Despite a $7.75 million settlement with the U.S. government this week, MTS Systems Corp. officials told Wall Street analysts Friday that the testing equipment firm has a bright future, strong sales and robust opportunities in China.
New CEO Jeff Graves said in a conference call that the government probe into alleged violations of export laws was behind the company and that it is focused on product development and global expansion.
Wall Street applauded the optimism and strong quarterly earnings results released late Thursday. MTS shares soared 15 percent Friday to close at $49.52, up $6.50.
A recent trip to China attracted 50 new customers, Graves said. Test equipment sales hit a record during the fiscal third quarter. Large customers order sales brought in $20 million for the quarter, following a prior spike of $35 million in large orders.
Third-quarter revenue grew 21 percent to $142 million, thanks to a jump in orders for the company's sophisticated industrial testing equipment used in automotive, tractor, and other manufacturing plants.
"MTS has always impressed me as a technology leader adept at solving our customers' toughest engineering problems," Graves said. "We have a strong market position. I am very excited about this company."
Yet obstacles remain.
While sales and back orders flourished for MTS test systems, sensor sales for the quarter fell 12 percent from a year ago to $24.5 million due to the slowing global economy and negative currency impacts.
