Tektronix Authorizes Share Repurchase and Increases Cash Dividend on Common Stock
Consistent Profitability Enables Company to Return Cash to Shareholders
BEAVERTON, Ore., September 23, 2004 - Tektronix, Inc. (NYSE: TEK) announced today that its Board of Directors authorized an incremental $400 million to repurchase shares of common stock. The original share repurchase program was initiated in January 2000. At that time, the board authorized $550 million for share repurchase - approximately $100 million of which remains unused as of August 28, 2004. The incremental authorization announced today brings the total available repurchase authority to approximately $500 million.
In addition, the Board of Directors has increased the quarterly cash dividend 50% to $0.06 per share on its Common Stock. The dividend is payable on October 25, 2004 to shareholders of record at the close of business on October 8, 2004.
"Increasing the authorization for share repurchases and increasing our dividend reflects the Board's confidence in the company's ability to continue to grow earnings and generate operating cash flow," said Rick Wills, Tektronix Chairman and CEO. "The share buyback program and the quarterly dividend are consistent with our stated objective to return excess free cash to shareholders."
Statements and information in this press release that relate to future events or results (including the Company's expectations regarding earnings growth and generating operating cash flows) 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, 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 or taxation of dividends; currency fluctuations; the ability to develop effective sales channels; and risks associated with the acquisition of Inet Technologies, including satisfaction of contingencies of closing and 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, 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 www.tektronix.com.