MTS Systems raises FY16 GAAP EPS view to $1.65-$1.70 from $1.35-$1.50
GAAP EPS consensus $1.40. "We are pleased that we finished our fiscal year on a strong note. Our full year GAAP revenue and earnings per share 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 $645M-$650M, up from previously issued guidance of $630M-$640M, 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. 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...Regarding the PCB acquisition, the integration is progressing well, as anticipated...Acquisition-related and restructuring costs for fiscal 2016 were approximately $23M, significantly higher than previous guidance, driven by the timing of the recognition of an approximately $16M fair value adjustment to acquired inventory, which is now being recognized evenly over the fourth quarter of fiscal 2016 and the first quarter of fiscal 2017. This negatively impacts each quarter by approximately $8M...Regarding the internal investigation that has delayed the filing of our Annual Report and earnings release, we are deeply disappointed to report that we recently discovered that certain individuals in our leadership in China appear to have violated MTS's code of conduct, including association with an independent business that may compete with MTS in certain markets. Given the level of the MTS personnel in China who appear to have violated our code of conduct, the filing of our Annual Report on Form 10-K and our earnings release will be delayed until the internal investigation has been completed and its findings evaluated," said Dr. Jeffrey Graves, President and CEO of MTS.