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MTS Systems Corporation – MTSC – Delivered on revenue and EPS guidance projections for the year

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MTS Systems Corporation (NASDAQ: MTSC) a leading global supplier of high performance test systems and position sensors, reported fiscal 2012 fourth quarter and fiscal year financial results.

  • Company generates record full year fiscal year performance including orders, backlog, revenue and income from operations
  • Achieves fiscal 2012 results within forecasted outlook range
  • Test business drives fourth-quarter growth in orders, revenue and operating income
  • Record high backlog of $299 million provides momentum for fiscal 2013.
  • Company announces $1 billion revenue goal for fiscal 2018 and expects fiscal 2013 revenue and EPS growth rates in the 5 to 10 percent range

“MTS’ full fiscal year results illustrate the overall strength of our operating model in terms of geographies and technology applications. Despite negative currency impacts, the Company set records in several key measures such as orders, backlog, revenue and income from operations. Additionally, we are pleased to have delivered on our revenue and EPS guidance projections for the year,” said Dr. Jeffrey Graves, President and Chief Executive Officer of MTS. “Much of the market dynamic we experienced earlier in fiscal 2012 continued in the fourth quarter, with the Test segment benefiting from strength in the structures and ground vehicles markets. Although our Sensors segment faced continued economic headwinds, overall we carry a record backlog into fiscal 2013, continue to make growth investments toward new revenue streams and are cautiously optimistic for a strong year ahead.”

MTSC – Fourth Quarter Results

Orders totaled $146.9 million, an 11 percent increase, net of 3 percent negative currency translation compared to fiscal 2011 fourth quarter. There was one large $20 million Test structures order in the quarter compared to no large orders (>$5 million) in last year’s fourth quarter. Test orders improved 15 percent on strong growth in Asia. Sensors orders declined 8 percent compared to the prior year. Approximately two-thirds of the Sensors decline was due to currency. Backlog of $299 million is a record high, increasing 4 percent versus the prior year.

Revenue was $137.8 million, up 5 percent compared to the prior year, including 8 percent growth in Test, fueled by a higher volume of standard short-cycle products, partially offset by a 10 percent decrease in Sensors. The gross margin rate was 41.7 percent, down 1.3 percentage points, primarily from lower Sensors volume.

Income from operations totaled $21.6 million, relatively flat compared to the prior year. Operating expenses as a percentage of revenue declined 1 percent from a year ago as reduced legal costs were partially offset by planned research and development projects and continued investment in productivity and growth initiatives. Earnings per share were $0.94, flat compared to the prior year.

About MTS Systems Corporation – MTSC

MTS Systems Corporation (MTSC) is a leading global supplier of high-performance test systems and position sensors. MTSC’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 2,147 employees and revenue of $542 million for the fiscal year ended September 29, 2012.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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