MTS Systems Corporation reported unaudited consolidated earnings results for the first quarter ended December 28, 2013. For the quarter, the company reported net income of $9,145,000 or $0.59 per diluted share on revenue of $138,410,000 against net income of $13,783,000 or $0.87 per diluted share on revenue of $142,668,000 a year ago. Income from operations was $14,147,000 compared to $20,057,000 a year ago. Income before income taxes was $13,695,000 compared to $20,515,000 a year ago. Non-GAAP earnings were $0.78 per diluted share. EBIT was down $2 million or 12% decline. The company's first quarter typically has high operating cash flow utilization driven by variable compensation and working capital requirements. The company had $24 million of operating cash generation compared to $15 million of utilization last year. Capital expenditures were $5 million.

The outlook for the remainder of the first half of fiscal 2014 remains the same as stated last quarter. The company expects revenue in the second quarter to be $136 to $141 million. First half EPS before additional restructuring costs of $1 million to $2 million anticipated in second quarter is still expected to be flat to down 8% driven by the continuation of growth in productivity investments. This translates to a second quarter EPS before restructuring cost of $0.65 to $0.78 per share.

For the full fiscal year, orders growth is expected to be in the mid-single digits and the revenue range is expected to be $585 to $605 million. Earnings per share are expected to be $3.55 to $3.70, excluding the restructuring cost impact of $0.22 to $0.26. This represents earnings per share growth of 2% to 6%, after adjusting for the $0.15 per share, or 4 percentage-points, non-recurring R&D tax benefit the company recorded in fiscal 2013.