MTS Systems Withdraws Full-year Guidance; Executes Restructuring Initiatives

(RTTNews) - MTS Systems Corp. (MTSC) announced the company expects its second-quarter adjusted earnings per share to be positive in the range of $0.23 to $0.28 per share. Adjusted EBITDA is anticipated in the range of $27 million to $32 million. Due to cost reduction actions that will impact the second quarter, the company expects to incur a loss in the range of $0.04 to $0.09 per share on a GAAP basis.

For the second-quarter, the company anticipates revenue to be in the range of $205 million to $215 million.

MTS Systems said the company is withdrawing financial guidance for the fiscal year ending October 3, 2020.

To reduce operating costs, the company implements: reduction in all discretionary spending, capital expenditures; reductions in salaries or work schedules and temporary furloughs for employees; a temporary reduction by Dr. Graves of his salary by 20%; a temporary reduction by senior executives of their salaries by 10% to at least 15%; and a temporary reduction by non-employee directors of their cash compensation by 20%.

The company has suspended its quarterly dividend of $0.30 per share, equating to approximately $23 million in annualized cash payments.