Exhibit 99.1
For Immediate Release | Media Contact: | Alisha Goff | ||
503/627-7075 | ||||
alisha.goff@tektronix.com | ||||
Analyst Contact: | Paul Oldham | |||
503/627-4027 | ||||
paul.r.oldham@tektronix.com |
Tektronix Reports Results for the
Second Quarter of Fiscal 2007
Second Quarter of Fiscal 2007
Orders Up 18% Year Over Year
BEAVERTON, Ore., December 14, 2006 — Tektronix, Inc. (NYSE: TEK) today reported net sales of $272.8 million and net earnings from continuing operations of $19.6 million or $0.24 per share for the second quarter ended November 25, 2006. This compares with net sales of $253.4 million and net earnings from continuing operations of $19.9 million or $0.24 per share for the same period last year. Excluding acquisition-related costs, business realignment costs, one-time items, and share-based compensation expense, net earnings from continuing operations were $29.0 million or $0.35 per share for the second quarter as compared with $25.8 million or $0.31 per share for the same period last year.
“This was a good quarter for Tektronix in many respects. We saw orders growth of 18% driven by strong demand for general purpose instruments and continued success in network monitoring for next generation networks. In addition, we saw orders growth in every geography,” said Rick Wills, Tektronix Chairman and CEO. “Strong orders resulted in sales growth of 8% over the prior year, and our strongest level of backlog in recent years. Pro forma earnings per share grew 13% on improved interest income, currency, and tax rate — partially offset by lower gross margin.”
Orders for the Instruments business were up 20% driven by a significant digital design win for logic analyzers, continued strong growth in oscilloscopes and excellent demand for our spectrum analyzer products — which grew over 50%.
Orders in the Communications business were up 7% driven by continued demand for next generation telecommunications network monitoring solutions. Wills continued, “However, we saw order growth slow modestly as a result of delayed capital expenditure investments and the timing of new installations.”
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We continued to execute our growth strategy in the Instruments business by bringing to market several major products beginning with the introduction of the DSA8200 sampling oscilloscope, modules and software that represent significant performance advancements for testing the newest generation of serial data technologies. In addition, we made considerable progress in our two newer product categories. We introduced a high performance signal source for testing high-speed serial data bases and wideband digital RF technologies. Based on a new platform, it is the fastest and most versatile product in its class. And, we saw continued strong customer response to the recently introduced RSA6100A Series Real-Time Spectrum Analyzers. These products, which began shipping this quarter, increase our addressable market and contributed to strong growth in our spectrum analyzer products overall.
In our Communications business, we introduced the K1297-G35 WiMAX — the industry’s first protocol monitoring platform for functional test of mobile WiMAX broadband technologies. In addition, just after the close of the quarter, we completed the acquisition of Minacom, a leading provider of active probe test solutions used by telecommunications carriers, cable multi-service operators, and wireless and VoIP providers worldwide. This acquisition will expand Tektronix’ leadership and addressable market in monitoring next generation networks.
“Looking forward, we are encouraged by customer response to recent product introductions. We believe our markets for Instruments products remain stable and in spite of the recent slowing in the growth rates for our Communications products, we remain optimistic about our long-term opportunities in this business,” concluded Wills.
Third Quarter Guidance
For the third quarter of fiscal 2007, the company expects net sales to be approximately $275 — $285 million. Earnings per share from continuing operations are expected to be between $0.34 and $0.39 before mostly non-cash acquisition-related costs, business realignment costs, one-time items and share-based compensation expense.
For the third quarter of fiscal 2007, the company expects net sales to be approximately $275 — $285 million. Earnings per share from continuing operations are expected to be between $0.34 and $0.39 before mostly non-cash acquisition-related costs, business realignment costs, one-time items and share-based compensation expense.
Recent highlights include the following:
New product introductions, including:
• | The introduction of the new DSA8200 Digital Serial Analyzer sampling oscilloscope, modules and software, which represent the most significant performance advancement in TDR (time-domain-reflectometry) test technology in 20 years, in direct response to the demanding needs and compliance requirements of high-speed serial data standards. | ||
• | The introduction of the new AWG7000 Arbitrary Waveform Generators which are built on a new platform and are the fastest, most capable and versatile AWGs available for testing of high-speed serial data and wideband digital RF signals. |
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• | The availability of the K1297-G35 WiMAX solution, the telecommunications industry’s first protocol monitoring platform for functional testing of Mobile WiMAX radio access products that are based on the IEEE 802.16e standard. | ||
• | The introduction of the world’s most powerful WiMAX R&D Test Set, a new application specific test tool utilizing the RSA3408A Real-Time Spectrum Analyzer, which will enable engineering teams to more quickly detect, diagnose and resolve design issues for WiMAX end-user products. | ||
• | The addition of TD-SCDMA — the mobile telecommunications standard developed for China - as an option to the market leading NetTek Wireless RF Field Tester. Tektronix is the first manufacturer to provide TD-SCDMA RF field test and measurement capabilities in a handheld form. | ||
• | The availability of Spectra2|VQM (Video Quality Measurement) version 2.0, a next generation network test tool that delivers robust multi-user diagnostics monitoring for multicast and unicast IP video services and extends Tektronix’ IP video leadership for the diagnosis and analysis of Internet Protocol TV (IPTV). | ||
• | The announcement of further extensions of IP Multimedia Subsystem (IMS) performance monitoring capabilities to the industry-leading Unified Assurance suite to enable true end-to-end performance monitoring and testing of current and next generation fixed, mobile and converged networks. |
Key customer wins, including:
• | The selection by France’s Institut national de l’audiovisuel, the world’s first audiovisual archive center, to install the Tektronix MTS4EA Elementary Stream Analyzer software to augment its world-class training center and to help educate the next generation of AV and broadcast professionals. | ||
• | The selection by Teligent, a global supplier of value added services to telecommunications carriers, of Tektronix’ Spectra2 portable diagnostics platform and conformance test suites to provide on-site testing and analysis of next generation networks. |
Product awards, including:
• | A STAR Award from the Service & Support Professionals Association (SSPA) recognizing technology companies that display exceptional leadership, innovation, and commitment to service excellence. Tektronix was the only test and measurement industry firm that received a SSPA STAR Award for service and support delivery. | ||
• | Just after the close of the quarter, Tektronix announced that the DPO4000 Oscilloscope won the Elektra ‘Product of the Year’ Award for quality of design, technical innovation and usability as judged by an independent panel of industry experts, including representatives from companies, trade bodies and academia, as well as editors from Electronics Weekly. |
In addition, today Tektronix declared a quarterly cash dividend of $.06 per share on the outstanding common shares of the Company, payable on January 22, 2007 to shareholders of record as of the close of market on January 5, 2007.
Tektronix will be discussing its second quarter results and future guidance on a conference call today, beginning at 1:30 p.m. Pacific. A live Webcast of the conference call will be available at
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www.tektronix.com/ir. A replay of the Webcast will be available at the same Web site for one year.
Tektronix presents pro forma measures of net earnings and net earnings per share from continuing operations that exclude the effects of acquisition-related costs, business realignment costs, share-based compensation and one-time items. The “Reconciliation of Pro Forma Measures to GAAP” reconciles the results of operations in accordance with generally accepted accounting principles (GAAP) to the pro forma results of operations. Tektronix presents pro forma results of operations to help readers differentiate the results of ongoing operating activity from results that include acquisition-related costs, business realignment costs, share-based compensation and one-time items. Some of these items pertain to events that have not yet occurred and are not possible to ascertain with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP for projected amounts is provided. In addition, in line with common industry practice and in order to enable comparability with other technology companies, guidance for pro forma results of operations excludes the effects of share-based compensation under FAS123R. Management of Tektronix uses these pro forma measures to evaluate the Company’s results of operations and for forecasting purposes.
Statements and information in this press release that relate to future events or results (including the Company’s statements and expectations regarding sales and earnings per share, markets, market position and market growth opportunities, strategic direction and the introduction of new products) are based on the Company’s current expectations. They constitute forward-looking statements subject to a number of risk factors, which could cause actual results to differ materially from those currently expected or desired. Those factors include: worldwide geopolitical and economic conditions; current and future business conditions in the electronics, communications, computer and advanced technologies industries; changes in order rates and customer cancellations, including changes in seasonal buying habits and timing of large orders; competitive factors, including pricing pressures, loss of key employees, technological developments and new products offered by competitors; changes in product and sales mix, and the related effects on gross margins; customer acceptance of large orders with delayed acceptance criteria; the Company’s ability to deliver a timely flow of competitive new products, and market acceptance of these products; the availability of parts and supplies from third-party suppliers on a timely basis and at reasonable prices; risks associated with compliance with the “Restriction of Hazardous Substances” worldwide regulatory provisions, including the associated conversion of current and future product designs and manufacturing processes to procure or produce lead-free products, and with export regulations; inventory risks due to changes in market demand or the Company’s business strategies; changes in effective tax rates; currency fluctuations; and the ability to develop effective sales channels. Further information on factors that could cause actual results to differ from those anticipated is included in filings made by the Company from time-to-time with the Securities and Exchange Commission, including but not limited to annual reports on Form 10-K and the quarterly reports on Form 10-Q.
About Tektronix
Tektronix is a leading supplier of test, measurement, and monitoring products, solutions and services for the communications, computer, and semiconductor industries — as well as military/aerospace, consumer electronics, education and a broad range of other industries worldwide. With 60 years of experience, Tektronix enables its customers to design, build, deploy, and manage next-generation global communications networks, advanced and pervasive technologies. Headquartered in Beaverton, Oregon, Tektronix has operations in 19 countries worldwide. Tektronix’ Web address is www.tektronix.com .
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Tektronix Second Quarter 2007 Results /5
Consolidated Statements of Operations
Quarter Ended | Two Quarters Ended | |||||||||||||||
November 25, | November 26, | November 25, | November 26, | |||||||||||||
(In thousands, except per share amounts) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Net sales | $ | 272,789 | $ | 253,396 | $ | 540,902 | $ | 488,456 | ||||||||
Cost of sales | 113,493 | 101,171 | 218,256 | 200,274 | ||||||||||||
Gross profit | 159,296 | 152,225 | 322,646 | 288,182 | ||||||||||||
Research and development expenses | 49,012 | 45,673 | 99,881 | 89,278 | ||||||||||||
Selling, general and administrative expenses | 84,164 | 73,103 | 164,037 | 141,668 | ||||||||||||
Business realignment costs (credits) | (227 | ) | 1,880 | 2,369 | 4,361 | |||||||||||
Acquisition related costs and amortization | 1,369 | 2,095 | 2,840 | 5,531 | ||||||||||||
Loss (gain) on disposition of assets, net | (33 | ) | 23 | 521 | 27 | |||||||||||
Operating income | 25,011 | 29,451 | 52,998 | 47,317 | ||||||||||||
Interest income | 4,263 | 2,888 | 8,933 | 5,980 | ||||||||||||
Interest expense | (83 | ) | (146 | ) | (182 | ) | (243 | ) | ||||||||
Other non-operating expense, net | (1,597 | ) | (1,993 | ) | (2,608 | ) | (2,979 | ) | ||||||||
Earnings before taxes | 27,594 | 30,200 | 59,141 | 50,075 | ||||||||||||
Income tax expense | 7,997 | 10,322 | 19,431 | 16,029 | ||||||||||||
Net earnings from continuing operations | 19,597 | 19,878 | 39,710 | 34,046 | ||||||||||||
Gain (loss) from discontinued operations, net of income taxes | (4 | ) | 17 | 3 | (65 | ) | ||||||||||
Net earnings | $ | 19,593 | $ | 19,895 | $ | 39,713 | $ | 33,981 | ||||||||
Earnings per share: | ||||||||||||||||
Continuing operations — basic | $ | 0.24 | $ | 0.24 | $ | 0.49 | $ | 0.41 | ||||||||
Continuing operations — diluted | $ | 0.24 | $ | 0.24 | $ | 0.48 | $ | 0.40 | ||||||||
Discontinued operations — basic | $ | — | $ | — | $ | — | $ | — | ||||||||
Discontinued operations — diluted | $ | — | $ | — | $ | — | $ | — | ||||||||
Net earnings — basic | $ | 0.24 | $ | 0.24 | $ | 0.49 | $ | 0.41 | ||||||||
Net earnings — diluted | $ | 0.24 | $ | 0.24 | $ | 0.48 | $ | 0.40 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 81,535 | 82,833 | 81,791 | 83,718 | ||||||||||||
Diluted | 83,151 | 83,584 | 83,379 | 84,438 | ||||||||||||
Cash dividend declared per share | $ | 0.06 | $ | 0.06 | $ | 0.12 | $ | 0.12 |
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Tektronix Second Quarter 2007 Results /6
Reconciliation of Pro Forma Measures to GAAP
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | November 25, 2006 | November 26, 2005 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Acquisitions | Compensation | Other | Pro Forma | GAAP | Acquisitions | Other | Pro Forma | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 272,789 | — | — | — | $ | 272,789 | $ | 253,396 | — | — | $ | 253,396 | |||||||||||||||||||||||||||||||||||
Cost of sales | 113,493 | (4,722 | )(A) | (167 | ) | — | 108,604 | 101,171 | (4,703 | )(A) | — | 96,468 | ||||||||||||||||||||||||||||||||||||
Gross profit | 159,296 | 4,722 | 167 | — | 164,185 | 152,225 | 4,703 | — | 156,928 | |||||||||||||||||||||||||||||||||||||||
Gross margin | 58.4 | % | 60.2 | % | 60.1 | % | 61.9 | % | ||||||||||||||||||||||||||||||||||||||||
Research and development expenses | 49,012 | — | (1,622 | ) | — | 47,390 | 45,673 | — | — | 45,673 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 84,164 | — | (3,887 | ) | — | 80,277 | 73,103 | — | — | 73,103 | ||||||||||||||||||||||||||||||||||||||
Business realignment costs (credits) | (227 | ) | — | — | 227 | — | 1,880 | — | (1,880 | ) | — | |||||||||||||||||||||||||||||||||||||
Acquisition related costs: | ||||||||||||||||||||||||||||||||||||||||||||||||
Write-off of IPR&D | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 1,284 | (1,284 | ) | — | — | — | 1,293 | (1,293 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Amortization of stock option compensation | 63 | (63 | ) | — | — | — | 84 | (84 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Transition expenses | 22 | (22 | ) | — | — | — | 718 | (718 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Total acquisition related costs | 1,369 | (1,369 | ) | — | — | — | 2,095 | (2,095 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Loss (gain) on disposition of assets, net | (33 | ) | — | — | — | (33 | ) | 23 | — | — | 23 | |||||||||||||||||||||||||||||||||||||
Operating income | 25,011 | 6,091 | 5,676 | (227 | ) | 36,551 | 29,451 | 6,798 | 1,880 | 38,129 | ||||||||||||||||||||||||||||||||||||||
Operating margin | 9.2 | % | 13.4 | % | 11.6 | % | 15.0 | % | ||||||||||||||||||||||||||||||||||||||||
Other income, net | 2,583 | — | — | 2,734 | (B) | 5,317 | 749 | — | — | 749 | ||||||||||||||||||||||||||||||||||||||
Earnings before taxes | 27,594 | 6,091 | 5,676 | 2,507 | 41,868 | 30,200 | 6,798 | 1,880 | 38,878 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 7,997 | 2,253 | 1,808 | 821 | 12,879 | 10,322 | 2,298 | 471 | 13,091 | |||||||||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 19,597 | 3,838 | 3,868 | 1,686 | $ | 28,989 | $ | 19,878 | 4,500 | 1,409 | $ | 25,787 | |||||||||||||||||||||||||||||||||||
Earnings per share — diluted | $ | 0.24 | $ | 0.35 | $ | 0.24 | $ | 0.31 | ||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding — diluted | 83,151 | 83,151 | 83,584 | 83,584 | ||||||||||||||||||||||||||||||||||||||||||||
Two Quarters Ended | Two Quarters Ended | |||||||||||||||||||||||||||||||||||||||||||||||
November 25, 2006 | November 26, 2005 | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||||||||||||||||||
GAAP | Acquisitions | Compensation | Other | Pro Forma | GAAP | Acquisitions | Other | Pro Forma | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 540,902 | — | — | — | $ | 540,902 | $ | 488,456 | — | — | $ | 488,456 | |||||||||||||||||||||||||||||||||||
Cost of sales | 218,256 | (10,695 | )(A) | (167 | ) | — | 207,394 | 200,274 | (9,815 | )(A) | — | 190,459 | ||||||||||||||||||||||||||||||||||||
Gross profit | 322,646 | 10,695 | 167 | — | 333,508 | 288,182 | 9,815 | — | 297,997 | |||||||||||||||||||||||||||||||||||||||
Gross margin | 59.6 | % | 61.7 | % | 59.0 | % | 61.0 | % | ||||||||||||||||||||||||||||||||||||||||
Research and development expenses | 99,881 | — | (2,850 | ) | — | 97,031 | 89,278 | — | — | 89,278 | ||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 164,037 | — | (6,860 | ) | — | 157,177 | 141,668 | — | — | 141,668 | ||||||||||||||||||||||||||||||||||||||
Business realignment costs (credits) | 2,369 | — | — | (2,369 | ) | — | 4,361 | (4,361 | ) | — | ||||||||||||||||||||||||||||||||||||||
Acquisition related costs: | ||||||||||||||||||||||||||||||||||||||||||||||||
Write-off of IPR&D | — | — | — | — | — | 365 | (365 | ) | — | — | ||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 2,619 | (2,619 | ) | — | — | — | 2,577 | (2,577 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Amortization of stock option compensation | 144 | (144 | ) | — | — | — | 174 | (174 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Transition expenses | 77 | (77 | ) | — | — | — | 2,415 | (2,415 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Total acquisition related costs | 2,840 | (2,840 | ) | — | — | — | 5,531 | (5,531 | ) | — | — | |||||||||||||||||||||||||||||||||||||
Loss (gain) on disposition of assets, net | 521 | — | — | — | 521 | 27 | — | — | 27 | |||||||||||||||||||||||||||||||||||||||
Operating income | 52,998 | 13,535 | 9,877 | 2,369 | 78,779 | 47,317 | 15,346 | 4,361 | 67,024 | |||||||||||||||||||||||||||||||||||||||
Operating margin | 9.8 | % | 14.6 | % | 9.7 | % | 13.7 | % | ||||||||||||||||||||||||||||||||||||||||
Other income, net | 6,143 | — | — | 2,734 | (B) | 8,877 | 2,758 | — | — | 2,758 | ||||||||||||||||||||||||||||||||||||||
Earnings before taxes | 59,141 | 13,535 | 9,877 | 5,103 | 87,656 | 50,075 | 15,346 | 4,361 | 69,782 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 19,431 | 5,006 | 3,270 | 1,725 | 29,432 | 16,029 | 5,465 | 1,247 | 22,741 | |||||||||||||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 39,710 | 8,529 | 6,607 | 3,378 | $ | 58,224 | $ | 34,046 | 9,881 | 3,114 | $ | 47,041 | |||||||||||||||||||||||||||||||||||
Earnings per share — diluted | $ | 0.48 | $ | 0.70 | $ | 0.40 | $ | 0.56 | ||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding — diluted | 83,379 | 83,379 | 84,438 | 84,438 | ||||||||||||||||||||||||||||||||||||||||||||
(A) | Amortization of acquired intangible assets and non-cash expense for inventory step up adjustment to fair value | |
(B) | Increase to Environmental Reserves |
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Tektronix Second Quarter 2007 Results /7
Consolidated Balance Sheets
(In thousands) | November 25, 2006 | May 27, 2006 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 155,918 | $ | 215,587 | ||||
Short-term marketable investments | 115,035 | 121,346 | ||||||
Trade accounts receivable, net | 196,044 | 174,599 | ||||||
Inventories | 162,350 | 156,351 | ||||||
Other current assets | 77,499 | 69,002 | ||||||
Total current assets | 706,846 | 736,885 | ||||||
Property, plant and equipment, net | 128,891 | 127,510 | ||||||
Long-term marketable investments | 172,121 | 103,839 | ||||||
Goodwill, net | 306,978 | 307,189 | ||||||
Pension asset | 233,968 | 239,128 | ||||||
Other long-term assets | 101,963 | 119,539 | ||||||
Total assets | $ | 1,650,767 | $ | 1,634,090 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 142,700 | $ | 133,323 | ||||
Accrued compensation | 68,304 | 71,718 | ||||||
Deferred revenue | 89,033 | 66,677 | ||||||
Total current liabilities | 300,037 | 271,718 | ||||||
Deferred income taxes | 57,363 | 65,935 | ||||||
Other long-term liabilities | 108,346 | 108,868 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 548,570 | 540,718 | ||||||
Retained earnings | 611,631 | 620,465 | ||||||
Accumulated other comprehensive income | 24,820 | 26,386 | ||||||
Total shareholders’ equity | 1,185,021 | 1,187,569 | ||||||
Total liabilities and shareholders’ equity | $ | 1,650,767 | $ | 1,634,090 | ||||
Shares outstanding | 82,370 | 83,719 |
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Tektronix Second Quarter 2007 Results /8
Selected Additional Financial Data
Quarter Ended | Two Quarters Ended | |||||||||||||||||||||||
% | November 25, | November 26, | % | November 25, | November 26, | |||||||||||||||||||
(Dollars in thousands) | Growth | 2006 | 2005 | Growth | 2006 | 2005 | ||||||||||||||||||
Orders Data: | ||||||||||||||||||||||||
Orders | 18 | % | $ | 302,193 | $ | 256,910 | 11 | % | $ | 557,592 | $ | 502,425 | ||||||||||||
U.S. | 22 | % | 116,879 | 95,723 | 17 | % | 213,073 | 181,854 | ||||||||||||||||
International | 15 | % | 185,314 | 161,187 | 7 | % | 344,519 | 320,571 | ||||||||||||||||
Instruments Business | 20 | % | 248,096 | 206,484 | 17 | % | 446,375 | 381,255 | ||||||||||||||||
Communications Business | 7 | % | 54,097 | 50,426 | (8 | %) | 111,217 | 121,170 | ||||||||||||||||
Sales Data: | ||||||||||||||||||||||||
Net Sales | 8 | % | $ | 272,789 | $ | 253,396 | 11 | % | $ | 540,902 | $ | 488,456 | ||||||||||||
U.S. | (3 | %) | 89,378 | 92,079 | 6 | % | 187,357 | 176,482 | ||||||||||||||||
International | 14 | % | 183,411 | 161,317 | 13 | % | 353,545 | 311,974 | ||||||||||||||||
Instruments Business | 7 | % | 205,244 | 192,250 | 9 | % | 403,456 | 369,619 | ||||||||||||||||
Communications Business | 10 | % | 67,545 | 61,146 | 16 | % | 137,446 | 118,837 | ||||||||||||||||
Income Statement Items as a Percentage of Net Sales: | ||||||||||||||||||||||||
Cost of sales | 42 | % | 40 | % | 40 | % | 41 | % | ||||||||||||||||
Research and development expenses | 18 | % | 18 | % | 18 | % | 18 | % | ||||||||||||||||
Selling, general and administrative expenses | 31 | % | 29 | % | 30 | % | 29 | % | ||||||||||||||||
Business realignment costs (credits) | 0 | % | 1 | % | 0 | % | 1 | % | ||||||||||||||||
Acquisition related costs and amortization | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||
Loss (gain) on disposition of assets, net | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||
Operating income | 9 | % | 12 | % | 10 | % | 10 | % | ||||||||||||||||
Capital Expenditures and Depreciation: | ||||||||||||||||||||||||
Capital expenditures | $ | 7,752 | $ | 9,889 | $ | 13,876 | $ | 18,633 | ||||||||||||||||
Depreciation and amortization expense | $ | 7,245 | $ | 6,931 | $ | 14,542 | $ | 13,937 | ||||||||||||||||
Balance Sheet: | Quarter Ended | Quarter Ended | Year Ended | |||||||||
November 25, | August 26, | May 27, | ||||||||||
2006 | 2006 | 2006 | ||||||||||
Cash and Marketable Investments: | ||||||||||||
Cash and cash equivalents | $ | 155,918 | $ | 200,360 | $ | 215,587 | ||||||
Short-term marketable investments | 115,035 | 129,002 | 121,346 | |||||||||
Long-term marketable investments | 172,121 | 105,351 | 103,839 | |||||||||
Cash and Marketable Investments | $ | 443,074 | $ | 434,713 | $ | 440,772 | ||||||
Accounts receivable as a percentage of net sales | 16.8 | % | 16.1 | % | 15.9 | % | ||||||
Days sales outstanding | 65.4 | 57.8 | 61.1 | |||||||||
Countback days sales outstanding | 54.6 | 49.3 | 46.6 | |||||||||
Inventory as a percentage of net sales | 15.0 | % | 15.0 | % | 13.8 | % | ||||||
Inventory turns | 2.8 | 2.6 | 2.9 | |||||||||
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