Except for the historical information contained herein, the matters addressed in
this Item 2 contain forward-looking statements. These forward-looking statements
involve risks and uncertainties, including those described in the Company's
Annual Report on Form 10-K, filed with the Security and Exchanges CommissionApril 30, 2013. Actual results, events and performance may differ materially
from those anticipated in the forward looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements. See the note at
the beginning of this report.
National Technical Systems, Inc. is the leading independent provider of testing
and certification services in the United States, serving numerous attractive and
growing end markets. During its more than 50 years in the business, the Company
has built the dominant testing platform in the country. NTS' expansive
geographic presence, experienced sales force, deep client relationships, breadth
of capabilities and continuous innovation are unmatched by any competitor,
making the Company a unique one-stop resource to meet its clients' demanding and
evolving requirements. NTS is accredited by numerous national and international
technical organizations which allow the Company to have its test data accepted
in most countries.
NTS serves customers primarily in the aerospace, defense, telecommunications,
automotive, energy, consumer products, commercial and industrial products and
medical markets. The Company operates facilities throughout the United States as
well as a facility in Vietnam and Germany.
The following discussion should be read in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
included in the Company's Annual Report on Form 10-K for the year ended January
31, 2013 and the consolidated quarterly financial statements and notes thereto
contained in this report. All information in this report is based upon unaudited
operating results of the Company for the three and six month periods ended July
31, 2013 and 2012.
NTS offers integrated life cycle product services to the aerospace market,
including Civil Aviation
. These services include engineering, testing,
certification, and supply chain management. From concept development and design,
through, certification, production and in-service life, NTS provides support
throughout the full life cycle of the aerospace product. These integrated
services fill the capability gaps that have developed in the aerospace supply
chains after years of large scale integration, outsourcing and globalization.
NTS designs, builds, and integrates custom test, measurement, automation and
data acquisition and control systems for the aerospace industry. These systems
integrate diverse hardware platforms, operating systems and instrumentation
Testing services include providing a wide range of test capabilities for space
and aircraft vehicles. NTS has extensive capability and expertise in static and
fatigue testing, sonic fatigue, vibration, modal, ground vibration, high
pressure/high flow air and fluid compatibility. Airborne equipment testing spans
the full range of RTCA DO-160 requirements, including static and dynamic,
electromagnetic effects (EME, EMI, EMC), electrostatic discharge (ESD),
environmental, material and system compatibility, high intensity radiated field
(HIRF), direct and indirect lightning effects and highly accelerated life
testing (HALT) and highly accelerated stress screening (HASS).