MTS Systems Corporation said it has investigated possible violations of the FCPA and in January ‘presented the results of its investigation and its corrective actions to representatives of the Department of Justice and the SEC.’
In a Form 10-Q filed with the SEC this week, the maker of testing equipment said that since March 2012 it has removed ‘certain persons formerly employed in its Korea office.’
The investigation focused on gift-giving, travel, and accommodation practices in its Asia operations.
The company didn’t say how the DOJ and SEC reacted to its presentation or when the investigation might be resolved. It said it couldn’t predict whether an enforcement will have a ‘material adverse impact on its business prospects, financial condition, operating results or cash flows.’
MTS Systems (Nasdaq MTSC) is headquartered in Eden Prairie, Minnesota. Customers for its testing equipment include the U.S. military and corporations.
Its shares dropped by about 13% Tuesday after it reported disappointing earnings. MTS said its expects full-year revenue of $560 million to $575 million.
Here’s the full FCPA disclosure from the Form 10-Q filed May 6 by MTS Systems Corporation:
As previously reported by the Company with disclosures starting in March 2012, the Company investigated certain gift, travel, entertainment and other expenses incurred in connection with some of the Company’s operations in the Asia Pacific region. The investigation focused on possible violations of Company policy, corresponding internal control issues and possible violations of applicable law, including the Foreign Corrupt Practices Act. Substantial investigative work has been completed and the Company has taken remedial actions, including changes to internal control procedures and removing certain persons formerly employed in its Korea office. The Company voluntarily disclosed this matter to the Department of Justice and the SEC. Additionally, the Company disclosed this matter to the U.S. Air Force pursuant to its Administrative Agreement with the U.S. Air Force. The Company presented the results of its investigation and its corrective actions to representatives of the Department of Justice and the SEC on January 16, 2013. The Company cannot predict the outcome of this matter at this time or whether it will have a material adverse impact on its business prospects, financial condition, operating results or cash flows.
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