This compares with sales of $325.1 million and net income, before non-recurring credits, of $34.9 million or $0.36 per share, for the same period last year. Including non-recurring items, net income for the second quarter of fiscal year 2002 was $7.9 million or $0.09 per share, as compared with $36.7 million or $0.38 per share, for the same period a year ago.
We continued to execute well during these difficult economic times, said Rick Wills, Tektronix Chairman, President and CEO. We saw orders increase 13% over last quarter, largely due to strong customer acceptance of new products and fewer cancellations. I am pleased with our continued ability to manage spending and deliver on profitability targets while maintaining strategic investments.
For the third quarter of fiscal 2002, the company expects sales to be down approximately 37% over the same period a year ago. Operating margins are expected to be in the mid-single digits. For the fiscal year, the company expects sales to be down about 30% and operating margins to be in the mid-single digits. We believe that the economic environment will continue to remain challenging and we will need to continue to carefully manage spending, said Wills. Although we have seen some stabilization in our orders, we do not expect a recovery in the short-term. However, I remain confident in our ability to build on our leadership position with a number of new products in the pipeline that address market demand, as well as $730 million in cash and marketable investments all of which position Tektronix to take advantage of the eventual upturn.
After the end of the quarter, Tektronix agreed to obtain 100% ownership in Sony/Tektronix the joint venture between Tektronix and Sony for distribution and development in Japan for a cash price of ¥8.0 billion or approximately $65.0 million. The transaction is scheduled to close at the end of September 2002.
For over 35 years, Sony/Tektronix has been an integral part of the Tektronix global strategy, said Wills. Sony has been an exceptional partner and we look forward to continuing our relationship with Sony as a key customer in the future. This move will enhance Tektronix’ ability to understand the needs of Japanese customers and will enable us to leverage Sony/Tektronix’ strong engineering capabilities.
