Q1 2024 inTest Corp Earnings Call Transcript
Key Points
- Revenue of nearly $30 million was higher than expected, indicating strong performance despite challenging conditions.
- Record backlog of $56 million at quarter end, boosted by the acquisition of Affirmation, which contributed $22.8 million.
- Successful integration of Affirmation is progressing well, with positive feedback from joint trade shows and customer interactions.
- Continued diversification into defense, aerospace, and industrial markets, which remain solid and provide stability against semiconductor market volatility.
- Strong cash generation from operations, adding $2.1 million this quarter, demonstrating effective financial management.
- Gross margin of 43.8% was lower than expected, primarily due to the timing of the Affirmation acquisition.
- Operating expenses were up $1.1 million versus the prior year, driven by higher corporate development and professional fees.
- The semiconductor market, which constitutes about half of total sales, faced significant headwinds impacting performance.
- Orders worth about $5 million were either delayed or reduced in size, affecting the financial outlook and planning.
- Integration of Affirmation, while positive, introduced complexities in revenue recognition and financial adjustments under US GAAP.
Ladies and gentlemen, greetings, and welcome to the inTEST Corporation First Quarter 2024 financial conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. Anyone should require operator assistance during the conference, please press star still on your telephone keypad. As a reminder, this conference is being recorded It is now my pleasure to introduce your host, Shawn Stoddard, Investor Relations.
Please. Perfect. Good afternoon, everyone. We certainly appreciate your interest in inTEST Corporation, and thank you for sharing your time with us today. Joining me on our call are Nick Grant, our President and Chief Executive Officer, and Duncan Gilmour, our Chief Financial Officer and Treasurer. You should have the earnings release, which crossed the wires today after market, as well as the slides that will accompany our conversation today. If not, you can find these documents on the Investor Relations section of our website,
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