Tektronix Revises Outlook in Response to Current Market Conditions

Conference Call With Tektronix Executives Today at 2:00 p.m. PDT



Apr 30, 2001, 01:00 ET from Tektronix, Inc.

    BEAVERTON, Ore., April 30 /PRNewswire/ -- Tektronix, Inc. (NYSE:   TEK) a
 leading developer of test, measurement, and monitoring equipment, today
 announced that business is slowing due to the impact of the downturn in its
 target markets -- computing, semiconductor and communications, and reduced
 capital spending in the broad electronic design industry.  As a result, order
 rates and revenues will be lower than previously expected.
     The company now expects to report a decline of approximately 35% in orders
 for the quarter.  Revenue growth is now expected to be roughly flat over the
 same period a year ago.  This will result in revenue growth in the
 16-18% range for the full year ending May 26, 2001 over the measurement
 business segment results for fiscal 2000.  Operating margins for fiscal
 2001 are still expected to be in the 14 to 15% range.
     "We are seeing a substantial drop in orders in the last several weeks,"
 said Rick Wills, president and CEO of Tektronix.  "The company is executing
 well -- bringing new products to market and winning a growing share of the
 business out there.  The macro-economic environment and dramatic slowing our
 customers have experienced in the last three to four months is impacting our
 order growth."
     "We have initiated a series of additional cost-reduction measures to align
 operating expenses with the current outlook.  Our goal for these actions is to
 achieve profitability targets without impairing our competitive position in
 the markets we serve," said Wills.  "Earlier in the quarter, we began reducing
 spending on things like travel, infrastructure investments and temporary and
 contract workers.  We announced to our employees today that we are taking
 additional steps including company-wide shutdowns in the first quarter and
 temporary reductions in pay for executives.  We will also delay annual salary
 increases and are eliminating or delaying selected projects."
     "We continue to sharpen our focus and activities around our key markets
 -- communications and Internet related technologies and will continue to
 strategically invest in those areas that will allow us to meet the needs of
 our customers and exit this economic downturn stronger.  We are fully funding
 and staffing strategic projects," continued Wills.  "We are taking action to
 increase our efficiency, scale our operations and deliver results."
     Previous guidance from the company concerning revenue growth for the next
 fiscal year does not reflect current conditions.  At this time, the company
 expects to maintain operating margins for the year in the 10-14% range.
 Revenue and earnings expectations will be updated at Tektronix fourth quarter
 earnings release, scheduled for June 21, 2001.
     Tektronix will be discussing this update on a conference call today,
 beginning at 2:00 p.m. (PDT).  A live Webcast of the conference call will be
 available at www.tektronix.com/ir.  A replay of the Webcast will be available
 at the same Web site shortly after the call and will remain available through
 Wednesday, May 2, 2001.
 
     Forward-Looking Statements
     Statements and information in this press release that relate to future
 results 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 economic and business conditions
 in the electronics, telecommunications, computer and internet related
 industries; 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; changes in
 effective tax rates; currency fluctuations; the ability to ramp up production
 or to develop effective sales channels; customers' acceptance of and demand
 for new products; and the ability to reduce expenditures.  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 Form 10-K for the
 year ended May 27, 2000 and the Form 10-Q for the quarter ended
 February 24, 2001.
 
     About Tektronix
     Tektronix, Inc. is a test, measurement, and monitoring company providing
 measurement solutions to the telecommunications, computer, and semiconductor
 industries worldwide.  With more than 50 years of experience, Tektronix
 enables its customers to design, build, deploy, and manage next-generation
 global communications networks and Internet technologies.  Headquartered in
 Beaverton, Oregon, Tektronix has operations in 26 countries worldwide.
 Tektronix' Web address is www.tektronix.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65866438
 
 

SOURCE Tektronix, Inc.
    BEAVERTON, Ore., April 30 /PRNewswire/ -- Tektronix, Inc. (NYSE:   TEK) a
 leading developer of test, measurement, and monitoring equipment, today
 announced that business is slowing due to the impact of the downturn in its
 target markets -- computing, semiconductor and communications, and reduced
 capital spending in the broad electronic design industry.  As a result, order
 rates and revenues will be lower than previously expected.
     The company now expects to report a decline of approximately 35% in orders
 for the quarter.  Revenue growth is now expected to be roughly flat over the
 same period a year ago.  This will result in revenue growth in the
 16-18% range for the full year ending May 26, 2001 over the measurement
 business segment results for fiscal 2000.  Operating margins for fiscal
 2001 are still expected to be in the 14 to 15% range.
     "We are seeing a substantial drop in orders in the last several weeks,"
 said Rick Wills, president and CEO of Tektronix.  "The company is executing
 well -- bringing new products to market and winning a growing share of the
 business out there.  The macro-economic environment and dramatic slowing our
 customers have experienced in the last three to four months is impacting our
 order growth."
     "We have initiated a series of additional cost-reduction measures to align
 operating expenses with the current outlook.  Our goal for these actions is to
 achieve profitability targets without impairing our competitive position in
 the markets we serve," said Wills.  "Earlier in the quarter, we began reducing
 spending on things like travel, infrastructure investments and temporary and
 contract workers.  We announced to our employees today that we are taking
 additional steps including company-wide shutdowns in the first quarter and
 temporary reductions in pay for executives.  We will also delay annual salary
 increases and are eliminating or delaying selected projects."
     "We continue to sharpen our focus and activities around our key markets
 -- communications and Internet related technologies and will continue to
 strategically invest in those areas that will allow us to meet the needs of
 our customers and exit this economic downturn stronger.  We are fully funding
 and staffing strategic projects," continued Wills.  "We are taking action to
 increase our efficiency, scale our operations and deliver results."
     Previous guidance from the company concerning revenue growth for the next
 fiscal year does not reflect current conditions.  At this time, the company
 expects to maintain operating margins for the year in the 10-14% range.
 Revenue and earnings expectations will be updated at Tektronix fourth quarter
 earnings release, scheduled for June 21, 2001.
     Tektronix will be discussing this update on a conference call today,
 beginning at 2:00 p.m. (PDT).  A live Webcast of the conference call will be
 available at www.tektronix.com/ir.  A replay of the Webcast will be available
 at the same Web site shortly after the call and will remain available through
 Wednesday, May 2, 2001.
 
     Forward-Looking Statements
     Statements and information in this press release that relate to future
 results 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 economic and business conditions
 in the electronics, telecommunications, computer and internet related
 industries; 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; changes in
 effective tax rates; currency fluctuations; the ability to ramp up production
 or to develop effective sales channels; customers' acceptance of and demand
 for new products; and the ability to reduce expenditures.  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 Form 10-K for the
 year ended May 27, 2000 and the Form 10-Q for the quarter ended
 February 24, 2001.
 
     About Tektronix
     Tektronix, Inc. is a test, measurement, and monitoring company providing
 measurement solutions to the telecommunications, computer, and semiconductor
 industries worldwide.  With more than 50 years of experience, Tektronix
 enables its customers to design, build, deploy, and manage next-generation
 global communications networks and Internet technologies.  Headquartered in
 Beaverton, Oregon, Tektronix has operations in 26 countries worldwide.
 Tektronix' Web address is www.tektronix.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65866438
 
 SOURCE  Tektronix, Inc.

RELATED LINKS

http://www.tek.com