual shareholders' report, including required accounting standards covering postretirement benefits and income taxes. The net impact of these changes was to add $3,325,000, or 11 cents per share, to this year's first-quarter earnings. Excluding the accounting changes, earnings for the last quarter would have been $6,157,000, or 21 cents per share. "We have mixed views about the results of the first quarter," commented Jerome J. Meyer, chairman and chief executive officer of Tektronix. "We're pleased to show sales and order gains in a difficult economic environment marked by continued sluggishness in the U.S., weakness in European economies and a sharp drop in the Japanese market. Sales to U.S. customers, in fact, increased 13 percent. Operating expenses also declined as a percentage of sales. On the other hand, lower gross margins (caused by product mix, competitive price pressures and increased inventory reserve requirements compared with last year) and a small loss in our Japanese joint venture combined to reduce income below last year's levels. Our operating performance is still not hitting our long-term goals, but we believe we are on track with our plan for improvement. "Computer Graphics sales were 27 percent ahead of last year," Meyer continued, "due mainly to the continued marketplace success of our color printers. Television Systems sales were up 10 percent, as new product shipments began to give us the turnaround we have been expecting in that unit's performance. Test and Measurement sales were down 4 percent, as the market for those products remained weak, especially outside the U.S." As noted above, the company adopted Statements of Financial Accounting Standards (SFAS) No. 106 (postretirement benefits) and No. 109 (income taxes) in the quarter. The transition obligation recognized under SFAS No. 106 reduced income by $34,775,000, net of tax in the quarter. At the same time, with the adoption of SFAS No. 109, the company has recognized a deferred tax benefit of $38,100,000 in the quarter. The combined result of these two changes is a one-time increase in first-quarter results of $3,325,000, or 11 cents per share. During the quarter, the company also changed its method of inventory accounting from the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method. This change did not affect the income statement for the latest quarter or the first quarter a year ago. The change does, however, require restatement of the prior year's balance sheet. Inventories, retained earnings and stockholders' equity for the end of the first quarter in the prior year have all been increased by $48,230,000 as a result of this inventory accounting change. At the end of the quarter, the company had 10,708 employees, compared with 11,334 at the beginning of the quarter and 11,636 at the end of last year's first quarter. The geographic and product sales breakdown is as follows: TEKTRONIX INC. (In thousands) Aug. 29, Aug. 24, First Quarter Ended: 1992 1991 U.S. $169,109 $149,487 International 135,515 139,077 Test & Measurement $157,493 $164,097 Television Systems 71,424 65,078 Computer Graphics 75,707 59,389 TEKTRONIX INC. SUMMARY INCOME STATEMENT (In thousands, except per-share amounts) Aug. 29, Aug. 24, First Quarter Ended: 1992 1991 Net sales $304,624 $288,564 Cost of sales 160,118 139,321 Gross profit 144,506 149,243 R&D expense 38,045 39,258 S,G & A expense 91,693 90,463 Joint venture income (loss) (1,453) 942 Operating income 13,315 20,464 Earnings before taxes 9,329 15,040 Income taxes 3,172 5,415 SFAS No. 109 tax benefit 38,100 -- SFAS No. 106 adjustment - net of tax 34,775 -- Net earnings $ 9,482 $ 9,625 Earnings per share $ 0.32 $ 0.33 Average shares 29,698 29,297 -0- 9/16/92 /CONTACT: Fletcher Chamberlin of Tektronix, 503-685-4140/ (TEK) CO: Tektronix Inc. ST: Oregon IN: CPR SU: ERN
LM-JH -- SE005 -- 0271 09/16/92 16:00 EDT
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|Date:||Sep 16, 1992|
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