On Nov. 15, MTS Systems (NASDAQ:MTSC), a supplier of testing systems for manufacturers, released fourth-quarter earnings for the period ended Sept. 30.

  • The 17.4% increase in net sales was driven by growth in both the test and the industrial segments.
  • Fourth-quarter orders totaled $100.8 million, a decrease of 8% compared with $109.7 million for the fourth quarter of 2005.
  • Management projects full-year 2007 revenue of $400 million to $410 million and EPS of $2.10 to $2.20.
  • MTS needs more ratings to carry an official designation in Motley Fool CAPS. Do you have an opinion on the stock? Then make your call!

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$106.2

$90.5

17.4%

Net Profit*

$11.1

$8.5

31.4%

EPS

$0.60

$0.41

46.3%

Diluted Shares

18.6

20.4

(9.1%)



*Includes income from continued operations

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

42.7%

43.4%

(0.6)

Operating Margin

13.8%

10.2%

3.6

Net Margin

10.5%

9.4%

1.1



*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$121.5

$159.8

(23.9%)

Accounts Rec.

$100.1

$89.5

11.9%

Inventory

$40.5

$38.0

6.4%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$17.1

$16.1

5.9%

Long-Term Debt

$9.0

$15.7

(42.6%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Alas, the company's own sensors would show it fails the shareholder-friendly test of providing us with a cash flow statement.

Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.