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Constituent Review
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J. Andrew Braswell, Equity Analyst
Newbridge Institutional Research
Data as of 3-30-07 |
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Nanotech
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Review
1/24/07- MTSC reported earnings for the December quarter, its fiscal Q1, after the close. Total revenue for the quarter was $99.1M (+8% Y/Y) with orders coming in at $111.5M (15% Y/Y), for a book/bill of 1.13. Favorable currency translation added $3.5M and $2.8M to these totals, respectively. Order growth was driven by large custom orders from Asian customers in the Test segment, as well as increased business from all regions in the Sensors (formerly Industrial) segment. Ending backlog rose to $208M from $192M sequentially. Net income was $10.1M (+26% Y/Y), or $0.54 per share, up from $0.40 per share in Q1FY06. MTSC ended the period with $115M in cash.
2/1/07- Declared a regular quarterly cash dividend of $0.11 per share, payable 4/2/07.
Commentary
MTSC carried the strength it has exhibited since October through the end of January, hitting nearly $43 before pulling back to end basically flat on the quarter. December quarter results were very solid, as revenue growth met expectations and was outpaced by growth in orders and net income. The share repurchase program reduced outstanding shares to 18.6M from 20.0M Y/Y, adding nearly $0.04 to reported EPS. The company left FY07 revenue guidance unchanged, but we continue to anticipate an upward revision in that forecast during the year. MTSC has historically erred on the conservative side with its guidance, and we certainly felt that to be the case when the company suggested $400M-$410M in revenue for FY07.
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