inTEST (US:INTT)2022-11-14 12:45Orders and Revenue Growth - Total consolidated orders for Q3 2022 were $32.7 million, a 55% increase from $21.1 million in Q3 2021[164]. - For the nine months ended September 30, 2022, total orders reached $98.3 million, up 37% from $71.5 million in the same period of 2021[164]. - The Electronic Test segment generated $11.3 million in orders for Q3 2022, a 52% increase from $7.4 million in Q3 2021[161]. - The Process Technologies segment saw a significant 82% increase in orders, totaling $12.4 million in Q3 2022 compared to $6.8 million in Q3 2021[161]. - The Environmental Technologies segment reported orders of $9.0 million in Q3 2022, a 30% increase from $6.9 million in Q3 2021[161]. - The acquired businesses contributed $4.5 million, or 14% of total orders, in Q3 2022[164]. - The semiconductor market accounted for $19.2 million in orders for Q3 2022, a 44% increase from $13.4 million in Q3 2021[161]. - Life Sciences orders surged 375% to $927,000 in Q3 2022 from $195,000 in Q3 2021[161]. - Defense/Aerospace orders increased by 168% to $3.1 million in Q3 2022 compared to $1.2 million in Q3 2021[161]. - Total revenue for the three months ended September 30, 2022, was $30.8 million, an increase of $9.6 million or 46% compared to $21.1 million for the same period in 2021[177]. - Total revenue for the nine months ended September 30, 2022, was $84.4 million, reflecting an increase of $21.9 million or 35% compared to $62.5 million for the same period in 2021[184]. Backlog and Cash Position - The backlog of unfilled orders as of September 30, 2022, was approximately $47.9 million, significantly up from $20.4 million at the same date in 2021[166]. - As of September 30, 2022, cash, cash equivalents, and restricted cash totaled $10.038 million, down from $21.195 million at December 31, 2021[199]. - Working capital increased to $30.531 million as of September 30, 2022, compared to $27.005 million at December 31, 2021[199]. - The company anticipates that cash and cash equivalents, along with available borrowing capacity, will be sufficient to support short-term working capital requirements[199]. Expenses and Margins - Gross margin for the three months ended September 30, 2022, was 45% of revenue, down from 49% for the same period in 2021, primarily due to increased component material costs[178]. - Selling expenses for the three months ended September 30, 2022, were $4.0 million, an increase of $1.2 million or 41% compared to $2.8 million for the same period in 2021[179]. - Engineering and product development expenses for the three months ended September 30, 2022, were $1.9 million, reflecting an increase of $532,000 or 40% compared to the same period in 2021[180]. - General and administrative expense rose to $14.6 million for the nine months ended September 30, 2022, a 39% increase from $10.6 million in the same period of 2021[188]. - Engineering and product development expense increased to $5.6 million for the nine months ended September 30, 2022, up 41% from $4.0 million in the same period of 2021[187]. Supply Chain and Market Diversification - The company is facing ongoing supply chain challenges due to the war in Ukraine and COVID-19 pandemic, which may impact future revenue and costs[171][172]. - The company is qualifying new vendors and increasing inventory to mitigate supply chain risks and may raise prices due to increased raw material costs[172]. - The company aims to diversify its markets and reduce dependence on the semiconductor market to mitigate volatility[153]. - The automotive market showed a 21% increase in revenue, driven by demand for electric vehicle-related products[167]. Cash Flow and Financing Activities - Net cash used in operations was $3.7 million for the nine months ended September 30, 2022, with net earnings of $5.2 million during the same period[202]. - Net cash used in investing activities was $4.2 million for the nine months ended September 30, 2022, including $3.5 million for U.S. treasury bills[204]. - Net cash used in financing activities totaled $2.8 million for the nine months ended September 30, 2022, primarily due to principal payments on the Term Note[205]. - The company is pursuing acquisition opportunities for complementary businesses, having utilized $20.5 million under the Term Note for recent acquisitions[201].