Q3 2024 inTest Corp Earnings Call Transcript
Key Points
- inTest Corp (INTT) achieved a gross margin of 46.3% on revenue of $30 million, despite $2 million in shipments being delayed into the fourth quarter.
- The acquisition of Alfamation contributed $5.4 million in revenue, strengthening inTest Corp's position in diversified markets such as automotive, life sciences, and consumer electronics.
- Sequential growth in backend semiconductor revenue outpaced the decline in frontend, indicating improving trends in the semiconductor market.
- The company has reduced headcount by 10% in its base businesses, aligning cost structures with current market conditions and improving operating margins.
- inTest Corp is seeing signs of stability in targeted industries, with an increased order pipeline reflecting gradual improvement in backend semiconductor demand and larger automotive projects.
- Revenue for the third quarter decreased by $0.7 million compared to Q3 2023, driven by a $7.1 million sales decline in the semiconductor sector.
- Approximately $2 million in shipments were delayed into the fourth quarter, impacting the current quarter's revenue.
- The frontend semiconductor market is currently paused, with expectations for improvement not anticipated until the second half of 2025.
- Operating expenses increased by $1.5 million year-over-year, reflecting the inclusion of Alfamation's operating expenses.
- Cash and equivalents decreased by $2 million from the trailing quarter, reflecting net debt repayments and share repurchases.
Ladies and gentlemen, greetings and welcome to the inTest Corporation third quarter, 2024 financial results conference call at this time. All participants are in a listen-only mode, a brief question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press star and zero on the telephone keypad as a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, [Shanshan] Investor Relations. Please go ahead.
Good morning, 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 Richard N. Grant, Jr, our President and Chief Executive Officer and Duncan Gilmour, our Chief Financial Officer, Treasurer and Secretary. You should have the earnings release that went out this morning as well as 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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