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TEKTRONIX REPORTS SOLID FOURTH QUARTER, FULL-YEAR OPERATING PERFORMANCE; RESTRUCTURING CHARGES IMPACT RESULTS

 WILSONVILLE, Ore., June 24 /PRNewswire/ -- Tektronix, Inc. (NYSE: TEK) today announced its results for fourth quarter and fiscal 1993 and also announced a restructuring charge to accelerate needed steps to improve profitability and return on equity. The company said that before restructuring charges, full year net earnings were $39 million, or $1.30 per share, up 29 percent from 1992 results. Net earnings for the fourth quarter before charges were $12 million, or $.40 per share, compared with $6 million, or $.21 per share, in the prior year.
 As a result of pre-tax restructuring charges in the fourth quarter of $150 million, or $3.13 per share after tax, the company reported a net loss in fiscal 1993 of $55 million, or $1.83 per share. The company said the restructuring charges were related to exiting non-strategic components operations to further reduce the company's vertical integration; consolidating facilities; and discontinuing certain older products and other steps to improve operational efficiency.
 Net sales for the fourth quarter were $353 million, up 14 percent from $311 million in fourth quarter 1992. Net sales for the year were $1.302 billion, up slightly from $1.297 billion in 1992. Customer orders for the quarter increased to $331 million, compared with $295 million a year ago. Customer orders for the year were $1.289 billion, compared with $1.269 billion in 1992.
 "We accomplished a great deal in fiscal 1993. In a difficult worldwide economy, net earnings before charges improved significantly, and we posted a slight sales increase for the first time in four years. We delivered on our commitment to reduce overhead costs by $30 million. We upgraded product lines in almost all business areas, and we continued to strengthen our management team," said Jerome J. Meyer, Tektronix chairman and chief executive officer.
 Meyer said the company's three core businesses produced solid results in fiscal 1993. "Test & Measurement performed well in a difficult market, meeting our sales expectations and exceeding our operating margin goals. Computer Graphics delivered impressive growth and good profitability. And while we are pleased with the improvements we have seen in Television Systems and the new products that have come on line, there is room for further performance improvement in 1994 in light of challenging worldwide market conditions.
 Restructuring Aimed at Improving Shareholder Value
 "Through the restructuring, we will accelerate needed changes designed to further improve the profitability and growth potential of our businesses," Meyer said. "The steps are aimed at enhancing our financial position and returns to shareholders in fiscal 1994, with the full benefit expected to be reflected in longer-term annual earnings improvement."
 The company said the restructuring follows the direction established in 1990 to improve operational efficiency, exit non-strategic businesses, better utilize assets and lower its cost structure.
 In addition, the company said the steps are expected to enable it to focus resources on initiatives for profitable growth. "Our goal for T&M is to grow faster than the market and strengthen our core market position through acquisitions and alliances, and focus resources in specific applications in higher growth markets, such as telecommunications and semiconductors," Meyer said. "In Computer Graphics, we are working to extend our leadership in shared color printing by providing a superior workgroup color printing solution regardless of platform or printing technology."
 "In Television Systems we are now focusing our video distribution resources to capitalize on the trend toward digital compression and video signal networking and will expand our product offerings in this area. In the video production area, we intend to broaden our product offerings to address additional market opportunities," Meyer said.
 The 1993 fourth quarter includes the following special items:
 -- A $65 million pre-tax charge related to further reducing the company's level of vertical integration by exiting non-strategic components operations. Tektronix is separating its components operating units from its core businesses. Its Integrated Circuits Operation and Hybrid Circuits Operation will be placed in a wholly owned subsidiary called Tektronix Components Corp. (TCC). TCC will operate as a stand- alone business and seek a strategic partner to maximize its potential in the marketplace. In addition, the company will place its Forest Grove printed circuit board operation in a separate unit, continue to build its external sales and ultimately establish it as an independent company. The charge also includes costs related to the disposition of other non-strategic business units. It also anticipates severance costs that may be associated with these actions.
 -- A $40 million pre-tax charge related to facilities consolidation worldwide. The company will eliminate the cost of excess physical assets, including land and buildings. In addition, the charge includes renovation costs to improve the utilization of physical assets. A major component of the charge is the consolidation of the Beaverton, Oregon campus. Since 1990, Tektronix has reduced its square footage by more than 20 percent; the additional consolidation measures will mean an almost 40 percent total reduction since 1990.
 -- A $45 million pre-tax charge related to discontinuing older products and other measures to increase operational efficiency. Steps to improve efficiency also include further consolidation of administrative support operations and distribution channel improvements. As a result of these efficiency steps, the company anticipates a reduction of approximately 800 jobs worldwide in the next 12 to 18 months and has included related severance costs in this charge.
 Fourth Quarter Operating Results
 The company said that excluding restructuring charges, net earnings for the fourth quarter ended May 29 were $12 million, or $.40 per share, up sharply compared with $6 million, or $.21 per share, in fourth quarter 1992. As a result of restructuring charges, the company reported a net loss for fourth quarter 1993 of $82 million, or $2.73 per share. Net sales for the quarter were $353 million, up 14 percent from $311 million in fourth quarter 1992. The backlog of product orders declined by $20 million during the fourth quarter and by $28 million during the year, as the company's business profile continues to move to products and distribution channels that require shorter lead times and the company improves cycle times. The 1993 quarter included 13 weeks, compared with 12 weeks in fourth quarter 1992.
 The company said it further strengthened its balance sheet in the quarter with a special cash dividend of approximately $31 million from the company's Sony/Tektronix joint venture. Since Tektronix accounts for its 50-percent ownership in the joint venture by the equity method, the dividend had no income statement impact.
 Tektronix is a leading manufacturer of electronics products and systems in areas of test and measurement, computer graphics and television systems. Revenues in fiscal 1993 were $1.3 billion. Tektronix employed 9,840 people at fiscal year end. The company is headquartered in Wilsonville, Oregon and has operations worldwide.
 The geographic and product sales breakdown is as follows:
 TEKTRONIX, INC.
 (000)
 Fourth Quarter Ending Fiscal Year Ended
 13 weeks 12 weeks 52 weeks 53 weeks
 5/29/93 5/30/92 5/29/93 5/30/92
 U.S. $198,890 $169,041 $713,734 $670,291
 International 154,146 141,622 588,644 626,952
 Test & Measurement 179,997 170,750 679,254 724,802
 Computer Graphics 100,454 77,070 352,094 301,506
 Television Systems 72,585 62,843 271,030 270,935
 Income Statement
 (000)
 Fourth Quarter Ending Fiscal Year Ended
 13 weeks 12 weeks 52 weeks 53 weeks
 5/29/93 5/30/92 5/29/93 5/30/92
 Net Sales $353,036 $310,663 $1,302,378 $1,297,243
 Cost of Sales 186,476 158,271 676,310 652,087
 Gross Profit 166,560 152,392 626,068 645,156
 R&D Expense 40,756 40,577 157,068 169,183
 S,G,& A Expense 104,929 100,568 395,698 407,961
 Restructuring Charges 150,000 -- 150,000 17,298
 Joint Venture Income (Loss) 444 272 (1,932) 2,414
 Operating Income (Loss) (128,681) 11,519 (78,630) 53,128
 Interest Expense 2,848 2,760 10,311 11,291
 Non-Operating Expense 3,476 2,525 10,118 10,938
 Earnings (Loss) Before
 Taxes (135,005) 6,234 (99,059) 30,899
 Income Taxes (52,871) 82 (40,649) 9,948
 SFAS No. 109 Tax Benefit -- -- (38,100) --
 SFAS No. 106 Adjustment -
 Net of tax -- -- 34,775 --
 Net Earnings (Loss) $(82,134) $ 6,152 $ (55,085) $ 20,951
 Earnings (Loss) Per
 Share $ (2.73) $ 0.21 $ (1.83) $ 0.71
 Average Shares 30,363 29,599 30,021 29,488
 Employees 9,840 11,334
 TEKTRONIX INC.
 Balance Sheet
 (000)
 Fiscal Year Ended
 5/29/93 5/30/92
 Cash and Cash Equivalents $ 30,004 $ 18,402
 Accounts Receivable - Net 248,514 225,564
 Inventories 171,416 219,481
 Other Current Assets 65,778 32,732
 Total Current Assets 515,712 496,179
 Property, Plant and Equipment - Net 235,834 285,554
 Property Held For Sale 38,489 32,449
 Long-Term Deferred Tax Assets 88,629 --
 Other Long-Term Assets 105,841 112,568
 TOTAL ASSETS 984,505 926,750
 Short-Term Debt 69,481 55,689
 Accounts Payable 157,555 130,027
 Accrued Compensation 106,464 85,633
 Income Taxes Payable -- 24,100
 Total Current Liabilities 333,500 295,449
 Long-Term Debt 70,073 84,308
 Deferred Income Taxes -- 5,192
 Other Long-Term Liabilities 145,988 52,012
 Common Stock 190,984 175,926
 Retained Earnings 193,221 266,276
 Currency Adjustment 50,739 47,587
 Total Shareholders' Equity 434,944 489,789
 TOTAL LIABILITIES and
 SHAREHOLDERS' EQUITY 984,505 926,750
 -0- 6/24/93
 /CONTACT: (Media Contact) Shelley Potter, 503-685-4086, or (Analyst Contacts) Carl Neun, 503-685-4155, or Doug Shafer, 503-685-4111, all of Tektronix/
 (TEK)


CO: Tektronix Inc. ST: Oregon IN: CPR SU: ERN

SW-JH -- SE007 -- 5448 06/24/93 16:27 EDT
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