inTEST (INTT) Sidoti Micro-Cap Virtual Conference summary

Strategic vision and business overview

• Focus on providing advanced test and process control solutions across diversified markets, including semiconductor, automotive, EV, defense, aerospace, industrial, and life sciences.

• Operations structured into three divisions: electronic test, environmental technologies, and process technologies, each targeting specific high-growth sectors.

• Expansion into safety, security, and AI imaging markets, leveraging differentiated process technologies and broadening end-market exposure.

• Megatrends such as electronification, power management, AI, and increasing device complexity are driving demand for innovative testing and process solutions.

• Global footprint expanded with new engineering and manufacturing in Malaysia and Canada, with continued focus on proximity to customers in Europe and other regions.

Product innovation and growth initiatives

• Recent product launches include advanced probing solutions, integrated flying probe testers, benchtop ThermoStream, and Compact EKOHEAT, accelerating revenue growth.

• Emphasis on deepening customer engagement, expanding account penetration, and improving operating leverage through supply chain and factory integration.

• Ongoing disciplined capital deployment with continued focus on synergistic M&A and organic product development to enhance the portfolio.

• Drives cross-business product development and leverages mega trends such as electrification and advanced packaging for growth.

Financial performance and outlook

• Q1 2026 orders increased 25% year-over-year to $51.8M backlog, with Q1 2026 revenue up 27% to $33.9M, led by Auto/EV, Defense/Aerospace, and Life Sciences.

• Gross margin improved to 45.5% in Q1 2026, reflecting higher volume, favorable mix, and manufacturing efficiencies.

• Q2 2026 revenue guidance is $32–$34 million; full-year 2026 guidance is $130–$135 million revenue, 45% gross margin, and 1–2% capital expenditures as a percentage of revenue.

• Operating expenses increased due to non-recurring CEO transition costs, with Q1 2026 expenses at $14.5M.

• Ended Q1 2026 with $56 million in liquidity, $16 million in cash, $8 million in debt, and a leverage ratio of 1.1x, with expectations to further reduce debt by year-end.