- Sequentially first quarter revenue increased 7%, or $1.9 million, including $1.4 million in revenue from the Alfamation acquisition
- Compared with the prior-year period, overall sales declined while the acquisition and growth from diversified markets, specifically industrial and defense/aerospace, helped to offset the weakness in semiconductor sales
- Earnings per diluted share was $0.05 while adjusted earnings per diluted share1 was $0.10
- Generated $2.1 million in cash from operations in the quarter; cash at March 31, 2024 was $27.3 million and reflects the $19 million in cash used for the Alfamation acquisition
- Adjusting full year revenue expectation to $140 million to $150 million which represents 18% growth over 2023 at the mid-point of the range
MT. LAUREL, N.J. — (BUSINESS WIRE) — May 6, 2024 — inTEST Corporation (NYSE American: INTT), a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include automotive/EV, defense/aerospace, industrial, life sciences, security, and semiconductor (“semi”), today announced financial results for the quarter ended March 31, 2024. Results include Alfamation S.p.A. (“acquisition” or “Alfamation”) from the date of acquisition which was March 12, 2024.
Nick Grant, President and CEO, commented, “Our first quarter results continue to reflect the tempered semiconductor market conditions we saw exiting 2023. While down year-over-year, sequentially sales were up although margins were impacted by the timing of the acquisition, the mix in sales, and higher professional fees. On the order front and outlook, we saw a sudden shift in order trends as a number of opportunities which we had expected late in the quarter were either delayed or reduced in size. It appears that capacity build in the semiconductor industry in conjunction with slower demand has stalled some customers’ investments in new capital projects, specifically in front-end semi. While our pipeline across all markets remains healthy, the rate of opportunity conversion to orders over the last few quarters has been slowing. Given the unexpected lower rate of orders in the quarter we are moderating our full year outlook.”
He added, “Nonetheless, we have a record backlog of $55.5 million that measurably benefited from the $22.8 million in backlog from Alfamation. This backlog provides us further confidence in our expectations for the acquisition. Importantly, we remain highly encouraged with our long-term outlook. We are continuing to build inTEST into a global leader of test and process technologies by introducing new products, innovating to create solutions for our customers’ toughest challenges and being application experts in the industries we serve. We expect key target markets to continue to benefit from ongoing macro tailwinds such as reshoring/near shoring, automation, electronification and digitization, productivity enhancements and rebuilding of domestic defense capabilities. Our acquisition pipeline also remains active. Although near term visibility is limited, we expect to continue to deliver growth in 2024 aided by the acquisition of Alfamation.”
_______________________
1 Adjusted earnings per diluted share is a non-GAAP financial measure. Further information can be found under “Non-GAAP Financial Measures.” See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release. |
First Quarter 2024 Review (see revenue by market and by segments in accompanying tables)
|
Three Months Ended |
||||||||||||||||||
($ in 000s) |
|
|
Change |
|
Change |
||||||||||||||
3/31/2024 |
3/31/2023 |
$ |
% |
12/31/2023 |
$ |
% |
|||||||||||||
Revenue |
$ |
29,824 |
|
$ |
31,919 |
|
$ |
(2,095 |
) |
-6.6 |
% |
$ |
27,884 |
|
$ |
1,940 |
|
7.0 |
% |
Gross profit |
$ |
13,076 |
|
$ |
15,052 |
|
$ |
(1,976 |
) |
-13.1 |
% |
$ |
12,449 |
|
$ |
627 |
|
5.0 |
% |
| Gross margin |
|
43.8 |
% |
|
47.2 |
% |
|
|
|
44.6 |
% |
||||||||
| Operating expenses (incl. intangible amort.) |
$ |
12,584 |
|
$ |
11,534 |
|
$ |
1,050 |
|
9.1 |
% |
$ |
11,340 |
|
$ |
1,244 |
|
11.0 |
% |
| Operating income |
$ |
492 |
|
$ |
3,518 |
|
$ |
(3,026 |
) |
-86.0 |
% |
$ |
1,109 |
|
$ |
(617 |
) |
-55.6 |
% |
| Operating margin |
|
1.6 |
% |
|
11.0 |
% |
|
|
|
4.0 |
% |
||||||||
| Net earnings |
$ |
662 |
|
$ |
2,817 |
|
$ |
(2,155 |
) |
-76.5 |
% |
$ |
1,455 |
|
$ |
(793 |
) |
-54.5 |
% |
| Net margin |
|
2.2 |
% |
|
8.8 |
% |
|
|
|
5.2 |
% |
|
|
||||||
| Earnings per diluted share (“EPS”) |
$ |
0.05 |
|
$ |
0.25 |
|
$ |
(0.20 |
) |
-80.0 |
% |
$ |
0.12 |
|
$ |
(0.07 |
) |
-58.3 |
% |
| Adjusted net earnings (Non-GAAP) 2 |
$ |
1,162 |
|
$ |
3,269 |
|
$ |
(2,107 |
) |
-64.5 |
% |
$ |
1,910 |
|
$ |
(748 |
) |
-39.2 |
% |
| Adjusted EPS (Non-GAAP) 2 |
$ |
0.10 |
|
$ |
0.29 |
|
$ |
(0.19 |
) |
-65.5 |
% |
$ |
0.16 |
|
$ |
(0.06 |
) |
-37.5 |
% |
| Adjusted EBITDA (Non-GAAP) 2 |
$ |
1,811 |
|
$ |
4,826 |
|
$ |
(3,015 |
) |
-62.5 |
% |
$ |
2,418 |
|
$ |
(607 |
) |
-25.1 |
% |
| Adjusted EBITDA margin (Non-GAAP) 2 |
|
6.1 |
% |
|
15.1 |
% |
|
|
|
8.7 |
% |
||||||||
