GlobeNewswire Inc | Aug 6, 2021 06:00AM EDT

August 06, 2021

-- Net revenues of $21.8 million exceeded guidance; increased 12% sequentially and 64% year-over-year -- GAAP earnings per share of $0.24 increased $0.03 sequentially and $0.22 year-over-year -- Non-GAAP adjusted net earnings per diluted share was $0.27, at the high-end of guidance

MT. LAUREL, N.J., Aug. 06, 2021 (GLOBE NEWSWIRE) -- inTEST Corporation (NYSE American: INTT), a global supplier of innovative test and process solutions for use in manufacturing and testing across a wide range of markets, including automotive, defense/aerospace, industrial, medical, semiconductor and telecommunications, today announced financial results for the quarter ended June 30, 2021.

2021 Second Quarter Financial Summary

($ inMillions, Three Months EndedExcept PerShare Data) 6/30/2021 3/31/2021 6/30/2020Semi MarketBookings $ 16.5 $ 17.2 $ 7.3 (1)Multimarket Bookings 8.6 8.0 6.6 (2)Total $ 25.1 $ 25.2 $ 13.9 Bookings Semi MarketBookings(1) - % of 66 % 68 % 52 %TotalBookingsMultimarketBookings(2) - % of 34 % 32 % 48 %TotalBookings Semi MarketNet $ 15.7 $ 13.3 $ 6.9 Revenues(1)MultimarketNet 6.1 6.3 6.4 Revenues(2)Total Net $ 21.8 $ 19.6 $ 13.3 Revenues Semi MarketNetRevenues 72 % 68 % 52 %(1) - % ofTotal NetRevenuesMultimarketNetRevenues 28 % 32 % 48 %(2) - % ofTotal NetRevenues Gross $ 11.0 $ 9.5 $ 6.1 MarginGross 50 % 49 % 46 %Margin NetEarnings $ 2.6 $ 2.2 $ 0.2 (GAAP)NetEarningsper diluted $ 0.24 $ 0. 21 $ 0.02 share(GAAP) AdjustedNetEarnings $ 2.9 $ 2.5 $ 0.5 (Non-GAAP)(3)AdjustedNetEarningsper diluted $ 0.27 $ 0.24 $ 0.05 share(Non-GAAP)(3) EBITDA(Non-GAAP) $ 3.5 $ 3.0 $ 0.7 (3) As of 6/30/2021 3/31/2021 12/31/2020Cash andcash $ 14.6 $ 10.2 $ 10.3 equivalents

(1 ) Semi Market: These amounts include all bookings and net revenues from the semiconductor market. (2 ) Multimarket: These amounts include all bookings and net revenues from markets other than the semiconductor market. Adjusted Net Earnings, Adjusted Net Earnings per diluted share and EBITDA are non-GAAP financial measures. Further information can be found under(3 ) ?Non-GAAP Financial Measures.? See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release.

2021 Six Month Year-to-Date Financial Summary

($ in Millions, Except Six Months EndedPer Share Data) 6/30/2021 6/30/2020Semi Market Bookings $ 33.7 $ 14.0 (4)Multimarket Bookings 13.7 (5) 16.6Total Bookings $ 50.3 $ 27.7 Semi Market Bookings (4) - % of Total 67 % 51 %BookingsMultimarket Bookings (5) - % of Total 33 % 49 %Bookings Semi Market Net $ 29.0 $ 11.9 Revenues (4)Multimarket Net 12.4 Revenues (5) 12.6Total Net Revenues $ 41.4 $ 24.5 Semi Market Net Revenues (4) - % of 70 % 48 %Total Net RevenuesMultimarket Net Revenues (5) - % of 30 % 52 %Total Net Revenues Gross Margin $ 20.5 $ 10.9 Gross Margin % % 50 45 Net Earnings (Loss) $ 4.8 $ (1.0 )(GAAP)Net Earnings (Loss)per diluted share $ 0.45 $ (0.10 )(GAAP) Adjusted Net Earnings $ 5.4 $ (0.4 )(Loss) (Non-GAAP) (6)Adjusted Net Earnings(Loss) per diluted $ 0.51 $ (0.04 )share (Non-GAAP) (6) EBITDA (Non-GAAP) (6) $ 6.6 $ (0.3 )

(4 ) Semi Market: These amounts include all bookings and net revenues from the semiconductor market. (5 ) Multimarket: These amounts include all bookings and net revenues from markets other than the semiconductor market. Adjusted Net Earnings (Loss), Adjusted Net Earnings (Loss) per diluted share and EBITDA are non-GAAP financial measures. Further information can(6 ) be found under ?Non-GAAP Financial Measures.? See also the reconciliations of GAAP financial measures to non-GAAP financial measures that accompany this press release.

inTEST delivered solid financial results for the second quarter, commented inTEST President & CEO Nick Grant, Fueled by broad end market demand in the semiconductor industry across both of our segments, along with increasing demand for our products outside of semiconductors as our industrial markets strengthen. Strong demand for our innovative test and process technology solutions across a diverse set of end applications resulted in financial results which exceeded our topline guidance; net revenues increased 12% sequentially and 64% year-over-year. The operations teams across the Company did an outstanding job managing our supply chains and overcoming resource challenges to support customer demand in the quarter.

There are a number of dynamics driving semiconductor demand, which we believe we are well positioned to capitalize on, Mr. Grant continued. Consumer products continue to be driven by automotive and IoT, the 5G buildout is still in early stages, technology advances are ongoing, and we believe that the regional infrastructure buildouts will drive further demand. In addition, we are investing in growth opportunities outside of the semiconductor market, such as electric vehicles, cannabis, and the medical market.

Mr. Grant concluded, Im pleased with the progress we are making to capture semiconductor related growth, while investing in developing vertical growth markets and segments outside of the semiconductor market which over time will serve to lessen our dependency on this cyclical industry.

2021 Third Quarter Financial OutlookinTESTs guidance for the 2021 third quarter includes both GAAP and non-GAAP financial estimates. A reconciliation between these GAAP and non-GAAP financial measures is included below.

inTEST expects that net revenues for the 2021 third quarter will be in the range of $20.5 million to $21.5 million and that on a GAAP basis, net earnings per diluted share will range from $0.18 to $0.22. On a non-GAAP basis, we expect our adjusted net earnings per diluted share will range from $0.21 to $0.25. In addition, we expect that gross margin will range from 49% to 51%.

This outlook is based on the Companys current views with respect to operating and market conditions and customers forecasts, all of which are subject to change. Actual results may differ materially as a result of, among other things, the factors described under Forward-Looking Statements below.

2021 Second Quarter Supplemental Information and Conference Call DetailsinTEST is providing Supplemental Information (Information) in combination with its press release. This Information is offered to provide shareholders and analysts with additional information and detail for analyzing the Companys financial results in advance of the Companys quarterly conference call. The Information will be available in conjunction with the press release on inTESTs website www.intest.com, under the Investors section.

inTEST management will host a conference call on Friday, August 6, 2021 at 8:30 am Eastern Daylight Time. The conference call will address the Companys 2021 second quarter financial results, and managements current expectations and views of the business environment. The call may also include a discussion of strategic, operating, product initiatives or developments, and other matters relating to the Companys current or future performance. To access the live conference call, please dial (323) 289-6576 or (800) 437-2398. The Passcode for the conference call is 5369295. Please reference the inTEST 2021 Q2 Financial Results Conference Call.

2021 Second Quarter Live Webcast DetailsinTEST Corporation will provide a webcast in conjunction with the conference call. To access the live webcast, including presentation materials, please visit inTESTs website www.intest.com under the Investors section.

2021 Second Quarter Replay Details (Webcast)A replay of the webcast will be available on inTESTs website for one year following the live broadcast. To access the webcast replay, including presentation materials, please visit inTESTs website www.intest.com under the Investors section.

Submit QuestionsIn advance of the conference call, and for those investors accessing the webcast, inTEST Corporation welcomes individual investors to submit their questions via email to l.guerrant@intest.com.

Non-GAAP Financial MeasuresIn addition to disclosing results that are determined in accordance with GAAP, we also disclose non-GAAP financial measures. These non-GAAP financial measures consist of adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and EBITDA. Adjusted net earnings (loss) is derived by adding acquired intangible amortization, adjusted for the related income tax expense (benefit), to net earnings (loss). Adjusted net earnings (loss) per diluted share is derived by dividing adjusted net earnings (loss) by diluted weighted average shares outstanding. EBITDA is derived by adding acquired intangible amortization, interest expense, income tax expense, and depreciation to net earnings (loss). These results are provided as a complement to the results provided in accordance with GAAP. Adjusted net earnings (loss), adjusted net earnings (loss) per diluted share and EBITDA are non-GAAP financial measures presented to provide investors with meaningful, supplemental information regarding our baseline performance before acquired intangible amortization charges as this expense may not be indicative of our current core business or future outlook. These measures may be useful to an investor in evaluating the underlying operating performance of our business. The non-GAAP financial measures presented in this press release are used by management to make operational decisions, to forecast future operational results, and for comparison with our business plan, historical operating results and the operating results of our peers. Reconciliations from net earnings (loss) and net earnings (loss) per diluted share to adjusted net earnings (loss) and adjusted net earnings (loss) per diluted share and from net earnings (loss) to EBITDA, are contained in the tables below. The non-GAAP financial measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP financial measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About inTEST CorporationinTEST Corporation is a global supplier of innovative test and process solutions for use in manufacturing and testing across a wide range of markets including automotive, defense/aerospace, industrial, medical, semiconductor and telecommunications. Backed by decades of engineering expertise and a culture of operational excellence, we solve difficult thermal, mechanical and electronic challenges for customers worldwide while generating strong cash flow and profits. Our strategy uses these strengths to grow and increase stockholder value by maximizing our businesses and by identifying, acquiring and optimizing complementary businesses. For more information visit www.intest.com.

Forward-Looking StatementsThis press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of our plans, strategies and intentions, or our future performance or goals, that are based upon management's current expectations. Our forward-looking statements can often be identified by the use of forward-looking terminology such as believes, expects, intends, may, will, should, plans, projects, forecasts, outlook, anticipates or similar terminology. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

Such risks and uncertainties include, but are not limited to, any mentioned in this press release as well as the impact of the COVID-19 pandemic on our business, liquidity, financial condition and results of operations; indications of a change in the market cycles in the Semi Market or other markets we serve; changes in business conditions and general economic conditions both domestically and globally; changes in the demand for semiconductors; the success of our strategy to diversify our business by entering markets outside the Semi Market; our ability to successfully consolidate our EMS operations without any impact on customer shipments, quality or the level of our warranty claims and to realize the benefits of the consolidation; the possibility of future acquisitions or dispositions and the successful integration of any acquired operations; our ability to borrow funds or raise capital to finance potential acquisitions; changes in the rates and timing of capital expenditures by our customers; and other risk factors set forth from time to time in our Securities and Exchange Commission filings, including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2020. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks to circumstances only as of the date on which it is made. We undertake no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

SELECTED FINANCIAL DATA(Unaudited)(In thousands, except per share data)

Condensed Consolidated Statements of Operations Data:

Three Months Ended Six Months Ended 6/30/ 6/30/2020 3/31/2021 6/30/ 6/30/2020 2021 2021 Net revenues $ 21,820 $ 13,275 $ 19,556 $ 41,376 $ 24,505 Gross margin 10,962 6,067 9,521 20,483 10,934 Operating expenses: Selling 2,605 1,761 2,403 5,008 3,813 expenseEngineering andproduct development 1,356 1,217 1,322 2,678 2,509 expenseGeneral andadministrative 3,769 2,850 3,161 6,930 5,726 expenseRestructuring andother 197 38 55 252 46 chargesOperating income 3,035 201 2,580 5,615 (1,160 )(loss)Other income (loss) 21 (18 ) (2 ) 19 (50 )

Earnings (loss)before income tax 3,056 183 2,578 5,634 (1,210 )expense (benefit)

Income tax expense 447 13 366 813 (237 )(benefit)Net earnings (loss) 2,609 170 2,212 4,821 (973 )

Net earnings (loss)per share ? $ 0.25 $ 0.02 $ 0.21 $ 0.46 $ (0.10 )basicWeighted averageshares outstanding ? 10,443 10,252 10,329 10,386 10,237 basic Net earnings (loss)per share ? $ 0.24 $ 0.02 $ 0.21 $ 0.45 $ (0.10 )dilutedWeighted averageshares outstanding ? 10,765 10,259 10,526 10,645 10,237 diluted

Condensed Consolidated Balance Sheets Data:

As of: 6/30/2021 3/31/2021 12/31/ 2020 Cash and cash equivalents $ 14,625 $ 10,195 $ 10,277Trade accounts receivable, 12,832 13,487 8,435netInventories 8,702 8,212 7,476Total current assets 36,687 32,456 26,964Net property and equipment 2,462 2,538 2,350Total assets 70,687 67,126 62,030Accounts payable 3,524 3,655 2,424Accrued expenses 5,928 5,188 4,388Total current liabilities 11,717 11,171 8,856Noncurrent liabilities 7,749 8,106 8,422Total stockholders' equity 51,221 47,849 44,752

Reconciliation of Net Earnings (Loss) (GAAP) to Adjusted Net Earnings (Loss) (Non-GAAP) and Net Earnings (Loss) Per Share Diluted (GAAP) to Adjusted Net Earnings (Loss) Per Share Diluted (Non-GAAP):

Three Months Ended Six Months Ended 6/30/2021 6/30/2020 3/31/2021 6/30/2021 6/30/2020 Net earnings $ 2,609 $ 170 $ 2,212 $ 4,821 $ (973 )(loss) (GAAP)Acquiredintangible 305 309 304 609 620 amortizationTax adjustments (4 ) (5 ) (4 ) (8 ) (9 )Adjusted netearnings (loss) $ 2,910 $ 474 $ 2,512 $ 5,422 $ (362 )(Non-GAAP) Diluted weightedaverage shares 10,765 10,259 10,526 10,645 10,237 outstanding Net earnings(loss) per share ? diluted:Net earnings $ 0.24 $ 0.02 $ 0.21 $ 0.45 $ (0.10 )(loss) (GAAP)Acquiredintangible 0.03 0.03 0.03 0.06 0.06 amortizationTax adjustments - - - - - Adjusted netearnings (loss)per share ? $ 0.27 $ 0.05 $ 0.24 $ 0.51 $ (0.04 )diluted(Non-GAAP)

Reconciliation of Net Earnings (Loss) (GAAP) to EBITDA (Non-GAAP):

Three Months Ended Six Months Ended 6/30/ 6/30/ 3/31/ 6/30/ 6/30/2020 2021 2020 2021 2021 Net earnings (loss) (GAAP) $ 2,609 $ 170 $ 2,212 $ 4,821 $ (973 )

Acquired intangible 305 309 304 609 620 amortizationInterest 2 25 - 2 25 expenseIncome tax expense (benefit) 447 13 366 813 (237 )

Depreciation 167 155 156 323 310 EBITDA (Non-GAAP) $ 3,530 $ 672 $ 3,038 $ 6,568 $ (255 )



Supplemental Information Reconciliation of Third Quarter 2021 Estimated Net Earnings Per Share Diluted (GAAP) to Estimated Adjusted Net Earnings Per Share Diluted (Non-GAAP):

Low High Estimated net earnings per share ? diluted (GAAP) $ 0.18 $ 0.22 Estimated acquired intangible amortization 0.03 0.03 Estimated tax adjustments - -Estimated adjusted net earnings per share ? diluted $ 0.21 $ (Non-GAAP) 0.25

ContactsinTEST CorporationDuncan GilmourTreasurer and Chief Financial OfficerTel: 856-505-8999

Investors:Laura Guerrant-Oiye, PrincipalGuerrant Associatesl.guerrant@intest.comTel: (808) 960-2642