inTEST (INTT) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 2025 Highlights 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][13] - Revenue increased 6% sequentially to $28.1 million[4] - Total debt was further reduced by $1.7 million from March 31, 2025[4][11] - Operating loss narrowed to $0.9 million and net loss to $0.5 million; Adjusted EBITDA was $1.3 million[4] CEO Commentary President and CEO Nick Grant highlighted the company's focus on executing its VISION 2030 Growth Strategy, driving innovation, market diversification, and geographic expansion amidst global economic uncertainties. He noted traction from new products, customer additions, and a record-high funnel of opportunities - The company remained focused on executing its VISION 2030 Growth Strategy, driving innovation, market diversification, and geographic expansion[3] - Recently introduced products continued to gain traction, new customers were added, and the channel network expanded[3] - Orders improved over both the prior year and trailing quarters, reflecting renewed purchasing among automotive customers, with Alfamation achieving its highest level of orders since joining InTest[3] - InTest's funnel of opportunities increased to a new all-time high, reinforcing confidence in target market fundamentals[3] Financial Performance Review Consolidated Financial Highlights The second quarter of 2025 saw sequential revenue growth and improved gross margin, though year-over-year comparisons showed declines in revenue and net earnings, with adjusted non-GAAP metrics reflecting a similar trend Three Months Ended June 30, 2025 vs. Prior Periods (in thousands) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | 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 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] - 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] - 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][9] Operating Expenses and Net Loss 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] - Net loss for Q2 2025 was $0.5 million, or $(0.04) per diluted share[10] - Adjusted net earnings (Non-GAAP) were $0.4 million, or $0.03 adjusted EPS (Non-GAAP)[10] Balance Sheet and Cash Flow Balance Sheet Overview 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] - Total debt was reduced by $1.7 million from March 31, 2025, to $10.1 million[11] - 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] - 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] Cash Flow Activities 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] - Capital expenditures were $0.5 million in the second quarter of 2025[11] Orders and Backlog Orders Performance 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] - 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] - 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] Backlog Status 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] - Approximately 50% of the backlog is expected to ship beyond the third quarter of 2025[14] Business Outlook Third Quarter 2025 Guidance 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] - Gross margin is expected to be similar to the second quarter[15] - 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] Strategic Vision 2030 Progress 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] - Encouraged by wins in auto/EV, life sciences, and defense/aerospace[15] - Visibility remains limited amid persistently weak market conditions for capital investment, most notably in the digital/analog semi industry[15] - The company still expects to deliver growth quarter over quarter in 2025, albeit at a slower pace than originally anticipated[15] Company Information & Disclosures About InTest Corporation 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] - Key target markets include semiconductor (front-end and back-end), automotive/EV, defense/aerospace, industrial, life sciences, and safety/security[21] - 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] Non-GAAP Financial Measures 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] - 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] - 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] 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 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][26] - Backlog is calculated based on firm purchase orders for which revenue has not yet been recognized[26] - Management uses orders and backlog as key performance metrics and leading indicators of future performance[27] Forward-Looking Statements 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] - 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] Financial Statements Consolidated Statements of Operations 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 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 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 | $— | $2,086 | | Issuance of unvested shares of restricted stock awards | 1,039 | 1,580 | | Forfeiture of shares of unvested restricted stock awards | (557) | (138) | Revenue by Market This table provides a detailed breakdown of InTest Corporation's revenue across various market segments for the three months ended June 30, 2025, compared to prior periods, highlighting changes in contribution from each market Revenue by Market (Unaudited, in thousands) | ($ 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% | $1,493 | 5.6% | Orders by Market This table presents the breakdown of orders received by InTest Corporation across various market segments for the three months ended June 30, 2025, showing year-over-year and sequential changes Orders by Market (Unaudited, in thousands) | ($ 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% | $2,410 | 9.5% | Segment Data This section provides a detailed financial breakdown by InTest Corporation's operating segments: Electronic Test, Environmental Technologies, and Process Technologies, along with Corporate & Other, for the three and six months ended June 30, 2025 and 2024 Segment Data - Three Months Ended June 30, 2025 (Unaudited, in thousands) | ($ 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 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%) |