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Tektronix beats estimates in 1Q

Tektronix, Inc. (NYSE: TEK) said Thursday earnings were $9.5 million, or 20 cents a share, for the first quarter of fiscal 2000, a solid three cents above First Call's consensus estimate.

Net sales for the first quarter ended August 28, 1999 were $436.2 million, compared to first quarter sales of $419.0 million last year.

Shares closed at 34 Wednesday, just below a high of 35 9/16 reached earlier this month. The stock has been moving up since Tektronix beat estimates in the fourth quarter and announced plans to split into two companies

This compares with a loss of $4.7 million, or 9 cents a share, for the first quarter a year ago. Net sales for the first quarter ended August 28, 1999 were $436.2 million, compared to first quarter sales of $419.0 million last year.

Results are before charges associated with the sale of its video business. A one-time, pre-tax charge of $26.1 million is related to losses related to the sale of Tektronix's video business, which would make the company's net loss $8.5 million, or 18 cents a share.

Tektronix hopes to improve the growth in color printers during the rest of the year, which didn't meet expectations for the quarter, said Jerry Meyer, chairman and chief executive officer

The company's measurement business division showed sales of $228 million, an 8 percent year-over-year increase, and product orders at $243.7 million, up 29 percent. Strong international orders and demand for new products, particularly semiconductor manufacturers, communications equipment manufacturers, and network operators, were responsible for the success, the company said.

The company's color printing and imaging division showed sales of $155.4 million, even with sales a year ago, as a decline in average sales prices weren't offset by expense reductions.

"We expect to return to double digit growth in the second quarter and to see continued improvements in operating margins and a return to our model as the year progresses," Meyer said.

The company's recently discarded video content production business had an $8.3 million operating loss for the period, an improvement over the $17.6 million loss it reported in first quarter 1999. On August 9, the company announced an agreement to sell its video content unit.