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 Full Year
and Fourth Quarter of Fiscal 2005
Greater than 12% Sales Growth to Over $1 Billion and Pro
Forma Earnings Growth Above 35% for Fiscal Year
BEAVERTON, Ore., June 23, 2005 – Tektronix, Inc. (NYSE: TEK) today reported net sales of $1.035 billion and net earnings from continuing operations of $78.9 million or $0.89 per share for the fiscal year ended May 28, 2005. This compares with net sales of $920.6 million and net earnings from continuing operations of $118.2 million or $1.37 per share for the prior fiscal year. Excluding acquisition-related costs, business realignment and one-time items, net earnings from continuing operations was $126.9 million or $1.44 per share for the fiscal year ended May 28, 2005, as compared with $93.1 million or $1.08 per share for the prior fiscal year. Included in acquisition-related costs for the year ended May 28, 2005 are mostly non-cash expenses related to the acquisition of Inet Technologies, Inc., including the write-off of in-process R&D and amortization of acquisition-related items, and other acquisition-related expenses. Included in acquisition-related credits in the prior fiscal year are a non-cash gain resulting from the settlement of the historical defined benefit pension plan at the company’s subsidiary in Japan and a gain on sale of the headquarters property in Japan.
“This was a great year for Tektronix. Sales exceeded $1 billion and pro forma earnings grew over 35%,” said Rick Wills, Tektronix Chairman and CEO. “The Inet acquisition is yielding much stronger growth than we initially projected. We are excited about the opportunity we see in that business. In addition, the increased investments in engineering in the rest of the business over the last few years have enabled us to make great progress in new product development and contributed to our ability to take market share in several product categories. During the year, we strengthened the management team through internal promotions and external hiring and enhanced the quality and reach of our world-class distribution system.”
For the fourth quarter ended May 28, 2005, Tektronix reported net sales of $261.0 million and net earnings from continuing operations of $21.6 million or $0.25 per share. This compares with net
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Tektronix Fourth Quarter 2005 Results.../2
sales of $257.8 million and net earnings from continuing operations of $26.5 million or $0.31 per share for the same period last year. Excluding acquisition-related costs, business realignment and one-time items, net earnings from continuing operations were $27.4 million or $0.31 per share for the fourth quarter ended May 28, 2005, as compared with $29.1 million or $0.34 per share for the same period last year.
“A strong finish to the quarter enabled us to deliver solid orders and sales above the high end of our revised guidance, despite some mid-quarter softness in demand,” said Wills.
“Although down from last year, the Americas and the Pacific regions had their best quarter of the fiscal year for orders and we continue to see growth in Japan,” continued Wills. “Our two newest product categories are gaining traction with strong growth in the quarter and good progress in new product development.”
For the first quarter of fiscal 2006, the company expects net sales to be approximately $230 — $240 million. Earnings per share from continuing operations are expected to be between $0.20 and $0.26 before mostly non-cash costs related to the acquisition of Inet Technologies and other one-time costs. Assuming stable markets, normal seasonality and the strength of new products in the second half, the company expects the first quarter to represent the low point for the year in terms of both sales and earnings per share.
“As we move into our new fiscal year, the strength of the markets remains a question. We see evidence of softness in some markets and strength in others. However, we remain very encouraged by the progress we are making with respect to our new products. As a result of our significant increase in engineering investments, this should be one of the strongest years for new product introductions, with new product activity expected in all of our product categories,” concluded Wills.
Recent highlights include the following:
• | The TDS6000C, the world’s fastest real-time oscilloscope family, received the Ultimate Product Award from the readers ofEE TimesandeeProductCenter. | |||
• | The U.S. Air Force awarded Tektronix a five-year requirements contract to supply digital oscilloscopes which will be used in the installation, maintenance and support of an array of electronic equipment and systems ranging from low-end radio systems to highly sophisticated radar and EW systems. | |||
• | The purchase by a number of leading Chinese universities over several years of more than two thousand Tektronix TDS1000 and TDS2000 oscilloscopes which will be used to upgrade the research facilities of their engineering labs. | |||
• | Tektronix announced new oscilloscope software and logic analyzer test solutions to facilitate development and implementation of advanced serial data standards such as Fully |
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Tektronix Fourth Quarter 2005 Results.../3
Buffered DIMM (FB-DIMM) and PCI Express – high speed serial data standards that require robust test and validation. | ||||
• | Tektronix introduced several new products to support next-generation video technology including the MTS400 Series Compressed Video Test System which provides the highest performance analysis engine on the market along with real-time Video over IP monitoring, the addition of the VC-1 advanced compression video codec and upgrades to the WVR7100 Rasterizer which add Dolby® E and Dolby® Digital capabilities to meet audio quality demands. | |||
• | The introduction of several significant logic analyzer products including the TLA7012 portable mainframe and TLA7016 benchtop mainframe which work in combination with automated features and an improved user interface. Tektronix also announced that it achieved market share leadership with just over 50% of logic analyzer sales worldwide in 2004. | |||
• | Just after the end of the quarter, Tektronix acquired TDA Systems, a maker of time domain software tools for high speed serial data customers based in Lake Oswego, Oregon. The TDA Systems business will be integrated into Tektronix’ sampling oscilloscope product line. |
In addition, today Tektronix declared a quarterly cash dividend of $0.06 per share on the outstanding common shares of the Company, payable on July 25, 2005 to shareholders of record as of the close of market on July 8, 2005.
Tektronix will be discussing its fourth quarter results and future guidance on a conference call today, beginning at 1:30 p.m. Pacific Daylight Time (PDT). A live Webcast of the conference call will be available atwww.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 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 and one-time items. 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, market position and market growth opportunities, 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; 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; 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
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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 and/or produce lead free products; inventory risks due to changes in market demand or the Company’s business strategies; changes in effective tax rates; currency fluctuations; the ability to develop effective sales channels; and risks associated with the integration of Inet Technologies including realization of expected growth opportunities. 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, Inc. is a test, measurement, and monitoring company providing measurement solutions to the communications, computer, and semiconductor industries worldwide. With more than 55 years of experience, Tektronix enables its customers to design, build, deploy, and manage next-generation global communications networks and advanced technologies. Headquartered in Beaverton, Oregon, Tektronix has operations in 20 countries worldwide. Tektronix’ Web address is www.tektronix.com.
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Tektronix Fourth Quarter 2005 Results/5
Consolidated Statements of Operations
Quarter Ended | Fiscal Year Ended | |||||||||||||||
May 28, | May 29, | May 28, | May 29, | |||||||||||||
(In thousands, except per share amounts) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Net sales | $ | 261,029 | $ | 257,755 | $ | 1,034,654 | $ | 920,620 | ||||||||
Cost of sales | 104,481 | 106,837 | 415,878 | 397,577 | ||||||||||||
Gross profit | 156,548 | 150,918 | 618,776 | 523,043 | ||||||||||||
Research and development expenses | 44,637 | 37,109 | 163,474 | 130,386 | ||||||||||||
Selling, general and administrative expenses | 80,789 | 77,640 | 300,925 | 277,993 | ||||||||||||
Business realignment costs | 435 | 2,715 | 3,100 | 22,765 | ||||||||||||
Acquisition related costs (credits), net | 3,235 | 1,374 | 41,553 | (51,025 | ) | |||||||||||
Loss (gain) on disposition of assets, net | (620 | ) | 393 | (1,700 | ) | 1,134 | ||||||||||
Operating income | 28,072 | 31,687 | 111,424 | 141,790 | ||||||||||||
Interest income | 3,980 | 5,325 | 17,144 | 21,565 | ||||||||||||
Interest expense | (289 | ) | (227 | ) | (820 | ) | (2,208 | ) | ||||||||
Other non-operating income (expense), net | (1,695 | ) | (553 | ) | (3,564 | ) | 6,165 | |||||||||
Earnings before taxes | 30,068 | 36,232 | 124,184 | 167,312 | ||||||||||||
Income tax expense | 8,495 | 9,763 | 45,333 | 49,087 | ||||||||||||
Net earnings from continuing operations | 21,573 | 26,469 | 78,851 | 118,225 | ||||||||||||
Gain (loss) from discontinued operations, net of income taxes | (372 | ) | (350 | ) | 2,745 | (2,130 | ) | |||||||||
Net earnings | $ | 21,201 | $ | 26,119 | $ | 81,596 | $ | 116,095 | ||||||||
Earnings (loss) per share: | ||||||||||||||||
Continuing operations — basic | $ | 0.25 | $ | 0.31 | $ | 0.91 | $ | 1.40 | ||||||||
Continuing operations — diluted | $ | 0.25 | $ | 0.31 | $ | 0.89 | $ | 1.37 | ||||||||
Discontinued operations — basic | $ | — | $ | — | $ | 0.03 | $ | (0.03 | ) | |||||||
Discontinued operations — diluted | $ | — | $ | — | $ | 0.03 | $ | (0.02 | ) | |||||||
Net earnings — basic | $ | 0.24 | $ | 0.31 | $ | 0.94 | $ | 1.37 | ||||||||
Net earnings — diluted | $ | 0.24 | $ | 0.30 | $ | 0.93 | $ | 1.35 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 87,103 | 84,707 | 86,803 | 84,720 | ||||||||||||
Diluted | 87,840 | 86,277 | 88,151 | 86,038 | ||||||||||||
Cash dividend declared per share | $ | 0.06 | $ | 0.04 | $ | 0.22 | $ | 0.12 |
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Tektronix Fourth Quarter 2005 Results/6
Consolidated Balance Sheets
(In thousands) | May 28, 2005 | May 29, 2004 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 131,640 | $ | 149,011 | ||||
Short-term marketable investments | 120,881 | 90,956 | ||||||
Trade accounts receivable, net | 155,332 | 133,150 | ||||||
Inventories | 131,096 | 102,101 | ||||||
Other current assets | 65,832 | 69,812 | ||||||
Total current assets | 604,781 | 545,030 | ||||||
Property, plant and equipment, net | 120,546 | 105,310 | ||||||
Long-term marketable investments | 226,892 | 463,878 | ||||||
Deferred tax assets | 56,821 | 105,886 | ||||||
Goodwill, net | 301,673 | 79,774 | ||||||
Other long-term assets | 135,285 | 30,825 | ||||||
Total assets | $ | 1,445,998 | $ | 1,330,703 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 100,713 | $ | 134,048 | ||||
Accrued compensation | 78,938 | 89,212 | ||||||
Deferred revenue | 57,509 | 25,247 | ||||||
Total current liabilities | 237,160 | 248,507 | ||||||
Long-term liabilities | 223,015 | 211,616 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 501,886 | 257,267 | ||||||
Retained earnings | 639,720 | 748,381 | ||||||
Accumulated other comprehensive loss | (155,783 | ) | (135,068 | ) | ||||
Total shareholders’ equity | 985,823 | 870,580 | ||||||
Total liabilities and shareholders’ equity | $ | 1,445,998 | $ | 1,330,703 | ||||
Shares outstanding | 85,144 | 84,179 |
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Tektronix Fourth Quarter 2005 Results /7
Selected Additional Financial Data
Quarter Ended | Fiscal Year Ended | |||||||||||||||||||||||
(Dollars in thousands, | % | May 28, | May 29, | % | May 28, | May 29, | ||||||||||||||||||
except per share amounts) | Growth | 2005 | 2004 | Growth | 2005 | 2004 | ||||||||||||||||||
Product Orders and Sales Data: | ||||||||||||||||||||||||
Orders | (8 | )% | $ | 240,784 | $ | 260,802 | 1 | % | $ | 921,077 | $ | 907,757 | ||||||||||||
U.S. | (25 | )% | 89,199 | 118,158 | (16 | )% | 312,661 | 374,094 | ||||||||||||||||
International | 6 | % | 151,585 | 142,644 | 14 | % | 608,416 | 533,663 | ||||||||||||||||
Total — excluding Rohde and Schwarz & Inet | (5 | )% | 214,326 | 224,885 | 4 | % | 840,432 | 811,581 | ||||||||||||||||
Net Sales | 1 | % | $ | 261,029 | $ | 257,755 | 12 | % | $ | 1,034,654 | $ | 920,620 | ||||||||||||
U.S. | (14 | )% | 96,616 | 112,774 | 2 | % | 392,755 | 386,369 | ||||||||||||||||
International | 13 | % | 164,413 | 144,981 | 20 | % | 641,899 | 534,251 | ||||||||||||||||
Total — excluding Rohde and Schwarz & Inet | (2 | )% | 225,020 | 229,005 | 11 | % | 926,975 | 833,333 | ||||||||||||||||
Book to Bill Ratio Calculation: | ||||||||||||||||||||||||
Product Orders | $ | 240,784 | $ | 260,802 | $ | 921,077 | $ | 907,757 | ||||||||||||||||
Product Sales | $ | 239,557 | $ | 238,855 | $ | 951,945 | $ | 853,287 | ||||||||||||||||
Book to Bill ratio | 1.01 | 1.09 | 0.97 | 1.06 | ||||||||||||||||||||
Reconciliation of Pro Forma Measures to GAAP: | ||||||||||||||||||||||||
Net earnings from continuing operations — GAAP | $ | 21,573 | $ | 26,469 | $ | 78,851 | $ | 118,225 | ||||||||||||||||
Effect of : | ||||||||||||||||||||||||
Acquisition related items reported in cost of sales | 5,557 | — | 14,774 | — | ||||||||||||||||||||
Acquisition related items reported in operating expenses | 3,235 | 1,374 | 41,553 | (51,025 | ) | |||||||||||||||||||
Business realignment costs | 435 | 2,715 | 3,100 | 22,765 | ||||||||||||||||||||
Loss (gain) on sale of corporate equity securities | — | 3 | — | (7,290 | ) | |||||||||||||||||||
Gain on sale of Nevada City property | — | — | (2,161 | ) | — | |||||||||||||||||||
Tax effect of above items | (3,430 | ) | (1,463 | ) | (9,217 | ) | 10,430 | |||||||||||||||||
Net earnings from continuing operations — Pro Forma | $ | 27,370 | $ | 29,098 | $ | 126,900 | $ | 93,105 | ||||||||||||||||
Diluted earnings per share — Pro Forma | $ | 0.31 | $ | 0.34 | $ | 1.44 | $ | 1.08 | ||||||||||||||||
Income Statement Items as a Percentage of Net Sales: | ||||||||||||||||||||||||
Cost of sales | 40 | % | 41 | % | 40 | % | 43 | % | ||||||||||||||||
Research and development expenses | 17 | % | 14 | % | 16 | % | 14 | % | ||||||||||||||||
Selling, general and administrative expenses | 31 | % | 30 | % | 29 | % | 30 | % | ||||||||||||||||
Business realignment costs | 0 | % | 1 | % | 0 | % | 2 | % | ||||||||||||||||
Acquisition related costs (credits), net | 1 | % | 1 | % | 4 | % | (6 | )% | ||||||||||||||||
Loss (gain) on disposition of assets, net | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||
Operating income | 11 | % | 12 | % | 11 | % | 15 | % | ||||||||||||||||
Capital Expenditures and Depreciation: | ||||||||||||||||||||||||
Capital expenditures | $ | 11,323 | $ | 5,099 | $ | 32,464 | $ | 19,940 | ||||||||||||||||
Depreciation and amortization expense | $ | 7,644 | $ | 8,799 | $ | 29,157 | $ | 29,751 | ||||||||||||||||
Quarter Ended | Year Ended | |||||||
May 28, 2005 | May 29, 2004 | |||||||
Balance Sheet: | ||||||||
Cash and Marketable Investments: | ||||||||
Cash and cash equivalents | $ | 131,640 | $ | 149,011 | ||||
Short-term marketable investments | 120,881 | 90,956 | ||||||
Long-term marketable investments | 226,892 | 463,878 | ||||||
Cash and Marketable Investments | $ | 479,413 | $ | 703,845 | ||||
Accounts receivable as a percentage of net sales | 15.0 | % | 12.7 | % | ||||
Days sales outstanding | 54.2 | 52.6 | ||||||
Average days sales outstanding | 54.7 | 46.2 | ||||||
Inventory as a percentage of net sales | 12.5 | % | 10.6 | % | ||||
Inventory turns | 3.2 | 4.1 | ||||||
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Tektronix Fourth Quarter 2005 Results /8
Discontinued Operations
Quarter Ended | Fiscal Year Ended | |||||||||||||||
May 28, | May 29, | May 28, | May 29, | |||||||||||||
(In thousands) | 2005 | 2004 | 2005 | 2004 | ||||||||||||
Loss on sale of VideoTele.com (less applicable income tax benefit of $1, $32, $13 and $48) | $ | (1 | ) | $ | (61 | ) | $ | (23 | ) | $ | (89 | ) | ||||
Loss on sale of optical parametric test business (less applicable income tax benefit of $18, $81, $113 and $195) | (36 | ) | (150 | ) | (212 | ) | (363 | ) | ||||||||
Loss on sale of Gage (less applicable income tax benefit of $79, $76, $182 and $692) | (144 | ) | (139 | ) | (337 | ) | (1,284 | ) | ||||||||
Loss from operations of Gage (less applicable income tax benefit of $0, $0, $0 and $212) | — | — | — | (394 | ) | |||||||||||
Gain (loss) on sale of Color Printing and Imaging (less applicable income tax expense (benefit) of $(103), $0, $1,786 and $0) | (191 | ) | — | 3,317 | — | |||||||||||
Gain (loss) from discontinued operations, net of income taxes | $ | (372 | ) | $ | (350 | ) | $ | 2,745 | $ | (2,130 | ) | |||||
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Tektronix Fourth Quarter 2005 Results/9
Reconciliation of Pro Forma Measures to GAAP
Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | May 28, 2005 | May 29, 2004 | |||||||||||||||||||||||||||||||||
Adjustments | Adjustments | ||||||||||||||||||||||||||||||||||
GAAP | Inet | Other | Pro Forma | GAAP | Pro Forma | ||||||||||||||||||||||||||||||
Net sales | $ | 261,029 | — | — | $ | 261,029 | $ | 257,755 | — | $ | 257,755 | ||||||||||||||||||||||||
Cost of sales | 104,481 | (5,557 | ) | — | (A) | 98,924 | 106,837 | — | 106,837 | ||||||||||||||||||||||||||
Gross profit | 156,548 | 5,557 | — | 162,105 | 150,918 | — | 150,918 | ||||||||||||||||||||||||||||
Gross margin | 60.0 | % | 62.1 | % | 58.6 | % | 58.6 | % | |||||||||||||||||||||||||||
Research and development expenses | 44,637 | — | — | 44,637 | 37,109 | — | 37,109 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 80,789 | — | — | 80,789 | 77,640 | — | 77,640 | ||||||||||||||||||||||||||||
Business realignment costs | 435 | (328 | ) | (107 | ) | — | 2,715 | (2,715 | ) | — | |||||||||||||||||||||||||
Acquisition related costs: | |||||||||||||||||||||||||||||||||||
Write-off of IPR&D | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 1,280 | (1,280 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Amortization of stock option compensation | 274 | (274 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Transition expenses | 1,681 | (685 | ) | (996 | ) | — | 1,358 | (1,358 | ) | — | |||||||||||||||||||||||||
Net loss on assets held for sale | — | — | — | — | 16 | (16 | ) | — | |||||||||||||||||||||||||||
Total acquisition related costs | 3,235 | (2,239 | ) | (996 | ) | — | 1,374 | (1,374 | ) | — | |||||||||||||||||||||||||
Loss (gain) on disposition of assets | (620 | ) | — | — | (620 | ) | 393 | — | 393 | ||||||||||||||||||||||||||
Operating income | 28,072 | 8,124 | 1,103 | 37,299 | 31,687 | 4,089 | 35,776 | ||||||||||||||||||||||||||||
Operating margin | 10.8 | % | 14.3 | % | 12.3 | % | 13.9 | % | |||||||||||||||||||||||||||
Other income, net | 1,996 | — | — | 1,996 | 4,545 | 3 | 4,548 | ||||||||||||||||||||||||||||
Earnings before taxes | 30,068 | 8,124 | 1,103 | 39,295 | 36,232 | 4,092 | 40,324 | ||||||||||||||||||||||||||||
Income tax expense | 8,495 | 3,099 | 331 | 11,925 | 9,763 | 1,463 | 11,226 | ||||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 21,573 | 5,025 | 772 | $ | 27,370 | $ | 26,469 | 2,629 | $ | 29,098 | ||||||||||||||||||||||||
Earnings per share — diluted | $ | 0.25 | $ | 0.31 | $ | 0.31 | $ | 0.34 | |||||||||||||||||||||||||||
Weighted average shares outstanding — diluted | 87,840 | 87,840 | 86,277 | 86,277 | |||||||||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||||
May 28, 2005 | May 29, 2004 | |||||||||||||||||||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||||||||||||||||||
GAAP | Inet | Other | Pro Forma | GAAP | Pro Forma | |||||||||||||||||||||||||||||
Net sales | $ | 1,034,654 | — | — | $ | 1,034,654 | $ | 920,620 | — | $ | 920,620 | |||||||||||||||||||||||
Cost of sales | 415,878 | (14,774 | ) | — | (A) | 401,104 | 397,577 | — | 397,577 | |||||||||||||||||||||||||
Gross profit | 618,776 | 14,774 | — | 633,550 | 523,043 | — | 523,043 | |||||||||||||||||||||||||||
Gross margin | 59.8 | % | 61.2 | % | 56.8 | % | 56.8 | % | ||||||||||||||||||||||||||
Research and development expenses | 163,474 | — | — | 163,474 | 130,386 | — | 130,386 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 300,925 | — | — | 300,925 | 277,993 | — | 277,993 | |||||||||||||||||||||||||||
Business realignment costs | 3,100 | (328 | ) | (2,772 | ) | — | 22,765 | (22,765 | ) | — | ||||||||||||||||||||||||
Acquisition related costs (credits): | ||||||||||||||||||||||||||||||||||
Write-off of IPR&D | 32,237 | (32,237 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of acquired intangible assets | 3,414 | (3,414 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Amortization of stock option compensation | 785 | (785 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
Transition expenses | 5,117 | (2,224 | ) | (2,893 | ) | — | 4,962 | (4,962 | ) | — | ||||||||||||||||||||||||
Net gain on assets held for sale | — | — | — | — | (19,246 | ) | 19,246 | (C) | — | |||||||||||||||||||||||||
Japan pension gain | — | — | — | — | (36,741 | ) | 36,741 | — | ||||||||||||||||||||||||||
Total acquisition related costs (credits) | 41,553 | (38,660 | ) | (2,893 | ) | — | (51,025 | ) | 51,025 | — | ||||||||||||||||||||||||
Loss (gain) on disposition of assets | (1,700 | ) | — | 2,161 | (B) | 461 | 1,134 | — | 1,134 | |||||||||||||||||||||||||
Operating income | 111,424 | 53,762 | 3,504 | 168,690 | 141,790 | (28,260 | ) | 113,530 | ||||||||||||||||||||||||||
Operating margin | 10.8 | % | 16.3 | % | 15.4 | % | 12.3 | % | ||||||||||||||||||||||||||
Other income, net | 12,760 | — | — | 12,760 | 25,522 | (7,290 | )(D) | 18,232 | ||||||||||||||||||||||||||
Earnings before taxes | 124,184 | 53,762 | 3,504 | 181,450 | 167,312 | (35,550 | ) | 131,762 | ||||||||||||||||||||||||||
Income tax expense | 45,333 | 8,165 | 1,052 | 54,550 | 49,087 | (10,430 | ) | 38,657 | ||||||||||||||||||||||||||
Net earnings from continuing operations | $ | 78,851 | 45,597 | 2,452 | $ | 126,900 | $ | 118,225 | (25,120 | ) | $ | 93,105 | ||||||||||||||||||||||
Earnings per share — diluted | $ | 0.89 | $ | 1.44 | $ | 1.37 | $ | 1.08 | ||||||||||||||||||||||||||
Weighted average shares outstanding — diluted | 88,151 | 88,151 | 86,038 | 86,038 | ||||||||||||||||||||||||||||||
(A) | Amortization of acquired intangible assets and non-cash expense for Inet inventory step up adjustment to fair value |
(B) | Gain on sale of Nevada City property |
(C) | Gain on sale of Japan headquarters building |
(D) | Gain on sale of Merix Corporation common stock |
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