MTS SYSTEMS CORPORATION 
By (Logo: http://www.newscom.com/cgi-bin/prnh/20020430/MTSCLOGO)
"We are pleased with our performance for the quarter, in particular
revenue and earnings growth as well as the earnings rate to revenue," said
Hamilton continued, "For fundamentally strong companies like MTS, we believe these economic conditions will ultimately create new opportunities and MTS has the financial strength, the people and market approach to capitalize on them. Today's global trends that guide our long-term strategy and growth, such as major investments in energy and environmentally friendly technology, and the prevailing ambition of emerging geographies to offer world competitive products, remain strong. MTS is diversified in both geographies and end-markets served. This diversification, combined with our technical and applications expertise, gives us the flexibility to fine tune our strategy to optimize our position in the market today and in the future when the economy starts growing again."
First Quarter Results
Orders totaled
Revenue was
Gross profit was
Income from operations was relatively flat. Earnings per share increased
21 percent to
Cash Position
Cash and cash equivalents at the end of the first quarter totaled
"We are in the fortunate position of having a strong balance sheet and low debt-to-equity levels and we generate strong cash flow from operations," said Hamilton. "This is a key measure of our financial health that allows us to stay focused on creating long-term value."
Segment Results
Test Segment:
Orders for the Test segment were
Gross profit was
Income from operations was
Sensors Segment:
Orders for the Sensors segment were
Gross profit was
Income from operations was
Hamilton concluded, "As we go forward, we will continue to focus on our long-term strategy and worldwide opportunities in both segments to provide value to our customers. MTS has a 40-year history of strong performance in a variety of economic conditions and we are confident we will emerge from this period of economic uncertainty well positioned for growth."
First Quarter Conference Call
A conference call will be held on
If you prefer to listen live over the Internet, please log on to the web
at http://www.mts.com/news/financial_news.htm and click on the webcast event
notice. The webcast will be archived through
About MTS Systems Corporation
MTS Systems Corporation is a leading global supplier of test systems and
industrial position sensors. The Company's testing hardware and software
solutions help customers accelerate and improve their design, development, and
manufacturing processes and are used for determining the mechanical behavior
of materials, products, and structures. MTS' high-performance position sensors
provide controls for a variety of industrial and vehicular applications. MTS
had 1,660 employees and revenue of
This release contains "forward-looking statements" made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to the factors discussed above, other important risk factors are delineated in the Company's most recent SEC Form 10-Q and 10-K filings.
MTS SYSTEMS CORPORATION
Consolidated Statements of Income
(unaudited - in thousands, except per share data)
Three Months Ended
December 27, December 29,
2008 2007
Revenue $116,609 $107,392
Cost of sales 72,388 64,170
Gross profit 44,221 43,222
Gross margin 37.9% 40.2%
Operating expenses:
Selling, general and administrative 29,023 27,164
Research and development 3,259 3,978
Total operating expenses 32,282 31,142
Income from operations 11,939 12,080
Operating margin 10.2% 11.2%
Interest income, net 9 574
Other income (expense), net 894 (50)
Income before income taxes and
discontinued operations 12,842 12,604
Provision for income taxes 3,091 4,423
Income before discontinued
operations 9,751 8,181
Income from discontinued operations,
net of tax - 175
Net income $9,751 $8,356
Earnings per share:
Basic-
Income before discontinued
operations $0.58 $0.46
Income from discontinued operations,
net of tax - 0.01
Earnings per share $0.58 $0.47
Weighted average number of common
shares outstanding - basic 16,936 17,693
Diluted-
Income before discontinued
operations $0.57 $0.46
Income from discontinued operations,
net of tax - 0.01
Earnings per share $0.57 $0.47
Weighted average number of common
shares outstanding - diluted 16,989 17,948
MTS SYSTEMS CORPORATION
Consolidated Balance Sheets
(unaudited - in thousands, except per share data)
December 27, September 27,
2008 2008
ASSETS
Current Assets:
Cash and cash equivalents $104,786 $114,099
Accounts receivable, net 99,070 101,331
Unbilled accounts receivable 38,472 43,022
Inventories 56,246 46,135
Other current assets 17,779 18,030
Assets of discontinued operations 156 380
Total current assets 316,509 322,997
Property and equipment, net 57,743 50,534
Goodwill 15,787 1,668
Intangibles, net 21,707 4,363
Other assets 6,419 19,595
Total Assets $418,165 $399,157
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities:
Short-term borrowings and current
maturities of long-term debt $42,692 $26,646
Accounts payable 24,509 28,567
Advance payments from customers 63,693 64,979
Other accrued liabilities 73,675 65,201
Liabilities of discontinued
operations 177 177
Total current liabilities 204,746 185,570
Other long-term liabilities 8,796 8,645
Total Liabilities 213,542 194,215
Shareholders' Investment:
Common stock, $.25 par; 64,000
shares authorized:
16,860 and 16,976 shares issued
and outstanding 4,215 4,244
Retained earnings 179,877 175,216
Accumulated other comprehensive
income 20,531 25,482
Total shareholders' investment 204,623 204,942
Total Liabilities and Shareholders'
Investment $418,165 $399,157
SOURCE MTS Systems Corporation
