MTS Provides Preliminary Results For Fiscal 2016 And Reports Delay Of Its Form 10-K Filing As A Result Of Internal Investigation Concerning Apparent Violations Of The Company's Code Of Conduct In China
EDEN PRAIRIE, MN, Nov. 29, 2016 /PRNewswire/ -- MTS Systems Corporation (Nasdaq: MTSC), a leading global supplier of high-performance test systems and sensors, today reported preliminary financial results for its fiscal 2016 full year ended October 1, 2016. The company also announced that it has initiated an internal investigation into apparent violations of the company's code of conduct involving certain employees in its China operations and this investigation will delay the issuance of its fourth quarter and full year earnings as well as the filing of the company's Annual Report on Form 10-K for fiscal 2016. The preliminary financial results included in this release represent the most current information available to management and are subject to completion of the internal investigation described in more detail below, as well as the subsequent completion of the audit of the company's financial statements by the company's independent auditor.
"We are pleased that we finished our fiscal year on a strong note. Our full year GAAP revenue and earnings per share (EPS) were higher than we anticipated as a result of continued improvements in business performance. Preliminary full-year revenue is expected to be in the range of $645 million to $650 million, up from previously issued guidance of $630 million to $640 million, and preliminary GAAP EPS is expected to be in the range of $1.65 to $1.70, up from the previously issued guidance of $1.35 to $1.50," said Dr. Jeffrey Graves, President and Chief Executive Officer of MTS. "While this delay in reporting our annual results is disappointing, we are very pleased with our performance in the quarter, as reflected in our preliminary financial results. In addition, we have previously communicated our strong desire to reduce our leverage ratio as quickly as possible. Our cash flow was strong in the fourth quarter and we were able to reduce our debt by making the required payments on the debt, while continuing to pay a dividend and funding the acquisition-related costs without needing to utilize our revolving credit facility.