Earnings Roundup: Tektronix beats estimates
Tektronix, Inc. (NYSE: TEK) said Thursday earnings were 30 cents a share, topping First call's consensus estimate of 26 cents a share.
Shares in the provider of measurement and monitoring equipment were up 3 7/8 to 62. The stock has been climbing since the company beat estimates in its second quarter.
The company's focus on products for global communications and Internet related technologies, which has sharpened since it sold its printer business to Xerox (Nasdaq: XRX), is the reason for booming income, the company said.
Net income was $14.3 million, or 30 cents a share for continuing operations, before nonrecurring items, for the third quarter. This compares to $12.2 million or 26 cents a share for continuing operations in the same period a year ago.
Net income for the company's measurement segment, was $20.2 million or 42 cents a share. This compares to $15.6 million or 33 cents a share in the same period a year ago. The growth in earnings came from strong orders and sales in its new core business of test, measurement and monitoring equipment, the company said.
Tektronix' earnings for the year were $310.8 million or $6.49 a share, compared to $14.5 million or 31 cents a share in the prior year.
"Looking forward, we expect to finish the year as a billion-dollar company,'' said president and CEO Rick Wills in a company statement.
In other earnings news:
Shares in the maker of complex multilayer rigid printed circuit boards were down 3/8 to 22 1/2 Thursday.
Merix filed for the sale to the public of 3 million shares of its common stock, including 1 million shares to be sold by Tektronix Inc. The company said it plans to use proceeds to fund growth, including a capacity expansion of its existing Forest Grove facilities.
Sales for the third quarter were $39.7 million, up 30 percent increase over the $30.5 million reported for the same period in 1999. Earnings were $1.7 million or 24 cents a share, topping First Call's estimate of 19 cents a share.
Sales and earnings in the third quarter also increased sequentially over the second quarter, which had sales of $35.9 million and earnings of 18 cents a share.
Strong demand for high technology circuit boards and strength in the wireless telecom and networking market were cited as reasons for the growth. Sales in the communications market accounted for 52 percent of third quarter sales and an increased backlog of $28.6 million, compared to $22.5 million last quarter, the company said.
Shares in the provider of computerized payroll accounting services rose 7/16 to 49 7/8.
Net income was $49.6 million, a 37 percent increase over net income for the same period last year. Total service revenues were $192.2 million, an increase of 21 percent over $158.4 million for the third quarter last year.
NTN Communications Inc. (AMEX: NTN), an interactive game content developer also reported quarterly results.
Shares rose 1/16 to 5 7/8.
The company had a net loss of $1.7 million, or 6 cents a share, for the fourth quarter, compared to a net loss of $2.2 million, or 8 cents a share for the same period of 1998.
Revenue for the fourth quarter was $6.4 million, compared to revenue of $6.3 million for the fourth quarter of 1998. NTN's fourth quarter 1999 earnings before interest, taxes, depreciation and amortization, or EBITDA, was $416,000, an improvement over EBITDA of $107,000 in the fourth quarter of 1998.
Operating expenses were negatively impacted by increases in one-time installation costs as the company continued to deploy its new DITV Hospitality system, and higher data transmission costs for larger video files associated with DITV, the company said.
For the year ended December 31, 1999, NTN reported a net loss of $2.5 million, or 9 cents a share.