inTEST (INTT) 27th Annual Needham Growth Conference summary

Strategic transformation and growth initiatives

• Transitioned from a back-end semi-test and components supplier to a diversified solutions provider, targeting automotive, industrial, aerospace, defense, life sciences, and green energy sectors.

• Implemented a five-point growth strategy focused on global expansion, innovation, service, talent and culture, and M&A, driving recurring revenue.

• Restructured into three technology divisions: Electronic Test, Environmental Technologies, and Process Technologies, each expanding into new markets.

• Completed four acquisitions, including Alfamation and Acculogic, expanding European footprint and deepening presence in auto/EV, life sciences, and consumer electronics.

• Focused on disciplined capital allocation, balancing organic growth, M&A, debt reduction, and share repurchases.

Financial performance and outlook

• Q3 2024 revenue was $30.3 million, down $0.7 million year over year, with $5.4 million from Alfamation.

• Q3 gross margin improved to 46.3%, up 570 bps sequentially, driven by favorable product mix and cost actions.

• Adjusted EBITDA for Q3 was $2.4 million (8.1% margin), with adjusted EPS at $0.10 and net earnings per diluted share at $0.04.

• Ended Q3 with $18 million cash, $16 million debt, and $30 million available for future acquisitions; liquidity at quarter end was approximately $58 million.

• 2024 full-year revenue outlook tightened to $128–$131 million, with gross margin expected at 42–43% and adjusted EPS at $0.43.

Market trends and forward-looking statements

• Q3 2024 orders up 4.5% year over year, with backlog up 12.3%, driven by auto EV, defense, and aerospace; semi segment remained soft.

• Back-end semi business showing gradual improvement; front-end semi expected to remain slow in early 2025 with possible second-half recovery.

• Industrial markets stable but facing uncertainty due to tariffs and macro factors; aerospace and defense remain strong.

• No significant impact from recent export controls; China sales represent about 8% and are not restricted.

• Q4 2024 guidance: $34–$37 million revenue, 42% gross margin, and adjusted EPS around $0.14.