- 2023 revenue increased 6% year-over-year while net income grew 10%
- Demonstrated strong operational cash flow: generated $4.7 million in cash from operations in the fourth quarter and a record $16.2 million for the year
- Market diversification provided strength in sales for the year supported by growth in defense/aerospace, industrial, security and life sciences markets
- Fourth quarter orders improved 2% over the prior quarter driven by defense/aerospace and industrial markets
- Expects 2024 revenue to range from $145 million to $155 million including the acquisition of Alfamation
MT. LAUREL, NJ — (BUSINESS WIRE) — March 27, 2024 — inTEST Corporation (NYSE American: INTT), a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include automotive/EV, defense/aerospace, industrial, life sciences, security, and semiconductor (“semi”), today announced financial results for the fourth quarter and year ended December 31, 2023.
“The effective execution of our 5-Point Strategy continues to drive strong results as we delivered a second consecutive year of record revenue while also achieving net income of $9.3 million, the highest level in more than a decade,” commented Nick Grant, President and CEO. “inTEST’s strategy drives innovation, deeper penetration into target markets, geographic expansion and attracts top talent. In 2023, we made good progress at key accounts and strengthened channel relationships throughout the U.S., Europe, Latin America and the Asia Pacific region. We also announced a new Center of Excellence in Malaysia for applications engineering, product development and localized manufacturing that will support all divisions and better serve customers in Southeast Asia. This increasing diversification proved fundamental to the strength of our 2023 results as growing demand from industrial and defense/aerospace markets helped to offset the widely reported weakness in the semiconductor market. Our efforts are resulting in a larger, more diverse customer base positioning inTEST well for further growth.”
Mr. Grant added, “The recent acquisition of Alfamation, which we announced on March 12, 2024, is further proof of the progress we are making on our 5-Point Strategy. The acquisition adds significant test and automation capabilities, broadens geographic and key market presence while also providing measurable scale to the Electronic Test division. The team will continue to drive organic growth initiatives while pursuing highly complementary acquisitions such as Alfamation.”
Fourth Quarter 2023 Review (see revenue by market and by segments in accompanying tables)
Three Months Ended |
|||||||
($ in 000s) |
Change |
Change |
|||||
12/31/2023 |
12/31/2022 |
$ |
% |
9/30/2023 |
$ |
% |
|
Revenue |
$27,884 |
$32,405 |
$(4,521) |
-14.0% |
$30,941 |
$(3,057) |
-9.9% |
Gross profit |
$12,449 |
$14,981 |
$(2,532) |
-16.9% |
$14,447 |
$(1,998) |
-13.8% |
Gross margin |
44.6% |
46.2% |
46.7% |
||||
Operating expenses (incl. intangible amort.) |
$11,340 |
$10,949 |
$391 |
3.6% |
$11,979 |
$(639) |
-5.3% |
Operating income |
$1,109 |
$4,032 |
$(2,923) |
-72.5% |
$2,468 |
$(1,359) |
-55.1% |
| Operating margin |
4.0% |
12.4% |
8.0% |
||||
| Net earnings |
$1,455 |
$3,244 |
$(1,789) |
-55.1% |
$2,277 |
$(822) |
-36.1% |
| Net margin |
5.2% |
10.0% |
|
|
7.4% |
|
|
| Earnings per diluted share (“EPS”) |
$0.12 |
$0.30 |
$(0.18) |
-60.0% |
$0.19 |
$(0.07) |
-36.8% |
| Adjusted net earnings (Non-GAAP) (1) |
$1,910 |
$3,707 |
$(1,797) |
-48.5% |
$2,707 |
$(797) |
-29.4% |
| Adjusted EPS (Non-GAAP) (1) |
$0.16 |
$0.34 |
$(0.18) |
-52.9% |
$0.22 |
$(0.06) |
-27.3% |
| Adjusted EBITDA (Non-GAAP) (1) |
$2,418 |
$5,256 |
$(2,838) |
-54.0% |
$3,768 |
$(1,350) |
-35.8% |
| Adjusted EBITDA margin (Non-GAAP) (1) |
8.7% |
16.2% |
12.2% |
||||
