Commenting on the Company’s first quarter financial results, inTEST President & CEO James Pelrin noted, “The first quarter presented a number of unprecedented challenges related to the COVID-19 pandemic; challenges which I am proud to note inTEST’s employees met head on, and which were compounded by continued headwinds in the analog production test sector. Consolidated bookings increased 24% sequentially, we posted a positive book-to-bill and we are receiving a good mix of orders across all of our divisions. Thermal division bookings increased 21% sequentially, with solid contributions from both Ambrell and iTS, each of which received a number of large orders in the quarter, and EMS bookings increased 33%.”

Mr. Pelrin also provided an update regarding the Company’s liquidity. Mr. Pelrin noted, “As previously announced, on April 16, 2020, we entered into loans under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). We intended to use the proceeds of the loans for covered payroll costs, rent and utility costs in accordance with the relevant terms and conditions of the CARES Act. We applied for the loans in good faith after carefully reviewing the Company’s financial condition, and the economic impact and uncertainty caused by the COVID-19 pandemic and determining that at that time the funds were necessary to maintain our ongoing operations. Due to the new and changing guidance and statements from the SBA and U.S. Department of Treasury, issued after the Company applied for and entered into the loans, we determined that the Company would repay the PPP loans. Accordingly, on May 5, 2020, in light of the SBA’s new guidance, we repaid the full amount of the loans.”

2020 Second Quarter Financial Outlook
inTEST’s guidance for the 2020 second quarter includes both GAAP and non-GAAP estimates.  A reconciliation between these GAAP and non-GAAP financial measures is included below.  Actual results may differ materially as a result of, among other things, the factors described under “Forward-Looking Statements” below.

inTEST expects that net revenues for the 2020 second quarter will be in the range of $11.5 million to $13.0 million and that our financial results will range from a net loss per diluted share of $(0.09) to breakeven. On a non-GAAP basis, our financial results will range from an adjusted net loss per diluted share of $(0.06) to net earnings of $0.03. In addition, we expect that gross margin will range from 44% to 46%. This outlook is based on the Company’s current views with respect to operating and market conditions and customers’ forecasts, which are subject to change.

Mr. Pelrin continued, “Our guidance reflects the uncertainty sowed by COVID-19, which has led to industry forecasts and signals that are marked by diverse scenarios. While there is still considerable end-market uncertainty, compounded by the challenges presented by the COVID-19 pandemic, our diverse customer base remains the anchor of our business, and we believe our long-term fundamentals remain intact. I am extremely proud of each and every inTEST employee. Individually and as an organization, we have risen to the shared challenges this pandemic has unleashed. We continue to drive forward as we always do, partnering with our customers to advance their technology roadmaps.”

2020 First Quarter Supplemental Information and Conference Call Details
inTEST is providing Supplemental Information (“Information”) in combination with its press release. This Information is offered to provide shareholders and analysts with additional time and detail for analyzing the Company’s financial results in advance of the Company’s quarterly conference call. The Information will be available in conjunction with the press release at inTEST’s website www.intest.com, under the “Investors” section.

inTEST management will host a conference call on Friday, May 8, 2020 at 8:30 am Eastern Daylight Time. The conference call will address the Company’s 2020 first quarter financial results and management’s current expectations and views of the industry. The call may also include discussion of strategic, operating, product initiatives or developments, or other matters relating to the Company’s current or future performance. To access the live conference call, please dial (323) 794-2598 or (800) 458-4121. The passcode for the conference call is 1878028. Please reference the inTEST 2020 Q1 Financial Results Conference Call.

2020 First Quarter Live Webcast Details
inTEST Corporation will provide a webcast in conjunction with the conference call. To access the live webcast, please visit inTEST’s website www.intest.com under the “Investors” section.

2020 First Quarter Replay Details (Webcast)
A replay of the webcast will be available on inTEST’s website for one year following the live broadcast. To access the webcast replay, please visit inTEST’s website www.intest.com under the “Investors” section.

Submit Questions
In advance of the conference call, and for those investors accessing the webcast, inTEST Corporation welcomes individual investors to submit their questions via email to Email Contact. 

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, we also disclose non-GAAP financial measures. These non-GAAP financial measures include 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 and changes in the estimate of future consideration that may be paid out related to prior acquisitions as these expenses or income items may not be indicative of our current core business or future outlook. These non-GAAP financial measures 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. A reconciliation 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, which are discussed in this earnings release, is contained in the tables below. The non-GAAP financial measures discussed in this earnings 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 Corporation
inTEST Corporation is a global supplier of precision-engineered solutions for use in manufacturing and testing across a wide range of markets including automotive, defense/aerospace, energy, industrial, 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 shareholder value by maximizing our businesses and by identifying, acquiring and optimizing complementary businesses. For more information visit www.intest.com .