Financial Performance - InTest reported $26.6 million in revenue for Q1 2025, a decrease of 10.7% year-over-year[6] - The net loss for Q1 2025 was $2.3 million, or $(0.19) per diluted share, compared to a net income of $0.7 million in Q1 2024[10] - Revenue for Q1 2025 was $26,637 thousand, down 10.3% from $29,824 thousand in Q1 2024[35] - Total revenue for the three months ended March 31, 2025, was $26,637,000, a decrease of 10.7% compared to $29,824,000 for the same period in 2024[41] - The Semiconductor segment generated $8,995,000 in revenue, down 39.9% from $14,967,000 in the prior year[41] - Life Sciences revenue increased significantly by 158.5% to $1,688,000 from $653,000 year-over-year[41] - Adjusted net loss for the three months ended March 31, 2025, was $1,389,000 compared to adjusted net earnings of $1,162,000 in the same period last year[47] - The company reported a net loss of $2,329,000 for the three months ended March 31, 2025, compared to net earnings of $662,000 in the prior year[47] - Adjusted EBITDA for the three months ended March 31, 2025, was $(887,000), a decrease from $1,811,000 in the same period last year[47] - The net margin for the three months ended March 31, 2025, was (8.7%), compared to a positive margin of 2.2% in the prior year[47] Orders and Backlog - Orders for the quarter totaled $25.3 million, reflecting an 11.2% increase year-over-year but a 17.3% decline sequentially[14] - The backlog at the end of Q1 2025 was $38.2 million, down 31.1% from the previous year[14] - Total orders for the three months ended March 31, 2025, were $25,349,000, an increase of 11.2% compared to $22,799,000 in the same period last year[43] - The Auto/EV segment saw orders rise by 25.2% to $5,061,000 from $4,041,000 year-over-year[43] Margins and Expenses - Gross margin for the quarter was 41.5%, down 230 basis points compared to the prior year[8] - Operating expenses for Q1 2025 were $13.9 million, an increase of 10.8% year-over-year[9] - Total operating expenses increased to $13,937 thousand in Q1 2025, up 10.8% from $12,584 thousand in Q1 2024[35] - The company incurred restructuring costs of $313,000 during the three months ended March 31, 2025[45] Cash Flow and Debt - Cash generated from operations was $5.5 million, with total debt reduced by $3.2 million to $11.8 million[11] - Cash and cash equivalents at the end of Q1 2025 were $22,048 thousand, an increase from $19,830 thousand at the end of 2024[37] - The company reported a net cash provided by operating activities of $5,535 thousand in Q1 2025, compared to $2,075 thousand in Q1 2024, showing improved operational cash flow[39] - Current liabilities decreased slightly to $31,327 thousand in Q1 2025 from $31,948 thousand at the end of 2024[37] Future Outlook and Strategy - The company expects Q2 2025 revenue to be between $27 million and $29 million, with a gross margin of approximately 42%[18] - The company is focused on cost management and plans to begin manufacturing in Malaysia in the second half of 2025[3] - The company is focusing on its VISION 2030 Growth Strategy, which includes market expansion and potential acquisitions[32] - Management emphasizes the importance of tracking orders and backlog as leading indicators of future performance, although specific figures were not provided[28]

Financial Performance - As of December 31, 2024, the backlog of unfilled orders was $39.5 million, a slight decrease from $40.1 million at the same date in 2023[118] - The company spent approximately $8.5 million on engineering and product development in 2024, compared to $7.6 million in 2023, reflecting a 11.8% increase[106] Workforce and Employment - The company employed around 100 engineers in engineering and product development as of December 31, 2024[105] - The company has a total of 425 employees, with 393 being full-time, as of December 31, 2024[120] Intellectual Property - At December 31, 2024, the company held 21 active U.S. patents, with 9 patents expiring during 2024[112] - The company is committed to protecting its intellectual property through patents and other proprietary rights[107] Quality Assurance - The company has ISO 9001:2015 certification for its Massachusetts, New York, and Canada facilities, ensuring compliance with quality standards[103] - The company utilizes sophisticated measurement equipment for inspections to ensure product quality[102] Manufacturing Operations - The company’s manufacturing operations are located in the U.S., Italy, Canada, Germany, and the Netherlands, focusing on high-quality raw materials and components[101] Competition - The company’s principal competitors include Advantest Corporation and Teradyne, Inc., among others, in various product segments[115][116]

Financial Data and Key Metrics Changes - Record fourth quarter revenue of $36.6 million and full-year revenue of $130.7 million, marking the third consecutive year of record revenue [9][10] - Full-year sales growth of 6% driven by a $25 million contribution from the AlfaMation acquisition, offsetting a 26% decline in the semiconductor sector [10][11] - Gross profit for Q4 was $14.5 million, with a gross margin of 39.7%, reflecting a 430 basis point contraction sequentially and 490 basis points year over year [22][23] Business Line Data and Key Metrics Changes - Revenue growth in auto EV driven by advanced testing technologies from AlfaMation, with a notable increase in demand for battery pack testing [11][19] - Life sciences orders more than doubled to a record $2.3 million, reflecting strong demand for induction heating solutions [16][19] - Industrial sales decreased by $3.7 million due to market softness and project timing [20] Market Data and Key Metrics Changes - Fourth quarter orders increased by 11% year over year, with significant growth in life sciences and auto EV markets [15][16] - Backlog at the end of 2024 was $39.5 million, down $600,000 from the prior year period and down $6 million sequentially [17] Company Strategy and Development Direction - The company is focused on diversifying its market and customer base, with a strategy to evolve into a more diversified test and process technology solutions business [10][39] - Plans to consolidate the Videology Netherlands facility into the Mansfield, Massachusetts location to streamline operations and reduce costs [37] - The company aims to achieve long-term goals outlined in Vision 2030, with a target of reaching over $200 million in revenue by 2027 [78] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for 2025, expecting full-year revenue between $125 million to $135 million, with gradual profitability improvements [29][31] - The uncertainty related to tariffs and customer spending is being closely monitored, with expectations of passing cost increases onto customers if necessary [34][36] - The front-end semiconductor market is expected to remain paused throughout the year, while back-end applications are anticipated to improve [39] Other Important Information - The company generated $2.6 million of operating cash during the quarter, with total debt of $15 million and cash and equivalents of $19.8 million at the end of Q4 [27][28] - A renewed stock repurchase plan was announced, reflecting confidence in long-term value creation [41] Q&A Session Summary Question: Are there any cancellations in the pipeline? - Management indicated that there are no cancellations, only timing issues with some customers changing products [46] Question: Was the strong performance in life sciences driven by a few customers or broad-based? - The strong orders were driven by broad-based demand for induction heating solutions [48] Question: What is the outlook for revenue guidance? - The higher end of the revenue guidance is expected to be driven by backlog deliveries in the second half of the year, with gradual improvements anticipated [50][51] Question: Can you provide more detail on the cadence of revenue by end market for 2025? - Management expects stronger performance in the second half of 2025, particularly in back-end markets, while the auto sector remains uncertain [56][58] Question: What is the status of the M&A pipeline? - The company remains active in the M&A market, looking for strategic opportunities while being cautious about valuations [61][62] Question: Will the aspirational 2027 revenue target be discussed in the upcoming investor day? - Management confirmed that they will discuss the 2027 target and their belief in achieving it during the investor day [78]

Financial Data and Key Metrics Changes - The company reported record fourth quarter revenue of $36.6 million and full-year revenue of $130.7 million, marking the third consecutive year of record revenue [9][10] - Full-year sales growth was 6%, driven by a $25 million contribution from the AlfaMation acquisition and strong demand in various markets, despite a 26% decline in the semiconductor sector [10][11] - Gross profit for the fourth quarter was $14.5 million, with a gross margin of 39.7%, reflecting a sequential contraction of 660 basis points and a year-over-year contraction of 490 basis points [22][23] Business Line Data and Key Metrics Changes - Revenue growth in the auto EV sector was driven by advanced testing technologies acquired from AlfaMation, contributing $7.9 million in growth [19][11] - Defense aerospace revenue increased by $2.7 million, while semi revenue improved by $1.5 million, offsetting a $3.7 million decline in industrial sales [19][20] - Life sciences orders more than doubled to a record $2.3 million, reflecting strong demand for induction heating solutions [16][19] Market Data and Key Metrics Changes - Orders for the fourth quarter increased by 11% year-over-year, with significant growth in life sciences and a $2.4 million increase in overall semi orders [15][16] - Backlog at the end of 2024 was $39.5 million, down $600,000 from the prior year and $6 million sequentially, influenced by the timing of AlfaMation shipments [17][18] - Demand in the auto EV market showed signs of slowing, reflecting continued softness in the end market [16] Company Strategy and Development Direction - The company aims to evolve into a more diversified test and process technology solutions business, focusing on innovation and market diversification [10][11] - Plans to consolidate the Videology Netherlands facility into the Mansfield, Massachusetts location to streamline operations and reduce costs [37] - The company is actively exploring M&A opportunities while maintaining a cautious approach due to market uncertainties [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for 2025, expecting full-year revenue between $125 million and $135 million, with gradual profitability improvements [29][30] - The uncertainty related to tariffs and customer investment delays is impacting the business environment, particularly in the semiconductor sector [33][34] - The company remains confident in its competitive position and innovation strategy, aiming to achieve long-term growth targets [78][80] Other Important Information - The company generated $2.6 million in operating cash during the quarter, with total debt of $15 million and cash and equivalents of $19.8 million at the end of the quarter [27][28] - A stock repurchase plan was renewed, reflecting confidence in long-term value creation [41] Q&A Session Summary Question: Are there any cancellations in the pipeline? - Management indicated that there are no cancellations, only timing issues with some customers changing product types [46] Question: Was the strong life sciences business driven by a few customers or broad-based? - The strong orders were driven by broad demand for induction heating solutions across multiple customers [48] Question: What is the outlook for revenue guidance? - The high end of the revenue guidance is expected to be driven by backlog deliveries in the second half of the year, with gradual improvements anticipated [50][51] Question: Can you provide more detail on the revenue cadence for 2025? - Management expects stronger performance in the second half of 2025, particularly in the back end market, while other markets remain uncertain [56][58] Question: What is the status of the M&A pipeline? - The company remains active in the M&A market, looking for strategic opportunities while being cautious about valuations [61][62] Question: Will the 2027 growth targets be discussed in the upcoming investor day? - Management confirmed that the 2027 targets will be discussed, and they remain committed to achieving those goals despite current market challenges [78]

Group 1: Earnings Performance - InTest Corporation (INTT) reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and up from $0.16 per share a year ago, representing an earnings surprise of 64.29% [1] - The company posted revenues of $36.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.70%, compared to year-ago revenues of $27.88 million [2] Group 2: Stock Performance and Outlook - InTest shares have declined approximately 5.5% since the beginning of the year, while the S&P 500 has decreased by 2.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $31.1 million, and for the current fiscal year, it is $0.40 on revenues of $134.91 million [7] Group 3: Industry Context - The Electronics - Measuring Instruments industry, to which InTest belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Fourth quarter 2024 revenue reached $36.6 million, a 31.3% increase year-over-year[4] - Operating income for the fourth quarter grew 87.5% to $2.1 million, representing 5.7% of sales[4] - Net earnings increased 3.4% to $1.5 million, with adjusted net earnings rising 45.7% to $2.8 million[4] - Gross margin for the fourth quarter was 39.7%, impacted by a 430 basis point reduction due to a one-time inventory step-up expense[4] - Total revenue for 2024 was $130.7 million, a 6.0% increase from 2023, with Alfamation contributing $25.0 million[13] - Revenue for the fourth quarter of 2024 increased by 31% year-over-year, reaching $36,603,000 compared to $27,884,000 in the fourth quarter of 2023[50] - Adjusted net earnings for the fourth quarter of 2024 were $2,782,000, up from $1,910,000 in the fourth quarter of 2023[55] - Earnings per diluted share for the fourth quarter of 2024 were $0.23, compared to $0.16 in the same quarter of the previous year[55] - Total revenue for the year ended December 31, 2024, was $130,690 million, compared to $123,302 million in 2023[56] Orders and Backlog - Orders improved 11% year-over-year to $30.7 million, with backend semi orders up 18% year-over-year[4] - Fourth quarter 2024 orders reached $30.7 million, an increase of 11% year-over-year and 9% sequentially[17] - Backlog at December 31, 2024, was $39.5 million, with approximately 50% expected to ship beyond Q1 2025[18] - Total orders for the year ended December 31, 2024, were $107,704,000, a decrease of 7.7% from $116,632,000 in 2023[49] - The Semiconductor segment saw orders of $44,574,000 for the year, representing a 24.8% decline from $59,297,000 in 2023[49] - The Auto/EV segment experienced significant growth, with orders increasing by 90.2% to $19,390,000 from $10,193,000 year-over-year[49] Cash Flow and Debt - The company generated $3.8 million in cash from operations in 2024 and paid down $7.8 million in debt[4] - Cash and cash equivalents at the end of Q4 2024 were $19.8 million, with total debt reduced to $15.0 million[15] - The company’s cash and cash equivalents decreased to $19.8 million at the end of 2024, down from $45.3 million at the end of 2023[41] - The company reported a net cash provided by operating activities of $3.8 million for 2024, a decrease from $16.2 million in 2023[44] Market Segments - Alfamation contributed $8.5 million in revenue during the fourth quarter, primarily from the automotive/EV market[10] - inTEST's revenue from the Auto/EV market skyrocketed by 199.6% year-over-year, reaching $11.9 million in Q4 2024[47] - The Defense/Aerospace segment also saw significant growth, with revenue increasing by 113.5% to $5.2 million in Q4 2024[47] - The Environmental Technologies segment generated revenue of $7,063,000 in Q4 2024, slightly up from $7,623,000 in Q4 2023[51] Strategic Initiatives - The company plans to consolidate operations in the Netherlands, expecting $0.6 million in restructuring costs and $0.5 million in annualized savings starting in 2026[5] - Capital expenditures for 2025 are planned to be approximately 1% to 2% of revenue[19] - The effective tax rate for 2025 is expected to be around 18%[19] - The company made a strategic acquisition in 2024, resulting in a net cash payment of $18.7 million[44] Financial Ratios and Metrics - Adjusted EBITDA for Q4 2024 was $4,412 million, with an adjusted EBITDA margin of 12.1%[56] - Net earnings for the year ended December 31, 2024, were $2,891 million, with a net margin of 2.2%[56] - Adjusted EBITDA for the year ended December 31, 2024, was $10,818 million, down from $15,807 million in 2023[56] - Income tax expense for Q4 2024 was $298 million, compared to $111 million in Q4 2023[56] - Stock-based compensation for the year ended December 31, 2024, was $1,857 million, down from $2,047 million in 2023[56] - Net interest expense for Q4 2024 was $109 million, compared to a net interest income of $(340) million in Q3 2024[56]

Core Insights - Prodigy USA LLC has formed a strategic partnership with inTEST Environmental Technologies to distribute iTS Thermonics® Ultra-Low Temperature and Cryogenic Chillers for cannabinoid-related applications in various industries [1][2][3] Group 1: Partnership Overview - The collaboration combines Prodigy's ultra-cold cannabis oil extraction systems, which operate at temperatures as low as -300°F, with iTS Thermonics® technology that provides cooling solutions at -80°C to sub -100°C [2][3] - This partnership eliminates the need for winterization in cannabis and hemp processing, resulting in time and cost savings while maximizing yields and throughput [3][4] Group 2: Industry Impact - The partnership is expected to drive innovation in cannabis and hemp processing, setting new benchmarks for temperature control in biomedical and pharmaceutical applications [5] - Both companies emphasize their commitment to delivering sustainable, efficient, and reliable solutions that empower customers to achieve optimal results [5] Group 3: Company Profiles - Prodigy Processing Solutions is recognized as a leading provider of life science equipment for the cannabis and hemp extraction and processing industries, focusing on cutting-edge engineering and customer service [6] - inTEST Environmental Technologies specializes in high-performance thermal management equipment, with a product line that includes precision temperature control solutions for various applications [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, which can be identified using the Zacks Momentum Style Score [3] Group 2: InTest Corporation (INTT) Analysis - InTest Corporation (INTT) has shown a four-week price change of 2.6%, indicating growing investor interest [4] - The stock has gained 14.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - INTT has a beta of 1.89, suggesting it moves 89% higher than the market in either direction, indicating fast-paced momentum [5] - INTT has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - INTT is trading at a Price-to-Sales ratio of 0.79, indicating it is reasonably valued at 79 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides INTT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: InTest Corporation (INTT) Analysis - InTest Corporation (INTT) has shown a four-week price change of 5%, indicating growing investor interest [4] - The stock has gained 6.6% over the past 12 weeks, with a beta of 1.92, suggesting it moves significantly more than the market [5] - INTT has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [7] - INTT is trading at a Price-to-Sales ratio of 0.77, suggesting it is undervalued at present [7] Group 3: Additional Investment Opportunities - Besides INTT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - The article emphasizes the importance of value investing and highlights inTest (INTT) as a strong value stock based on its financial metrics and Zacks Rank [2][4][6] Company Summary - inTest (INTT) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is trading with a P/E ratio of 18.55, which is lower than the industry average of 22.60, suggesting it may be undervalued [4] - Over the past 52 weeks, INTT's Forward P/E has fluctuated between a high of 22.71 and a low of 8.14, with a median of 13.52 [4] - inTest has a P/CF ratio of 8.80, significantly lower than the industry average of 20.60, indicating strong cash flow relative to its valuation [5] - The P/CF ratio for INTT has ranged from a high of 12.40 to a low of 6.66 over the past year, with a median of 8.72 [5] - These metrics suggest that inTest is likely undervalued, making it an attractive option for value investors [6]