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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
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Minnesota
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41-0908057
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(State or other jurisdiction
of incorporation or organization)
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(I.R.S. Employer Identification No.)
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14000 Technology Drive
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Eden Prairie,
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Minnesota
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55344
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock, $0.25 par value
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MTSC
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The Nasdaq Stock Market LLC
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Large accelerated filer
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☒
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Accelerated filer ☐
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Emerging growth company
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☐
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Non-accelerated filer ☐
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Smaller reporting company
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☐
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June 27,
2020 |
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September 28,
2019 |
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(Unaudited)
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(Note)
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Assets
|
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Current assets
|
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Cash and cash equivalents
|
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$
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65,073
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$
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57,937
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Accounts receivable, net of allowance for doubtful accounts of $4,742 and $5,963, respectively
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118,686
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121,260
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Unbilled accounts receivable, net
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91,787
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80,331
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Inventories, net
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177,210
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167,199
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Prepaid expenses and other current assets
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30,363
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23,761
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Total current assets
|
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483,119
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450,488
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Property and equipment, net
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100,160
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101,083
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Goodwill
|
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465,978
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429,039
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Intangible assets, net
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342,901
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306,585
|
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Other long-term assets
|
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24,902
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3,553
|
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Deferred income taxes
|
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6,060
|
|
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7,229
|
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Total assets
|
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$
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1,423,120
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$
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1,297,977
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Liabilities and Shareholders' Equity
|
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Current liabilities
|
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Short-term borrowings
|
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$
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27,000
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$
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—
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Current maturities of long-term debt, net
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2,830
|
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27,969
|
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Accounts payable
|
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51,639
|
|
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46,849
|
|
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Accrued payroll and related costs
|
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39,728
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46,760
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Advance payments from customers
|
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64,980
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70,520
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Accrued warranty costs
|
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4,869
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|
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3,541
|
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Accrued income taxes
|
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4,155
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7,077
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Accrued dividends
|
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—
|
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5,695
|
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Other accrued liabilities
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47,183
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|
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43,165
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Total current liabilities
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242,384
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251,576
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Long-term debt, less current maturities, net
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565,266
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484,648
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Deferred income taxes
|
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52,607
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41,531
|
|
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Non-current accrued income taxes
|
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4,769
|
|
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4,414
|
|
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Defined benefit pension plan obligation
|
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19,002
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|
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16,585
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Contingent consideration
|
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19,180
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—
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Non-current accrued payroll and related costs
|
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2,694
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—
|
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Other long-term liabilities
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28,362
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15,164
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Total liabilities
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934,264
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813,918
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Shareholders' Equity
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Common stock, $0.25 par value; 64,000 shares authorized: 19,220 and 19,124 shares
issued and outstanding as of June 27, 2020 and September 28, 2019, respectively |
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4,805
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4,781
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Additional paid-in capital
|
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187,128
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182,422
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Retained earnings
|
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312,444
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315,329
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Accumulated other comprehensive income (loss)
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(15,521
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)
|
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(18,473
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)
|
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Total shareholders' equity
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488,856
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484,059
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Total liabilities and shareholders' equity
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$
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1,423,120
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$
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1,297,977
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Three Months Ended
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Nine Months Ended
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June 27,
2020 |
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June 29,
2019 |
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June 27,
2020 |
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June 29,
2019 |
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Revenue
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Product
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$
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175,223
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$
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205,528
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$
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537,304
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$
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587,297
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Service
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21,002
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26,681
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76,227
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81,139
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Total revenue
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196,225
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232,209
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613,531
|
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668,436
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Cost of Sales
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Product
|
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116,491
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130,514
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349,336
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368,260
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Service
|
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14,239
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16,592
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50,850
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49,418
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Total cost of sales
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130,730
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147,106
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400,186
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417,678
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Gross profit
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65,495
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85,103
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213,345
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250,758
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Operating expenses
|
|
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Selling and marketing
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26,857
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33,321
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|
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89,707
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98,805
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|
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General and administrative
|
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19,692
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20,621
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67,382
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|
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63,804
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Research and development
|
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6,303
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8,160
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20,485
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|
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23,008
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|
||||
Total operating expenses
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52,852
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62,102
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177,574
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185,617
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|
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Income from operations
|
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12,643
|
|
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23,001
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|
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35,771
|
|
|
65,141
|
|
||||
Interest income (expense), net
|
|
(8,846
|
)
|
|
(6,687
|
)
|
|
(25,975
|
)
|
|
(20,873
|
)
|
||||
Other income (expense), net
|
|
(446
|
)
|
|
(124
|
)
|
|
(1,059
|
)
|
|
195
|
|
||||
Income before income taxes
|
|
3,351
|
|
|
16,190
|
|
|
8,737
|
|
|
44,463
|
|
||||
Income tax provision (benefit)
|
|
(1,038
|
)
|
|
2,605
|
|
|
113
|
|
|
6,217
|
|
||||
Net income
|
|
$
|
4,389
|
|
|
$
|
13,585
|
|
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$
|
8,624
|
|
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$
|
38,246
|
|
|
|
|
|
|
|
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|
||||||||
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
|
|
|
|
|
|
|
|
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|
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Earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.70
|
|
|
$
|
0.45
|
|
|
$
|
1.99
|
|
Weighted average common shares outstanding
|
|
19,229
|
|
|
19,297
|
|
|
19,189
|
|
|
19,255
|
|
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|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.70
|
|
|
$
|
0.45
|
|
|
$
|
1.97
|
|
Weighted average common shares outstanding
|
|
19,315
|
|
|
19,520
|
|
|
19,349
|
|
|
19,436
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share
|
|
$
|
—
|
|
|
$
|
0.30
|
|
|
$
|
0.60
|
|
|
$
|
0.90
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Net income
|
|
$
|
4,389
|
|
|
$
|
13,585
|
|
|
$
|
8,624
|
|
|
$
|
38,246
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation gain (loss) adjustments
|
|
3,974
|
|
|
506
|
|
|
4,922
|
|
|
(2,165
|
)
|
||||
Derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized net gain (loss)
|
|
(725
|
)
|
|
(1,074
|
)
|
|
97
|
|
|
(2,882
|
)
|
||||
Net (gain) loss reclassified to earnings
|
|
(270
|
)
|
|
(655
|
)
|
|
(946
|
)
|
|
(2,136
|
)
|
||||
Defined benefit pension plan
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized net gain (loss)
|
|
211
|
|
|
419
|
|
|
(1,429
|
)
|
|
(167
|
)
|
||||
Net (gain) loss reclassified to earnings
|
|
211
|
|
|
95
|
|
|
632
|
|
|
286
|
|
||||
Currency exchange rate gain (loss)
|
|
(197
|
)
|
|
(82
|
)
|
|
(324
|
)
|
|
179
|
|
||||
Other comprehensive income (loss)
|
|
3,204
|
|
|
(791
|
)
|
|
2,952
|
|
|
(6,885
|
)
|
||||
Comprehensive income
|
|
$
|
7,593
|
|
|
$
|
12,794
|
|
|
$
|
11,576
|
|
|
$
|
31,361
|
|
|
|
Three Months Ended June 27, 2020
|
|||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders'
Equity
|
|||||||||||||
|
|
Shares
Issued
|
|
Amount
|
|
|
Retained
Earnings
|
|
|
||||||||||||||
Balance, March 28, 2020
|
|
19,188
|
|
|
$
|
4,797
|
|
|
$
|
187,551
|
|
|
$
|
308,055
|
|
|
$
|
(18,725
|
)
|
|
$
|
481,678
|
|
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,389
|
|
|
3,204
|
|
|
7,593
|
|
|||||
Stock-based compensation
|
|
50
|
|
|
12
|
|
|
(123
|
)
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|||||
Issuance for employee stock purchase plan
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Common stock purchased and retired
|
|
(18
|
)
|
|
(4
|
)
|
|
(299
|
)
|
|
—
|
|
|
—
|
|
|
(303
|
)
|
|||||
Balance, June 27, 2020
|
|
19,220
|
|
|
$
|
4,805
|
|
|
$
|
187,128
|
|
|
$
|
312,444
|
|
|
$
|
(15,521
|
)
|
|
$
|
488,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Nine Months Ended June 27, 2020
|
|||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders'
Equity
|
|||||||||||||
|
|
Shares
Issued
|
|
Amount
|
|
|
Retained
Earnings
|
|
|
||||||||||||||
Balance, September 28, 2019
|
|
19,124
|
|
|
$
|
4,781
|
|
|
$
|
182,422
|
|
|
$
|
315,329
|
|
|
$
|
(18,473
|
)
|
|
$
|
484,059
|
|
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,624
|
|
|
2,952
|
|
|
11,576
|
|
|||||
Exercise of stock options
|
|
1
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Stock-based compensation
|
|
117
|
|
|
29
|
|
|
5,247
|
|
|
—
|
|
|
—
|
|
|
5,276
|
|
|||||
Issuance for employee stock purchase plan
|
|
15
|
|
|
4
|
|
|
585
|
|
|
—
|
|
|
—
|
|
|
589
|
|
|||||
Common stock purchased and retired
|
|
(37
|
)
|
|
(9
|
)
|
|
(1,167
|
)
|
|
—
|
|
|
—
|
|
|
(1,176
|
)
|
|||||
Dividends, $0.60 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,509
|
)
|
|
—
|
|
|
(11,509
|
)
|
|||||
Balance, June 27, 2020
|
|
19,220
|
|
|
$
|
4,805
|
|
|
$
|
187,128
|
|
|
$
|
312,444
|
|
|
$
|
(15,521
|
)
|
|
$
|
488,856
|
|
|
|
Three Months Ended June 29, 2019
|
|||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders'
Equity
|
|||||||||||||
|
|
Shares
Issued
|
|
Amount
|
|
|
Retained
Earnings
|
|
|
||||||||||||||
Balance, March 30, 2019
|
|
17,900
|
|
|
$
|
4,475
|
|
|
$
|
176,918
|
|
|
$
|
308,279
|
|
|
$
|
(4,618
|
)
|
|
$
|
485,054
|
|
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,585
|
|
|
(791
|
)
|
|
12,794
|
|
|||||
Conversion of tangible equity units
|
|
781
|
|
|
195
|
|
|
(195
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Exercise of stock options
|
|
20
|
|
|
5
|
|
|
991
|
|
|
—
|
|
|
—
|
|
|
996
|
|
|||||
Stock-based compensation
|
|
55
|
|
|
14
|
|
|
2,282
|
|
|
—
|
|
|
—
|
|
|
2,296
|
|
|||||
Common stock purchased and retired
|
|
(20
|
)
|
|
(5
|
)
|
|
(981
|
)
|
|
—
|
|
|
—
|
|
|
(986
|
)
|
|||||
Dividends, $0.30 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,615
|
)
|
|
—
|
|
|
(5,615
|
)
|
|||||
Balance, June 29, 2019
|
|
18,736
|
|
|
$
|
4,684
|
|
|
$
|
179,015
|
|
|
$
|
316,249
|
|
|
$
|
(5,409
|
)
|
|
$
|
494,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Nine Months Ended June 29, 2019
|
|||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders'
Equity
|
|||||||||||||
|
|
Shares
Issued
|
|
Amount
|
|
|
Retained
Earnings
|
|
|
||||||||||||||
Balance, September 29, 2018
|
|
17,856
|
|
|
$
|
4,464
|
|
|
$
|
171,407
|
|
|
$
|
300,585
|
|
|
$
|
1,476
|
|
|
$
|
477,932
|
|
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,246
|
|
|
(6,885
|
)
|
|
31,361
|
|
|||||
Cumulative effect of accounting change
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,227
|
)
|
|
—
|
|
|
(6,227
|
)
|
|||||
Conversion of tangible equity units
|
|
781
|
|
|
195
|
|
|
(195
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Exercise of stock options
|
|
23
|
|
|
6
|
|
|
1,134
|
|
|
—
|
|
|
—
|
|
|
1,140
|
|
|||||
Stock-based compensation
|
|
88
|
|
|
22
|
|
|
7,493
|
|
|
—
|
|
|
—
|
|
|
7,515
|
|
|||||
Issuance for employee stock purchase plan
|
|
16
|
|
|
4
|
|
|
553
|
|
|
—
|
|
|
—
|
|
|
557
|
|
|||||
Common stock purchased and retired
|
|
(28
|
)
|
|
(7
|
)
|
|
(1,377
|
)
|
|
—
|
|
|
—
|
|
|
(1,384
|
)
|
|||||
Dividends, $0.90 per share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,355
|
)
|
|
—
|
|
|
(16,355
|
)
|
|||||
Balance, June 29, 2019
|
|
18,736
|
|
|
$
|
4,684
|
|
|
$
|
179,015
|
|
|
$
|
316,249
|
|
|
$
|
(5,409
|
)
|
|
$
|
494,539
|
|
|
|
Nine Months Ended
|
||||||
|
|
June 27, 2020
|
|
June 29, 2019
|
||||
Cash Flows from Operating Activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
8,624
|
|
|
$
|
38,246
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities
|
|
|
|
|
|
|
||
Stock-based compensation
|
|
5,214
|
|
|
7,298
|
|
||
Fair value adjustment to acquired inventory
|
|
1,140
|
|
|
1,141
|
|
||
Net periodic pension benefit cost
|
|
1,386
|
|
|
871
|
|
||
Depreciation
|
|
17,287
|
|
|
15,485
|
|
||
Amortization
|
|
17,343
|
|
|
12,668
|
|
||
Accretion of contingent consideration
|
|
895
|
|
|
—
|
|
||
Contingent consideration fair value adjustment
|
|
1,301
|
|
|
—
|
|
||
(Gain) loss on sale or disposal of property and equipment
|
|
2,327
|
|
|
552
|
|
||
Amortization of debt issuance costs
|
|
2,220
|
|
|
2,807
|
|
||
Deferred income taxes
|
|
1,718
|
|
|
(1,430
|
)
|
||
Bad debt provision (recovery), net
|
|
(1,258
|
)
|
|
586
|
|
||
Changes in operating assets and liabilities
|
|
|
|
|
|
|
||
Accounts receivable and unbilled accounts receivable
|
|
13,903
|
|
|
(15,444
|
)
|
||
Inventories, net
|
|
(10,398
|
)
|
|
1,013
|
|
||
Prepaid expenses
|
|
3,015
|
|
|
(2,310
|
)
|
||
Accounts payable
|
|
(6,421
|
)
|
|
(11,361
|
)
|
||
Accrued payroll and related costs
|
|
(8,722
|
)
|
|
(1,396
|
)
|
||
Advance payments from customers
|
|
(8,869
|
)
|
|
(6,390
|
)
|
||
Accrued warranty costs
|
|
1,316
|
|
|
(1,571
|
)
|
||
Other assets and liabilities
|
|
(28,601
|
)
|
|
9,205
|
|
||
Net Cash Provided by (Used in) Operating Activities
|
|
13,420
|
|
|
49,970
|
|
||
Cash Flows from Investing Activities
|
|
|
|
|
|
|
||
Purchases of property and equipment
|
|
(21,144
|
)
|
|
(17,377
|
)
|
||
Proceeds from sale of property and equipment
|
|
—
|
|
|
10
|
|
||
Purchases of business, net of acquired cash
|
|
(49,268
|
)
|
|
(83,526
|
)
|
||
Other
|
|
87
|
|
|
(285
|
)
|
||
Net Cash Provided by (Used in) Investing Activities
|
|
(70,325
|
)
|
|
(101,178
|
)
|
||
Cash Flows from Financing Activities
|
|
|
|
|
|
|
||
Proceeds from issuance of long-term debt
|
|
58,576
|
|
|
80,391
|
|
||
Payment of long-term debt
|
|
(4,180
|
)
|
|
(3,861
|
)
|
||
Payment of debt issuance costs for long-term debt
|
|
(88
|
)
|
|
—
|
|
||
Payment of debt component of tangible equity units
|
|
—
|
|
|
(4,818
|
)
|
||
Payment of debt issuance costs for revolving credit facility
|
|
(564
|
)
|
|
(542
|
)
|
||
Receipts under short-term borrowings
|
|
115,000
|
|
|
35,000
|
|
||
Payments under short-term borrowings
|
|
(88,000
|
)
|
|
(35,000
|
)
|
||
Cash dividends
|
|
(17,205
|
)
|
|
(16,099
|
)
|
||
Proceeds from exercise of stock options and employee stock purchase plan
|
|
630
|
|
|
1,697
|
|
||
Payments to purchase and retire common stock
|
|
(1,176
|
)
|
|
(1,384
|
)
|
||
Net Cash Provided by (Used in) Financing Activities
|
|
62,993
|
|
|
55,384
|
|
||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
1,048
|
|
|
(245
|
)
|
||
Cash and Cash Equivalents
|
|
|
|
|
|
|
||
Increase (decrease) in cash and cash equivalents during the period
|
|
7,136
|
|
|
3,931
|
|
||
Cash and cash equivalents balance, beginning of period
|
|
57,937
|
|
|
71,804
|
|
||
Cash and cash equivalents balance, end of period
|
|
$
|
65,073
|
|
|
$
|
75,735
|
|
|
|
|
|
|
||||
Supplemental Disclosures
|
|
|
|
|
|
|
||
Cash paid during the period for
|
|
|
|
|
|
|
||
Interest
|
|
$
|
19,645
|
|
|
$
|
18,244
|
|
Income taxes
|
|
10,317
|
|
|
9,295
|
|
||
Non-cash investing and financing activities
|
|
|
|
|
||||
Contingent consideration assumed in acquisition
|
|
19,180
|
|
|
—
|
|
||
Dividends declared not yet paid
|
|
—
|
|
|
5,568
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
|
June 27, 2020
|
|
June 29, 2019
|
||||||||||||||||||||||||||||
|
|
Test & Simulation
|
|
Sensors
|
|
Intersegment
|
|
Total
|
|
Test & Simulation
|
|
Sensors
|
|
Intersegment
|
|
Total
|
||||||||||||||||
Sales type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Product
|
|
$
|
96,870
|
|
|
$
|
78,739
|
|
|
$
|
(386
|
)
|
|
$
|
175,223
|
|
|
$
|
123,573
|
|
|
$
|
82,305
|
|
|
$
|
(350
|
)
|
|
$
|
205,528
|
|
Service
|
|
19,534
|
|
|
1,483
|
|
|
(15
|
)
|
|
21,002
|
|
|
24,755
|
|
|
1,926
|
|
|
—
|
|
|
26,681
|
|
||||||||
Total revenue
|
|
$
|
116,404
|
|
|
$
|
80,222
|
|
|
$
|
(401
|
)
|
|
$
|
196,225
|
|
|
$
|
148,328
|
|
|
$
|
84,231
|
|
|
$
|
(350
|
)
|
|
$
|
232,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Timing of recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Point-in-time
|
|
$
|
60,792
|
|
|
$
|
72,031
|
|
|
$
|
(401
|
)
|
|
$
|
132,422
|
|
|
$
|
95,247
|
|
|
$
|
77,978
|
|
|
$
|
(350
|
)
|
|
$
|
172,875
|
|
Over time
|
|
55,612
|
|
|
8,191
|
|
|
—
|
|
|
63,803
|
|
|
53,081
|
|
|
6,253
|
|
|
—
|
|
|
59,334
|
|
||||||||
Total revenue
|
|
$
|
116,404
|
|
|
$
|
80,222
|
|
|
$
|
(401
|
)
|
|
$
|
196,225
|
|
|
$
|
148,328
|
|
|
$
|
84,231
|
|
|
$
|
(350
|
)
|
|
$
|
232,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Geographic market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Americas
|
|
$
|
32,821
|
|
|
$
|
42,000
|
|
|
$
|
(401
|
)
|
|
$
|
74,420
|
|
|
$
|
47,892
|
|
|
$
|
42,365
|
|
|
$
|
(350
|
)
|
|
$
|
89,907
|
|
Europe
|
|
36,951
|
|
|
19,851
|
|
|
—
|
|
|
56,802
|
|
|
34,137
|
|
|
26,994
|
|
|
—
|
|
|
61,131
|
|
||||||||
Asia
|
|
46,632
|
|
|
18,371
|
|
|
—
|
|
|
65,003
|
|
|
66,299
|
|
|
14,872
|
|
|
—
|
|
|
81,171
|
|
||||||||
Total revenue
|
|
$
|
116,404
|
|
|
$
|
80,222
|
|
|
$
|
(401
|
)
|
|
$
|
196,225
|
|
|
$
|
148,328
|
|
|
$
|
84,231
|
|
|
$
|
(350
|
)
|
|
$
|
232,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||||
|
|
June 27, 2020
|
|
June 29, 2019
|
||||||||||||||||||||||||||||
|
|
Test & Simulation
|
|
Sensors
|
|
Intersegment
|
|
Total
|
|
Test & Simulation
|
|
Sensors
|
|
Intersegment
|
|
Total
|
||||||||||||||||
Sales type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Product
|
|
$
|
294,654
|
|
|
$
|
243,674
|
|
|
$
|
(1,024
|
)
|
|
$
|
537,304
|
|
|
$
|
348,992
|
|
|
$
|
239,345
|
|
|
$
|
(1,040
|
)
|
|
$
|
587,297
|
|
Service
|
|
67,977
|
|
|
8,281
|
|
|
(31
|
)
|
|
76,227
|
|
|
75,928
|
|
|
5,211
|
|
|
—
|
|
|
81,139
|
|
||||||||
Total revenue
|
|
$
|
362,631
|
|
|
$
|
251,955
|
|
|
$
|
(1,055
|
)
|
|
$
|
613,531
|
|
|
$
|
424,920
|
|
|
$
|
244,556
|
|
|
$
|
(1,040
|
)
|
|
$
|
668,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Timing of recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Point-in-time
|
|
$
|
178,512
|
|
|
$
|
226,730
|
|
|
$
|
(1,055
|
)
|
|
$
|
404,187
|
|
|
$
|
273,226
|
|
|
$
|
231,507
|
|
|
$
|
(1,040
|
)
|
|
$
|
503,693
|
|
Over time
|
|
184,119
|
|
|
25,225
|
|
|
—
|
|
|
209,344
|
|
|
151,694
|
|
|
13,049
|
|
|
—
|
|
|
164,743
|
|
||||||||
Total revenue
|
|
$
|
362,631
|
|
|
$
|
251,955
|
|
|
$
|
(1,055
|
)
|
|
$
|
613,531
|
|
|
$
|
424,920
|
|
|
$
|
244,556
|
|
|
$
|
(1,040
|
)
|
|
$
|
668,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Geographic market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Americas
|
|
$
|
110,044
|
|
|
$
|
133,393
|
|
|
$
|
(1,055
|
)
|
|
$
|
242,382
|
|
|
$
|
138,780
|
|
|
$
|
119,069
|
|
|
$
|
(1,040
|
)
|
|
$
|
256,809
|
|
Europe
|
|
104,601
|
|
|
68,560
|
|
|
—
|
|
|
173,161
|
|
|
92,300
|
|
|
79,995
|
|
|
—
|
|
|
172,295
|
|
||||||||
Asia
|
|
147,986
|
|
|
50,002
|
|
|
—
|
|
|
197,988
|
|
|
193,840
|
|
|
45,492
|
|
|
—
|
|
|
239,332
|
|
||||||||
Total revenue
|
|
$
|
362,631
|
|
|
$
|
251,955
|
|
|
$
|
(1,055
|
)
|
|
$
|
613,531
|
|
|
$
|
424,920
|
|
|
$
|
244,556
|
|
|
$
|
(1,040
|
)
|
|
$
|
668,436
|
|
|
|
June 27,
2020 |
|
September 28,
2019 |
||||
Contract assets
|
|
$
|
91,787
|
|
|
$
|
80,331
|
|
Contract liabilities
|
|
75,651
|
|
|
81,045
|
|
|
|
Contract Assets
|
||
Balance, September 28, 2019
|
|
$
|
80,331
|
|
Changes in estimated stage of completion
|
|
94,646
|
|
|
Transfers to accounts receivable, net
|
|
(88,566
|
)
|
|
Acquisitions1
|
|
6,107
|
|
|
Other
|
|
(731
|
)
|
|
Balance, June 27, 2020
|
|
$
|
91,787
|
|
|
|
|
||
|
|
Contract Liabilities
|
||
Balance, September 28, 2019
|
|
$
|
81,045
|
|
Revenue recognized included in balance at beginning of period
|
|
(52,176
|
)
|
|
Increases due to payments received, excluding amounts recognized as revenue during period
|
|
44,871
|
|
|
Acquisitions1
|
|
3,182
|
|
|
Other
|
|
(1,271
|
)
|
|
Balance, June 27, 2020
|
|
$
|
75,651
|
|
|
|
June 27,
2020 |
|
September 28,
2019 |
||||
Components, assemblies and parts
|
|
$
|
120,019
|
|
|
$
|
112,886
|
|
Customer projects in various stages of completion
|
|
41,121
|
|
|
39,534
|
|
||
Finished goods
|
|
16,070
|
|
|
14,779
|
|
||
Total inventories, net
|
|
$
|
177,210
|
|
|
$
|
167,199
|
|
|
Classification
|
|
June 27, 2020
|
|
September 29, 2019
|
||||
Assets
|
|
|
|
|
|
||||
Operating leases
|
Other long-term assets
|
|
$
|
20,043
|
|
|
$
|
20,356
|
|
Finance leases
|
Other long-term assets 1
|
|
1,013
|
|
|
1,436
|
|
||
Total leased assets
|
|
|
$
|
21,056
|
|
|
$
|
21,792
|
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||||
Current
|
|
|
|
|
|
||||
Operating leases
|
Other accrued liabilities
|
|
$
|
7,684
|
|
|
$
|
7,447
|
|
Finance leases
|
Other accrued liabilities 2
|
|
506
|
|
|
570
|
|
||
Non-current
|
|
|
|
|
|
||||
Operating leases
|
Other long-term liabilities
|
|
12,359
|
|
|
12,909
|
|
||
Finance leases
|
Other long-term liabilities 2
|
|
507
|
|
|
866
|
|
||
Total lease liabilities
|
|
|
$
|
21,056
|
|
|
$
|
21,792
|
|
1
|
Assets held under capital leases were reclassified from property and equipment, net to other long-term assets as part of the adoption of the new lease standard.
|
2
|
Finance lease obligations were reclassified from long-term debt, less current maturities, net to other accrued liabilities and other long-term liabilities as part of the adoption of the new lease standard.
|
|
Nine Months Ended
|
||
|
June 27, 2020
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
||
Operating cash flows from operating leases
|
$
|
7,105
|
|
Operating cash flows from finance leases
|
46
|
|
|
Financing cash flows from finance leases
|
451
|
|
|
|
|
||
Operating leased assets obtained in exchange for new lease liabilities
|
$
|
2,705
|
|
|
June 27, 2020
|
|
Weighted average remaining lease term
|
|
|
Operating leases
|
4.7 years
|
|
Finance leases
|
2.3 years
|
|
Weighted average discount rate
|
|
|
Operating leases
|
3.2
|
%
|
Finance leases
|
3.9
|
%
|
|
June 27, 2020
|
|||||
|
Operating Leases
|
Finance
Leases
|
||||
Remainder of 2020
|
$
|
3,442
|
|
$
|
141
|
|
2021
|
7,083
|
|
525
|
|
||
2022
|
4,097
|
|
291
|
|
||
2023
|
2,944
|
|
59
|
|
||
2024
|
2,129
|
|
29
|
|
||
2025
|
865
|
|
—
|
|
||
Thereafter
|
1,913
|
|
—
|
|
||
Total lease payments
|
22,473
|
|
1,045
|
|
||
Less imputed interest
|
(2,430
|
)
|
(32
|
)
|
||
Total reported lease liability
|
$
|
20,043
|
|
$
|
1,013
|
|
|
September 28, 2019
|
|||||
|
Operating Leases
|
Capital
Leases
|
||||
2020
|
$
|
7,149
|
|
$
|
570
|
|
2021
|
5,291
|
|
588
|
|
||
2022
|
3,124
|
|
278
|
|
||
2023
|
1,602
|
|
—
|
|
||
2024
|
1,085
|
|
—
|
|
||
Thereafter
|
1,789
|
|
—
|
|
||
Total
|
$
|
20,040
|
|
$
|
1,436
|
|
|
|
June 27,
2020 |
|
September 28,
2019 |
||||
Land and improvements
|
|
$
|
3,957
|
|
|
$
|
3,949
|
|
Buildings and improvements
|
|
72,927
|
|
|
64,140
|
|
||
Machinery and equipment
|
|
231,261
|
|
|
224,684
|
|
||
Assets held under capital leases 1
|
|
—
|
|
|
2,796
|
|
||
Total property and equipment
|
|
308,145
|
|
|
295,569
|
|
||
Less: Accumulated depreciation
|
|
(207,985
|
)
|
|
(194,486
|
)
|
||
Total property and equipment, net
|
|
$
|
100,160
|
|
|
$
|
101,083
|
|
1
|
Assets held under capital leases were reclassified from property and equipment, net to other long-term assets as part of the adoption of the new lease standard. See Note 5 for additional information regarding leases.
|
|
|
Test & Simulation
|
|
Sensors
|
|
Total
|
||||||
Balance, September 28, 2019
|
|
$
|
61,153
|
|
|
$
|
367,886
|
|
|
$
|
429,039
|
|
Acquisitions 2
|
|
35,794
|
|
|
32
|
|
|
35,826
|
|
|||
Currency translation
|
|
1,093
|
|
|
20
|
|
|
1,113
|
|
|||
Balance, June 27, 2020
|
|
$
|
98,040
|
|
|
$
|
367,938
|
|
|
$
|
465,978
|
|
|
|
June 27, 2020
|
||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Weighted
Average
Useful Life (in Years)
|
||||||
Software development costs 3
|
|
$
|
49,666
|
|
|
$
|
(16,233
|
)
|
|
$
|
33,433
|
|
|
5.7
|
Technology and patents
|
|
68,457
|
|
|
(19,121
|
)
|
|
49,336
|
|
|
14.9
|
|||
Trademarks and trade names
|
|
28,923
|
|
|
(4,928
|
)
|
|
23,995
|
|
|
17.4
|
|||
Customer lists
|
|
217,233
|
|
|
(44,527
|
)
|
|
172,706
|
|
|
15.6
|
|||
Land-use rights
|
|
2,305
|
|
|
(1,152
|
)
|
|
1,153
|
|
|
25.7
|
|||
Other
|
|
7,975
|
|
|
(3,197
|
)
|
|
4,778
|
|
|
1.9
|
|||
Trade names
|
|
57,500
|
|
|
—
|
|
|
57,500
|
|
|
Indefinite
|
|||
Total intangible assets
|
|
$
|
432,059
|
|
|
$
|
(89,158
|
)
|
|
$
|
342,901
|
|
|
14.1
|
|
|
September 28, 2019
|
||||||||||||
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Weighted
Average
Useful Life (in Years)
|
||||||
Software development costs 3
|
|
$
|
39,546
|
|
|
$
|
(16,035
|
)
|
|
$
|
23,511
|
|
|
6.2
|
Technology and patents
|
|
63,015
|
|
|
(15,739
|
)
|
|
47,276
|
|
|
14.9
|
|||
Trademarks and trade names
|
|
20,186
|
|
|
(3,808
|
)
|
|
16,378
|
|
|
18.4
|
|||
Customer lists
|
|
192,488
|
|
|
(34,735
|
)
|
|
157,753
|
|
|
15.6
|
|||
Land-use rights
|
|
2,303
|
|
|
(968
|
)
|
|
1,335
|
|
|
25.7
|
|||
Other
|
|
3,606
|
|
|
(774
|
)
|
|
2,832
|
|
|
4.0
|
|||
Trade names
|
|
57,500
|
|
|
—
|
|
|
57,500
|
|
|
Indefinite
|
|||
Total intangible assets
|
|
$
|
378,644
|
|
|
$
|
(72,059
|
)
|
|
$
|
306,585
|
|
|
14.4
|
3
|
The gross carrying amount of software development costs as of June 27, 2020 and September 28, 2019 includes $31,971 and $21,840, respectively, of software not yet available for general release to the public.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Amortization expense
|
|
$
|
6,288
|
|
|
$
|
4,449
|
|
|
$
|
17,343
|
|
|
$
|
12,668
|
|
|
Amortization Expense
|
||
Remainder of 2020
|
$
|
6,366
|
|
2021
|
24,970
|
|
|
2022
|
24,557
|
|
|
2023
|
23,660
|
|
|
2024
|
23,291
|
|
|
2025
|
23,134
|
|
|
Thereafter
|
159,423
|
|
•
|
Level 1: Unadjusted quoted prices which are available in active markets for identical assets or liabilities accessible to us at the measurement date.
|
•
|
Level 2: Inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
|
•
|
Level 3: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
|
|
|
June 27, 2020
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Currency contracts 1
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
$
|
170
|
|
Cross currency swap 1
|
|
—
|
|
|
284
|
|
|
—
|
|
|
284
|
|
||||
Total assets
|
|
—
|
|
|
454
|
|
|
—
|
|
|
454
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Currency contracts 1
|
|
—
|
|
|
271
|
|
|
—
|
|
|
271
|
|
||||
Contingent consideration 2
|
|
—
|
|
|
—
|
|
|
19,180
|
|
|
19,180
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
271
|
|
|
$
|
19,180
|
|
|
$
|
19,451
|
|
|
|
September 28, 2019
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Currency contracts 1
|
|
$
|
—
|
|
|
$
|
907
|
|
|
$
|
—
|
|
|
$
|
907
|
|
Total assets
|
|
—
|
|
|
907
|
|
|
—
|
|
|
907
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Currency contracts 1
|
|
—
|
|
|
251
|
|
|
—
|
|
|
251
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
251
|
|
|
$
|
—
|
|
|
$
|
251
|
|
1
|
Based on observable market transactions of spot currency rates, forward currency rates on equivalently-termed instruments and interest rate curves, as applicable. Carrying amounts of the financial assets and liabilities are equal to the fair value. See Note 8 for additional information on derivative financial instruments.
|
2
|
Based on a discounted cash flow analysis that included revenue estimates, probability of financial performance achievement and a discount rate. Carrying amounts of the financial assets and liabilities are equal to the fair value. See Note 16 for additional information on business acquisitions.
|
Balance, September 28, 2019
|
|
$
|
—
|
|
Additions
|
|
16,903
|
|
|
Fair value adjustments 3
|
|
1,301
|
|
|
Interest accretion
|
|
895
|
|
|
Foreign currency translation
|
|
81
|
|
|
Balance, June 27, 2020
|
|
$
|
19,180
|
|
3
|
Changes in the fair value of the contingent consideration liability are recognized in general and administrative expense in the Consolidated Statements of Income in the period in which the fair value adjustment was determined.
|
|
|
June 27, 2020
|
||||||||||||||||||
|
|
Carrying
Value |
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Tranche B term loan 4
|
|
$
|
170,245
|
|
|
$
|
166,840
|
|
|
$
|
—
|
|
|
$
|
166,840
|
|
|
$
|
—
|
|
Senior unsecured notes 4
|
|
350,000
|
|
|
325,500
|
|
|
—
|
|
|
325,500
|
|
|
—
|
|
|||||
Total debt
|
|
$
|
520,245
|
|
|
$
|
492,340
|
|
|
$
|
—
|
|
|
$
|
492,340
|
|
|
$
|
—
|
|
|
|
September 28, 2019
|
||||||||||||||||||
|
|
Carrying
Value |
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Tranche B term loan 4
|
|
$
|
173,695
|
|
|
$
|
174,563
|
|
|
$
|
—
|
|
|
$
|
174,563
|
|
|
$
|
—
|
|
Senior unsecured notes 4
|
|
350,000
|
|
|
366,625
|
|
|
—
|
|
|
366,625
|
|
|
—
|
|
|||||
Total debt
|
|
$
|
523,695
|
|
|
$
|
541,188
|
|
|
$
|
—
|
|
|
$
|
541,188
|
|
|
$
|
—
|
|
4
|
The fair value of the tranche B term loan and senior unsecured notes is based on the most recently quoted market price for the outstanding debt instrument, adjusted for any known significant deviations in value. The estimated fair value of the debt obligation is not necessarily indicative of the amount that would be realized in a current market exchange. See Note 9 for additional information on financing arrangements.
|
|
|
June 27, 2020
|
||||||
|
|
Prepaid Expenses
and Other
Current Assets
|
|
Other Accrued
Liabilities
|
||||
Designated hedge derivatives
|
|
|
|
|
|
|
||
Cash flow derivatives
|
|
$
|
170
|
|
|
$
|
162
|
|
Cross currency swap
|
|
284
|
|
|
—
|
|
||
Total designated hedge derivatives
|
|
454
|
|
|
162
|
|
||
Undesignated hedge derivatives
|
|
|
|
|
|
|
||
Balance sheet derivatives
|
|
—
|
|
|
109
|
|
||
Total hedge derivatives
|
|
$
|
454
|
|
|
$
|
271
|
|
|
|
September 28, 2019
|
||||||
|
|
Prepaid Expenses
and Other
Current Assets
|
|
Other Accrued
Liabilities
|
||||
Designated hedge derivatives
|
|
|
|
|
|
|
||
Cash flow derivatives
|
|
$
|
907
|
|
|
$
|
133
|
|
Total designated hedge derivatives
|
|
907
|
|
|
133
|
|
||
Undesignated hedge derivatives
|
|
|
|
|
|
|
||
Balance sheet derivatives
|
|
—
|
|
|
118
|
|
||
Total hedge derivatives
|
|
$
|
907
|
|
|
$
|
251
|
|
|
|
Gross
Recognized
Amount
|
|
Gross
Offset
Amount
|
|
Net
Amount
Presented
|
|
Derivatives
Subject to
Offset
|
|
Cash
Collateral
Received
|
|
Net
Amount
|
||||||||||||
June 27, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
$
|
454
|
|
|
$
|
—
|
|
|
$
|
454
|
|
|
$
|
(156
|
)
|
|
$
|
—
|
|
|
$
|
298
|
|
Liabilities
|
|
162
|
|
|
—
|
|
|
162
|
|
|
(156
|
)
|
|
—
|
|
|
6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
September 28, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets
|
|
$
|
907
|
|
|
$
|
—
|
|
|
$
|
907
|
|
|
$
|
(133
|
)
|
|
$
|
—
|
|
|
$
|
774
|
|
Liabilities
|
|
133
|
|
|
—
|
|
|
133
|
|
|
(133
|
)
|
|
—
|
|
|
—
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Beginning unrealized net gain (loss) in AOCI
|
|
$
|
348
|
|
|
$
|
192
|
|
|
$
|
566
|
|
|
$
|
672
|
|
Net (gain) loss reclassified into revenue
|
|
(151
|
)
|
|
(142
|
)
|
|
(486
|
)
|
|
(743
|
)
|
||||
Net gain (loss) recognized in OCI
|
|
(271
|
)
|
|
(46
|
)
|
|
(154
|
)
|
|
75
|
|
||||
Ending unrealized net gain (loss) in AOCI
|
|
$
|
(74
|
)
|
|
$
|
4
|
|
|
$
|
(74
|
)
|
|
$
|
4
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Beginning unrealized net gain (loss) in AOCI
|
|
$
|
542
|
|
|
$
|
3,684
|
|
|
$
|
1,079
|
|
|
$
|
7,411
|
|
Net (gain) loss reclassified into interest expense
|
|
(192
|
)
|
|
(695
|
)
|
|
(729
|
)
|
|
(1,988
|
)
|
||||
Net gain (loss) recognized in OCI
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
|
(3,759
|
)
|
||||
Ending unrealized net gain (loss) in AOCI
|
|
$
|
350
|
|
|
$
|
1,664
|
|
|
$
|
350
|
|
|
$
|
1,664
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Net gain (loss) recognized in other income (expense), net
|
|
$
|
(58
|
)
|
|
$
|
218
|
|
|
$
|
(464
|
)
|
|
$
|
(170
|
)
|
|
|
June 27,
2020 |
|
September 28,
2019 |
||||
Long-term debt
|
|
|
|
|
||||
Tranche B term loan, 1.00% amortizing per year, maturing July 5, 2023
|
|
$
|
170,245
|
|
|
$
|
173,695
|
|
Revolving credit facility, non-current portion, expiring July 5, 2023
|
|
58,576
|
|
|
—
|
|
||
Senior unsecured notes, 5.75% coupon, maturing August 15, 2027
|
|
350,000
|
|
|
350,000
|
|
||
Capital lease obligations 1
|
|
—
|
|
|
1,436
|
|
||
Total long-term debt
|
|
578,821
|
|
|
525,131
|
|
||
Less: Unamortized underwriting discounts, commissions and other expenses
|
|
(8,955
|
)
|
|
(10,313
|
)
|
||
Less: Current maturities of tranche B term loan debt 2, 3
|
|
(4,600
|
)
|
|
(29,600
|
)
|
||
Less: Current maturities of capital lease obligations 1, 2
|
|
—
|
|
|
(570
|
)
|
||
Total long-term debt, less current maturities, net
|
|
$
|
565,266
|
|
|
$
|
484,648
|
|
1
|
Capital lease obligations were reclassified from long-term debt, less current maturities, net and current maturities of long-term debt, net to other accrued liabilities and other long-term liabilities in the Consolidated Balance Sheets as part of the adoption of the new lease standard in the first quarter of fiscal year 2020. See Note 5 for additional information on leases.
|
2
|
In addition to the current maturities above, current maturities of long-term debt, net in the Consolidated Balance Sheets includes the current portion of unamortized underwriting discounts, commissions and other expenses of $1,770 and $2,201 as of June 27, 2020 and September 28, 2019, respectively.
|
3
|
As of June 27, 2020 and September 28, 2019, current maturities of tranche B term loan consist of the 1% annual payment and the calculated or estimated required annual Excess Cash Flow payment as defined below, as well as planned prepayments.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Net income (loss)
|
|
$
|
4,389
|
|
|
$
|
13,585
|
|
|
$
|
8,624
|
|
|
$
|
38,246
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
|
19,229
|
|
|
19,297
|
|
|
19,189
|
|
|
19,255
|
|
||||
Effect of dilutive securities
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation
|
|
86
|
|
|
223
|
|
|
160
|
|
|
181
|
|
||||
Weighted average dilutive common shares outstanding
|
|
19,315
|
|
|
19,520
|
|
|
19,349
|
|
|
19,436
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.23
|
|
|
$
|
0.70
|
|
|
$
|
0.45
|
|
|
$
|
1.99
|
|
Diluted
|
|
0.23
|
|
|
0.70
|
|
|
0.45
|
|
|
1.97
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
|
June 27, 2020
|
||||||||||||||||||||||
|
|
Pre-tax
|
|
Tax
|
|
Net
|
|
Pretax
|
|
Tax
|
|
Net
|
||||||||||||
Foreign currency translation gain (loss) adjustments
|
|
$
|
3,974
|
|
|
$
|
—
|
|
|
$
|
3,974
|
|
|
$
|
4,922
|
|
|
$
|
—
|
|
|
$
|
4,922
|
|
Derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized net gain (loss)
|
|
(930
|
)
|
|
205
|
|
|
(725
|
)
|
|
130
|
|
|
(33
|
)
|
|
97
|
|
||||||
Net (gain) loss reclassified to earnings
|
|
(343
|
)
|
|
73
|
|
|
(270
|
)
|
|
(1,215
|
)
|
|
269
|
|
|
(946
|
)
|
||||||
Defined benefit pension plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized net gain (loss)
|
|
301
|
|
|
(90
|
)
|
|
211
|
|
|
(2,047
|
)
|
|
618
|
|
|
(1,429
|
)
|
||||||
Net (gain) loss reclassified to earnings
|
|
302
|
|
|
(91
|
)
|
|
211
|
|
|
905
|
|
|
(273
|
)
|
|
632
|
|
||||||
Currency exchange rate gain (loss)
|
|
(197
|
)
|
|
—
|
|
|
(197
|
)
|
|
(324
|
)
|
|
—
|
|
|
(324
|
)
|
||||||
Other comprehensive income (loss)
|
|
$
|
3,107
|
|
|
$
|
97
|
|
|
$
|
3,204
|
|
|
$
|
2,371
|
|
|
$
|
581
|
|
|
$
|
2,952
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
|
June 29, 2019
|
||||||||||||||||||||||
|
|
Pre-tax
|
|
Tax
|
|
Net
|
|
Pretax
|
|
Tax
|
|
Net
|
||||||||||||
Foreign currency translation gain (loss) adjustments
|
|
$
|
506
|
|
|
$
|
—
|
|
|
$
|
506
|
|
|
$
|
(2,165
|
)
|
|
$
|
—
|
|
|
$
|
(2,165
|
)
|
Derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized net gain (loss)
|
|
(1,371
|
)
|
|
297
|
|
|
(1,074
|
)
|
|
(3,684
|
)
|
|
802
|
|
|
(2,882
|
)
|
||||||
Net (gain) loss reclassified to earnings
|
|
(837
|
)
|
|
182
|
|
|
(655
|
)
|
|
(2,731
|
)
|
|
595
|
|
|
(2,136
|
)
|
||||||
Defined benefit pension plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized net gain (loss)
|
|
600
|
|
|
(181
|
)
|
|
419
|
|
|
(239
|
)
|
|
72
|
|
|
(167
|
)
|
||||||
Net (gain) loss reclassified to earnings
|
|
134
|
|
|
(39
|
)
|
|
95
|
|
|
408
|
|
|
(122
|
)
|
|
286
|
|
||||||
Currency exchange rate gain (loss)
|
|
(82
|
)
|
|
—
|
|
|
(82
|
)
|
|
179
|
|
|
—
|
|
|
179
|
|
||||||
Other comprehensive income (loss)
|
|
$
|
(1,050
|
)
|
|
$
|
259
|
|
|
$
|
(791
|
)
|
|
$
|
(8,232
|
)
|
|
$
|
1,347
|
|
|
$
|
(6,885
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||
|
|
June 27, 2020
|
||||||||||||||||||||||||||||||
|
|
Adjustments
|
|
Adjustments
|
||||||||||||||||||||||||||||
|
|
Foreign
Currency
Translation
|
|
Unrealized
Derivative
Instrument
|
|
Defined
Benefit
Pension Plan
|
|
Total
|
|
Foreign
Currency
Translation
|
|
Unrealized
Derivative
Instrument
|
|
Defined
Benefit
Pension Plan
|
|
Total
|
||||||||||||||||
Beginning balance
|
|
$
|
(7,260
|
)
|
|
$
|
1,420
|
|
|
$
|
(12,885
|
)
|
|
$
|
(18,725
|
)
|
|
$
|
(8,208
|
)
|
|
$
|
1,274
|
|
|
$
|
(11,539
|
)
|
|
$
|
(18,473
|
)
|
Other comprehensive net gain (loss) reclassifications
|
|
3,974
|
|
|
(725
|
)
|
|
14
|
|
|
3,263
|
|
|
4,922
|
|
|
97
|
|
|
(1,753
|
)
|
|
3,266
|
|
||||||||
Net (gain) loss reclassified to earnings
|
|
—
|
|
|
(270
|
)
|
|
211
|
|
|
(59
|
)
|
|
—
|
|
|
(946
|
)
|
|
632
|
|
|
(314
|
)
|
||||||||
Other comprehensive income (loss)
|
|
3,974
|
|
|
(995
|
)
|
|
225
|
|
|
3,204
|
|
|
4,922
|
|
|
(849
|
)
|
|
(1,121
|
)
|
|
2,952
|
|
||||||||
Ending balance
|
|
$
|
(3,286
|
)
|
|
$
|
425
|
|
|
$
|
(12,660
|
)
|
|
$
|
(15,521
|
)
|
|
$
|
(3,286
|
)
|
|
$
|
425
|
|
|
$
|
(12,660
|
)
|
|
$
|
(15,521
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||
|
|
June 29, 2019
|
||||||||||||||||||||||||||||||
|
|
Adjustments
|
|
Adjustments
|
||||||||||||||||||||||||||||
|
|
Foreign
Currency Translation |
|
Unrealized
Derivative Instrument |
|
Defined
Benefit Pension Plan |
|
Total
|
|
Foreign
Currency Translation |
|
Unrealized
Derivative Instrument |
|
Defined
Benefit Pension Plan |
|
Total
|
||||||||||||||||
Beginning balance
|
|
$
|
(899
|
)
|
|
$
|
3,031
|
|
|
$
|
(6,750
|
)
|
|
$
|
(4,618
|
)
|
|
$
|
1,772
|
|
|
$
|
6,320
|
|
|
$
|
(6,616
|
)
|
|
$
|
1,476
|
|
Other comprehensive net gain (loss) reclassifications
|
|
506
|
|
|
(1,074
|
)
|
|
337
|
|
|
(231
|
)
|
|
(2,165
|
)
|
|
(2,882
|
)
|
|
12
|
|
|
(5,035
|
)
|
||||||||
Net (gain) loss reclassified to earnings
|
|
—
|
|
|
(655
|
)
|
|
95
|
|
|
(560
|
)
|
|
—
|
|
|
(2,136
|
)
|
|
286
|
|
|
(1,850
|
)
|
||||||||
Other comprehensive income (loss)
|
|
506
|
|
|
(1,729
|
)
|
|
432
|
|
|
(791
|
)
|
|
(2,165
|
)
|
|
(5,018
|
)
|
|
298
|
|
|
(6,885
|
)
|
||||||||
Ending balance
|
|
$
|
(393
|
)
|
|
$
|
1,302
|
|
|
$
|
(6,318
|
)
|
|
$
|
(5,409
|
)
|
|
$
|
(393
|
)
|
|
$
|
1,302
|
|
|
$
|
(6,318
|
)
|
|
$
|
(5,409
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Affected Line Item in the
Consolidated Statements
of Income
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
|
|||||||||
Derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Currency exchange contracts gain (loss)
|
|
$
|
151
|
|
|
$
|
142
|
|
|
$
|
486
|
|
|
$
|
743
|
|
|
Revenue
|
Interest rate swap contracts gain (loss)
|
|
192
|
|
|
695
|
|
|
729
|
|
|
1,988
|
|
|
Interest expense, net
|
||||
Income tax benefit (expense)
|
|
(73
|
)
|
|
(182
|
)
|
|
(269
|
)
|
|
(595
|
)
|
|
Income tax provision (benefit)
|
||||
Total net gain (loss) on derivative instruments
|
|
270
|
|
|
655
|
|
|
946
|
|
|
2,136
|
|
|
Net income (loss)
|
||||
Defined benefit pension plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Actuarial loss
|
|
(302
|
)
|
|
(134
|
)
|
|
(905
|
)
|
|
(408
|
)
|
|
Other income (expense), net
|
||||
Income tax benefit
|
|
91
|
|
|
39
|
|
|
273
|
|
|
122
|
|
|
Income tax provision (benefit)
|
||||
Total net loss on pension plan
|
|
(211
|
)
|
|
(95
|
)
|
|
(632
|
)
|
|
(286
|
)
|
|
Net income (loss)
|
||||
Total net of tax reclassifications out of AOCI included in net income
|
|
$
|
59
|
|
|
$
|
560
|
|
|
$
|
314
|
|
|
$
|
1,850
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
June 27,
2020 |
|
June 29,
2019 |
||||||||
Revenue
|
|
|
|
|
|
|
|
|
||||||||
Test & Simulation
|
|
$
|
116,404
|
|
|
$
|
148,328
|
|
|
$
|
362,631
|
|
|
$
|
424,920
|
|
Sensors
|
|
80,222
|
|
|
84,231
|
|
|
251,955
|
|
|
244,556
|
|
||||
Intersegment eliminations
|
|
(401
|
)
|
|
(350
|
)
|
|
(1,055
|
)
|
|
(1,040
|
)
|
||||
Total revenue
|
|
$
|
196,225
|
|
|
$
|
232,209
|
|
|
$
|
613,531
|
|
|
$
|
668,436
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income (Loss) from operations
|
|
|
|
|
|
|
|
|
||||||||
Test & Simulation1
|
|
$
|
(292
|
)
|
|
$
|
11,424
|
|
|
$
|
5,899
|
|
|
$
|
31,439
|
|
Sensors
|
|
12,935
|
|
|
11,556
|
|
|
29,873
|
|
|
33,694
|
|
||||
Intersegment eliminations
|
|
—
|
|
|
21
|
|
|
(1
|
)
|
|
8
|
|
||||
Total income from operations 1
|
|
$
|
12,643
|
|
|
$
|
23,001
|
|
|
$
|
35,771
|
|
|
$
|
65,141
|
|
1
|
Test & Simulation Income (Loss) from operations for the three and nine months ended June 27, 2020 includes $2,745 and $8,883 of pre-tax severance and related expense, respectively. See Note 15 for additional information on restructuring and related costs.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
June 27, 2020
|
||||||
|
|
Test & Simulation
|
||||||
Cost of sales
|
|
$
|
2,192
|
|
|
$
|
6,060
|
|
Selling and marketing
|
|
686
|
|
|
686
|
|
||
General and administrative
|
|
(183
|
)
|
|
2,087
|
|
||
Research and development
|
|
50
|
|
|
50
|
|
||
Total restructuring expense
|
|
$
|
2,745
|
|
|
$
|
8,883
|
|
|
|
Test &
Simulation |
||
Balance, September 28, 2019
|
|
$
|
—
|
|
Restructuring expense
|
|
8,883
|
|
|
Payments
|
|
(2,332
|
)
|
|
Other adjustments
|
|
187
|
|
|
Currency translation
|
|
—
|
|
|
Balance, June 27, 2020
|
|
$
|
6,738
|
|
|
Fair Value
|
|
Finite-Lived Intangible Asset Lives (Years)
|
||
Asset (Liability)
|
|
|
|
||
Accounts receivable
|
$
|
13,557
|
|
|
|
Unbilled accounts receivable
|
6,325
|
|
|
|
|
Inventories
|
41
|
|
|
|
|
Prepaid expenses and other current assets
|
533
|
|
|
|
|
Property and equipment
|
1,185
|
|
|
|
|
Intangible assets
|
|
|
|
||
Customer lists
|
24,364
|
|
|
15
|
|
Trademarks and trade names
|
8,546
|
|
|
15
|
|
Technology
|
5,083
|
|
|
10
|
|
Other intangible assets
|
4,258
|
|
|
1
|
|
Other long-term assets
|
3,122
|
|
|
|
|
Purchased goodwill
|
35,794
|
|
|
|
|
Accounts payable
|
(12,592
|
)
|
|
|
|
Accrued payroll and related costs
|
(2,193
|
)
|
|
|
|
Advanced payments from customers
|
(3,203
|
)
|
|
|
|
Accrued income taxes
|
(1,113
|
)
|
|
|
|
Other accrued liabilities
|
(5,074
|
)
|
|
|
|
Deferred income taxes
|
(10,138
|
)
|
|
|
|
Other long-term liabilities
|
(2,230
|
)
|
|
|
|
Net assets acquired
|
$
|
66,265
|
|
|
|
|
|
|
|
||
Supplemental information
|
|
|
|
||
Consideration paid at closing
|
$
|
58,280
|
|
|
|
Estimated contingent consideration
|
16,903
|
|
|
|
|
Less: Cash acquired
|
(8,918
|
)
|
|
|
|
Purchase price, net of cash acquired
|
$
|
66,265
|
|
|
|
|
Fair Value
|
|
Finite-Lived Intangible Asset Lives (Years)
|
||
Asset
|
|
|
|
||
Inventories
|
$
|
11,649
|
|
|
|
Property and equipment
|
1,078
|
|
|
|
|
Intangible assets
|
|
|
|
||
Customer lists
|
13,400
|
|
|
15
|
|
Trademarks and trade names
|
7,900
|
|
|
15
|
|
Technology
|
4,400
|
|
|
15
|
|
Purchased goodwill
|
23,324
|
|
|
|
|
Deferred income taxes
|
6,579
|
|
|
|
|
Net assets acquired
|
$
|
68,330
|
|
|
|
|
|
|
|
||
Supplemental information
|
|
|
|
||
Consideration paid at closing
|
$
|
70,000
|
|
|
|
Post-closing purchase price adjustment
|
(1,670
|
)
|
|
|
|
Purchase price
|
$
|
68,330
|
|
|
|
|
Fair Value
|
|
Finite-Lived Intangible Asset Lives (Years)
|
||
Asset (Liability)
|
|
|
|
||
Accounts receivable
|
$
|
4,651
|
|
|
|
Unbilled accounts receivable
|
1,518
|
|
|
|
|
Inventories
|
11,063
|
|
|
|
|
Prepaid expenses and other current assets
|
123
|
|
|
|
|
Property and equipment
|
672
|
|
|
|
|
Intangible assets
|
|
|
|
||
Customer lists
|
21,652
|
|
|
15
|
|
Trademarks and trade names
|
5,926
|
|
|
15
|
|
Technology
|
12,650
|
|
|
15
|
|
Other intangible assets
|
3,761
|
|
|
4
|
|
Other long-term assets
|
60
|
|
|
|
|
Purchased goodwill
|
36,665
|
|
|
|
|
Accounts payable
|
(3,657
|
)
|
|
|
|
Accrued payroll and related costs
|
(1,328
|
)
|
|
|
|
Advance payments from customers
|
(4,315
|
)
|
|
|
|
Accrued income taxes
|
(290
|
)
|
|
|
|
Other accrued liabilities
|
(127
|
)
|
|
|
|
Deferred income taxes
|
(10,477
|
)
|
|
|
|
Net assets acquired
|
$
|
78,547
|
|
|
|
|
|
|
|
||
Supplemental information
|
|
|
|
||
Consideration paid at closing
|
$
|
79,772
|
|
|
|
Post-closing purchase price adjustment
|
515
|
|
|
|
|
Less: Cash acquired
|
(1,740
|
)
|
|
|
|
Purchase price, net of cash acquired
|
$
|
78,547
|
|
|
|
•
|
Overview
|
•
|
Financial Results
|
•
|
Cash Flow Comparison
|
•
|
Liquidity and Capital Resources
|
•
|
Off-balance Sheet Arrangements
|
•
|
Critical Accounting Policies
|
•
|
Recently Issued Accounting Pronouncements
|
•
|
Other Matters
|
•
|
Forward-looking Statements
|
|
|
Three Months Ended
|
||||||||||||||||||
|
|
|
|
|
Estimated
|
|
|
|
||||||||||||
|
|
June 27,
2020 |
|
Business
Change |
|
Acquisition / Restructuring1
|
|
Currency
Translation |
|
June 29,
2019 |
||||||||||
Revenue
|
|
$
|
196,225
|
|
|
$
|
(48,663
|
)
|
|
$
|
14,105
|
|
|
$
|
(1,426
|
)
|
|
$
|
232,209
|
|
Cost of sales
|
|
130,730
|
|
|
(26,810
|
)
|
|
11,513
|
|
|
(1,079
|
)
|
|
147,106
|
|
|||||
Gross profit
|
|
65,495
|
|
|
(21,853
|
)
|
|
2,592
|
|
|
(347
|
)
|
|
85,103
|
|
|||||
Gross margin
|
|
33.4
|
%
|
|
|
|
|
|
|
|
|
|
36.6
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and marketing
|
|
26,857
|
|
|
(7,601
|
)
|
|
1,064
|
|
|
73
|
|
|
33,321
|
|
|||||
General and administrative
|
|
19,692
|
|
|
(5,881
|
)
|
|
5,029
|
|
|
(77
|
)
|
|
20,621
|
|
|||||
Research and development
|
|
6,303
|
|
|
(1,695
|
)
|
|
(148
|
)
|
|
(14
|
)
|
|
8,160
|
|
|||||
Total operating expenses
|
|
52,852
|
|
|
(15,177
|
)
|
|
5,945
|
|
|
(18
|
)
|
|
62,102
|
|
|||||
Income from operations
|
|
$
|
12,643
|
|
|
$
|
(6,676
|
)
|
|
$
|
(3,353
|
)
|
|
$
|
(329
|
)
|
|
$
|
23,001
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended
|
||||||||||||||||||
|
|
|
|
|
Estimated
|
|
|
|
||||||||||||
|
|
June 27,
2020 |
|
Business
Change |
|
Acquisition / Restructuring1
|
|
Currency
Translation |
|
June 29,
2019 |
||||||||||
Revenue
|
|
$
|
613,531
|
|
|
$
|
(78,289
|
)
|
|
$
|
28,813
|
|
|
$
|
(5,429
|
)
|
|
$
|
668,436
|
|
Cost of sales
|
|
400,186
|
|
|
(40,434
|
)
|
|
26,971
|
|
|
(4,029
|
)
|
|
417,678
|
|
|||||
Gross profit
|
|
213,345
|
|
|
(37,855
|
)
|
|
1,842
|
|
|
(1,400
|
)
|
|
250,758
|
|
|||||
Gross margin
|
|
34.8
|
%
|
|
|
|
|
|
|
|
|
|
37.5
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and marketing
|
|
89,707
|
|
|
(10,056
|
)
|
|
1,493
|
|
|
(535
|
)
|
|
98,805
|
|
|||||
General and administrative
|
|
67,382
|
|
|
(9,644
|
)
|
|
13,545
|
|
|
(323
|
)
|
|
63,804
|
|
|||||
Research and development
|
|
20,485
|
|
|
(2,289
|
)
|
|
(148
|
)
|
|
(86
|
)
|
|
23,008
|
|
|||||
Total operating expenses
|
|
177,574
|
|
|
(21,989
|
)
|
|
14,890
|
|
|
(944
|
)
|
|
185,617
|
|
|||||
Income from operations
|
|
$
|
35,771
|
|
|
$
|
(15,866
|
)
|
|
$
|
(13,048
|
)
|
|
$
|
(456
|
)
|
|
$
|
65,141
|
|
1
|
The Acquisition / Restructuring column includes operating results and costs incurred as part of the acquisition of R&D, costs incurred as part of the acquisition of Endevco and $2,745 and $8,883, for the three and nine months ended June 27, 2020, respectively, of restructuring costs. Endevco operating results are not separately identifiable as Endevco has been integrated into the existing Sensors business. See Note 15 and Note 16 to the Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information on restructuring and related costs and the R&D acquisition, respectively.
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Revenue
|
|
$
|
196,225
|
|
|
$
|
232,209
|
|
|
$
|
(35,984
|
)
|
|
(15.5
|
)%
|
|
$
|
613,531
|
|
|
$
|
668,436
|
|
|
$
|
(54,905
|
)
|
|
(8.2
|
)%
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Gross profit
|
|
$
|
65,495
|
|
|
$
|
85,103
|
|
|
$
|
(19,608
|
)
|
|
(23.0
|
)%
|
|
$
|
213,345
|
|
|
$
|
250,758
|
|
|
$
|
(37,413
|
)
|
|
(14.9
|
)%
|
Gross margin
|
|
33.4
|
%
|
|
36.6
|
%
|
|
(3.2
|
)
|
|
ppts
|
|
34.8
|
%
|
|
37.5
|
%
|
|
(2.7
|
)
|
|
ppts
|
Selling and Marketing Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Selling and marketing
|
|
$
|
26,857
|
|
|
$
|
33,321
|
|
|
$
|
(6,464
|
)
|
|
(19.4
|
)%
|
|
$
|
89,707
|
|
|
$
|
98,805
|
|
|
$
|
(9,098
|
)
|
|
(9.2
|
)%
|
% of revenue
|
|
13.7
|
%
|
|
14.3
|
%
|
|
|
|
|
|
|
|
14.6
|
%
|
|
14.8
|
%
|
|
|
|
|
|
|
Interest Expense, Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Interest expense, net
|
|
$
|
8,846
|
|
|
$
|
6,687
|
|
|
$
|
2,159
|
|
|
32.3
|
%
|
|
$
|
25,975
|
|
|
$
|
20,873
|
|
|
$
|
5,102
|
|
|
24.4
|
%
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Net income
|
|
$
|
4,389
|
|
|
$
|
13,585
|
|
|
$
|
(9,196
|
)
|
|
(67.7
|
)%
|
|
$
|
8,624
|
|
|
$
|
38,246
|
|
|
$
|
(29,622
|
)
|
|
(77.5
|
)%
|
Diluted earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.70
|
|
|
$
|
(0.47
|
)
|
|
(67.1
|
)%
|
|
$
|
0.45
|
|
|
$
|
1.97
|
|
|
$
|
(1.52
|
)
|
|
(77.2
|
)%
|
|
|
Three Months Ended
|
||||||||||||||||||
|
|
|
|
Estimated
|
|
|
||||||||||||||
|
|
June 27,
2020 |
|
Business
Change |
|
Acquisition / Restructuring1
|
|
Currency
Translation |
|
June 29,
2019 |
||||||||||
Revenue
|
|
$
|
116,404
|
|
|
$
|
(45,000
|
)
|
|
$
|
14,105
|
|
|
$
|
(1,029
|
)
|
|
$
|
148,328
|
|
Cost of sales
|
|
87,629
|
|
|
(27,104
|
)
|
|
11,513
|
|
|
(833
|
)
|
|
104,053
|
|
|||||
Gross profit
|
|
28,775
|
|
|
(17,896
|
)
|
|
2,592
|
|
|
(196
|
)
|
|
44,275
|
|
|||||
Gross margin
|
|
24.7
|
%
|
|
|
|
|
|
|
|
|
|
29.8
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and marketing
|
|
14,536
|
|
|
(5,093
|
)
|
|
1,064
|
|
|
115
|
|
|
18,450
|
|
|||||
General and administrative
|
|
12,157
|
|
|
(3,080
|
)
|
|
4,484
|
|
|
(76
|
)
|
|
10,829
|
|
|||||
Research and development
|
|
2,374
|
|
|
(1,045
|
)
|
|
(148
|
)
|
|
(5
|
)
|
|
3,572
|
|
|||||
Total operating expenses
|
|
29,067
|
|
|
(9,218
|
)
|
|
5,400
|
|
|
34
|
|
|
32,851
|
|
|||||
Income from operations
|
|
$
|
(292
|
)
|
|
$
|
(8,678
|
)
|
|
$
|
(2,808
|
)
|
|
$
|
(230
|
)
|
|
$
|
11,424
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended
|
||||||||||||||||||
|
|
|
|
Estimated
|
|
|
||||||||||||||
|
|
June 27,
2020 |
|
Business
Change |
|
Acquisition / Restructuring1
|
|
Currency
Translation |
|
June 29,
2019 |
||||||||||
Revenue
|
|
$
|
362,631
|
|
|
$
|
(87,854
|
)
|
|
$
|
28,813
|
|
|
$
|
(3,248
|
)
|
|
$
|
424,920
|
|
Cost of sales
|
|
263,777
|
|
|
(53,111
|
)
|
|
25,831
|
|
|
(2,753
|
)
|
|
293,810
|
|
|||||
Gross profit
|
|
98,854
|
|
|
(34,743
|
)
|
|
2,982
|
|
|
(495
|
)
|
|
131,110
|
|
|||||
Gross margin
|
|
27.3
|
%
|
|
|
|
|
|
|
|
|
|
30.9
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and marketing
|
|
47,180
|
|
|
(8,458
|
)
|
|
1,493
|
|
|
(168
|
)
|
|
54,313
|
|
|||||
General and administrative
|
|
38,914
|
|
|
(7,712
|
)
|
|
11,171
|
|
|
(261
|
)
|
|
35,716
|
|
|||||
Research and development
|
|
6,861
|
|
|
(2,606
|
)
|
|
(148
|
)
|
|
(27
|
)
|
|
9,642
|
|
|||||
Total operating expenses
|
|
92,955
|
|
|
(18,776
|
)
|
|
12,516
|
|
|
(456
|
)
|
|
99,671
|
|
|||||
Income from operations
|
|
$
|
5,899
|
|
|
$
|
(15,967
|
)
|
|
$
|
(9,534
|
)
|
|
$
|
(39
|
)
|
|
$
|
31,439
|
|
1
|
The Acquisition / Restructuring column includes operating results, costs incurred as part of the acquisition of R&D and $2,745 and $8,883, for the three and nine months ended June 27, 2020, respectively, of restructuring costs. See Note 15 and Note 16 to the Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information on restructuring and related costs and the R&D acquisition, respectively.
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Revenue
|
|
$
|
116,404
|
|
|
$
|
148,328
|
|
|
$
|
(31,924
|
)
|
|
(21.5
|
)%
|
|
$
|
362,631
|
|
|
$
|
424,920
|
|
|
$
|
(62,289
|
)
|
|
(14.7
|
)%
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Gross profit
|
|
$
|
28,775
|
|
|
$
|
44,275
|
|
|
$
|
(15,500
|
)
|
|
(35.0
|
)%
|
|
$
|
98,854
|
|
|
$
|
131,110
|
|
|
$
|
(32,256
|
)
|
|
(24.6
|
)%
|
Gross margin
|
|
24.7
|
%
|
|
29.8
|
%
|
|
(5.1
|
)
|
|
ppts
|
|
27.3
|
%
|
|
30.9
|
%
|
|
(3.6
|
)
|
|
ppts
|
Selling and Marketing Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Selling and marketing
|
|
$
|
14,536
|
|
|
$
|
18,450
|
|
|
$
|
(3,914
|
)
|
|
(21.2
|
)%
|
|
$
|
47,180
|
|
|
$
|
54,313
|
|
|
$
|
(7,133
|
)
|
|
(13.1
|
)%
|
% of revenue
|
|
12.5
|
%
|
|
12.4
|
%
|
|
|
|
|
|
13.0
|
%
|
|
12.8
|
%
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||||||||||
|
|
|
|
|
Estimated
|
|
|
|
||||||||||||
|
|
June 27,
2020 |
|
Business
Change |
|
Acquisition1
|
|
Currency
Translation |
|
June 29,
2019 |
||||||||||
Revenue
|
|
$
|
80,222
|
|
|
$
|
(3,612
|
)
|
|
$
|
—
|
|
|
$
|
(397
|
)
|
|
$
|
84,231
|
|
Cost of sales
|
|
43,502
|
|
|
324
|
|
|
—
|
|
|
(246
|
)
|
|
43,424
|
|
|||||
Gross profit
|
|
36,720
|
|
|
(3,936
|
)
|
|
—
|
|
|
(151
|
)
|
|
40,807
|
|
|||||
Gross margin
|
|
45.8
|
%
|
|
|
|
|
|
|
|
|
|
48.4
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and marketing
|
|
12,321
|
|
|
(2,508
|
)
|
|
—
|
|
|
(42
|
)
|
|
14,871
|
|
|||||
General and administrative
|
|
7,535
|
|
|
(2,801
|
)
|
|
545
|
|
|
(1
|
)
|
|
9,792
|
|
|||||
Research and development
|
|
3,929
|
|
|
(650
|
)
|
|
—
|
|
|
(9
|
)
|
|
4,588
|
|
|||||
Total operating expenses
|
|
23,785
|
|
|
(5,959
|
)
|
|
545
|
|
|
(52
|
)
|
|
29,251
|
|
|||||
Income (loss) from operations
|
|
$
|
12,935
|
|
|
$
|
2,023
|
|
|
$
|
(545
|
)
|
|
$
|
(99
|
)
|
|
$
|
11,556
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended
|
||||||||||||||||||
|
|
|
|
|
Estimated
|
|
|
|
||||||||||||
|
|
June 27,
2020 |
|
Business
Change |
|
Acquisition1
|
|
Currency
Translation |
|
June 29,
2019 |
||||||||||
Revenue
|
|
$
|
251,955
|
|
|
$
|
9,580
|
|
|
$
|
—
|
|
|
$
|
(2,181
|
)
|
|
$
|
244,556
|
|
Cost of sales
|
|
137,463
|
|
|
12,683
|
|
|
1,140
|
|
|
(1,276
|
)
|
|
124,916
|
|
|||||
Gross profit
|
|
114,492
|
|
|
(3,103
|
)
|
|
(1,140
|
)
|
|
(905
|
)
|
|
119,640
|
|
|||||
Gross margin
|
|
45.4
|
%
|
|
|
|
|
|
|
|
|
|
48.9
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and marketing
|
|
42,527
|
|
|
(1,598
|
)
|
|
—
|
|
|
(367
|
)
|
|
44,492
|
|
|||||
General and administrative
|
|
28,468
|
|
|
(1,932
|
)
|
|
2,374
|
|
|
(62
|
)
|
|
28,088
|
|
|||||
Research and development
|
|
13,624
|
|
|
317
|
|
|
—
|
|
|
(59
|
)
|
|
13,366
|
|
|||||
Total operating expenses
|
|
84,619
|
|
|
(3,213
|
)
|
|
2,374
|
|
|
(488
|
)
|
|
85,946
|
|
|||||
Income (loss) from operations
|
|
$
|
29,873
|
|
|
$
|
110
|
|
|
$
|
(3,514
|
)
|
|
$
|
(417
|
)
|
|
$
|
33,694
|
|
1
|
The Acquisition column includes costs incurred as part of the acquisition of Endevco. The Endevco operating results are not separately identifiable as Endevco has been integrated into the existing Sensors business. See Note 16 to the Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional information on the Endevco acquisition.
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Gross profit
|
|
$
|
36,720
|
|
|
$
|
40,807
|
|
|
$
|
(4,087
|
)
|
|
(10.0
|
)%
|
|
$
|
114,492
|
|
|
$
|
119,640
|
|
|
$
|
(5,148
|
)
|
|
(4.3
|
)%
|
Gross margin
|
|
45.8
|
%
|
|
48.4
|
%
|
|
(2.6
|
)
|
|
ppts
|
|
45.4
|
%
|
|
48.9
|
%
|
|
(3.5
|
)
|
|
ppts
|
Selling and Marketing Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
|
June 27,
2020 |
|
June 29,
2019 |
|
Increased / (Decreased)
|
||||||||||||||||||
|
|
|
|
$
|
|
%
|
|
|
|
$
|
|
%
|
||||||||||||||||||
Selling and marketing
|
|
$
|
12,321
|
|
|
$
|
14,871
|
|
|
$
|
(2,550
|
)
|
|
(17.1
|
)%
|
|
$
|
42,527
|
|
|
$
|
44,492
|
|
|
$
|
(1,965
|
)
|
|
(4.4
|
)%
|
% of revenue
|
|
15.4
|
%
|
|
17.7
|
%
|
|
|
|
|
|
16.9
|
%
|
|
18.2
|
%
|
|
|
|
|
|
|
Nine Months Ended
|
||||||
|
|
June 27, 2020
|
|
June 29, 2019
|
||||
Total cash provided by (used in):
|
|
|
|
|
||||
Operating activities
|
|
$
|
13,420
|
|
|
$
|
49,970
|
|
Investing activities
|
|
(70,325
|
)
|
|
(101,178
|
)
|
||
Financing activities
|
|
62,993
|
|
|
55,384
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
1,048
|
|
|
(245
|
)
|
||
Increase (decrease) in cash and cash equivalents during the period
|
|
7,136
|
|
|
3,931
|
|
||
Cash and cash equivalents balance, beginning of period
|
|
57,937
|
|
|
71,804
|
|
||
Cash and cash equivalents balance, end of period
|
|
$
|
65,073
|
|
|
$
|
75,735
|
|
|
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased
As Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number
of Shares that May
Yet be Purchased
As Part of Publicly
Announced Plans
or Programs
|
|||||
March 29, 2020 – May 2, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
438
|
|
May 3, 2020 – May 30, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
438
|
|
May 31, 2020 – June 27, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
438
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Exhibit
Number
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Description
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10.1
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10.2
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31.1
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31.2
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32.1
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32.2
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101.INS
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XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (filed herewith).
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101.SCH
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XBRL Taxonomy Extension Schema Document (filed herewith).
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document (filed herewith).
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document) (filed herewith).
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MTS SYSTEMS CORPORATION
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Date:
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August 3, 2020
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/s/ RANDY J. MARTINEZ
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Randy J. Martinez
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Interim President and Chief Executive Officer
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(Principal Executive Officer)
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Date:
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August 3, 2020
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/s/ BRIAN T. ROSS
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Brian T. Ross
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer and Principal Accounting Officer)
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▪
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Employment Status: Exempt
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◦
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x Executive ☐ Professional ☐ Administrative ☐ Other: ____________________
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▪
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Paid by: Salary
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▪
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Number of days in the pay period: 14
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▪
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Regular Scheduled Pay Day: Every Other Thursday
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◦
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Date Employee Will Receive First Payment of Wages: June 11, 2020
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▪
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Allowances for Meals or Lodging: As agreed by Board of Directors
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▪
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Paid Time Off: None
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Accepted:
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/s/ RANDY J. MARTINEZ
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Randy J. Martinez
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Date:
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May 21, 2020
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1.
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I have reviewed this quarterly report on Form 10-Q of MTS Systems Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date:
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August 3, 2020
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/s/ RANDY J. MARTINEZ
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Randy J. Martinez
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Interim President and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of MTS Systems Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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August 3, 2020
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/s/ BRIAN T. ROSS
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Brian T. Ross
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Executive Vice President and Chief Financial Officer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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August 3, 2020
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/s/ RANDY J. MARTINEZ
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Randy J. Martinez
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Interim President and Chief Executive Officer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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August 3, 2020
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/s/ BRIAN T. ROSS
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Brian T. Ross
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Executive Vice President and Chief Financial Officer
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