- Revenue increased 4% year-over-year and 14% sequentially to a record $34.0 million due to the acquisition of Alfamation
- Market diversification strategy helped to offset continued weakness in semiconductor industry
- Orders1 improved 15% sequentially to $26.2 million; excluding Alfamation, orders improved 10% sequentially
- Earnings per diluted share was $0.02 while adjusted earnings per diluted share2 was $0.08
- Rightsizing actions result in $1.2 million of annualized savings to be realized beginning in the third quarter
- Adjusts 2024 guidance to reflect ongoing market conditions
MT. LAUREL, N.J. — (BUSINESS WIRE) — August 2, 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 June 30, 2024. Results include Alfamation S.p.A. (“acquisition” or “Alfamation”) from the date of the acquisition, which was March 12, 2024. Alfamation is included in the Electronic Test division.
Nick Grant, President and CEO, commented, “While we are focused on innovating with new products, expanding our channels to market and adding new customers, we are nonetheless facing challenging market headwinds that now appear to be more persistent than we had anticipated earlier this year. We benefitted from the addition of Alfamation in the quarter which contributed $9.7 million in revenue. This was an unusually strong quarter for the acquisition given the timing of the sizeable backlog we acquired. We are very pleased with the integration progress and the synergies we are already beginning to realize. The teams are working on several opportunities with technology sharing and cross selling across our businesses. The addition of Alfamation more than offset the weakness in the semiconductor industry, and specifically the dramatic slowdown in the front-end semi market that we have experienced this year. Sales in the semi market were down 46%, or $8.7 million, year-over-year and 32%, or $4.8 million sequentially.”
He added, “We continue to see weak order levels in front-end semi as we believe the industry in the near term has sufficient capacity for silicon carbide production. Our long-term view on the growth in silicon carbide adoption remains intact. Encouragingly, back-end semi seems to be stabilizing. Nonetheless, given ongoing broader market conditions, we are taking actions to reduce costs and better align the businesses with current order levels. Thus far we have executed on $1.2 million in annualized cost reductions that we expect to begin to be realized in the second half of the year. We are also continuing to identify further opportunities to reduce costs, drive operational efficiencies and improve working capital. The weak level of orders in the quarter and less visibility into a second half recovery has resulted in resetting expectations for 2024.”
| ______________________________ |
1 Orders and backlog are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding inTEST’s use of these metrics. |
2 Adjusted earnings per diluted share is a non-GAAP financial measure. Further information can be found under “Non-GAAP Financial Measures.” See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release. |
Second Quarter 2024 Review (see revenue by market and by segments in accompanying tables)
|
Three Months Ended |
||||||||||||||||||
($ in 000s) |
|
|
Change |
|
Change |
||||||||||||||
6/30/2024 |
6/30/2023 |
$ |
% |
3/31/2024 |
$ |
% |
|||||||||||||
Revenue |
$ |
33,991 |
|
$ |
32,558 |
|
$ |
1,433 |
|
4.4 |
% |
$ |
29,824 |
|
$ |
4,167 |
|
14.0 |
% |
| Gross profit |
$ |
13,797 |
|
$ |
15,030 |
|
$ |
(1,233 |
) |
-8.2 |
% |
$ |
13,076 |
|
$ |
721 |
|
5.5 |
% |
| Gross margin |
|
40.6 |
% |
|
46.2 |
% |
|
|
|
43.8 |
% |
||||||||
| Operating expenses (incl. intangible amort.) |
$ |
13,461 |
|
$ |
11,686 |
|
$ |
1,775 |
|
15.2 |
% |
$ |
12,584 |
|
$ |
877 |
|
7.0 |
% |
| Operating income |
$ |
336 |
|
$ |
3,344 |
|
$ |
(3,008 |
) |
-90.0 |
% |
$ |
492 |
|
$ |
(156 |
) |
-31.7 |
% |
| Operating margin |
|
1.0 |
% |
|
10.3 |
% |
|
|
|
1.6 |
% |
||||||||
| Net earnings |
$ |
230 |
|
$ |
2,793 |
|
$ |
(2,563 |
) |
-91.8 |
% |
$ |
662 |
|
$ |
(432 |
) |
-65.3 |
% |
| Net margin |
|
0.7 |
% |
|
8.6 |
% |
|
|
|
2.2 |
% |
|
|
||||||
| Earnings per diluted share (“EPS”) |
$ |
0.02 |
|
$ |
0.24 |
|
$ |
(0.22 |
) |
-91.7 |
% |
$ |
0.05 |
|
$ |
(0.03 |
) |
-60.0 |
% |
| Adjusted net earnings (Non-GAAP) 3 |
$ |
959 |
|
$ |
3,227 |
|
$ |
(2,268 |
) |
-70.3 |
% |
$ |
1,162 |
|
$ |
(203 |
) |
-17.5 |
% |
| Adjusted EPS (Non-GAAP) 2 |
$ |
0.08 |
|
$ |
0.28 |
|
$ |
(0.20 |
) |
-71.4 |
% |
$ |
0.10 |
|
$ |
(0.02 |
) |
-20.0 |
% |
| Adjusted EBITDA (Non-GAAP) 2 |
$ |
2,154 |
|
$ |
4,795 |
|
$ |
(2,641 |
) |
-55.1 |
% |
$ |
1,811 |
|
$ |
343 |
|
18.9 |
% |
| Adjusted EBITDA margin (Non-GAAP) 2 |
|
6.3 |
% |
|
14.7 |
% |
|
|
|
6.1 |
% |
||||||||
