inTest Corporation (INTT) research, news, and more from GeoInvesting

Company description

Thu, 12 Aug 2010 04:00:00 GMT

inTEST Corporation is an independent designer, manufacturer and marketer of ATE interface solutions and temperature management products, which are used by semiconductor manufacturers to perform final testing of integrated circuits (ICs) and wafers. The Company's high-performance products are designed to enable semiconductor manufacturers to improve the speed, reliability, efficiency and profitability of IC test processes. Specific products include positioner and docking hardware products, temperature management systems and customized interface solutions. The Company has established strong relationships with semiconductor manufacturers globally, which it supports through a network of local offices.

Research

Thu, 25 May 2017 14:54:22 GMT

INTT ($7.70) announced it has acquired Ambrell Corporation, a provider of precision induction heating systems under 500 KW power and is known for its application and engineering experience.

“The purchase price for Ambrell was $22 million in cash paid at closing, which is subject to post-closing working capital adjustment. Additional consideration may be paid based upon a multiple of adjusted EBITDA for 2017 and 2018, not to exceed $18 million. The acquisition closed on May 24, 2017, is expected to contribute $20 million to $25 million in net revenues to inTEST's consolidated operations for calendar year 2018 and to be accretive beginning in the third quarter of 2017. Upon the closing of the transaction, Ambrell became a wholly owned subsidiary of inTEST.”

With trailing twelve month revenues of $45 million, we view this acquisition as a significant one for the Company, adding roughly 50% to the top line and accretive to the bottom line starting in Q3 2017. We would like to learn more about the earn-out provision of this acquisition that was discussed on the conference call; it sounds like the near term EPS impact due to the provision will be minimal, but more due diligence may be warranted. It is worth noting that Ambrell gross margins are slightly lower than INTT, with Ambrell gross margins around mid 40% and INTT in the upper 40% range.

The acquisition helps to diversify the company as one that operates in both the cyclical semiconductor industry as well as the induction heating industry, bringing the total share of semiconductor revenues down to 50%.

Via premium tweet on March 13, 2017 we stated we were watching INTT closely due to strong Q4 2016 results and Q1 2017 guidance being well above analyst estimates. Shares were trading at $6.50 at that time.

Research

Fri, 05 May 2017 14:28:27 GMT

INTT ($7.20) announced first quarter 2017 results:

Sales of $14.2 million vs $8.6 million in the prior year
EPS of $0.20 vs $0.01 in the prior year
Q2 sales guidance of $13 to $14 million with EPS of $0.13 to $0.18

Quotes from management:

"Demand for our broad-based solutions was unexpectedly strong in the first quarter, resulting in solid financial results...Bookings increased 30% sequentially and 53% year-over-year, net revenues grew 38% sequentially and 64% year-over-year, and we delivered our 30th consecutive quarter of profitability. We are on track to significantly exceed the first half performance of last year. The first quarter's exceptionally strong order flow was beyond our (and our customers') expectations and will result in a modest 'digestive' period. Looking forward, we continue to see significant opportunities and a strong 2017. With the growth we are experiencing in both our Thermal Solutions and EMS divisions, we are well positioned to capitalize on the industry's momentum.

Our long-term objectives center on diversified growth through acquisition and the evolution of inTEST into a broad-based technology company serving the thermal technology needs of a variety of markets, while continuing to supply our valued customers in the semiconductor test arena with innovative, high quality and cost-effective testing solutions. As we continue to execute on our differentiated product strategy, we believe the conditions for our long-term success remain firmly in place."

Comments & Business Outlook

Thu, 03 Mar 2011 05:00:00 GMT

Fourth Quarter Highlights:

Fourth quarter bookings of $11.7 million increased 19% compared with third quarter 2010 bookings of $9.8 million.
Fourth quarter net revenues of $10.1 million increased 20% over fourth quarter 2009 net revenues of $8.4 million and decreased 11% as compared with third quarter 2010 net revenues of $11.3 million.
Fourth quarter net income of $1.3 million, or $0.13 per diluted share, increased over fourth quarter 2009 net income of $142,000, or $0.01 per diluted share, and decreased compared with third quarter 2010 net income of $1.7 million, or $0.17 per share.

inTEST President and Chief Executive Officer, Robert E. Matthiessen, commented, "2010 has been a year of considerable opportunity and growth for inTEST Corporation. We utilized the downturn to transform inTEST, strengthening our operations and increasing operational efficiencies, while maintaining our fiscal discipline and cost controls; and in 2010 we delivered, doubling our revenues for the year, improving our performance on all operating metrics and reporting a Company record net income." Mr. Matthiessen concluded, "Looking forward, we see a steadily improving near-term outlook from our customers. We enter 2011 with a diversified product portfolio that includes non-semiconductor markets, and are well positioned to capitalize on the positive trends in the electronic end markets which we serve."

First Quarter 2011 Financial Outlook:

The Company expects that

net revenue for the first quarter ended March 31, 2011 will be in the range of $11.0 to $12.0 million
and that net income will be in the range of $0.11 to $0.15 per diluted share. The first quarter 2011 financial outlook reflects the expected effect of approximately $155,000 in costs related to the first quarter relocation of the Company's corporate headquarters as well as the operations of Temptronic Corporation. The above outlook is based on the Company's current views with respect to operating and market conditions and customers' forecasts, which are subject to change.

Research

Sun, 13 Feb 2011 05:00:00 GMT

On January 27, 2011, we initiated a trade in INTT @ $4.05.

We had attempted to trade this stock a few months ago, when we lost money in the trade. The stock had reported decent 2010 third quarter earnings, but offered less than stellar fourth guidance. (Recall, that EPS consistency had been a concern we had with this company). As luck would have it, on January 10, 2011 INTT slightly upped its fourth quarter guidance, but offered upbeat commentary on near-term prospects...

Robert E. Matthiessen, President and Chief Executive Officer of inTEST, commented, "Our business in the fourth quarter has continued to strengthen, and we have reversed the consecutive quarterly down trend in bookings that we saw during the second and third quarters of 2010. As a result, we now expect to report net revenue for the fourth quarter of approximately $10.0 million, which exceeds the high-end of our guidance."

...thus, we jumped back in this stock for round two. In general, the semiconductor sector is attempting to find direction amidst a choppy economic recovery and investors will attempt to find stocks that will serve up EPS surprises. Maybe INTT can be one. We have also seen a trend of other semiconductor stocks, with sub-par earnings announcements, excel on future optimism. Two semi conductor related GeoSpecials we got faked out of were ISSI and TER. TER is up 61.1% since its removal!!

Comments & Business Outlook

Tue, 11 Jan 2011 05:00:00 GMT

Jan 10, 2011-- inTest Corp. said it expects fourth quarter revenue of approximately $10.0 million. The company's previous guidance was revenue of $8.8 million to $9.5 million and the current consensus estimate is revenue of $9.5 million for the quarter ending December 31, 2010.