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]

Revenue Performance - The company reported total revenue of $30,272 million for the three months ended September 30, 2024, a decrease of 2.2% compared to $30,941 million in the same period of 2023[166]. - Revenue from the semiconductor market was $11,410 million, representing a significant decline of 38.2% from $18,476 million in the prior year[166]. - The automotive/electric vehicle segment saw a remarkable increase in revenue to $6,250 million, up 252.1% from $1,775 million year-over-year[166]. - The industrial segment revenue increased by 43.9% to $3,534 million compared to $2,456 million in the same quarter last year[166]. - Life sciences revenue remained relatively stable at $1,322 million, a slight decrease of 0.6% from $1,330 million in the previous year[166]. - Consolidated revenue for the nine months ended September 30, 2024, was $94.1 million, a decrease of $1.3 million compared to $95.4 million for the same period in 2023[168]. - Revenue for Q3 2024 was $30.3 million, a decrease of 2% from $30.9 million in Q3 2023, with $5.4 million attributed to the acquisition of Alfamation[182]. - Revenue for the nine months ended September 30, 2024 was $94.1 million, a decrease of 1% from $95.4 million in the same period in 2023, with Alfamation contributing $16.5 million[188]. Acquisitions and Market Strategy - The company completed the acquisition of Alfamation for approximately $21.9 million, which includes $19.7 million in cash and $2.1 million in stock[164]. - The acquisition of Alfamation is expected to enhance the company's capabilities in the automotive and life sciences markets[164]. - The company aims to diversify its market presence beyond the semiconductor automated test equipment market to reduce dependence on cyclical market trends[156]. - The company is focused on expanding its presence in key target markets such as automotive, defense/aerospace, industrial, life sciences, and security, which are generally less cyclical than the semiconductor market[162]. - The company is pursuing acquisition opportunities for complementary businesses, technologies, or products as part of its growth strategy[206]. - During the nine months ended September 30, 2024, the company paid $18.7 million in net cash for the acquisition of Alfamation[208]. Orders and Backlog - Orders for the nine months ended September 30, 2024, totaled $77.0 million, down from $89.1 million in the same period in 2023, with a significant decline in the semi market orders[173]. - Backlog of unfilled orders as of September 30, 2024, was approximately $45.5 million, an increase from $40.5 million at the same time in 2023[175]. - Alfamation contributed $5.4 million in revenue for Q3 2024 and $16.5 million from the date of acquisition through September 30, 2024, primarily from the auto/EV market[168]. - Orders from the auto/EV market increased by 90.0% to $15.9 million for the nine months ended September 30, 2024, compared to $8.4 million in the same period in 2023[173]. Supply Chain and Operational Challenges - The company is facing supply chain challenges due to geopolitical conflicts, including the Israel-Hamas war and the war in Ukraine, which may impact future operations[176][177]. - The company maintains a safety stock of two-to-three months for critical components sourced from a sole supplier in Israel[176]. - The company is actively qualifying alternate suppliers to mitigate supply chain risks and expects to complete evaluations by Q1 2025[177]. Financial Metrics and Expenses - Gross margin for Q3 2024 was 46%, down from 47% in Q3 2023, primarily due to higher fixed operating costs and increased direct labor from Alfamation[183]. - Engineering and product development expense increased by 21% to $2.2 million in Q3 2024, reflecting additional costs from Alfamation[185]. - General and administrative expense rose by 20% to $7.1 million in Q3 2024, with Alfamation accounting for approximately $1.7 million of this expense[186]. - Gross margin for the nine months ended September 30, 2024 was 44%, down from 47% in the same period in 2023, due to higher fixed operating costs and direct labor from Alfamation[189]. - General and administrative expense for the nine months ended September 30, 2024 increased by 26% to $20.2 million, with Alfamation contributing approximately $3.8 million[192]. Cash and Debt Management - As of September 30, 2024, cash and cash equivalents were $17.97 million, down from $45.26 million at December 31, 2023[204]. - The company anticipates that cash and cash equivalents, along with borrowing capacity under the Revolving Facility, will be sufficient to support short-term working capital requirements[205]. - The company repaid $5.5 million of long-term debt and $1.9 million of short-term debt during the nine months ended September 30, 2024[209]. - The company used $1.0 million to repurchase stock in the same period[209]. Accounting and Reporting - There have been no significant changes to the critical accounting estimates as of September 30, 2024[210]. - No off-balance sheet arrangements were reported during the three months ended September 30, 2024[211].

Core Viewpoint - inTest Corporation (INTT) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock valuation [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][5]. Recent Developments for inTest - inTest is projected to earn $0.41 per share for the fiscal year ending December 2024, representing a year-over-year decline of 56.4%. However, analysts have raised their estimates by 17.1% over the past three months, indicating a positive trend [8]. - The upgrade to Zacks Rank 1 places inTest in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988, demonstrating the effectiveness of this rating system [7][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 [1][5]. Company Summary - inTest (INTT) currently holds a Zacks Rank of 1 (Strong Buy) and has a Value grade of A, indicating strong potential for value investors [3]. - The stock is trading at a P/E ratio of 20.51, which is lower than the industry average of 21.51, suggesting it may be undervalued [3]. - INTT's Forward P/E has fluctuated between 8.14 and 21.66 over the past year, with a median of 13.24, indicating variability in its valuation [3]. - The P/CF ratio for INTT is 8.92, significantly lower than the industry average of 20.67, further supporting the notion that INTT is undervalued based on its cash flow outlook [4]. - INTT's P/CF has ranged from 6.66 to 12.40 in the past year, with a median of 8.76, reflecting its stable cash flow performance [4]. - Overall, the financial metrics suggest that inTest is likely undervalued and stands out as one of the strongest value stocks in the market [5].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify suitable candidates [3] Group 2: InTest Corporation (INTT) Analysis - InTest Corporation (INTT) has shown a price increase of 4.1% over the past four weeks, indicating growing investor interest [4] - The stock has gained 4.9% over the past 12 weeks and has a beta of 1.92, suggesting it moves significantly more than the market [5] - INTT has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - INTT has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.75, suggesting it is undervalued as investors pay only 75 cents for each dollar of sales [7] Group 4: 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]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $30 million, a decrease of $0.7 million compared to Q3 2023, primarily due to a $7.1 million decline in semiconductor sales, partially offset by $4.5 million growth in automotive EV and improved sales in industrial markets [17][18] - Gross margin improved to 46.3%, a sequential increase of 570 basis points, driven by a favorable product mix and cost actions [19][12] - Net earnings for the quarter were $495,000, or $0.04 per diluted share, while adjusted net earnings were $1.2 million, or $0.10 per diluted share [20] Business Line Data and Key Metrics Changes - Alfamation contributed $5.4 million in revenue during the quarter, with strong demand in automotive EV, defense aerospace, and industrial markets [10][13] - Orders in Q3 were $28 million, including $3.9 million from Alfamation, with back-end semiconductor orders showing sequential growth for the third consecutive quarter [13][14] - Backlog improved by $5 million year-over-year, reflecting the contribution from Alfamation, although it declined sequentially as backlog was worked down [15] Market Data and Key Metrics Changes - The automotive and life sciences markets showed strength, helping to offset weakness in the semiconductor sector [8] - The front-end semiconductor market is currently paused, while back-end semiconductor demand is gradually improving [30][48] Company Strategy and Development Direction - The company is focused on innovation and optimizing its go-to-market strategy, including adding or upgrading channel partners [31][34] - The integration of Alfamation is progressing well, with efforts to drive product and technology synergies [9] - The company is evaluating acquisitions to enhance existing technologies and capture value from its solutions [37] Management's Comments on Operating Environment and Future Outlook - Management noted signs of stability in targeted industries, with an increased order pipeline and expectations for CapEx projects to rise in 2025 [29] - The company anticipates revenue for 2024 to range from $128 million to $131 million, with gross margins expected to be approximately 42% to 43% [25][26] - Management expressed optimism about the evolving gallium nitride opportunity and the potential for new product developments in the automotive sector [30][50] Other Important Information - The company reduced headcount by 10% in its base businesses since the beginning of 2024, aligning its cost structure with current market conditions [12][44] - Cash and equivalents at the end of Q3 were $18 million, with total debt of $16.1 million [24] Q&A Session Summary Question: Order pushouts concentration - Management indicated that the $2 million in shipment delays were primarily related to front-end semiconductor orders, accommodating customer needs [39] Question: Front-end semiconductor market visibility - Management expects additional deliveries in the second half of 2025 based on customer feedback, though this timeline may change [40] Question: Gross margin sustainability - Management noted that while a portion of the gross margin improvement is due to cost actions, the majority is driven by a favorable product mix [41] Question: Definition of base businesses - Base businesses refer to all companies outside of Alfamation, with the 10% headcount reduction weighted towards those experiencing downturns [44] Question: Back-end market strength - Management observed gradual improvement in back-end semiconductor orders, with increasing requests for quotes and upcoming CapEx projects [48] Question: Alfamation's revenue growth cycles - Management expressed optimism about Alfamation's pipeline, particularly in automotive, as the industry shifts towards centralized computing systems [50]