inTEST (INTT) 15th Annual Midwest IDEAS Investor Conference summary

Strategic transformation and growth initiatives

• Leadership rebuilt and culture shifted to a performance-driven, results-oriented organization over the past four years.

• Five-point growth strategy includes innovation, global expansion, robust product development, talent focus, and M&A.

• Company restructured into three divisions: Process Technologies, Environmental Technologies, and Electronic Test.

• Recent acquisition of Alfamation expands automotive and electronic test capabilities, supporting diversification.

• Diversification efforts reduced semiconductor exposure and increased presence in auto EV, industrial tech, security, and life sciences.

Market positioning and business mix

• Addressable market estimated at over $2 billion, with strong positions in some segments and room for growth in others.

• Electronic Test division expanded through acquisitions, now serving PCB, battery, and automotive testing.

• Environmental Technologies focuses on thermal solutions, with plans to expand into humidity, altitude, and vibration testing.

• Process Technologies includes induction heating and image capture, targeting automation and life science applications.

• M&A remains a core competency, with ongoing efforts to broaden capabilities across all divisions.

Financial performance and outlook

• Q2 orders down 17% year-over-year, mainly due to semiconductor and industrial softness, but up 15% sequentially.

• Alfamation contributed $3.2 million in orders and nearly $10 million in Q2 revenue, boosting auto EV sector.

• Record Q2 revenue of $34 million, but semiconductor revenue declined by $9 million; diversification offset some impact.

• Gross margin fell to 40.6% due to product mix and lower-margin acquisition revenue.

• Operating expenses rose with the acquisition, but underlying expenses decreased as cost controls were implemented.