Printer rebound fuels Tektronix 2Q

Electronic News, Dec 23, 1996

Wilsonville, Ore.--Tektronix Inc. reported 2Q97 net earnings of $26.5 million, or 81 cents per share, compared with $26.3 million, or 79 cents per share, in 2Q96. Net sales for the quarter ended Nov. 30, 1996 rose 8 percent to $477.2 million from $443.6 million.

Product orders grew 5 percent to $444.9 million from $424.0 million in 2Q96.

"Strong sales performances in our U.S. and Pacific markets and a rebound in our color printer business contributed to a quarter that met our expectations," said Chairman/CEO Jerry Meyer. "In addition, our Video and Networking business experienced solid growth and...returned to profitability in the period."

Sales and orders for the office market were cited for the rebound in Tek's Color Printing and Imaging Division. Net sales for the division in 2Q97 rose 13 percent to $157.8 million from $139.9 million in 2Q96, while product orders gained 20 percent to $153.0 million from $127.9 million.

Net sales for the Video and Networking Division rose 12 percent, from $103.5 million in 2Q96 to $116.1 million in 2Q97. Product orders for the division climbed 13 percent to $99.5 million from $87.9 million in 2Q96.

Measurement Business Division net sales for the period were $203.3 million, up 2 percent over last year. Product orders fell to $192.4 million from $208.2 million in 2Q96. Declines in sales growth and orders resulted from product line transitions and forecasted changes in stocking policies at a joint venture in Japan, Sony/Tektronix, it was noted.

Compared to 2Q96, inventory improved from 15.6 percent to 13.7 percent of annualized sales. Over the same time period, accounts receivable improved from 18.3 percent to 14.3 percent.

Tek established a $50 million accounts receivable securitization facility in the quarter to increase access to capital markets. Utilization of it reduced accounts receivable as a percent of annualized sales.

Meanwhile, six-month sales were $917.3 million versus $844.6 million in the year-ago period. Net income was $49.17 million, or $1.50 per share, versus $48.98 million, or $1.47 per share.

Tek shares rose 1-1/8 to close at 50-5/8 the day of the report; 83,000 shares traded.