inTEST (US:INTT)2025-11-05 14:30Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $26.2 million, a decrease from $28.1 million in Q2 2025, reflecting a decline of $1.9 million [9] - Year-over-year revenue declined by $4 million compared to Q3 2024, primarily due to lower sales in semi, AutoEV, and defense aerospace [9] - Gross profit decreased by $1 million to $11 million, with gross margin declining 70 basis points to 41.9% due to lower volume [10] - Net loss for the quarter was $0.9 million, or a loss of $0.08 per share, with adjusted net loss at $0.02 per share [11] Business Line Data and Key Metrics Changes - Orders for AutoEV increased significantly, accounting for approximately three-quarters of the sequential growth, doubling to $14.6 million [6] - Defense aerospace orders more than doubled sequentially to $6.4 million, driven by increased demand for next-generation weapons systems [7] - Year-over-year orders were up 34.2%, with notable increases in AutoEV, industrial, defense aerospace, life sciences, and semi markets [7] Market Data and Key Metrics Changes - The backlog at the end of Q3 was $49.3 million, significantly higher than at the end of Q2, positioning the company well for upcoming quarters [8] - The semi market remained sluggish, particularly in the analog mixed signal business, despite some pickup in orders [8] Company Strategy and Development Direction - The company is executing its Vision 2030 strategy, focusing on market diversification and innovation to capture new opportunities [6][15] - Continued efforts to penetrate target accounts and drive adoption of new products are seen as critical for future growth [6][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of a market recovery, many customers remain hesitant to commit to new capital projects [12] - The company expects Q4 revenue to rebound to a range of $30 million to $32 million, with a gross margin forecast of approximately 43% [12] Other Important Information - The company reduced debt by $6.2 million in the first nine months of 2025, ending Q3 with total debt outstanding of $8.9 million [11] - Cash and cash equivalents at the end of Q3 were $21.1 million, indicating strong liquidity [11] Q&A Session Summary Question: Breakdown of the $2 million shipment delay - Approximately $1.5 million was tied to life sciences markets, with delays in systems at Alphamation, and the remainder was related to the semi industry at Ackylogic [19] Question: Duration of strong automotive orders - The strong demand for automotive orders is expected to continue for the foreseeable future, driven by new technologies and model year programs [21] Question: Nature of challenges faced in the quarter - The challenges were different from those in the first quarter, primarily related to new technologies at Alphamation and Ackylogic [25] Question: Insights on the semi market - The front end of the semi market remains anemic, with some signs of life, while the back end is softer due to tariff issues and investment hesitancy [28] Question: Changes in economic environment affecting guidance - The guidance reflects a cautious approach, with a focus on minimizing risks and ensuring that the company can deliver on expected shipments [33][41] Question: Performance in the industrial segment - The industrial segment has been stable, with ongoing projects but some delays due to customer hesitance on capital expenditures [42]