| Delivering
custom
capabilities
in a standard
offering
Customer: Australian Defence Science and Technology Organisation (DSTO) Situation: The Australian DSTO wanted a full-scale fatigue test instrumentation and control system capable of customizing advanced control laws. Solution: MTS partnered with the DSTO to create a “calculations in the loop” software capability for testing its BAE SYSTEMS Hawk aircraft. This capability allows users to manipulate signals, digital outputs and control laws during real-time testing, significantly reducing test completion time. Calculations in the loop is now a standard option of the MTS AeroPro™ software platform.
Helping
Beijing prove
earthquake-
readiness
for the 2008
Olympics
Customer:
China Academy of Building Research (CABR) Situation:In helping Beijing prepare to host the 2008 Olympics, the CABR wanted to accurately test the ability of stadiums, dormitories, communication infrastructure networks, highways and various other supporting venues to withstand earthquake forces. Solution:MTS helped CABR create a seismic simulation table, 36 square meters in size, capable of accurately replicating the motions and forces of the world’s most violent earthquakes. Testing is now well underway with MTS consultants helping the CABR make the most of its technology investment. | |
while advancing our technology leadership in magnetostriction. Combined, these actions will enable us to profitably grow faster than these markets.
During the year, we exited the engine test, noise and vibration software and laser metal forming (AeroMet) businesses. Together, these non-strategic businesses represented approximately seven percent of revenue. In each case, we determined that we did not have a viable path to a market and financial leadership position.
delivering›
In fiscal year 2005 we grew revenue by nearly 11 percent and finished the fiscal year with a strong backlog of $220 million. Earnings per share improved by 34 percent, to $1.81 per share, on higher volume, improved gross margins and a favorable change in the fiscal year 2005 effective tax rate, reflecting steady progress in operating performance. We generated $59 million of cash from operations, ending the year with $160 million in cash and short-term investments. During the year, we offset share dilution from option exercises by repurchasing approximately one million shares of Company stock. Additionally, in the fourth quarter we raised the annual dividend by 25 percent to 40 cents per share. Combining this with our impressive stock price appreciation during the year, MTS delivered a 72 percent return to our shareowners on their investment.
As we begin fiscal year 2006, we are using our financial strength to invest in new products and to expand our global network to capture and serve a greater share of our targeted markets worldwide. With a sharpened focus on our core Test and Industrial businesses, we plan to continue increasing investments to benefit both customers and shareowners. In addition to organic growth, we anticipate using cash to selectively acquire businesses or product lines that enhance our market position. However, we will prudently use this cash only for those opportunities that align with both our strategic and financial objectives.
MTS continues to be financially strong, technologically excellent, and market-focused. We are learning, moving, and, most importantly, delivering – for customers, shareowners and employees alike.
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