inTEST Reports Record Revenue of $30.8 Million and 16%

inTEST Reports Record Revenue of $30.8 Million and 16% Year-over-Year Growth in Net Income for Third Quarter 2022

Second consecutive quarter of record revenue, up 46% year-over-year
Organic revenue (non-GAAP)⁽¹⁾increased 23% year-over-year
Orders grew 55% year-over-year to $32.7 million driven by acquisitions and strength in analog/mixed signal test and silicon carbide (SiC) production markets
Achieved second consecutive quarter of record backlog at $47.9 million
Reported net income growth of 16% to $2.5 million and diluted EPS up 15% to $0.23 year-over-year
Expects 2022 revenue at higher end of original range of $110 million to $115 million despite continued headwinds from supply chain constraints and a strong U.S. dollar

MT. LAUREL, N.J. — (BUSINESS WIRE) — November 4, 2022 — Nick Grant, President and CEO, commented, “We delivered another strong quarter that demonstrates our ability to execute, maintain focus on our target markets, deliver quality engineered solutions and leverage our expanding sales presence. Our team continues to address supply chain challenges which have caused disruption of production processes and higher costs. We are continuing to identify new supply sources and flex production to address the challenges while communicating regularly with customers regarding shipment timing. Despite these headwinds, we converted record revenue to net income growth of 16%.”

Mr. Grant continued, “Our 5-Point Strategy keeps us focused on driving value. We are gaining new customers, finding new applications for our solutions and continually innovating to drive growth. We have been especially encouraged with the strength in demand for our induction heating solution for silicon carbide (SiC) crystal growth as that technology rapidly expands from the benefits provided with its higher energy conversion efficiencies. We also continue to have strong demand for our test equipment for analog and mixed signal semiconductor production as well as our highly controlled thermal test solutions for lab applications. Importantly, our acquisitions and organic businesses are driving continued growth in our target markets with strong demand for our highly engineered solutions in defense, security, electric vehicles (“EV”) and life sciences.”

Third Quarter 2022 Review (see revenue by market and by segments in accompanying tables)

	Three Months Ended
($ in 000s)			Change			Change
	9/30/2022	6/30/2022	$	%	9/30/2021	$	%
Revenue	$30,771	$29,571	$1,200	4.1%	$21,144	$9,627	45.5%
Organic revenue (Non-GAAP) ⁽¹⁾	$26,017	$24,350	$1,667	6.8%	$21,144	$4,873	23.0%
Gross profit	$13,898	$13,548	$350	2.6%	$10,395	$3,503	33.7%
Gross margin	45.2%	45.8%			49.2%
Operating expenses (incl. intangible amort.)	$10,739	$10,820	$(81)	-0.7%	$7,846	$2,893	36.9%
Operating income	$3,159	$2,728	$431	15.8%	$2,549	$610	23.9%
Operating margin	10.3%	9.2%			12.2%
Net earnings (GAAP)	$2,524	$2,116	$408	19.3%	$2,175	$349	16.0%
Earnings per diluted share (“EPS”) (GAAP)	$0.23	$0.20	$0.03	15.0%	$0.20	$0.03	15.0%
Adjusted net earnings (Non-GAAP) ⁽¹⁾	$3,016	$2,719	$297	10.9%	$2,480	$536	21.6%
Adjusted EPS (Non-GAAP) ⁽¹⁾	$0.28	$0.25	$0.03	12.0%	$0.23	$0.05	21.7%
Adjusted EBITDA (Non-GAAP) ⁽¹⁾	$4,453	$4,193	$260	6.2%	$3,388	$1,065	31.4%
Adjusted EBITDA margin (Non-GAAP) ⁽¹⁾	14.5%	14.2%			16.0%

⁽¹⁾ Organic revenue, adjusted net earnings, adjusted EPS, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Further information can be found under “Non-GAAP Financial Measures.” See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release.

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