Keithley Instruments Reports Results for Fiscal 2001 Second Quarter

Apr 18, 2001, 01:00 ET from Keithley Instruments, Inc.

    CLEVELAND, April 18 /PRNewswire/ -- Keithley Instruments, Inc.
 (NYSE:   KEI), a leader in solutions for emerging measurement needs, today
 announced results for its fiscal 2001 second quarter that ended March 31,
 2001.
     Net income for the second quarter of fiscal 2001 increased six percent to
 $5.1 million, or $0.31 per share, from $4.8 million, or $0.30 per share, in
 last year's second quarter.  Net sales of $43.2 million for the quarter
 increased 16 percent from $37.3 million in last year's second quarter.
 Sequentially, sales decreased three percent from a record first quarter.
     Orders for the second quarter were $36.2 million after $1.7 million of
 order cancellations.  Almost all of the cancellations were from semiconductor
 customers.  The second quarter's orders decreased 13 percent from
 $41.7 million in last year's second quarter.  Geographically, orders for the
 quarter were down in the United States and Pacific Basin by 16 percent and
 28 percent, respectively, and flat in Europe compared to the same period a
 year ago.  For the first half of fiscal 2001, semiconductor orders comprised
 approximately one-third of the total, optoelectronic orders accounted for
 about 20 percent, and telecommunications comprised approximately 10 percent of
 total orders.  Sequentially, second quarter orders decreased 27 percent from
 the record first quarter.  Orders from the company's optoelectronic customers
 were down slightly from the record first quarter's orders.  Sequentially,
 second quarter orders from semiconductor customers and telecommunication
 customers decreased 44 percent and 48 percent, respectively, from the first
 quarter.  Order backlog decreased $8.0 million during the quarter to
 $27.3 million at March 31, 2001.
     "The electronics industry in general, and those segments most aligned with
 the global communications revolution have recently experienced an
 unprecedented and unexpected decline in demand for their products," stated
 Joseph P. Keithley, the company's Chairman, President and Chief Executive
 Officer.  "Our three largest customer groups are all tightly coupled with this
 revolution and we are feeling the effects.  We are seeing slowing growth in
 the optoelectronics piece of our business, and declines in the semiconductor
 and telecommunications portions.   Due to these challenging conditions, our
 visibility is quite limited.  However, at this point, we are expecting sales
 for the third quarter ending June 30, 2001 to range between $36 million and
 $42 million depending upon order rates during the quarter.  If these sales
 levels are achieved, we would expect pretax return on sales in the mid to
 high-teens.  In March we estimated fiscal 2001 sales growth of 5 to 10 percent
 over 2000's sales.  We continue to expect growth for the year in this range,
 but again our visibility at this time is limited due to the uncertain economic
 environment, and sales will be dependent upon orders we receive during the
 remainder of the fiscal year."
     In December 2000, the company announced that its Board of Directors had
 approved a stock repurchase program that would replace the existing program.
 During the quarter the company bought back 105,000 shares at an average cost
 of $15.61 per share including commissions.
     For the six months ending March 31, 2001, net sales were $87.7 million, up
 31 percent from $67.0 million last year.  Net income for the first half of
 fiscal 2001 was $12.0 million, or $0.72 per share.  This represents a
 50 percent increase from net income of $8.0 million, or $0.51 per share,
 excluding an adjustment to a gain recorded for the previous sale of a product
 line.  Net income as reported for the first half of fiscal 2000 was
 $8.3 million, or $0.53 per share.
     The company also noted that several purported class action lawsuits have
 been filed against it.  The company believes these claims are without merit
 and intends to defend itself vigorously.
 
     Statements in the fourth paragraph of this release relating to the
 company's sales and earnings for the third quarter, sales growth for the
 fiscal year, business conditions over the next several quarters, and
 conditions in the electronics industry in general are forward-looking
 statements that involve a number of risks and uncertainties.  Actual results
 may differ materially from the expected results stated or implied in the
 forward-looking statements as a result of a number of factors that include but
 are not limited to: the impact of the ongoing slowdown in the overall economy,
 business conditions in the semiconductor, telecommunications, optoelectronics
 and other industries which the company serves and the duration of the current
 cyclical downturn of these as well as the overall broadband industry, the
 company's ability to develop new products and gain market acceptance of those
 products to remain competitive, the company's ability to hire and retain
 qualified employees, the company's ability to procure component parts used in
 the production of its products, the company's ability to control costs, and
 foreign currency fluctuations which could affect worldwide operations.  In
 light of these uncertainties, the inclusion of forward-looking information
 should not be regarded as a representation by the company that its plans or
 objectives will be achieved.  Further, the company is not obligating itself to
 revise forward-looking statements contained herein to reflect events or
 circumstances after the date of this release or to reflect the occurrence of
 unanticipated events.
 
     On Wednesday, April 18, 2001 at 10:00 a.m. Eastern Time, interested
 parties may listen to the Keithley Instruments quarterly conference call live
 on the Web by registering on the investor relations portion of the company's
 web site at www.keithley.com .  Interested parties may also listen to a replay
 of the quarterly conference call by visiting the web site.
 
     Keithley Instruments, Inc. provides electrical measurement solutions to
 the telecommunications, semiconductor, optoelectronic and other related
 segments of the electronics industry.  Engineers and scientists around the
 world use Keithley's advanced hardware and software for process monitoring,
 production test and basic research.
 
 
                           KEITHLEY INSTRUMENTS, INC.
                        CONSOLIDATED STATEMENT OF INCOME
              (In Thousands of Dollars Except for Per Share Data)
                                  (Unaudited)
 
                                  FOR THE THREE MONTHS ENDED MARCH 31,
                                     2001                      2000
 
     NET SALES              $43,168         100.0%     $37,271         100.0%
 
     Cost of goods sold      16,826          39.0       14,460          38.8
 
     Selling, general and
      administrative
      expenses               14,630          33.9       12,411          33.3
     Product development
      expenses                4,082           9.5        2,923           7.8
     Gain on sale
      of business                --            --           --            --
     Net financing income      (334)         (0.8)         (47)         (0.1)
 
     Income before
      income taxes            7,964          18.4        7,524          20.2
 
     Income taxes             2,852           6.6        2,698           7.2
 
     NET INCOME             $ 5,112         11.8%      $ 4,826         13.0%
 
     Basic earnings
      per share             $  0.32                    $  0.33
     Diluted earnings
      per share             $  0.31                    $  0.30
 
     Cash dividends per
      Common Share          $ .0375                    $ .0275
     Cash dividends per
      Class B Common Share  $  .030                    $  .022
 
     Weighted average number
      of shares outstanding
      (000) - Diluted        16,599                     15,831
 
                                   FOR THE SIX MONTHS ENDED MARCH 31,
                                     2001                       2000
 
     NET SALES              $87,676         100.0%     $67,031         100.0%
 
     Cost of goods sold      33,360          38.0       26,220          39.1
 
     Selling, general and
      administrative
      expenses               28,064          32.0       22,750          33.9
     Product development
      expenses                7,965           9.1        5,751           8.6
     Gain on sale of business    --            --         (477)         (0.7)
     Net financing income      (631)         (0.7)        (137)         (0.2)
 
     Income before
      income taxes           18,918          21.6       12,924          19.3
 
     Income taxes             6,905           7.9        4,588           6.9
 
     NET INCOME             $12,013          13.7%     $ 8,336          12.4%
 
     Basic earnings
      per share             $  0.77                    $  0.58
     Diluted earnings
      per share             $  0.72                    $  0.53
 
     Cash dividends per
      Common Share          $  .065                    $  .048
     Cash dividends per
      Class B Common Share  $  .052                    $ .0384
 
     Weighted average number
      of shares outstanding
      (000) - Diluted        16,580                     15,677
 
 
                           CONSOLIDATED BALANCE SHEET
                           (In Thousands of Dollars)
                                  (Unaudited)
 
                                                     March 31,  September 30,
                                                         2001           2000
     ASSETS
 
       Cash and cash equivalents                      $33,248        $21,408
       Other current assets                            69,668         65,206
       Property, plant and equipment, net              13,735         13,219
       Other assets                                    13,386         12,505
         Total assets                                $130,037       $112,338
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
       Current liabilities                            $29,310        $28,835
       Long-term debt                                   3,000          3,000
       Other long-term liabilities                      5,169          4,730
       Shareholders' equity                            92,558         75,773
         Total liabilities and shareholders' equity  $130,037       $112,338
 
 

SOURCE Keithley Instruments, Inc.
    CLEVELAND, April 18 /PRNewswire/ -- Keithley Instruments, Inc.
 (NYSE:   KEI), a leader in solutions for emerging measurement needs, today
 announced results for its fiscal 2001 second quarter that ended March 31,
 2001.
     Net income for the second quarter of fiscal 2001 increased six percent to
 $5.1 million, or $0.31 per share, from $4.8 million, or $0.30 per share, in
 last year's second quarter.  Net sales of $43.2 million for the quarter
 increased 16 percent from $37.3 million in last year's second quarter.
 Sequentially, sales decreased three percent from a record first quarter.
     Orders for the second quarter were $36.2 million after $1.7 million of
 order cancellations.  Almost all of the cancellations were from semiconductor
 customers.  The second quarter's orders decreased 13 percent from
 $41.7 million in last year's second quarter.  Geographically, orders for the
 quarter were down in the United States and Pacific Basin by 16 percent and
 28 percent, respectively, and flat in Europe compared to the same period a
 year ago.  For the first half of fiscal 2001, semiconductor orders comprised
 approximately one-third of the total, optoelectronic orders accounted for
 about 20 percent, and telecommunications comprised approximately 10 percent of
 total orders.  Sequentially, second quarter orders decreased 27 percent from
 the record first quarter.  Orders from the company's optoelectronic customers
 were down slightly from the record first quarter's orders.  Sequentially,
 second quarter orders from semiconductor customers and telecommunication
 customers decreased 44 percent and 48 percent, respectively, from the first
 quarter.  Order backlog decreased $8.0 million during the quarter to
 $27.3 million at March 31, 2001.
     "The electronics industry in general, and those segments most aligned with
 the global communications revolution have recently experienced an
 unprecedented and unexpected decline in demand for their products," stated
 Joseph P. Keithley, the company's Chairman, President and Chief Executive
 Officer.  "Our three largest customer groups are all tightly coupled with this
 revolution and we are feeling the effects.  We are seeing slowing growth in
 the optoelectronics piece of our business, and declines in the semiconductor
 and telecommunications portions.   Due to these challenging conditions, our
 visibility is quite limited.  However, at this point, we are expecting sales
 for the third quarter ending June 30, 2001 to range between $36 million and
 $42 million depending upon order rates during the quarter.  If these sales
 levels are achieved, we would expect pretax return on sales in the mid to
 high-teens.  In March we estimated fiscal 2001 sales growth of 5 to 10 percent
 over 2000's sales.  We continue to expect growth for the year in this range,
 but again our visibility at this time is limited due to the uncertain economic
 environment, and sales will be dependent upon orders we receive during the
 remainder of the fiscal year."
     In December 2000, the company announced that its Board of Directors had
 approved a stock repurchase program that would replace the existing program.
 During the quarter the company bought back 105,000 shares at an average cost
 of $15.61 per share including commissions.
     For the six months ending March 31, 2001, net sales were $87.7 million, up
 31 percent from $67.0 million last year.  Net income for the first half of
 fiscal 2001 was $12.0 million, or $0.72 per share.  This represents a
 50 percent increase from net income of $8.0 million, or $0.51 per share,
 excluding an adjustment to a gain recorded for the previous sale of a product
 line.  Net income as reported for the first half of fiscal 2000 was
 $8.3 million, or $0.53 per share.
     The company also noted that several purported class action lawsuits have
 been filed against it.  The company believes these claims are without merit
 and intends to defend itself vigorously.
 
     Statements in the fourth paragraph of this release relating to the
 company's sales and earnings for the third quarter, sales growth for the
 fiscal year, business conditions over the next several quarters, and
 conditions in the electronics industry in general are forward-looking
 statements that involve a number of risks and uncertainties.  Actual results
 may differ materially from the expected results stated or implied in the
 forward-looking statements as a result of a number of factors that include but
 are not limited to: the impact of the ongoing slowdown in the overall economy,
 business conditions in the semiconductor, telecommunications, optoelectronics
 and other industries which the company serves and the duration of the current
 cyclical downturn of these as well as the overall broadband industry, the
 company's ability to develop new products and gain market acceptance of those
 products to remain competitive, the company's ability to hire and retain
 qualified employees, the company's ability to procure component parts used in
 the production of its products, the company's ability to control costs, and
 foreign currency fluctuations which could affect worldwide operations.  In
 light of these uncertainties, the inclusion of forward-looking information
 should not be regarded as a representation by the company that its plans or
 objectives will be achieved.  Further, the company is not obligating itself to
 revise forward-looking statements contained herein to reflect events or
 circumstances after the date of this release or to reflect the occurrence of
 unanticipated events.
 
     On Wednesday, April 18, 2001 at 10:00 a.m. Eastern Time, interested
 parties may listen to the Keithley Instruments quarterly conference call live
 on the Web by registering on the investor relations portion of the company's
 web site at www.keithley.com .  Interested parties may also listen to a replay
 of the quarterly conference call by visiting the web site.
 
     Keithley Instruments, Inc. provides electrical measurement solutions to
 the telecommunications, semiconductor, optoelectronic and other related
 segments of the electronics industry.  Engineers and scientists around the
 world use Keithley's advanced hardware and software for process monitoring,
 production test and basic research.
 
 
                           KEITHLEY INSTRUMENTS, INC.
                        CONSOLIDATED STATEMENT OF INCOME
              (In Thousands of Dollars Except for Per Share Data)
                                  (Unaudited)
 
                                  FOR THE THREE MONTHS ENDED MARCH 31,
                                     2001                      2000
 
     NET SALES              $43,168         100.0%     $37,271         100.0%
 
     Cost of goods sold      16,826          39.0       14,460          38.8
 
     Selling, general and
      administrative
      expenses               14,630          33.9       12,411          33.3
     Product development
      expenses                4,082           9.5        2,923           7.8
     Gain on sale
      of business                --            --           --            --
     Net financing income      (334)         (0.8)         (47)         (0.1)
 
     Income before
      income taxes            7,964          18.4        7,524          20.2
 
     Income taxes             2,852           6.6        2,698           7.2
 
     NET INCOME             $ 5,112         11.8%      $ 4,826         13.0%
 
     Basic earnings
      per share             $  0.32                    $  0.33
     Diluted earnings
      per share             $  0.31                    $  0.30
 
     Cash dividends per
      Common Share          $ .0375                    $ .0275
     Cash dividends per
      Class B Common Share  $  .030                    $  .022
 
     Weighted average number
      of shares outstanding
      (000) - Diluted        16,599                     15,831
 
                                   FOR THE SIX MONTHS ENDED MARCH 31,
                                     2001                       2000
 
     NET SALES              $87,676         100.0%     $67,031         100.0%
 
     Cost of goods sold      33,360          38.0       26,220          39.1
 
     Selling, general and
      administrative
      expenses               28,064          32.0       22,750          33.9
     Product development
      expenses                7,965           9.1        5,751           8.6
     Gain on sale of business    --            --         (477)         (0.7)
     Net financing income      (631)         (0.7)        (137)         (0.2)
 
     Income before
      income taxes           18,918          21.6       12,924          19.3
 
     Income taxes             6,905           7.9        4,588           6.9
 
     NET INCOME             $12,013          13.7%     $ 8,336          12.4%
 
     Basic earnings
      per share             $  0.77                    $  0.58
     Diluted earnings
      per share             $  0.72                    $  0.53
 
     Cash dividends per
      Common Share          $  .065                    $  .048
     Cash dividends per
      Class B Common Share  $  .052                    $ .0384
 
     Weighted average number
      of shares outstanding
      (000) - Diluted        16,580                     15,677
 
 
                           CONSOLIDATED BALANCE SHEET
                           (In Thousands of Dollars)
                                  (Unaudited)
 
                                                     March 31,  September 30,
                                                         2001           2000
     ASSETS
 
       Cash and cash equivalents                      $33,248        $21,408
       Other current assets                            69,668         65,206
       Property, plant and equipment, net              13,735         13,219
       Other assets                                    13,386         12,505
         Total assets                                $130,037       $112,338
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
       Current liabilities                            $29,310        $28,835
       Long-term debt                                   3,000          3,000
       Other long-term liabilities                      5,169          4,730
       Shareholders' equity                            92,558         75,773
         Total liabilities and shareholders' equity  $130,037       $112,338
 
 SOURCE  Keithley Instruments, Inc.