Profile: National Technical Systems Inc (NTSC.O)

National Technical Systems, Inc. (NTS), incorporated in 1968, is a diversified technical services company that supplies engineering and evaluation services to a variety of industries including aerospace, defense, transportation, electronics, power, computers and telecommunications. The Company operates in one segment, Engineering and Evaluation. The business of the Company is conducted by a number of operating units, all of which provide testing and engineering services. On June 6, 2008, the Company acquired Elliott Laboratories, Inc., a San Francisco Bay Area Electromagnetic Compatibility (EMC), product safety and wireless regulatory testing laboratory with two full-service facilities. Its subsidiaries include Elliot Laboratories, Inc. and International Management Systems, Inc.

Defense

National Technical Systems, Inc. performs various activities in the United States defense, including functionality and performance, reliability, safety, life prediction, structural, mechanical, fluids, material science, vibration, shock, climatic exposure, radiation, acoustic noise and electromagnetic interference and compatibility. NTS has facilities that are constructed to handle munitions and hazardous materials where routine testing includes vibration and cook-off of explosive materials, ballistics tests and hydraulic burst tests. NTS performs a variety of ballistics related testing, up to 155 mm rounds. NTS's data acquisition systems are capable of collecting 1,000,000 data points and 22,000 photos per second. Additional instrumentation includes Doppler radar, 35 mm still cameras, digital recording, data loggers and real-time color and IR video. NTS's customers in this market include defense contractors, as well as the United States Department of Defense (DOD) and other government entities.

Aerospace

The Company performs a variety of tests required on civil aircraft, space, military and missiles. NTS offers acceleration test facilities, G-tables and centrifuges with diameters ranging from one foot to 102 feet, with weight capacities from a few grams to 20,000 pounds. In climatic testing, NTS utilizes test chambers to simulate environment: temperature, humidity, altitude, rain, salt spray, sand and dust, sunshine, explosive atmosphere or any combination. NTS designs and builds custom facilities and advanced instrumentation and data acquisition systems to support all types of flow testing for gases, liquids and cryogenics. NTS also has anechoic and reverberant chambers that are used for acoustic emission measurements or high level noise exposure.

Transportation

NTS performs fluids and gas tests that measure the flow of fuels, propellants, chemicals, water, steam and others. It also provides tests that measure temperature, thermal shock, leak detection and efficiencies in objects like filters and other components. Other specialized tests include cryogenic protocols for elements, such as liquid nitrogen, liquid hydrogen and liquid oxygen, as well as liquefied natural gas. NTS also performs dynamometer testing to measure the performance and power output of engines drive trains or any other rotating machinery. It also performs HALT/HASS (Highly Accelerated Stress Screen). These tests combine extremes of temperature, rapid temperature change, and multi-axis vibration to rapidly expose design weaknesses and process flaws.

Telecommunications

NTS provides certification and evaluation of an array of telecommunications equipment and systems for manufacturers of central office equipment and the carriers. NTS's services are performed in accordance with the Network Equipment Building Systems specifications (NEBS) and fiber optics General Requirements (GR) as required by the telecommunications industry. NTS allows manufacturers to use NTS as a market channel for products tested at Original Equipment Manufacturers' (OEM) facilities. The Company provides this service at laboratories in California, Massachusetts, Texas, Calgary, Canada and Germany.

Electronics

NTS provides electrical safety product certification, in the United States and many other countries. NTS is designated as a Conformity Assessment Body (CAB) for the EMC directive through the United States -EU Mutual Recognition Agreement (MRA). NTS conducts EMC testing and provides customers with certification in the United States and many other countries, including particularly, Japan, Taiwan, Europe, Australia and several countries in Europe.

Power

NTS conducts a variety of tests relevant to the ongoing operations, safety and maintenance of nuclear facilities. These tests include mechanical aging, normal or accident radiation exposure, reliability simulation, evaluation, thermal aging, analysis, vacuum testing, leak detection, Nuclear Steam Accident, Loss of Cooling Accident (LOCA), and High Expansion Line Break (HELB) to 600F/300psig. NTS also performs seismic simulation tests up to 100,000 force-lbs, single axis, dependent and independent biaxial systems, vibration aging and fatigue studies, up to 45,000 force-lbs.

Computer

NTS performs computer product testing, providing compatibility, stress/performance, functionality and compliance testing services for hardware, software, telecommunications and networking companies worldwide. NTS performs software game and game console testing including Microsoft Xbox compliance testing. NTS also provides testing for Data Over Cable Service Interface Specification (DOCSIS) cable modem, DSL modem, Set Top Box, Residential Gateway and Fiber Optics GR-253 testing, interoperability testing of broadband and network products such as cable modems, DSL modems, Cable Modem Termination System (CMTS), Digital Subscriber Line Access Multiplexer (DSLAM), Routers, Home PNA Gateways, Wireless Wi-Fi devices, Media Servers, Fiber Optics SONET switches, and systems network testing. NTS also performs Universal Serial Bus (USB) certification testing and has successfully transferred its USB technology to Japan.