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This excerpt taken from the MTSC 10-Q filed Feb 2, 2009. Three Months Ended December 27, 2008 (“First Quarter of Fiscal 2009”) Compared to Three Months Ended December 29, 2007 (“First Quarter of Fiscal 2008”) Highlights for the First Quarter of Fiscal 2009 include:
This excerpt taken from the MTSC 10-Q filed Aug 4, 2008. First Nine Months of Fiscal 2008 Compared to First Nine Months of Fiscal 2007
Revenue for the First Nine Months of Fiscal 2008 was $336.4 million, an increase of $35.0 million, or 11.6%, compared to revenue of $301.4 million for the First Nine Months of Fiscal 2007. Revenue from international customers for the First Nine Months of Fiscal 2008 represented 64.3% of total revenue, compared to 64.1% for the First Nine Months of Fiscal 2007. Test segment revenue for the First Nine Months of Fiscal 2008 was $264.4 million, an increase of $19.1 million, or 7.8%, compared to revenue of $245.3 million for the First Nine Months of Fiscal 2007, reflecting higher custom, standard product and service business and an estimated $12.3 million favorable impact of currency translation. Sensors segment revenue for the First Nine Months of Fiscal 2008 was $72.0 million, an increase of $15.9 million, or 28.3%, compared to revenue of $56.1 million for the First Nine Months of Fiscal 2007, driven by increased volume in all geographies and an estimated $6.1 million favorable impact of currency translation.
Gross profit for the First Nine Months of Fiscal 2008 increased $9.5 million, or 7.5%, to $136.5 million, compared to gross profit of $127.0 million for the First Nine Months of Fiscal 2007. Gross profit as a percent of revenue was 40.6% for the First Nine Months of Fiscal 2008, a decrease of 1.5 percentage points from 42.1% for the First Nine Months of Fiscal 2007. Test segment gross profit for the First Nine Months of Fiscal 2008 was $96.0 million, relatively flat compared to gross profit of $96.2 million for the First Nine Months of Fiscal 2007. Currency translation favorably impacted Test segment gross profit by an estimated $2.5 million. Gross profit as a percent of revenue for the Test segment decreased 2.9 percentage points, to 36.3%, for the First Nine Months of Fiscal 2008, compared to 39.2% for the First Nine Months of Fiscal 2007. This decrease was primarily due to unfavorable product mix and higher custom project costs. Sensors segment gross profit for the First Nine Months of Fiscal 2008 was $40.5 million, an increase of $9.7 million, or 31.5%, compared to gross profit of $30.8 million for the First Nine Months of Fiscal 2007. Gross profit as a percent of revenue for the Sensors segment increased 1.4 percentage points, to 56.3%, for the First Nine Months of Fiscal 2008, compared to 54.9% for the First Nine Months of Fiscal 2007, primarily due to increased volume. Currency translation favorably impacted Sensors segment gross profit by an estimated $3.3 million.
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Selling and marketing expense for the First Nine Months of Fiscal 2008 was $58.0 million, an increase of $6.9 million, or 13.5%, compared to $51.1 million for the First Nine Months of Fiscal 2007, primarily due to $2.8 million increased compensation, benefits and commission expenses in the Test segment, $1.7 million increase in compensation and benefits in the Sensors segment, and an estimated $2.8 million unfavorable impact of currency translation, partially offset by a $0.4 million decrease in bad debt expense. Selling expense as a percent of revenue for the First Nine Months of Fiscal 2008 was 17.2%, compared to 17.0% for the First Nine Months of Fiscal 2007.
General and administrative expense totaled $25.6 million for the First Nine Months of Fiscal 2008, an increase of $2.5 million, or 10.8%, compared to $23.1 million for the First Nine Months of Fiscal 2007. This increase was primarily due to $1.2 million increased legal expense, $0.6 million increased staffing and benefits expense, $0.4 million integration costs incurred in connection with an anticipated business acquisition, and an estimated $0.8 million unfavorable impact of currency translation, partially offset by a $0.5 million decrease in various other expenses. The increase in legal expense primarily resulted from a $0.8 million settlement with the U.S. Department of Commerce and the U.S. Department of Justice for the District of Minnesota, related to noncompliance with U.S. export control regulations. General and administrative expense as a percent of revenue decreased to 7.6% for the First Nine Months of Fiscal 2008, compared to 7.7% for the First Nine Months of Fiscal 2007.
Research and development expense totaled $12.2 million for the First Nine Months of Fiscal 2008, a net decrease of $1.9 million, or 13.5%, compared to $14.1 million for the First Nine Months of Fiscal 2007. The decrease in research and development expense was planned, as the Company devoted certain of its resources towards capitalized software development activities. Research and development expense as a percent of revenue for the First Nine Months of Fiscal 2008 was 3.6%, compared to 4.7% for the First Nine Months of Fiscal 2006. Currency translation unfavorably impacted research and development expense by an estimated $0.1 million.
Gain on sale of assets of $0.7 million for the First Nine Months of Fiscal 2007 resulted from the sale of assets associated with the Company’s linear friction welding technology.
Income from operations for the First Nine Months of Fiscal 2008 increased $1.2 million, or 3.0%, to $40.7 million, compared to income from operations of $39.5 million for the First Nine Months of Fiscal 2007. Income from operations in the Test segment decreased $3.3 million, or 11.4%, to $25.6 million for the First Nine Months of Fiscal 2008, compared to $28.9 million for the First Nine Months of Fiscal 2007. This decrease was primarily attributable to lower gross profit and planned increases in sales and marketing expenses, partially offset by lower research and development expense, and an estimated $0.1 million favorable impact of currency translation. Income from operations in the Sensors segment for the First Nine Months of Fiscal 2008 increased $4.5 million, or 42.5%, to $15.1 million, compared to $10.6 million for the First Nine Months of Fiscal 2007, primarily due to increased gross profit, and an estimated $1.8 million favorable impact of currency translation, partially offset by planned increases in operating expenses.
Interest expense was $0.8 million for the First Nine Months of Fiscal 2008, a decrease of $0.3 million compared to interest expense of $1.1 million for the First Nine Months of Fiscal 2007, due to a reduction in the Company’s long-term debt obligations. There was no significant impact on interest expense from currency translation.
Interest income was $3.0 million for the First Nine Months of Fiscal 2008, a decrease of $0.2 million compared to interest income of $2.8 million for the First Nine Months of Fiscal 2007. Currency translation favorably impacted interest income by an estimated $0.3 million.
Other (expense) income, net was $0.4 million of net other income for the First Nine Months of Fiscal 2008, an increase in income of $0.7 million compared to $0.3 million in net other expense in the First Nine Months of Fiscal 2007, primarily due to net gains on foreign currency transactions in the First Nine Months of Fiscal 2008 compared to net losses on foreign currency transactions in the First Nine Months of Fiscal 2007. There was no significant impact on Other (expense) income, net from currency translation.
Provision for income taxes totaled $10.7 million for the First Nine Months of Fiscal 2008, a decrease of $0.7 million, or 6.1%, compared to $11.4 million for the First Nine Months of Fiscal 2007, primarily due to a lower effective tax rate. The effective tax rate for the First Nine Months of Fiscal 2008 was 24.7%, a decrease of 3.2 percentage points compared to a tax rate of 27.9% for the First Nine Months of Fiscal 2007, due to more significant tax benefits in the First Nine Months of Fiscal 2008 than in the First Nine Months of Fiscal 2007, primarily resulting from the repatriation of earnings from Japanese affiliates.
19 Net income was $34.6 million for the First Nine Months of Fiscal 2008, an increase of $4.1 million, or 13.4%, compared to $30.5 million for the First Nine Months of Fiscal 2007. As previously mentioned, the Company sold its Nano Instruments product line in the Third Quarter of Fiscal 2008, which resulted in a gain of $2.5 million, net of tax. This product line divestiture is recorded as a discontinued operation, effective with the Third Quarter of Fiscal 2008. The increase in net income was primarily driven by increased income before discontinued operations, a $2.5 million gain on the sale of the discontinued business, net of tax, an estimated $1.5 million favorable impact of currency translation, partially offset by a $1.4 million loss from discontinued operations, net of tax.
The reduction in number of shares outstanding, resulting from the Company’s share purchases, positively impacted earnings per share by $0.08 for the First Nine Months of Fiscal 2008.
This excerpt taken from the MTSC 10-Q filed May 5, 2008. Second Quarter of Fiscal 2008 Compared to Second Quarter of Fiscal 2007
Revenue for the Second Quarter of Fiscal 2008 was $114.5 million, an increase of $12.7 million, or 12.5%, compared to revenue of $101.8 million for the Second Quarter of Fiscal 2007. Revenue from international customers for the Second Quarter of Fiscal 2008 represented 64.0% of total revenue, compared to 64.4% for the Second Quarter of Fiscal 2007. Test segment revenue for the Second Quarter of Fiscal 2008 was $90.1 million, an increase of $7.2 million, or 8.7% compared to revenue of $82.9 million for the Second Quarter of Fiscal 2007, reflecting higher standard product and service business and an estimated $4.8 million favorable impact of currency translation. Sensors segment revenue for the Second Quarter of Fiscal 2008 was $24.4 million, an increase of $5.5 million, or 29.1%, compared to revenue of $18.9 million for the Second Quarter of Fiscal 2007, driven by increased volume in all geographies and an estimated $2.3 million favorable impact of currency translation.
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Gross profit for the Second Quarter of Fiscal 2008 was $47.1 million, an increase of $1.2 million, or 2.6%, compared to gross profit of $45.9 million for the Second Quarter of Fiscal 2007. Gross profit as a percent of revenue was 41.1% for the Second Quarter of Fiscal 2008, a decrease of 4.0 percentage points from 45.1% for the Second Quarter of Fiscal 2007. Test segment gross profit for the Second Quarter of Fiscal 2008 was $33.3 million, a decrease of $2.2 million, or 6.2%, compared to gross profit of $35.5 million for the Second Quarter of Fiscal 2007. Currency translation favorably impacted Test segment gross profit by an estimated $1.0 million. Gross profit as a percent of revenue for the Test segment decreased 5.8 percentage points, to 37.0%, for the Second Quarter of Fiscal 2008, compared to 42.8% for the Second Quarter of Fiscal 2007. This decrease was primarily due to unfavorable product mix and additional custom project costs, partially offset by increased volume. Sensors segment gross profit for the Second Quarter of Fiscal 2008 was $13.8 million, an increase of $3.4 million, or 32.7%, compared to gross profit of $10.4 million for the Second Quarter of Fiscal 2007. Gross profit as a percent of revenue for the Sensors segment increased 1.6 percentage points, to 56.6%, for the Second Quarter of Fiscal 2008, compared to 55.0% for the Second Quarter of Fiscal 2007, primarily due to the benefit of increased volume on factory utilization. Currency translation favorably impacted Sensors segment gross profit by an estimated $1.3 million.
Selling and marketing expense for the Second Quarter of Fiscal 2008 was $20.2 million, an increase of $2.9 million, or 16.8%, compared to $17.3 million for the Second Quarter of Fiscal 2007, primarily due to $1.2 million increased compensation, benefits and commission expense in the Test segment, $0.7 million increase in compensation and benefits in the Sensors segment, and an estimated $1.0 million unfavorable impact of currency translation. Selling expense as a percent of revenue for the Second Quarter of Fiscal 2008 was 17.6%, compared to 17.0% for the Second Quarter of Fiscal 2007.
General and administrative expense totaled $8.7 million for the Second Quarter of Fiscal 2008, an increase of $0.9 million, or 11.5%, compared to $7.8 million for the Second Quarter of Fiscal 2007. This increase was primarily due to $0.6 million increased legal expense, and an estimated $0.3 million unfavorable impact of currency translation. The increase in legal expense resulted from a $0.8 million settlement with the U.S. Department of Commerce (“DOC”) and the U.S. Department of Justice for the District of Minnesota (“DOJ”), related to noncompliance with U.S. export control regulations. General and administrative expense as a percent of revenue decreased to 7.6% for the Second Quarter of Fiscal 2008, compared to 7.7% for the Second Quarter of Fiscal 2007.
Research and development expense totaled $4.2 million for the Second Quarter of Fiscal 2008, a net decrease of $0.6 million, or 12.5%, compared to $4.8 million for the Second Quarter of Fiscal 2007. The decrease in research and development expense was planned, as the Company devoted certain of its resources towards software development activities. Research and development expense as a percent of revenue decreased to 3.7% for the Second Quarter of Fiscal 2008, compared to 4.7% for the Second Quarter of Fiscal 2007. There was no significant impact on research and development expense from currency translation.
Gain on sale of assets of $0.8 million for the Second Quarter of Fiscal 2007 resulted from the sale of assets associated with the Company’s linear friction welding technology.
Income from operations for the Second Quarter of Fiscal 2008 decreased $2.7 million, or 16.2%, to $14.0 million, compared to income from operations of $16.7 million for the Second Quarter of Fiscal 2007. Income from operations in the Test segment decreased $4.3 million, or 33.6%, to $8.5 million for the Second Quarter of Fiscal 2008, compared to $12.8 million for the Second Quarter of Fiscal 2007. This decrease was primarily attributable to lower gross profit, and planned increases in sales and marketing expenditures, partially offset by an estimated $0.2 million favorable impact of currency translation. Income from operations in the Sensors segment for the Second Quarter of Fiscal 2008 increased $1.6 million, or 41.0%, to $5.5 million, compared to $3.9 million for the Second Quarter of Fiscal 2007, primarily due to increased gross profit and an estimated $0.7 million favorable impact of currency translation, partially offset by planned increases in operating expenses.
Interest expense was $0.3 million for the Second Quarter of Fiscal 2008, flat compared to the Second Quarter of Fiscal 2007. There was no significant impact on interest expense from currency translation.
Interest income was $1.0 million for the Second Quarter of Fiscal 2008, flat compared to the Second Quarter of Fiscal 2007. Currency translation favorably impacted interest income by an estimated $0.1 million.
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Other income (expense), net was $0.9 million of income for the Second Quarter of Fiscal 2008, an increase of $1.8 million compared to $0.9 million of expense in the Second Quarter of Fiscal 2007. This increase was primarily due to net gains on foreign currency transactions in the Second Quarter of Fiscal 2008 compared to net losses on foreign currency transactions in the Second Quarter of Fiscal 2007. There was no significant impact on Other income (expense), net from currency translation.
Provision for income taxes totaled $2.0 million for the Second Quarter of Fiscal 2008, a decrease of $4.1 million, or 67.2%, compared to $6.1 million for the Second Quarter of Fiscal 2007, primarily due to a lower effective tax rate. The effective tax rate for the Second Quarter of Fiscal 2008 was 12.8%, a decrease of 24.3 percentage points compared to a tax rate of 37.1% for the Second Quarter of Fiscal 2007, primarily due to $3.7 million favorable tax benefits resulting from the repatriation of earnings from Japanese affiliates. This repatriation was executed in order to optimize global liquidity and efficiently deploy cash to fund working capital, acquisition, and share purchase needs.
Net income was $13.5 million for the Second Quarter of Fiscal 2008, an increase of $3.2 million, or 31.1%, compared to $10.3 million for the Second Quarter of Fiscal 2007. This increase was primarily due to decreased income tax expense, increased net gains on foreign currency transactions of $1.5 million, and an estimated $0.7 million favorable impact of currency translation, partially offset by lower income from operations.
The reduction in number of shares outstanding, resulting from the Company’s share purchases, positively impacted earnings per share by $0.03 for the Second Quarter of Fiscal 2008.
This excerpt taken from the MTSC 10-Q filed Feb 4, 2008. First Quarter of Fiscal 2008 Compared to First Quarter of Fiscal 2007
Revenue for the First Quarter of Fiscal 2008 was $110.1 million, an increase of $11.0 million, or 11.1%, compared to revenue of $99.1 million for the First Quarter of Fiscal 2007. Revenue from international customers for the First Quarter of Fiscal 2008 represented 66.4% of total revenue, compared to 61.9% for the First Quarter of Fiscal 2007. Test segment revenue for the First Quarter of Fiscal 2008 was $86.9 million, an increase of $5.6 million, or 6.9%, compared to revenue of $81.3 million for the First Quarter of Fiscal 2007, reflecting an increase in standard and service business and an estimated $3.0 million favorable impact of currency translation. Sensors segment revenue for the First Quarter of Fiscal 2008 was $23.2 million, an increase of $5.4 million, or 30.3%, compared to revenue of $17.8 million for the First Quarter of Fiscal 2007, driven by increased volume in all geographies and an estimated $1.3 million favorable impact of currency translation.
Gross profit for the First Quarter of Fiscal 2008 increased $2.2 million, or 5.2%, to $44.3 million, compared to gross profit of $42.1 million for the First Quarter of Fiscal 2007. Gross profit as a percent of revenue was 40.2% for the First Quarter of Fiscal 2008, a decrease of 2.3 percentage points from 42.5% for the First Quarter of Fiscal 2007. Test segment gross profit for the First Quarter of Fiscal 2008 was $31.2 million, a decrease of $1.1 million, or 3.4%, compared to gross profit of $32.3 million for the First Quarter of Fiscal 2007. Gross profit as a percent of revenue for the Test segment decreased 3.8 percentage points, to 35.9%, for the First Quarter of Fiscal 2008, compared to 39.7% for the First Quarter of Fiscal 2007. This decrease was primarily due to unfavorable product mix and additional custom project costs, partially offset by increased volume and an estimated $0.5 million favorable impact of currency translation. Sensors segment gross profit for the First Quarter of Fiscal 2008 was $13.1 million, an increase of $3.3 million, or 33.7%, compared to gross profit of $9.8 million for the First Quarter of Fiscal 2007. Gross profit as a percent of revenue for the Sensors segment increased 1.4 percentage points, to 56.5%, for the First Quarter of Fiscal 2008, compared to 55.1% for the First Quarter of Fiscal 2007, primarily reflecting the benefit of improved factory utilization on increased volume, and an estimated $0.7 million favorable impact of currency translation.
Selling and marketing expense for the First Quarter of Fiscal 2008 was $19.6 million, an increase of $2.7 million, or 16.0%, compared to $16.9 million for the First Quarter of Fiscal 2007, primarily due to $1.3 million increased staffing, benefit, and commission expense, in the Test segment, $0.6 million increased staffing and commission expense in the Sensors segment, and an estimated $0.8 million unfavorable impact of currency translation. Selling expense as a percent of revenue for the First Quarter of Fiscal 2008 was 17.8%, compared to 17.1% for the First Quarter of Fiscal 2007.
General and administrative expense totaled $8.3 million for the First Quarter of Fiscal 2008, an increase of $0.3 million, or 3.8%, compared to $8.0 million for the First Quarter of Fiscal 2007. This increase was primarily due to $0.3 million increased legal expenses and an estimated $0.2 unfavorable impact of currency translation, partially offset by a $0.3 million decrease in audit fees. General and administrative expense as a percent of revenue decreased to 7.5% for the First Quarter of Fiscal 2008, compared to 8.1% for the First Quarter of Fiscal 2007.
Research and development expense totaled $4.1 million for the First Quarter of Fiscal 2008, a decrease of $0.4 million, or 8.9%, compared to $4.5 million for the First Quarter of Fiscal 2007. Although total expenditures for new product development increased $0.4 million to $4.9 million in the First Quarter of Fiscal 2008, $0.8 million of those expenditures were associated with software development costs that were capitalized. Research and development expense as a percent of revenue decreased to 3.7% for the First Quarter of Fiscal 2008, compared to 4.5% for the First Quarter of Fiscal 2007. There was no significant impact on research and development expense from currency translation.
Income from operations for the First Quarter of Fiscal 2008 decreased $0.3 million, or 2.4%, to $12.3 million, compared to income from operations of $12.6 million for the First Quarter of Fiscal 2007. Income from operations in the Test segment decreased $2.2 million, or 23.4%, to $7.2 million for the First Quarter of Fiscal 2008, compared to $9.4 million for the First Quarter of Fiscal 2007. This decrease was primarily attributable to lower gross profit and planned increases in selling and marketing expenses, and an estimated $0.2 million unfavorable impact of currency translation. Income from operations in the Sensors segment for the First Quarter of Fiscal 2008 increased $1.9 million, or 59.4%, to $5.1 million, compared to $3.2 million for the First Quarter of Fiscal 2007, primarily due to increased gross profit and an estimated $0.4 million favorable impact of currency translation, partially offset by planned increases in operating expenses.
Interest expense was $0.4 million for the First Quarter of Fiscal 2008, flat compared to interest expense of $0.3 million for the First Quarter of Fiscal 2007. There was no significant impact on interest expense from currency translation.
14 Interest income was $0.9 million for the First Quarter of Fiscal 2008, flat compared to the First Quarter of Fiscal 2007. There was no significant impact on interest income from currency translation.
Other (expense) income, net was $0.1 million of expense for the First Quarter of Fiscal 2008, compared to income of $0.1 million for the First Quarter of Fiscal 2007.
Provision for income taxes totaled $4.5 million for the First Quarter of Fiscal 2008, an increase of $1.3 million, or 40.6%, compared to $3.2 million for the First Quarter of Fiscal 2007, primarily due to a higher effective tax rate. The effective tax rate for the First Quarter of Fiscal 2008 was 35.0%, an increase of 11.2 percentage points compared to a tax rate of 23.8% for the First Quarter of Fiscal 2007, primarily due to the enactment of tax legislation in the First Quarter of Fiscal 2007 that retroactively extended the United States research and development tax credits as well as legislation that entitles the Company to a corporate income tax refund in Germany.
Net income was $8.4 million for the First Quarter of Fiscal 2008, a decrease of 16.8% compared to $10.1 million for the First Quarter of Fiscal 2007. The decrease was primarily due to increased income tax expense, partially offset by an estimated $0.2 million favorable impact of currency translation.
The reduction in number of shares outstanding, resulting from the Company’s share purchases, positively impacted earnings per share by $0.02 for the First Quarter of Fiscal 2008.
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