GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

MTS Systems Corp. Reports Operating Results (10-Q)

February 02, 2009 | About:

MTS Systems Corp. (MTSC) filed Quarterly Report for the period ended 2008-12-27.

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 Systems Corp. has a market cap of $439.11 million; its shares were traded at around $26.19 with a P/E ratio of 9.2 and P/S ratio of 0.95. The dividend yield of MTS Systems Corp. stocks is 2.31%. MTS Systems Corp. had an annual average earning growth of 8.5% over the past 10 years.

Highlight of Business Operations:

Orders for the First Quarter of Fiscal 2009 totaled $95.3 million, a decrease of $28.2 million, or 22.8%, compared to orders of $123.5 million for the First Quarter of Fiscal 2008. This decrease is primarily due to lower order volume in both the organic Test business and Sensors segment across all geographies, partially offset by a $5.5 million increase from SANS. Orders from international customers for the First Quarter of Fiscal 2009 represented 65.5% of total orders, compared to 60.4% for the First Quarter of Fiscal 2008.

Backlog of undelivered orders at the end of the First Quarter of Fiscal 2009, was $218.4 million, a decrease of 6.9% from backlog of $234.7 million at September 27, 2008. Backlog at the end of the First Quarter of Fiscal 2009 included $10.8 million from SANS. Backlog at the end of the First Quarter of Fiscal 2008 was $227.5 million. During the First Quarter of Fiscal 2009, the Company experienced one order cancellation in the Test segment approximating $3.0 million. The Company seldom experiences order cancellations larger than $1.0 million, however, economic conditions could have an adverse impact on future order cancellations.

Gross profit for the First Quarter of Fiscal 2009 was $44.2 million, an increase of $1.0 million, or 2.3%, compared to gross profit of $43.2 million for the First Quarter of Fiscal 2008. Gross profit as a percentage of revenue for the First Quarter of Fiscal 2009 was 37.9%, a decrease of 2.3 percentage points from 40.2% for the First Quarter of Fiscal 2008. This decrease was primarily due to the volume decline in the Sensors segment, as well as unfavorable product mix in the organic Test business. In addition, SANS negatively impacted gross profit by 0.5 percentage points in the First Quarter of Fiscal 2009, primarily due to the sale of inventory that was written up to fair value as part of the acquisition.

General and administrative expense for the First Quarter of Fiscal 2009 was $9.9 million, an increase of $1.8 million, or 22.2%, compared to $8.1 million for the First Quarter of Fiscal 2008. This increase was primarily driven by SANS, as well as increased compensation and benefit payments in the Sensors segment, partially offset by net reduced legal and other professional fees in the organic Test business,. General and administrative expense as a percentage of revenue for the First Quarter of Fiscal 2009 was 8.5%, compared to 7.5% for the First Quarter of Fiscal 2008.

Income from operations for the First Quarter of Fiscal 2009 was $11.9 million, relatively flat compared to income from operations of $12.1 million for the First Quarter of Fiscal 2008, as increased gross profit and reduced operating expenses in the organic Test business were substantially offset by lower gross profit in the Sensors segment, and a $2.3 million operating loss from SANS. Operating income as a percentage of revenue for the First Quarter of Fiscal 2009 was 10.2%, compared to 11.3% for the First Quarter of Fiscal 2008.

Backlog of undelivered orders at the end of the First Quarter of Fiscal 2009 was $207.9 million, a decrease of 6.7% from backlog of $222.8 million at September 27, 2008. Backlog at the end of the First Quarter of Fiscal 2009 included $10.8 million from SANS. Backlog at the end of the First Quarter of Fiscal Year 2008 was $215.8 million.

Read the The complete Report

Rating: 2.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK