INVESTOR CONTACT:
John Gardner
503.627.5614
john.d.gardner@tektronix.com
MEDIA CONTACTS:
Kimberly McAlear
503.627.4314
kimberly.mcalear@tektronix.com
Alisha Goff
503.627.7075
alisha.goff@tektronix.com
TEKTRONIX PROVIDES GUIDANCE ON EARNINGS
IMPACT RELATED TO THE ACQUISITION OF INET TECHNOLOGIES
REITERATES PRE-ACQUISITION GUIDANCE
BEAVERTON, Ore., November 19, 2004 - Tektronix, Inc. (NYSE: TEK), a leading
worldwide provider of test, measurement, and monitoring instrumentation, today
provided guidance on the earnings impact of its acquisition of Inet
Technologies, Inc., a leading global provider of communications software
solutions that enable next-generation networks, including 2.5G and 3G mobile
data and voice-over-packet (VoIP) technologies, and traditional networks.
For the second quarter of its fiscal year, which ends November 27, 2004,
Tektronix' financial results will include the consolidation of the business
results from the Inet acquisition for the months of October and November, 2004.
The company anticipates the incremental impact of the acquisition to be $.02 -
$.04 dilutive to second quarter earnings per share, excluding the mostly
non-cash expense of the one-time write off of in-process research and
development (R&D) and other acquisition related charges. The total impact of
these expenses in the second quarter of the fiscal year will be $.40 - $.45 per
share. Of this, roughly $.35 per share relates to the one-time, non-cash write
off of in-process R&D.
For the full fiscal year, the incremental impact of the acquisition is expected
to be slightly dilutive, excluding the mostly non-cash impacts of the one-time
write off of in-process R&D and other acquisition related charges.
-more-
Tektronix Provides Guidance on Earnings Impact Related to the Acquisition of
Inet Technologies.../2
"We are now nearly sixty days into the integration and we are excited about the
opportunity created by this acquisition and the potential we see in the
synergies between our mobile protocol test products and the network management
and diagnostic products gained from the acquisition," said Rick Wills, Tektronix
Chairman and CEO. "This combination should enable us to grow our leadership
position in these markets as we gain a unique insight into the end-to-end needs
of network operators and equipment manufacturers seeking to implement
next-generation technologies such as General Packet Radio Service (GPRS),
Universal Mobile Telecommunications Systems (UMTS), and VoIP."
The company reiterated its original guidance for the second quarter of the
fiscal year of $.30 - $.35 earnings per share, excluding business realignment
and one-time items, and the impact of the Inet acquisition.
Tektronix will release its second quarter fiscal 2005 earnings results and hold
its investor conference call on December 16, 2004.
FORWARD-LOOKING STATEMENTS
Statements and information in this press release that relate to future events or
results (including the Company's statements and expectations regarding the
incremental effect of consolidating the business results from the Inet
acquisition, the extent of one-time write-offs of in-process R&D and other
acquisition related charges, growth opportunities in the network management and
diagnostic products markets, market position, sales, earnings per share, and 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;
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, 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, including next-generation technologies such as General Packet Radio
Service (GPRS), Universal Mobile Telecommunications Systems (UMTS) and VoIP and
market acceptance of these products; the availability of parts and supplies from
third-party suppliers on a timely basis and at reasonable prices; inventory
risks due to changes in market demand or the Company's business strategies;
resolution of indemnities relating to certain acquisitions and divestitures;
changes in effective tax rates; currency fluctuations; the ability to develop
effective sales channels; and risks associated with the acquisition of Inet
Technologies, including successful integration of the acquired business. 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 the S-4
registration related to the acquisition of Inet Technologies, Inc., annual
reports on Form 10-K and the quarterly reports on Form 10-Q.
Tektronix Provides Guidance on Earnings Impact Related to the Acquisition of
Inet Technologies.../3
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 19 countries worldwide. Tektronix' Web
address is www.tektronix.com.
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Tektronix is a registered trademark of Tektronix, Inc. All other trade names
referenced are the service marks, trademarks or registered trademarks of their
respective companies.