Eden Prairie, MN 11/29/16—MTS Systems, a provider of sensor and test systems for determining materials’ mechanical behavior, has announced an internal investigation, which will delay the release of its fiscal fourth quarter and fiscal 2016 earnings results and Annual Report. The company is investigating alleged violation of its code of conduct by certain employees in China. “Regarding the internal investigation that has delayed the filing of our Annual Report and earnings release, we are deeply disappointed to report that we recently discovered that certain individuals in our leadership in China appear to have violated MTS’s code of conduct, including association with an independent business that may compete with MTS in certain markets,” said MTS President and CEO Dr. Jeffrey Graves. An independent external counsel is also conducting an investigation, and MTS stated it has already taken remedial measures to address the situation.

The company estimated preliminary fiscal 2016 revenues of $645–$650 million, compared to $564 million in fiscal 2015. MTS was previously the subject of a US government investigation and settlement related to US government contracts and exports (see IBO 11/30/12). MTS’s Test business provides physical testing instrumentation.