Keithley Instruments Reports Record Earnings For Fiscal 1999 Q4 and Year
Comparable net income was a record high for the fourth quarter of fiscal 1999 at $3.1 million, or $0.41 per share, before a $0.03 per share gain on previously disposed businesses. These earnings represent more than a doubling from $1.5 million, or $0.18 per share, in last year's quarter. Net income as reported for fiscal 1999 was $3.3 million, or $0.44 per share, compared to the prior year's quarter of $2.5 million, or $.31 per share, which includes the gain on the sale of a business, special charges and other personnel related expenses.
Net sales of $29.7 million were a new record high for the fourth quarter of fiscal 1999 and were up 30% from last year's comparable sales. Sequentially, net sales for the fourth quarter of fiscal 1999 increased 15% from the third quarter.
Orders for the fourth quarter of $34.1 million were a record high and up 58% from the prior year's comparable orders. Both the level and the growth rate of orders in the fourth quarter were up over those of the previous quarter. Orders for the company's products serving the semiconductor and the telecommunications industries continued to grow. Fourth quarter orders were up in all major geographies compared to the prior year. Order backlog increased $3.6 million during the quarter to a record $19.3 million at September 30, 1999.
Comparable net income for the fiscal year ended Sept. 30, 1999 was a record $8.2 million, or $1.08 per share. This compares to $4.7 million, or $0.58 per share, in fiscal 1998. Net income as reported for fiscal 1999 was $13.7 million, or $1.79 per share, compared to reported net income for fiscal 1998 of $5.0 million, or $.62 per share. Net sales for fiscal 1999 were $100.9 million, up 4 percent from the prior year's comparable sales.
"Fiscal 1999 has been a very gratifying year both from a financial and from a strategic standpoint," stated Joseph P. Keithley, the company's chairman, president and Chief Executive Officer. "Financially, we finished the year with record sales, earnings, orders and backlog. Strategically, our target industry focus and new product and market development efforts continued to pay big dividends."
"We were pleasantly surprised with fourth quarter orders, and expect good growth in the first quarter of fiscal 2000 over the prior year's quarter. Although there continues to be good activity, order levels for the first quarter will be dependent on continued investment from our customers in the semiconductor, telecommunications and other key electronics industries. However, due to our record backlog, we do feel that sales and earnings before taxes for the first quarter of fiscal 2000 will be similar or slightly better than those of the fourth quarter," added Mr. Keithley.
The effective tax rate from operations for fiscal 1999 was approximately 29%; however, management expects the company's effective tax rate will approximate the statutory rate in fiscal 2000. Additionally, the company proceeded with its stock repurchase program and has bought back a total of 942,803 common shares, or approximately 12% of the total shares outstanding, at an average price of $8.87 per share since announcing the program in November 1998.
Keithley Instruments, Inc. provides electrical measurement solutions to the telecommunications, semiconductor and electronic components industries. Engineers and scientists around the world use Keithley's advanced hardware and software for process monitoring, production test and basic research.
Keithley Instruments, Inc., Mark J. Plush, VP and CFO. Phone: 440-248-0400
Edited by Paul O'Shea