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]

Company Performance - InTest Corporation (INTT) reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, but down from $0.28 per share a year ago, representing an earnings surprise of 42.86% [1] - The company posted revenues of $30.27 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.18% and down from $32.66 million year-over-year [2] - Over the last four quarters, InTest has surpassed consensus EPS estimates three times but has topped consensus revenue estimates only once [2] Stock Performance - InTest shares have declined approximately 47.3% since the beginning of the year, contrasting with the S&P 500's gain of 19.6% [3] - The current Zacks Rank for InTest is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $33.63 million, and for the current fiscal year, it is $0.35 on revenues of $130.42 million [7] - The outlook for the Electronics - Measuring Instruments industry, where InTest operates, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

InTest Corporation (INTT) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -46.67%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of 25%. Over the last four quarters, the compa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 inTEST Corporation (Exact Name of Registrant as Specified in its Charter) Delaware (State or other jurisdiction of incorporation or organization) FORM 10-Q (Mark One) For the transition period from to ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commissio ...

InTest Corporation (INTT) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.16, delivering a surprise of 23.08%.Over the last four quarters, the company ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) Q1 2024 saw tempered semiconductor market conditions impacting sales and margins, with revenue at $29.8 million and net earnings of $0.7 million, while backlog reached a record $55.5 million [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Nick Grant noted Q1 results were impacted by a tempered semiconductor market, leading to sales decline and margin compression, despite a record backlog - First quarter results reflect **tempered semiconductor market conditions** from late 2023[3](index=3&type=chunk) - A sudden shift in order trends late in the quarter led to **delayed or reduced opportunities**, especially in front-end semiconductor projects[3](index=3&type=chunk) - The company holds a **record backlog of $55.5 million**, significantly boosted by **$22.8 million from the Alfamation acquisition**[3](index=3&type=chunk) - The **full-year outlook is moderated** due to an unexpected lower rate of orders in the quarter[3](index=3&type=chunk) [First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) inTEST reported Q1 2024 revenue of $29.8 million, a 6.6% decrease year-over-year but a 7.0% increase sequentially, with gross margin contracting to 43.8% and net earnings falling to $0.7 million Q1 2024 Financial Performance Summary | ($ in 000s, except per share data) | 3/31/2024 | 3/31/2023 | % Change (YoY) | 12/31/2023 | % Change (QoQ) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $29,824 | $31,919 | -6.6% | $27,884 | 7.0% | | **Gross profit** | $13,076 | $15,052 | -13.1% | $12,449 | 5.0% | | **Gross margin** | 43.8% | 47.2% | -340 bps | 44.6% | -80 bps | | **Operating income** | $492 | $3,518 | -86.0% | $1,109 | -55.6% | | **Net earnings** | **$662** | **$2,817** | -76.5% | $1,455 | -54.5% | | **Earnings per diluted share ("EPS")** | $0.05 | $0.25 | -80.0% | $0.12 | -58.3% | | **Adjusted EPS (Non-GAAP)** | $0.10 | $0.29 | -65.5% | $0.16 | -37.5% | | **Adjusted EBITDA (Non-GAAP)** | $1,811 | $4,826 | -62.5% | $2,418 | -25.1% | - The year-over-year revenue decline was driven by a **$2.7 million decrease in semiconductor market sales**, partially offset by a **$1.4 million contribution from Alfamation acquisition** and growth in industrial and defense/aerospace markets[5](index=5&type=chunk) - Gross margin contracted by **340 basis points YoY to 43.8%**, with the Alfamation acquisition being **dilutive by 100 basis points** due to the stub period of ownership[6](index=6&type=chunk) [Orders and Backlog](index=3&type=section&id=Orders%20and%20Backlog) First-quarter orders decreased 26% year-over-year to $22.8 million, primarily due to a 44% decline in semiconductor market orders, while backlog reached a record $55.5 million Q1 2024 Orders and Backlog Summary | ($ in 000s) | 3/31/2024 | 3/31/2023 | % Change (YoY) | 12/31/2023 | % Change (QoQ) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Orders** | $22,799 | $30,824 | -26.0% | $27,523 | -17.2% | | **Backlog (at quarter end)** | $55,481 | $45,705 | 21.4% | $40,130 | 38.3% | - The decline in Q1 orders reflects an **$8.1 million (44%) decrease in semiconductor market orders**, with approximately **$5 million in expected orders delayed or reduced** by customers[12](index=12&type=chunk) - Backlog at March 31, 2024, was **$55.5 million**, including **$22.8 million from the Alfamation acquisition**, with approximately 45% expected to ship beyond Q2 2024[13](index=13&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company ended Q1 with $27.3 million in cash, down from $45.3 million due to the Alfamation acquisition, while generating $2.1 million in cash from operations and holding $20.4 million in total debt - Cash and cash equivalents were **$27.3 million** at the end of Q1 2024, down from **$45.3 million** at the end of 2023, primarily due to **$19 million in cash used for the Alfamation acquisition**[8](index=8&type=chunk) - The company generated **$2.1 million in cash from operations** during the first quarter[8](index=8&type=chunk) - Total debt was **$20.4 million** at quarter-end, including approximately **$9.4 million assumed with the acquisition**, with **$30 million available** under its delayed draw term loan facility[9](index=9&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) The company has moderated its full-year 2024 outlook, with Q2 revenue projected between $34 million and $36 million, and full-year revenue now expected to be $140 million to $150 million [Second Quarter 2024 Guidance](index=3&type=section&id=Second%20Quarter%202024%20Guidance) For Q2 2024, inTEST projects revenue between $34 million and $36 million, with gross margin of 44% to 45%, and GAAP EPS ranging from $0.00 to $0.06 Q2 2024 Guidance | Metric | Expected Range | | :--- | :--- | | **Revenue** | $34 million to $36 million | | **Gross Margin** | 44% to 45% | | **Operating Expenses** | $14.5 million to $15 million | | **EPS (GAAP)** | $0.00 to $0.06 | | **Adjusted EPS (Non-GAAP)** | $0.10 to $0.16 | [Full Year 2024 Guidance](index=3&type=section&id=Full%20Year%202024%20Guidance) The company has moderated its full-year 2024 revenue guidance to $140 million to $150 million, down from previous estimates, with a slightly lowered gross margin forecast of 44% to 46% Full Year 2024 Guidance Comparison | Metric | Current Guidance | Previous Guidance | | :--- | :--- | :--- | | **Revenue** | $140M to $150M | $145M to $155M | | **Gross margin** | 44% to 46% | 45% to 46% | | **Operating expenses** | $56M to $58M | $57M to $59M | | **Effective tax rate** | 17% to 19% | 18% to 20% | [Detailed Financial Statements](index=7&type=section&id=Detailed%20Financial%20Statements) This section provides detailed financial statements, including the Consolidated Statements of Operations, Balance Sheets, and Cash Flows for Q1 2024 [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statement of Operations for Q1 2024 shows revenue of $29.8 million and net earnings of $662,000, resulting in a diluted EPS of $0.05, a significant decrease from Q1 2023 Consolidated Statements of Operations (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | **Revenue** | $29,824 | $31,919 | | Gross profit | 13,076 | 15,052 | | Operating income | 492 | 3,518 | | **Net earnings** | **$662** | **$2,817** | | Earnings per common share – diluted | $0.05 | $0.25 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $159.5 million and total liabilities were $60.2 million, reflecting significant increases in inventories, goodwill, and intangible assets due to the Alfamation acquisition Consolidated Balance Sheets Highlights (In thousands) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Current assets** | | | | Cash and cash equivalents | $27,331 | $45,260 | | Inventories | 31,331 | 20,089 | | **Total current assets** | **$85,389** | **$85,778** | | Goodwill | 33,278 | 21,728 | | Intangible assets, net | 28,819 | 16,596 | | **Total assets** | **$159,527** | **$134,829** | | **Total current liabilities** | $39,653 | $24,299 | | **Total liabilities** | **$60,210** | **$38,548** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2024, net cash provided by operating activities was $2.1 million, while net cash used in investing activities was $19.2 million, primarily due to the Alfamation acquisition payment Consolidated Statements of Cash Flows (In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | **Net cash provided by operating activities** | **$2,075** | **$2,484** | | Net cash used in investing activities | (19,244) | (334) | | Net cash used in financing activities | (874) | (853) | | **Net cash provided by (used in) all activities** | **(17,929)** | **1,368** | | Cash at beginning of period | 45,260 | 14,576 | | **Cash at end of period** | **$27,331** | **$15,944** | [Supplemental Data](index=11&type=section&id=Supplemental%20Data) This section provides supplemental data, including revenue and orders by market, segment data, and reconciliations of non-GAAP financial measures [Revenue and Orders by Market](index=11&type=section&id=Revenue%20and%20Orders%20by%20Market) In Q1 2024, the Semiconductor market contributed 50.2% of revenue but saw a 15.4% YoY decline, while Auto/EV experienced significant growth in both revenue (52.4%) and orders (97.7%) Q1 2024 Revenue by Market (In thousands) | Market | Revenue | % of Total | YoY % Change | | :--- | :--- | :--- | :--- | | Semi | $14,967 | 50.2% | -15.4% | | Industrial | $4,187 | 14.0% | 33.5% | | Auto/EV | $3,958 | 13.3% | 52.4% | | Defense/Aerospace | $3,239 | 10.9% | 14.1% | | Life Sciences | $653 | 2.2% | -56.8% | | Security | $541 | 1.8% | -44.0% | | Other | $2,279 | 7.6% | -28.4% | Q1 2024 Orders by Market (In thousands) | Market | Orders | % of Total | YoY % Change | | :--- | :--- | :--- | :--- | | Semi | $10,253 | 45.0% | -44.1% | | Auto/EV | $4,041 | 17.7% | 97.7% | | Industrial | $3,093 | 13.5% | -25.3% | | Defense/Aerospace | $2,684 | 11.8% | 35.8% | | Life Sciences | $698 | 3.1% | -63.9% | | Security | $40 | 0.2% | -81.1% | | Other | $1,990 | 8.7% | -8.2% | [Segment Data](index=12&type=section&id=Segment%20Data) In Q1 2024, Process Technologies was the largest revenue contributor at $11.9 million, followed by Electronic Test at $11.1 million, with all three segments experiencing a decline in division operating income year-over-year Q1 2024 Segment Data (In thousands) | Segment | Revenue 2024 | Revenue 2023 | Division Operating Income 2024 | Division Operating Income 2023 | | :--- | :--- | :--- | :--- | :--- | | Electronic Test | $11,116 | $10,371 | $1,813 | $2,578 | | Environmental Technologies | $6,828 | $8,042 | $15 | $1,013 | | Process Technologies | $11,880 | $13,506 | $1,961 | $2,676 | [Reconciliation of Non-GAAP Financial Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP financial measures, showing adjusted net earnings of $1.2 million and adjusted EBITDA of $1.8 million for Q1 2024 Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) (In thousands) | | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Net earnings | $662 | $2,817 | | Acquired intangible amortization | 595 | 544 | | Tax adjustments | (95) | (92) | | **Adjusted net earnings (Non-GAAP)** | **$1,162** | **$3,269** | Reconciliation of Net Earnings to Adjusted EBITDA (Non-GAAP) (In thousands) | | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Net earnings | $662 | $2,817 | | Acquired intangible amortization | 595 | 544 | | Net interest expense (income) | (193) | 169 | | Income tax expense | 125 | 577 | | Depreciation | 273 | 245 | | Non-cash stock-based compensation | 349 | 474 | | **Adjusted EBITDA (Non-GAAP)** | **$1,811** | **$4,826** |

Financial Data and Key Metrics Changes - Revenue for the full year reached a record $123.3 million, up 6% or $6.5 million compared to the previous year, driven by increases in defense/aerospace and industrial markets [39][54] - Gross profit for the year increased 7% to $57 million, with a gross margin expansion of 50 basis points to 46.2% [5] - Fourth quarter revenue was down $4.5 million year-over-year and $3.1 million sequentially, primarily due to softness in the semi market [39][60] - Net income for the year was $9.3 million, the highest level in over a decade, with adjusted earnings per diluted share at $0.94 compared to $0.99 in 2022 [54][59] Business Line Data and Key Metrics Changes - Fourth quarter sales in the defense/aero market increased by 11%, with orders improving by 70% compared to the third quarter [2] - The industrial market saw sales growth of $3.7 million in the fourth quarter, driven by strong demand for innovative products [55] - The auto/EV market experienced a $1.2 million increase in sales, supported by the Environmental Technologies division [36] Market Data and Key Metrics Changes - Combined semi orders were down 10% year-over-year but improved sequentially by 3% to $13.3 million [41] - The backlog at year-end was $40.1 million, 14% lower than the prior year [41] - Non-semi markets combined share of revenue increased from around 35% in 2021 to 47% in 2023 [56] Company Strategy and Development Direction - The company is focused on diversifying its revenue streams and strengthening its presence in key target markets outside of semiconductors [56] - The acquisition of Alfamation is seen as a strategic fit to deepen the company's presence in auto/EV and life sciences markets [43] - The company aims to achieve a revenue goal of $200 million to $250 million by 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand in defense/aero and industrial markets, indicating a positive outlook for 2024 [2][10] - The company expects 2024 revenue to range from $145 million to $155 million, with a gross margin of approximately 45% to 46% [61] - Management acknowledged the challenges in the semi market but highlighted the resilience and stabilization in orders [66] Other Important Information - The company ended 2023 with $85 million in liquidity, including $45.3 million in cash [31] - Operating expenses for 2023 were up $3.8 million over 2022, driven primarily by higher corporate development expenses [30] - The effective tax rate is expected to be between 16% and 17% for the first quarter of 2024 [32] Q&A Session Summary Question: What have you seen from an order pattern perspective in Q1? - Management noted that orders were up sequentially in Q4 and anticipated that this trend would continue into Q1 [11][66] Question: Are there particular industrial markets that are more important than others? - Management highlighted the green initiative and induction heating solutions as key drivers in the industrial market [17][50] Question: What is the outlook for the security business given the drop in orders? - Management indicated that the drop was due to timing of orders and not a fundamental issue with demand [51][74] Question: Can you provide a timeline for the deferred revenue on the balance sheet? - Management estimated that about 40% of the deferred revenue would be recognized within 12 months, with the remainder beyond that [70]