Business Description
MTS Systems Corporation (the Company or MTS) is a leading global supplier of
high-performance test systems and position sensors that was incorporated under
Minnesota law in 1966. Our operations are organized and managed in two reportable
segments, Test and Sensors, based upon global similarities within their markets,
products, operations and distribution.
Our Test segment (Test) provides testing solutions including hardware, software
and services. The testing solutions are used by customers in the development
of products to characterize the product’s mechanical properties. Our solutions
simulate forces and motions that customers expect their products to encounter
in use. Mechanical simulation testing in a lab setting is an accepted method
to accelerate product development compared to reliance on full physical prototypes
in real-world settings, proving ground testing and virtual testing because it
provides more controlled simulation and accurate measurement. The need for mechanical
simulation increases in proportion to the cost of a product, the range and complexity
of the physical environment in which the product will be used, expected warranty
or recall risk and expense, governmental regulation and potential legal liability.
A significant portion of the products in Test are considered by our customers
to be capital expenditures. We believe the timing of purchases may be impacted
by interest rates, general economic conditions, product development cycles and
new product initiatives.
Our Sensors segment (Sensors) products are used by industrial machinery and
mobile equipment manufacturers to automate the operation of their products for
improved safety and end-user productivity. Examples of customer industries include
manufacturers of plastic injection molding machines, steel mills, fluid power,
oil and gas, medical, wood product processing equipment, mobile equipment and
energy. Our products are also used to measure fluid displacement, such as liquid
levels for customers in the process industries.
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