Exhibit 99 CONTACT: Mark J. Plush
Vice President and Chief Financial Officer
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KEITHLEY KEITHLEY INSTRUMENTS, INC.
28775 Aurora Road
Cleveland, Ohio 44139-1891
440-248-0400 o Fax: 440-248-6168
http://www.keithley.com
FOR IMMEDIATE RELEASE
KEITHLEY INSTRUMENTS RECORDS NON-CASH
ADJUSTMENT TO INCOME TAX PROVISION
Cleveland, Ohio - December 8, 2003 - Keithley Instruments, Inc. (NYSE:KEI), a
leader in solutions for emerging measurement needs, announced a non-cash
adjustment to income tax expense for its previously released results for the
fourth quarter and fiscal year ended September 30, 2003. The Company's pretax
results were not affected by the change.
The Company and its independent accountants have reviewed the accounting
treatment under Statement of Financial Accounting Standards No. 109, "Accounting
for Income Taxes," related to a tax valuation reserve for certain tax credits
that were generated as a result of the previous exercise of non-qualified stock
options. In the November 3, 2003 earnings release, the valuation reserve was
recorded as a charge against shareholders' equity. The appropriate accounting
treatment is to charge the valuation reserve against the provision for income
taxes. The adjustment does not affect previously reported sales, gross margins,
or other components of pretax results or cash flows.
The deferred tax assets valuation allowance is reviewed periodically for
continued probability of realization as part of the Company's normal accounting
processes. This may result in an increase or decrease in the deferred tax assets
valuation allowance amount as future conditions dictate.
The Company's previously released pretax income for the fourth quarter ended
September 30, 2003 of $1.1 million remains unchanged, as does the reported
pretax loss for the full fiscal year. However, the provision for income taxes is
being increased by $1.7 million resulting in a net loss for the fourth quarter
of $0.8 million, or $0.05 per share. For the full fiscal year, the revised net
loss is $4.2 million, or $0.27 per share. This change does not affect any other
previously reported periods.
The Company is reporting this change before the filing of its fiscal year 2003
Annual Report on Form 10-K, which is due to be filed with the Securities and
Exchange Commission on or before December 29, 2003.
About Keithley Instruments. With more than 50 years of measurement expertise,
Keithley Instruments has become a world leader in advanced electrical test
instruments and systems from DC to RF (radio frequency) for semiconductor,
wireless, optoelectronics, and other segments of the worldwide electronics
industry. Engineers and scientists rely on Keithley's instrumentation to make
even the most demanding electrical measurements with confidence. Keithley
technology can be found on production floors of the most advanced electronics
manufacturing facilities, in leading development labs, and in research
departments of the world's prominent universities and corporate R&D centers.
KEITHLEY INSTRUMENTS, INC.
Consolidated Statement of Income
(In Thousands of Dollars Except for Per Share Data)
(Unaudited)
FOR THE THREE MONTHS FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
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2003 2002 2003 2002
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NET SALES $29,303 100.0% $28,423 100.0% $106,718 100.0% $96,922 100.0%
Cost of goods sold 12,346 42.1 12,183 42.9 47,646 44.7 42,441 43.8
Selling, general and
administrative expenses 12,149 41.5 12,130 42.7 49,534 46.4 45,056 46.5
Product development expenses 3,408 11.6 3,427 12.0 13,488 12.6 13,987 14.4
Severance charges 310 1.1 -- -- 845 0.8 1,461 1.5
Net financing income (51) (0.2) (212) (0.7) (434) (0.4) (977) (1.0)
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Income (loss) before income taxes 1,141 3.9 895 3.1 (4,361) (4.1) (5,046) (5.2)
Income taxes (benefit) 1,977 6.7 143 0.5 (169) (0.2) (1,966) (2.0)
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NET (LOSS) INCOME $ (836) (2.8)% $ 752 2.6% $ (4,192) (3.9)% $ (3,080) (3.2)%
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Basic (loss) earnings per share $ (0.05) $ 0.05 $ (0.27) $ (0.20)
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Diluted (loss) earnings per share $ (0.05) $ 0.05 $ (0.27) $ (0.20)
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Cash dividends per
Common Share $ .0375 $ .0375 $ .1500 $ .1500
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Cash dividends per
Class B Common Share $ .0300 $ .0300 $ .1200 $ .1200
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Weighted average number of shares
outstanding - Diluted (000) 15,501 16,175 15,487 15,687
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KEITHLEY INSTRUMENTS, INC.
Consolidated Balance Sheet
(In Thousands of Dollars)
(Unaudited)
September 30, 2003 September 30, 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 15,739 $ 21,707
Short-term investments 20,070 28,171
Refundable income taxes 519 954
Accounts receivable and other, net of allowances 15,607 14,140
Inventory 11,214 10,112
Other current assets 5,111 5,095
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Total current assets 68,260 80,179
Property, plant and equipment, net 14,301 13,808
Other assets 31,625 26,384
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Total assets $114,186 $120,371
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,071 $ 7,170
Other current liabilities 12,721 13,583
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Total current liabilities 19,792 20,753
Long-term debt -- --
Other long-term liabilities 9,631 7,170
Shareholders' equity 84,763 92,448
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Total liabilities and shareholders' equity $114,186 $120,371
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