Summary of inTEST Corporation FY Conference Call Company Overview - **Company**: inTEST Corporation (NYSEAM: INTT) - **CEO**: Nick Grant - **CFO**: Duncan Gilmour - **Current Revenue**: Approximately $130 million, up from under $55 million five years ago [2][3] Industry Insights - **Market Focus**: Primarily serves the semiconductor testing market, with diversification into automotive, aerospace defense, and industrial markets [3][4] - **Key Technologies**: - Electronic tests for back-end semiconductor applications - Environmental technologies for thermal control and testing - Process technologies including induction heating and image capture systems [5][6][8] Financial Performance - **Q3 Orders**: Strong performance with orders reaching $37.6 million, particularly in automotive/EV and defense/aerospace sectors [17][18] - **Backlog**: Ended Q3 with a backlog of just under $50 million, indicating recovery from previous declines [18] - **Q3 Revenue**: Reported revenue of $26 million, slightly below expectations due to delays in shipments [19][20] - **Gross Margin**: Q3 gross margin at 41.9%, consistent with previous quarters [20] - **Operating Cash Flow**: Generated $3.1 million in operating cash flow for Q3, with a total of $7 million for the first nine months of 2025 [22] Growth Strategy - **Vision 2030**: Aiming for revenue growth to $235 million-$285 million by 2030 through both organic and inorganic means [10] - **New Product Revenue**: Currently at 17%, with a target of over 25% [26] - **Acquisition Strategy**: Targeting companies in the $20 million-$40 million range to enhance existing technologies and expand geographic presence [14][15] Market Trends and Challenges - **Automotive Sector**: Experienced a slump in EV orders as OEMs shifted focus back to hybrids and combustion engines, but new projects for 2027 model years are expected to drive future growth [31][32] - **Technological Challenges**: Delays in new product shipments due to technical challenges, particularly in the AlphaMation and AstroLogics divisions [27][28] Key Takeaways - **Diversification**: Successful diversification into multiple markets has reduced reliance on the semiconductor sector, which now constitutes just over a third of total business [3][19] - **Innovation Focus**: Continuous investment in innovation and new product development is crucial for maintaining competitive advantage [10][11] - **Financial Health**: Strong balance sheet with $20 million in cash and a plan to be close to debt-free by the end of 2026 [24][23] Conclusion - inTEST Corporation is well-positioned for future growth with a diversified portfolio, strong order backlog, and a clear strategic vision. The company is navigating current market challenges while focusing on innovation and operational excellence to drive long-term success.