Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $28.1 million, with gross margins above 42% [7][13] - Net loss for the quarter was $500,000, or a loss of $0.04 per diluted share, while adjusted net earnings were $400,000, or a gain of $0.03 per diluted share [16] - Adjusted EBITDA for Q2 was $1.3 million [16] - Total debt was approximately $10.1 million at quarter end, reduced by $4.9 million year-to-date [17] Business Line Data and Key Metrics Changes - Orders for the quarter were nearly $28 million, reflecting a 10% sequential growth [10] - Auto EV demand increased by 40% to $7.1 million, while Life Sciences more than doubled to $2.9 million [10] - Safety and Security grew 74% to $1.2 million, but semi orders decreased by 24% sequentially [10] Market Data and Key Metrics Changes - Demand in the auto EV market increased significantly, while the semi market remained weak with a year-over-year decline of $3.7 million [11] - Backlog at June 30 was $37.9 million, flat over the last two quarters but down $9.8 million from the prior year [11] Company Strategy and Development Direction - The company is focused on driving innovation, market diversification, and geographic expansion as part of its Vision 2030 strategy [8][21] - The expansion of the manufacturing facility in Malaysia is expected to enhance market competitiveness and drive growth [9][21] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing global economic and tariff uncertainties affecting customer investment in capital projects [6][21] - The customer pipeline is at an all-time high, indicating optimism for future capital spending [20][21] Other Important Information - The company has implemented cost-saving measures, including headcount reductions and operational restructuring, to improve long-term profitability [15][48] - The Malaysian facility is expected to generate $10 million to $15 million in revenue over time, supporting the Asian market [28][54] Q&A Session Summary Question: Is the recent defense order from a new customer? - The defense order is from an existing customer, following previous deliveries of prototype units [24][25] Question: How have customer order patterns been in the first six weeks of the quarter? - Order patterns have shown improvement, particularly in the automotive industry and defense space [26][27] Question: What is the capacity of the Malaysian facility? - The Malaysian facility is anticipated to support $10 million to $15 million in revenue over time [28] Question: Were the engineering challenges in Q1 related to defense? - The engineering challenges were primarily in industrial applications, not defense [31] Question: What are the expectations for the semi market in 2026? - A rebound in the semi market is expected in 2026, but the timing is still uncertain [33] Question: What is the outlook for life sciences orders? - There is a strong pipeline for continued orders in life sciences, driven by medical device electronics [35] Question: What are the leading indicators for order activity? - New products and a high customer pipeline are seen as positive indicators for future order activity [42][44] Question: How is the company managing operating expenses? - The company has reduced headcount and discretionary spending, with some savings expected to be temporary [46][48] Question: How will the Malaysian operations impact existing facilities? - The Malaysian facility aims to drive growth without significantly shifting operations from the U.S. [52][54]

Financial Performance - Orders increased by 6% year-over-year and 9.5% sequentially[13, 18] - Revenue decreased by $5.9 million year-over-year[25] - Revenue increased sequentially by $1.5 million[24] - Gross margin improved to 42.6%, a 200 bps increase year-over-year[30] - Reduced debt by $4.9 million during the first half of 2025, including $1.7 million in Q2[13, 50] Market Dynamics - Auto/EV sector orders increased by 39.6%, with Alfamation contributing $5.6 million[23] - Semiconductor sector orders decreased by $2.3 million and $3.7 million[23] - Industrial sales increased by 11%[29] Liquidity and Capital Structure - Cash and cash equivalents totaled $19.2 million as of June 30, 2025[49, 61] - Total debt was $10.1 million as of June 30, 2025[49] - Approximately $59 million in liquidity at June 30, 2025, including borrowing capacity[50] Future Outlook - Expects revenue to be $28 million to $30 million for Q3 2025[57] - Anticipates gross margin similar to Q2 2025[57] - Projects operating expenses of $12.6 million to $13.1 million for Q3 2025, excluding restructuring expenses[57]

分组1 - inTest Corporation (INTT) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.04 per share, representing an earnings surprise of +175.00% [1] - The company posted revenues of $28.13 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.57%, but down from $33.99 million year-over-year [2] - inTest has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has underperformed the market, losing about 19.3% since the beginning of the year compared to the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the coming quarter is -$0.01 on revenues of $29.37 million, and -$0.09 on revenues of $115.84 million for the current fiscal year [7] - The Zacks Industry Rank for Electronics - Measuring Instruments is in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) InTest reported improved orders, expanded gross margin, and narrowed losses for Q2 2025, driven by strength in auto/EV and life sciences, despite ongoing economic uncertainties - Orders improved **6% year-over-year**, or **$1.6 million**, reflecting strength in auto/EV and life sciences, and grew **$2.4 million sequentially** as demand increased across all markets except semiconductor[4](index=4&type=chunk)[13](index=13&type=chunk) - Revenue increased **6% sequentially** to **$28.1 million**[4](index=4&type=chunk) - Total debt was further reduced by **$1.7 million** from March 31, 2025[4](index=4&type=chunk)[11](index=11&type=chunk) - Operating loss narrowed to **$0.9 million** and net loss to **$0.5 million**; Adjusted EBITDA was **$1.3 million**[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) President and CEO Nick Grant highlighted the company's focus on executing its VISION 2030 Growth Strategy, driving innovation, market diversification, and geographic expansion amidst global economic uncertainties. He noted traction from new products, customer additions, and a record-high funnel of opportunities - The company remained focused on executing its VISION 2030 Growth Strategy, driving innovation, market diversification, and geographic expansion[3](index=3&type=chunk) - Recently introduced products continued to gain traction, new customers were added, and the channel network expanded[3](index=3&type=chunk) - Orders improved over both the prior year and trailing quarters, reflecting renewed purchasing among automotive customers, with Alfamation achieving its highest level of orders since joining InTest[3](index=3&type=chunk) - InTest's funnel of opportunities increased to a new all-time high, reinforcing confidence in target market fundamentals[3](index=3&type=chunk) [Financial Performance Review](index=3&type=section&id=Financial%20Performance%20Review) [Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) The second quarter of 2025 saw sequential revenue growth and improved gross margin, though year-over-year comparisons showed declines in revenue and net earnings, with adjusted non-GAAP metrics reflecting a similar trend Three Months Ended June 30, 2025 vs. Prior Periods (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | March 31, 2025 | Change ($) (vs Q1) | Change (%) (vs Q1) | | :-------------------------------- | :------------ | :------------ | :--------- | :--------- | :------------- | :----------------- | :----------------- | | Revenue | $28,130 | $33,991 | $(5,861) | (17.2)% | $26,637 | $1,493 | 5.6% | | Gross profit | $11,973 | $13,797 | $(1,824) | (13.2)% | $11,056 | $917 | 8.3% | | Gross margin | 42.6% | 40.6% | | | 41.5% | | | | Operating (loss) income | $(927) | $336 | $(1,263) | n/m | $(2,881) | $1,954 | n/m | | Net (loss) earnings | $(503) | $230 | $(733) | n/m | $(2,329) | $1,826 | n/m | | Diluted EPS | $(0.04) | $0.02 | $(0.06) | (300.0)% | $(0.19) | $0.15 | 78.9% | | Adjusted net (loss) earnings (Non-GAAP) | $417 | $959 | $(542) | (56.5)% | $(1,389) | $1,806 | n/m | | Adjusted EPS (Non-GAAP) | $0.03 | $0.08 | $(0.05) | (62.5)% | $(0.11) | $0.14 | n/m | | Adjusted EBITDA (Non-GAAP) | $1,262 | $2,154 | $(892) | (41.4)% | $(887) | $2,149 | n/m | | Adjusted EBITDA margin (Non-GAAP) | 4.5% | 6.3% | | | (3.3%) | | | [Revenue and Gross Margin Analysis](index=3&type=section&id=Revenue%20and%20Gross%20Margin%20Analysis) Second quarter revenue saw sequential growth driven by semiconductor, industrial, defense/aerospace, and safety/security markets, offsetting declines in other areas. Year-over-year revenue decreased primarily due to auto/EV sales. Gross margin improved both sequentially and year-over-year due to higher volume, favorable product mix, and cost reductions - Sequentially, Q2 2025 revenue was up **$1.5 million** over Q1 2025, with sales increases in semi (**$1.2 million**), industrial (**$0.8 million**), defense/aerospace (**$0.8 million**), and safety/security (**$0.3 million**), outpacing declines in life sciences, auto/EV, and other markets[7](index=7&type=chunk) - Compared with the prior-year period, Q2 2025 revenue was down **$5.9 million**, primarily due to a **$4.9 million** decline in auto/EV sales, partially offset by increases in industrial, safety/security, and semi[8](index=8&type=chunk) - Gross margin increased **110 basis points sequentially** to **42.6%** based on higher volume and ongoing cost reductions, and improved **200 basis points year-over-year** due to favorable product mix and cost reduction efforts[8](index=8&type=chunk)[9](index=9&type=chunk) [Operating Expenses and Net Loss](index=3&type=section&id=Operating%20Expenses%20and%20Net%20Loss) Operating expenses decreased both sequentially and year-over-year due to cost reduction efforts, contributing to a narrowed net loss and positive adjusted net earnings for the quarter - Operating expenses decreased **$1.0 million sequentially** and **$0.6 million** from the prior-year period, primarily due to ongoing cost reduction efforts and reduced corporate development costs[9](index=9&type=chunk) - Net loss for Q2 2025 was **$0.5 million**, or **$(0.04) per diluted share**[10](index=10&type=chunk) - Adjusted net earnings (Non-GAAP) were **$0.4 million**, or **$0.03 adjusted EPS (Non-GAAP)**[10](index=10&type=chunk) [Balance Sheet and Cash Flow](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) [Balance Sheet Overview](index=5&type=section&id=Balance%20Sheet%20Overview) InTest maintained a strong financial position by reducing total debt and securing a covenant waiver, while managing cash and available credit facilities - Cash and cash equivalents at June 30, 2025, were **$19.2 million**, a decrease of **$2.8 million** from the end of Q1 2025[11](index=11&type=chunk) - Total debt was reduced by **$1.7 million** from March 31, 2025, to **$10.1 million**[11](index=11&type=chunk) - The Company had **$30.0 million** available under its delayed draw term loan facility and no borrowings under the **$10.0 million** revolving credit facility[12](index=12&type=chunk) - A covenant waiver agreement was entered into with its U.S. based lender through Q1 2026, in exchange for pledging cash equal to U.S. debt outstanding (**$5.9 million** at June 30, 2025)[12](index=12&type=chunk) [Cash Flow Activities](index=5&type=section&id=Cash%20Flow%20Activities) During Q2 2025, the company utilized cash primarily for working capital investments and capital expenditures - The Company used **$0.7 million** in operations primarily for working capital investments during the quarter[11](index=11&type=chunk) - Capital expenditures were **$0.5 million** in the second quarter of 2025[11](index=11&type=chunk) [Orders and Backlog](index=5&type=section&id=Orders%20and%20Backlog) [Orders Performance](index=5&type=section&id=Orders%20Performance) Orders for Q2 2025 showed significant growth both year-over-year and sequentially, driven by strong performance in auto/EV, life sciences, and other industrial markets, despite a slowdown in the semiconductor market - Second quarter orders of **$27.8 million** grew **$1.6 million (6.0%)** versus the prior-year period and **$2.4 million (9.5%)** compared with the first quarter[13](index=13&type=chunk) - The year-over-year increase reflects strength in auto/EV, life sciences, industrial, and safety/security markets, while orders slowed in semi and defense/aerospace markets[13](index=13&type=chunk) - Sequentially, the **9.5% increase** in orders was primarily driven by auto/EV and life sciences, as well as safety/security, defense/aerospace, industrial, and other markets, outpacing the decline in semi[14](index=14&type=chunk) [Backlog Status](index=5&type=section&id=Backlog%20Status) The company's backlog at the end of Q2 2025 remained substantial, with a significant portion expected to ship beyond the immediate next quarter - Backlog at June 30, 2025, was **$37.9 million**, slightly below the March 31, 2025 level[14](index=14&type=chunk) - Approximately **50%** of the backlog is expected to ship beyond the third quarter of 2025[14](index=14&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) [Third Quarter 2025 Guidance](index=5&type=section&id=Third%20Quarter%202025%20Guidance) InTest provided financial guidance for Q3 2025, forecasting revenue between $28 million and $30 million, with gross margin similar to Q2 and operating expenses in the range of $12.6 million to $13.1 million - Third quarter 2025 revenue is forecasted to be **$28 million to $30 million**[15](index=15&type=chunk) - Gross margin is expected to be similar to the second quarter[15](index=15&type=chunk) - Operating expenses are projected to be **$12.6 million to $13.1 million**, excluding approximately **$0.1 million** in Videology and other restructuring expenses[15](index=15&type=chunk) [Strategic Vision 2030 Progress](index=5&type=section&id=Strategic%20Vision%202030%20Progress) The company continues to advance its VISION 2030 Growth Strategy through customer acquisition, market expansion, and innovation, despite persistent weak market conditions, particularly in the digital/analog semi industry - Progress continues on the VISION 2030 Growth Strategy by adding new customers, expanding market reach, and innovating to drive value proposition[15](index=15&type=chunk) - Encouraged by wins in auto/EV, life sciences, and defense/aerospace[15](index=15&type=chunk) - Visibility remains limited amid persistently weak market conditions for capital investment, most notably in the digital/analog semi industry[15](index=15&type=chunk) - The company still expects to deliver growth quarter over quarter in 2025, albeit at a slower pace than originally anticipated[15](index=15&type=chunk) [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) [About InTest Corporation](index=7&type=section&id=About%20InTest%20Corporation) InTest Corporation is a global supplier of innovative test and process technology solutions for manufacturing and testing across diverse key target markets, including semiconductor, automotive/EV, defense/aerospace, industrial, life sciences, and safety/security, pursuing growth organically and through acquisitions - InTest Corporation is a global supplier of innovative test and process technology solutions for manufacturing and testing[21](index=21&type=chunk) - Key target markets include semiconductor (front-end and back-end), automotive/EV, defense/aerospace, industrial, life sciences, and safety/security[21](index=21&type=chunk) - The growth strategy leverages engineering expertise and operational excellence to grow organically and with acquisitions through innovative technologies, geographic reach, customer penetration, and market expansion[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the company's use of non-GAAP financial measures, including adjusted net earnings, adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin, which are used to provide supplemental information regarding baseline performance and liquidity - Non-GAAP financial measures include adjusted net earnings, adjusted earnings per diluted share (adjusted EPS), adjusted EBITDA, and adjusted EBITDA margin[22](index=22&type=chunk) - Adjusted net earnings and adjusted EPS exclude acquired intangible amortization, restructuring costs, and inventory step-up charges, as management believes these may not be indicative of underlying operating performance[22](index=22&type=chunk) - Adjusted EBITDA and adjusted EBITDA margin are presented primarily as a measure of liquidity, excluding non-cash charges, restructuring costs, interest, and income tax[22](index=22&type=chunk) Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and EPS (Non-GAAP) (in thousands except per share amounts) | Metric | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------------- | :------------ | :------------ | :------------- | | Net (loss) earnings | $(503) | $230 | $(2,329) | | Acquired intangible amortization | $850 | $897 | $813 | | Restructuring costs | $216 | $— | $313 | | Tax effect of adjusting items | $(146) | $(168) | $(186) | | **Adjusted net earnings (loss) (Non-GAAP)** | **$417** | **$959** | **$(1,389)** | | Diluted weighted average shares outstanding | 12,246 | 12,330 | 12,179 | | **Adjusted EPS (Non-GAAP)** | **$0.03** | **$0.08** | **$(0.11)** | Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) (in thousands except percentage data) | Metric | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------------- | :------------ | :------------ | :------------- | | Net (loss) earnings | $(503) | $230 | $(2,329) | | Acquired intangible amortization | $850 | $897 | $813 | | Net interest expense | $30 | $41 | $37 | | Income tax (benefit) expense | $(80) | $66 | $(460) | | Depreciation | $314 | $356 | $316 | | Restructuring costs | $216 | $— | $313 | | Stock-based compensation | $435 | $564 | $423 | | **Adjusted EBITDA (Non-GAAP)** | **$1,262** | **$2,154** | **$(887)** | | Revenue | $28,130 | $33,991 | $26,637 | | Net margin | (1.8%) | 0.7% | (8.7%) | | **Adjusted EBITDA margin (Non-GAAP)** | **4.5%** | **6.3%** | **(3.3%)** | [Key Performance Indicators](index=7&type=section&id=Key%20Performance%20Indicators) InTest utilizes orders and backlog as key operational metrics to analyze and measure financial performance, considering them leading indicators of future business activity - Orders represent written communications received from customers requesting products and/or services[25](index=25&type=chunk)[26](index=26&type=chunk) - Backlog is calculated based on firm purchase orders for which revenue has not yet been recognized[26](index=26&type=chunk) - Management uses orders and backlog as key performance metrics and leading indicators of future performance[27](index=27&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, highlighting that the press release contains forward-looking statements based on management's current expectations, which are subject to various risks and uncertainties that could cause actual results to differ materially - The press release includes forward-looking statements relating to predicted or potential future events and financial results, based upon management's current expectations[29](index=29&type=chunk) - These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the ability to execute the VISION 2030 Growth Strategy, market cycles, economic conditions, and supply chain challenges[29](index=29&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) This statement provides a detailed breakdown of InTest Corporation's revenues, costs, and expenses, culminating in the net loss for the three and six months ended June 30, 2025, compared to the prior year Consolidated Statements of Operations (Unaudited, In thousands, except share and per share data) | (In thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $28,130 | $33,991 | $54,767 | $63,815 | | Cost of revenue | 16,157 | 20,194 | 31,738 | 36,942 | | Gross profit | 11,973 | 13,797 | 23,029 | 26,873 | | Operating expenses: | | | | | | Selling expense | 3,829 | 4,105 | 8,376 | 8,695 | | Engineering and product development expense | 2,245 | 2,218 | 4,693 | 4,200 | | General and administrative expense | 5,760 | 6,241 | 11,576 | 11,658 | | Amortization of acquired intangible assets | 850 | 897 | 1,663 | 1,492 | | Restructuring costs | 216 | — | 529 | — | | Total operating expenses | 12,900 | 13,461 | 26,837 | 26,045 | | Operating (loss) income | (927) | 336 | (3,808) | 828 | | Interest expense | (119) | (253) | (271) | (393) | | Other income | 463 | 213 | 707 | 648 | | (Loss) earnings before income tax (benefit) expense | (583) | 296 | (3,372) | 1,083 | | Income tax (benefit) expense | (80) | 66 | (540) | 191 | | Net (loss) earnings | $(503) | $230 | $(2,832) | $892 | | (Loss) earnings per common share: | | | | | | Basic | $(0.04) | $0.02 | $(0.23) | $0.07 | | Diluted | $(0.04) | $0.02 | $(0.23) | $0.07 | | Weighted average common shares outstanding: | | | | | | Basic | 12,215,258 | 12,234,599 | 12,197,338 | 12,130,480 | | Diluted | 12,215,258 | 12,330,280 | 12,197,338 | 12,244,289 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) This statement presents InTest Corporation's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, compared to December 31, 2024 Consolidated Balance Sheets (Unaudited, In thousands, except share and per share data) | (In thousands, except share and per share data) | June 30, 2025 | December 31, 2024 | | :---------------------------------------------- | :------------ | :---------------- | | ASSETS | | | | Current assets: | | | | Cash and cash equivalents | $19,248 | $19,830 | | Trade accounts receivable, net | 23,349 | 29,495 | | Inventories | 27,610 | 26,837 | | Prepaid expenses and other current assets | 4,640 | 2,650 | | Total current assets | 74,847 | 78,812 | | Property and equipment, net | 4,677 | 4,457 | | Right-of-use assets, net | 10,071 | 10,767 | | Goodwill | 32,437 | 30,744 | | Intangible assets, net | 26,647 | 26,376 | | Deferred tax assets | — | 67 | | Other assets | 974 | 1,065 | | **Total assets** | **$149,653** | **$152,288** | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current liabilities: | | | | Current portion of long-term debt | $6,426 | $7,494 | | Current portion of operating lease liabilities | 2,100 | 1,989 | | Accounts payable | 6,981 | 7,991 | | Customer deposits and deferred revenue | 5,598 | 4,989 | | Accrued expenses and other current liabilities | 9,853 | 9,485 | | Total current liabilities | 30,958 | 31,948 | | Operating lease liabilities, net of current portion | 8,316 | 9,021 | | Long-term debt, net of current portion | 3,667 | 7,538 | | Contingent consideration, net of current portion | 441 | 825 | | Deferred revenue, net of current portion | 1,367 | 1,432 | | Deferred tax liabilities | 525 | — | | Other liabilities | 1,787 | 1,734 | | **Total liabilities** | **47,061** | **52,498** | | Stockholders' equity: | | | | Common stock | 125 | 124 | | Additional paid-in capital | 58,604 | 57,658 | | Retained earnings | 42,255 | 45,087 | | Accumulated other comprehensive earnings (loss) | 2,567 | (2,137) | | Treasury stock, at cost | (959) | (942) | | **Total stockholders' equity** | **102,592** | **99,790** | | **Total liabilities and stockholders' equity** | **$149,653** | **$152,288** | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024, showing the net change in cash and cash equivalents Consolidated Statements of Cash Flows (Unaudited, In thousands) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | | CASH FLOWS FROM OPERATING ACTIVITIES | | | | Net (loss) earnings | $(2,832) | $892 | | Adjustments to reconcile net (loss) earnings to net cash provided by (used in) operating activities: | | | | Depreciation and amortization | 3,306 | 2,806 | | Provision for excess and obsolete inventory | 304 | 306 | | Amortization of deferred compensation related to stock-based awards | 858 | 913 | | Deferred income tax expense | 205 | 347 | | Other non-cash reconciling items | (383) | 47 | | Changes in assets and liabilities: | | | | Trade accounts receivable | 6,865 | (5,693) | | Inventories | 203 | 1,966 | | Prepaid expenses and other current assets | (438) | 1,296 | | Other assets | (36) | (118) | | Operating lease liabilities | (966) | (765) | | Accounts payable | (898) | (1,899) | | Customer deposits and deferred revenue | 272 | (861) | | Domestic and foreign income taxes payable | (883) | (851) | | Deferred revenue, net of current portion | (65) | (75) | | Accrued expenses and other liabilities | (665) | (1,326) | | **Net cash provided by (used in) operating activities** | **4,847** | **(3,015)** | | CASH FLOWS FROM INVESTING ACTIVITIES | | | | Acquisition of business, net of cash acquired | — | (18,727) | | Purchases of property and equipment | (691) | (656) | | **Net cash used in investing activities** | **(691)** | **(19,383)** | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | (Repayments of short-term borrowings, net of proceeds) proceeds from short-term borrowings | (3,613) | 1,120 | | Repayments of long-term debt | (2,050) | (3,129) | | Proceeds from stock options exercised | 18 | 116 | | Proceeds from shares sold under Employee Stock Purchase Plan | 60 | 84 | | Settlement of employee tax liabilities in connection with treasury stock transaction | (17) | (41) | | **Net cash used in by financing activities** | **(5,602)** | **(1,850)** | | Effects of exchange rates on cash | 864 | (642) | | **Net cash used in all activities** | **(582)** | **(24,890)** | | Cash, cash equivalents and restricted cash at beginning of period | 19,830 | 45,260 | | **Cash and cash equivalents at end of period** | **$19,248** | **$20,370** | | Cash payments for: | | | | Domestic and foreign income taxes | $145 | $1,153 | | Interest | $266 | $406 | | SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | | | | Equity issued in conjunction with acquisition of business | $— | $2,086 | | Issuance of unvested shares of restricted stock awards | 1,039 | 1,580 | | Forfeiture of shares of unvested restricted stock awards | (557) | (138) | [Revenue by Market](index=13&type=section&id=Revenue%20by%20Market) This table provides a detailed breakdown of InTest Corporation's revenue across various market segments for the three months ended June 30, 2025, compared to prior periods, highlighting changes in contribution from each market Revenue by Market (Unaudited, in thousands) | ($ in thousands) | June 30, 2025 | % | June 30, 2024 | % | Change ($) | Change (%) | March 31, 2025 | % | Change ($) (vs Q1) | Change (%) (vs Q1) | | :---------------- | :------------ | :-- | :------------ | :-- | :--------- | :--------- | :------------- | :-- | :----------------- | :----------------- | | Semi | $10,192 | 36.2% | $10,124 | 29.8% | $68 | 0.7% | $8,995 | 33.8% | $1,197 | 13.3% | | Auto/EV | 5,862 | 20.8% | 10,735 | 31.6% | (4,873) | (45.4)% | 5,959 | 22.4% | (97) | (1.6)% | | Defense/Aerospace | 3,578 | 12.7% | 3,682 | 10.8% | (104) | (2.8)% | 2,828 | 10.6% | 750 | 26.5% | | Industrial | 3,786 | 13.5% | 3,415 | 10.0% | 371 | 10.9% | 3,021 | 11.3% | 765 | 25.3% | | Life Sciences | 1,386 | 4.9% | 2,194 | 6.5% | (808) | (36.8)% | 1,688 | 6.3% | (302) | (17.9)% | | Safety/Security | 898 | 3.2% | 792 | 2.3% | 106 | 13.4% | 564 | 2.1% | 334 | 59.2% | | Other | 2,428 | 8.6% | 3,049 | 9.0% | (621) | (20.4)% | 3,582 | 13.4% | (1,154) | (32.2)% | | **Total Revenue** | **$28,130** | **100.0%** | **$33,991** | **100.0%** | **$(5,861)** | **(17.2)%** | **$26,637** | **100.0%** | **$1,493** | **5.6%** | [Orders by Market](index=13&type=section&id=Orders%20by%20Market) This table presents the breakdown of orders received by InTest Corporation across various market segments for the three months ended June 30, 2025, showing year-over-year and sequential changes Orders by Market (Unaudited, in thousands) | ($ in thousands) | June 30, 2025 | % | June 30, 2024 | % | Change ($) | Change (%) | March 31, 2025 | % | Change ($) (vs Q1) | Change (%) (vs Q1) | | :---------------- | :------------ | :-- | :------------ | :-- | :--------- | :--------- | :------------- | :-- | :----------------- | :----------------- | | Semi | $7,292 | 26.3% | $11,026 | 42.1% | $(3,734) | (33.9)% | $9,640 | 38.0% | $(2,348) | (24.4)% | | Auto/EV | 7,066 | 25.5% | 4,721 | 18.0% | 2,345 | 49.7% | 5,061 | 20.0% | 2,005 | 39.6% | | Defense/Aerospace | 2,499 | 9.0% | 2,665 | 10.2% | (166) | (6.2)% | 2,083 | 8.2% | 416 | 20.0% | | Industrial | 4,680 | 16.9% | 3,485 | 13.4% | 1,195 | 34.3% | 4,551 | 18.0% | 129 | 2.8% | | Life Sciences | 2,863 | 10.3% | 1,025 | 3.9% | 1,838 | 179.3% | 1,232 | 4.9% | 1,631 | 132.4% | | Safety/Security | 1,173 | 4.2% | 81 | 0.3% | 1,092 | 1348.1% | 675 | 2.7% | 498 | 73.8% | | Other | 2,186 | 7.9% | 3,179 | 12.1% | (993) | (31.2)% | 2,107 | 8.3% | 79 | 3.7% | | **Total Orders** | **$27,759** | **100.0%** | **$26,182** | **100.0%** | **$1,577** | **6.0%** | **$25,349** | **100.0%** | **$2,410** | **9.5%** | [Segment Data](index=15&type=section&id=Segment%20Data) This section provides a detailed financial breakdown by InTest Corporation's operating segments: Electronic Test, Environmental Technologies, and Process Technologies, along with Corporate & Other, for the three and six months ended June 30, 2025 and 2024 Segment Data - Three Months Ended June 30, 2025 (Unaudited, in thousands) | ($ in thousands) | Electronic Test | Environmental Technologies | Process Technologies | Corporate & Other | Consolidated | | :---------------- | :-------------- | :------------------------- | :------------------- | :---------------- | :----------- | | Revenue | $13,733 | $7,215 | $7,182 | $— | $28,130 | | Cost of revenue | 7,418 | 4,534 | 4,205 | — | 16,157 | | Other divisional costs | 4,755 | 2,070 | 2,578 | — | 9,403 | | Division operating income | 1,560 | 611 | 399 | — | 2,570 | | Acquired intangible amortization | | | | 850 | 850 | | Restructuring costs | | | | 216 | 216 | | Corporate expenses | | | | 2,431 | 2,431 | | Operating (loss) income | 1,560 | 611 | 399 | (3,497) | (927) | | Interest expense | | | | (119) | (119) | | Other income | | | | 463 | 463 | | (Loss) earnings before income tax expense | $1,560 | $611 | $399 | $(3,153) | $(583) | Segment Data - Three Months Ended June 30, 2024 (Unaudited, in thousands) | ($ in thousands) | Electronic Test | Environmental Technologies | Process Technologies | Corporate & Other | Consolidated | | :---------------- | :-------------- | :------------------------- | :------------------- | :---------------- | :----------- | | Revenue | $16,159 | $8,273 | $9,559 | $— | $33,991 | | Cost of revenue | 9,462 | 5,016 | 5,716 | — | 20,194 | | Other divisional costs | 4,954 | 2,264 | 2,873 | — | 10,091 | | Division operating income | 1,743 | 993 | 970 | — | 3,706 | | Acquired intangible amortization | | | | 897 | 897 | | Corporate expenses | | | | 2,473 | 2,473 | | Operating income (loss) | 1,743 | 993 | 970 | (3,370) | 336 | | Interest expense | | | | (253) | (253) | | Other income | | | | 213 | 213 | | Earnings (loss) before income tax expense | $1,743 | $993 | $970 | $(3,410) | $296 | Segment Data - Six Months Ended June 30, 2025 (Unaudited, in thousands) | ($ in thousands) | Electronic Test | Environmental Technologies | Process Technologies | Corporate & Other | Consolidated | | :---------------- | :-------------- | :------------------------- | :------------------- | :---------------- | :----------- | | Revenue | $26,992 | $13,483 | $14,292 | $— | $54,767 | | Cost of revenue | 14,731 | 8,697 | 8,310 | — | 31,738 | | Other divisional costs | 10,020 | 4,430 | 5,376 | — | 19,826 | | Division operating income | 2,241 | 356 | 606 | — | 3,203 | | Acquired intangible amortization | | | | 1,663 | 1,663 | | Restructuring costs | | | | 529 | 529 | | Corporate expenses | | | | 4,819 | 4,819 | | Operating (loss) income | 2,241 | 356 | 606 | (7,011) | (3,808) | | Interest expense | | | | (271) | (271) | | Other income | | | | 707 | 707 | | (Loss) earnings before income tax expense | $2,241 | $356 | $606 | $(6,575) | $(3,372) | [Reconciliation of Non-GAAP Financial Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP net earnings and EPS to their non-GAAP adjusted counterparts, and net earnings/net margin to adjusted EBITDA/adjusted EBITDA margin, for the three months ended June 30, 2025, and prior periods Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and EPS (Non-GAAP) (in thousands except per share amounts) | Metric | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------------- | :------------ | :------------ | :------------- | | Net (loss) earnings | $(503) | $230 | $(2,329) | | Acquired intangible amortization | $850 | $897 | $813 | | Restructuring costs | $216 | $— | $313 | | Tax effect of adjusting items | $(146) | $(168) | $(186) | | **Adjusted net earnings (loss) (Non-GAAP)** | **$417** | **$959** | **$(1,389)** | | Diluted weighted average shares outstanding | 12,246 | 12,330 | 12,179 | | **Adjusted EPS (Non-GAAP)** | **$0.03** | **$0.08** | **$(0.11)** | Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP) (in thousands except percentage data) | Metric | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------------- | :------------ | :------------ | :------------- | | Net (loss) earnings | $(503) | $230 | $(2,329) | | Acquired intangible amortization | $850 | $897 | $813 | | Net interest expense | $30 | $41 | $37 | | Income tax (benefit) expense | $(80) | $66 | $(460) | | Depreciation | $314 | $356 | $316 | | Restructuring costs | $216 | $— | $313 | | Stock-based compensation | $435 | $564 | $423 | | **Adjusted EBITDA (Non-GAAP)** | **$1,262** | **$2,154** | **$(887)** | | Revenue | $28,130 | $33,991 | $26,637 | | Net margin | (1.8%) | 0.7% | (8.7%) | | **Adjusted EBITDA margin (Non-GAAP)** | **4.5%** | **6.3%** | **(3.3%)** |

Group 1 - inTEST (NYSE: INTT) is currently priced under $7 per share, presenting an interesting investment opportunity [1] - The company is experiencing fundamental pressure on sales and margins due to weaker end-market conditions [1] - The potential bullish case for inTEST suggests that the current challenges may not reflect the long-term viability of the business [1]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a Q1 2025 net loss of $2.3 million, a significant downturn from a $0.7 million net earning in Q1 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $148.0 million as of March 31, 2025, mainly due to a reduction in trade accounts receivable Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $22,048 | $19,830 | | Trade accounts receivable, net | $21,178 | $29,495 | | Inventories | $27,608 | $26,837 | | Goodwill | $31,236 | $30,744 | | **Total Assets** | **$148,027** | **$152,288** | | **Liabilities & Equity** | | | | Current portion of long-term debt | $6,876 | $7,494 | | Long-term debt, net | $4,952 | $7,538 | | **Total Liabilities** | **$48,632** | **$52,498** | | **Total Stockholders' Equity** | **$99,395** | **$99,790** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 revenue decreased 10.7% year-over-year, resulting in a net loss of $2.3 million versus a prior-year net earning Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $26,637 | $29,824 | | Gross Profit | $11,056 | $13,076 | | Operating (Loss) Income | $(2,881) | $492 | | Net (Loss) Earnings | $(2,329) | $662 | | Diluted (Loss) Earnings Per Share | $(0.19) | $0.05 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations improved to $5.5 million in Q1 2025, driven by a significant decrease in accounts receivable Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,535 | $2,075 | | Net cash used in investing activities | $(229) | $(19,244) | | Net cash used in financing activities | $(3,406) | $(874) | | **Net cash provided by (used in) all activities** | **$2,218** | **$(17,929)** | | **Cash and cash equivalents at end of period** | **$22,048** | **$27,331** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail segment performance, the Alfamation acquisition, a restructuring plan, and a significant debt covenant breach - The company operates through three segments: Electronic Test, Environmental Technologies, and Process Technologies, with a strategic focus on diversifying away from the volatile semiconductor market into areas like auto/EV, defense/aerospace, and life sciences[21](index=21&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - On March 12, 2024, the company acquired Alfamation S.p.A. for an aggregate purchase price of approximately **€20.0 million ($21.9 million)**, consisting of cash and stock[91](index=91&type=chunk)[94](index=94&type=chunk) - The company is in breach of its fixed charge coverage ratio covenant (**0.99 to 1.0 vs. required 1.25 to 1.0**) as of March 31, 2025, and anticipates non-compliance for Q2 2025[127](index=127&type=chunk)[189](index=189&type=chunk)[236](index=236&type=chunk) - In February 2025, a restructuring plan was initiated to consolidate Videology Imaging Corporation's Netherlands operations, resulting in **$313 thousand of restructuring charges** in Q1 2025[162](index=162&type=chunk)[163](index=163&type=chunk) Revenue by Segment (in thousands) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | | :--- | :--- | :--- | | Electronic Test | $13,259 | $11,116 | | Environmental Technologies | $6,268 | $6,828 | | Process Technologies | $7,110 | $11,880 | | **Total** | **$26,637** | **$29,824** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the revenue decline to the semi market, discusses margin contraction, and highlights a debt covenant breach [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Q1 2025 revenue fell 10.7% due to a semi market decline, while the Alfamation acquisition drove Electronic Test segment growth Revenue by Market (in thousands) | Market | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Semi | $8,995 | $14,967 | $(5,972) | (39.9)% | | Auto/EV | $5,959 | $3,958 | $2,001 | 50.6% | | Defense/aerospace | $2,828 | $3,239 | $(411) | (12.7)% | | Industrial | $3,021 | $4,187 | $(1,166) | (27.8)% | | Life Sciences | $1,688 | $653 | $1,035 | 158.5% | | **Total Revenue** | **$26,637** | **$29,824** | **$(3,187)** | **(10.7)%** | - Q1 2025 orders increased **11.2% year-over-year to $25.3 million**, driven by strength in industrial, auto/EV, and life science markets[199](index=199&type=chunk)[200](index=200&type=chunk) - Backlog of unfilled orders was **$38.2 million** at March 31, 2025, down from $55.5 million at March 31, 2024[202](index=202&type=chunk) - Gross margin decreased by **230 basis points to 41.5%** due to lower absorption of fixed costs on lower sales volumes and an unfavorable product mix[203](index=203&type=chunk) - Operating expenses increased, with Engineering and Product Development up **23.5%** and G&A up **7.4%**, primarily due to the Alfamation acquisition[206](index=206&type=chunk)[207](index=207&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity but breached a key debt covenant, for which it obtained a waiver but expects future non-compliance Liquidity Snapshot (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $22,048 | $19,830 | | Working capital | $43,594 | $46,864 | - The company was **not in compliance with its fixed charge coverage ratio covenant (0.99 to 1.0)** for Q1 2025 and received a one-time waiver[215](index=215&type=chunk) - As of March 31, 2025, **$12.0 million (55%) of cash and cash equivalents** was held by foreign subsidiaries[220](index=220&type=chunk) - Cash from operating activities increased to **$5.5 million** in Q1 2025 from $2.1 million in Q1 2024, driven by improved collections of accounts receivable[224](index=224&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This disclosure is not required as the company qualifies as a smaller reporting company - As a smaller reporting company, InTest Corporation is not required to provide this disclosure[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter-end with no material changes - The CEO and CFO concluded that as of the end of the reporting period, the company's disclosure controls and procedures were **effective at the reasonable assurance level**[231](index=231&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[232](index=232&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is **not currently a party to any material legal proceedings**[234](index=234&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) Key risks include the impact of restrictive debt covenants and potential disruptions from U.S. and foreign trade policies - A key risk is the potential adverse impact of credit facility covenants, as the company was **not in compliance with its fixed charge coverage ratio** at March 31, 2025[235](index=235&type=chunk)[236](index=236&type=chunk) - U.S. tariff policies and global retaliatory measures pose a significant risk, as approximately **52% of Q1 2025 revenue was from shipments outside the United States**[237](index=237&type=chunk)[238](index=238&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company renewed its $10.0 million share repurchase plan but made no repurchases during the quarter - On March 5, 2025, the Board renewed the share repurchase plan, authorizing up to **$10.0 million in repurchases**, with about $9.0 million available[240](index=240&type=chunk) - **No shares were repurchased** under the plan in Q1 2025, though 646 shares were acquired from employees to satisfy tax liabilities on vested stock awards[240](index=240&type=chunk)[241](index=241&type=chunk) [Item 3. Defaults Upon Senior Securities](index=65&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[242](index=242&type=chunk) [Item 4. Mine Safety Disclosures](index=65&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[243](index=243&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the first quarter - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025[244](index=244&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files Signatures [Signatures](index=67&type=section&id=Signatures) The report was duly signed by the company's Principal Executive Officer and Principal Financial Officer - The report is signed by the Principal Executive Officer and Principal Financial Officer[249](index=249&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $26.6 million, down $3.2 million compared to Q1 2024, primarily due to a $6 million reduction in semiconductor sales and a $1.2 million decline in the industrial market [7][22] - Gross profit for Q1 2025 was $11.1 million, a decrease of $2 million year-over-year, with a gross margin of 41.5%, tightening by 230 basis points compared to the prior year [22][23] - The net loss for the quarter was $2.3 million, or a loss of $0.19 per diluted share, while adjusted net loss was $1.4 million, or a loss of $0.11 per diluted share [25] Business Line Data and Key Metrics Changes - Sales to the auto EV sector increased by $2 million, life sciences by $1 million, and other markets by $1.3 million, partially offsetting declines in semiconductor and industrial sales [10][22] - Industrial orders grew 47% year-over-year to $4.6 million, driven by a significant order from a returning customer [18] - Semiconductor orders declined by $6 million, reflecting tempered demand in the electronic test division [19] Market Data and Key Metrics Changes - Backlog as of March 31 was $38.2 million, including $5.8 million from affirmation, down $17.2 million from the prior year [21] - Over half of the company's sales are associated with products made in the U.S. and sold to U.S. customers, or products sold to global customers from international sites not currently impacted by tariffs [15] Company Strategy and Development Direction - The company is focusing on market diversification, innovation, and investment in regional manufacturing facilities to navigate geopolitical tensions and trade policy volatility [31][33] - Plans to begin manufacturing in Malaysia during the second half of 2025 are on schedule, which is expected to enhance competitiveness and reduce costs [32][33] - The Vision 02/1930 growth strategy aims to increase the proportion of new products in total sales from 17% to 25% in the coming years [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter was marked by shifting tariff policies and macroeconomic turmoil, creating a challenging environment for global companies [7][31] - The company remains optimistic about its customer pipeline, which is at an all-time high, and anticipates sequential improvement in top-line and profitability through the year [29][31] - Visibility into the timing of orders and shipments remains limited due to ongoing tariff uncertainties [28][29] Other Important Information - The company generated $5.5 million in cash from operations during the quarter and reduced total debt by $3.2 million [26][27] - Operating expenses for Q1 2025 were $13.9 million, up $1.3 million year-over-year, including restructuring costs and incremental expenses related to the acquisition of Alphamation [23][24] Q&A Session Summary Question: When did visibility get cloudier in the second half? - Management noted that customer slowdown in order bookings began mid-quarter, which affected guidance [36][37] Question: What are the potential swing factors for revenue? - Management identified semiconductor and auto sectors as the biggest potential swing factors, with a healthy pipeline for both industries [38][39] Question: What is the breakeven quarterly revenue level now? - Management indicated that the breakeven point is being adjusted downwards, with a typical range around $30 million [40][41] Question: Can you quantify the customer pipeline? - Management refrained from providing specific numbers but confirmed that the opportunity funnel is at a historic peak [53][54]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $26.6 million, down $3.2 million compared to Q1 2024, primarily due to a $6 million reduction in semiconductor sales and a $1.2 million decline in the industrial market [20][21] - Gross profit for Q1 2025 was $11.1 million, a decrease of $2 million year-over-year, with a gross margin of 41.5%, tightening by 230 basis points compared to the prior year [21][24] - The net loss for the quarter was $2.3 million, or a loss of $0.19 per diluted share, with an adjusted net loss of $1.4 million [23][24] Business Line Data and Key Metrics Changes - Sales to the auto EV market increased by $2 million, life sciences by $1 million, and other markets by $1.3 million, partially offsetting declines in semiconductor and industrial sales [7][20] - Industrial orders grew 47% year-over-year to $4.6 million, driven by a significant order from a returning customer [15][16] - Semiconductor orders declined by $6 million, reflecting tempered demand in the electronic test division [16][20] Market Data and Key Metrics Changes - Backlog as of March 31 was $38.2 million, down $17.2 million from the prior year, with a sequential decrease of $1.3 million [19] - The opportunity funnel is at an all-time high, indicating strong future demand once market conditions stabilize [18][29] Company Strategy and Development Direction - The company is focusing on market diversification, innovation, and regional manufacturing to mitigate the impacts of tariff volatility and global trade uncertainties [10][28] - Plans to begin manufacturing in Malaysia in the second half of 2025 are on track, which is expected to enhance competitiveness and reduce costs [29][30] - The Vision 02/1930 growth strategy aims to increase the share of new products in total sales from 17% to 25% in the coming years [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the current geopolitical tensions and trade policy volatility have created a challenging environment, impacting customer spending and order timing [28][30] - The company remains optimistic about long-term fundamentals and expects sequential improvement in revenue and profitability throughout the year, despite limited visibility in the short term [26][30] Other Important Information - The company generated $5.5 million in cash from operations during the quarter and reduced total debt by approximately $3.2 million [24] - Operating expenses for Q1 2025 were $13.9 million, up $1.3 million year-over-year, influenced by restructuring costs and increased expenses related to the Alphamation acquisition [21][22] Q&A Session Summary Question: When did visibility get cloudier for the second half? - Management noted that customer order slowdowns began mid-quarter, impacting guidance and leading to engineering challenges that delayed shipments [32][33] Question: What are the potential swing factors for revenue? - The semiconductor and auto markets are identified as the biggest potential swing factors, with a healthy pipeline of projects in both sectors [34][35] Question: What is the breakeven quarterly revenue level now? - The breakeven point is estimated to be around $30 million, with ongoing cost-cutting initiatives expected to bring this down slightly [36][37] Question: Can you quantify the customer pipeline? - While specific numbers were not provided, management indicated that the opportunity funnel is at a record high, reflecting robust quote activity and opportunities [49][50]

分组1 - InTest Corporation reported a quarterly loss of $0.11 per share, missing the Zacks Consensus Estimate of a loss of $0.08, and compared to earnings of $0.10 per share a year ago, representing an earnings surprise of -37.50% [1] - The company posted revenues of $26.64 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.11%, and down from $29.82 million year-over-year [2] - InTest shares have declined approximately 27.6% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $31.91 million, and for the current fiscal year, it is $0.39 on revenues of $130.15 million [7] - The Zacks Industry Rank for Electronics - Measuring Instruments is currently in the bottom 18% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

First Quarter 2025 Financial Results Conference Call Nick Grant, President and CEO Duncan Gilmour, CFO and Treasurer May 2, 2025 | NYSE American: INTT | 1 Forward-looking Statements and Key Performance Metrics NYSE American: INTT | 2 Non-GAAP Financial Measures In addition to disclosing results that are determined in accordance with generally accepted accounting practices in the United States ("GAAP"), we also disclose non- GAAP financial measures. These non-GAAP financial measures consist of adjusted net e ...