inTest Corp. (INTT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Intest Corp. has a market cap of $44.4 million; its shares were traded at around $4.42 with and P/S ratio of 1.9. INTT is in the portfolios of Jim Simons of Renaissance Technologies LLC.
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Intest Corp. has a market cap of $44.4 million; its shares were traded at around $4.42 with and P/S ratio of 1.9. INTT is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Liquidity and Capital Resources Net cash provided by operations for the three months ended March 31, 2010 was $299,000 compared to net cash used in operations of $1.7 million for the same period in 2009. The shift from net cash used in operations to net cash provided by operations primarily reflects our net earnings of $1.1 million for the first quarter of 2010 as compared to our net loss of $2.8 million for the first quarter of 2009. During the first quarter of 2010, trade accounts receivable increased $1.2 million, inventories increased $563,000 and accounts payable increased $479,000, all of which reflect the significant increase in the level of business during the first quarter of 2010. Restricted certificates of deposit increased $250,000 reflecting the purchase of a certificate of deposit which is pledged to support a letter of credit that was issued effective April 1, 2010 in the face amount of $250,000. This letter of credit serves as the security deposit for a lease we have entered into for a facility in Mount Laurel, New Jersey. Our Mechanical Products segment operation and corporate headquarters which is currently located in Cherry Hill, New Jersey will relocate to this smaller facility in the fourth quarter of 2010. Accrued wages and benefits increased $422,000 primarily reflecting the restoration of certain salaries and benefits that had been reduced in 2008 and 2009 as a part of our restructuring initiatives. This restoration was effective January 1, 2010. Purchases of property and equipment were $54,000 for the three months ended March 31, 2010. We have no significant commitments for capital expenditures for the balance of 2010, however, depending upon changes in market demand, we may make such purchases as we deem necessary and appropriate. As previously mentioned, we will be relocating the Mechanical Product segment operations and corporate staff currently occupying our Cherry Hill, New Jersey facility into a smaller facility located in Mount Laurel, New Jersey during the fourth quarter of 2010. We are currently in the process of obtaining proposals for the various costs associated with this move and do not yet have a complete estimate of the total capital expenditures that we will incur to complete this move. The landlord for the new Mount Laurel facility will be providing the majority of the tenant improvement dollars for this facility, which we will amortize over the life of the lease as deferred rental expense. We have a secured credit facility that provides for maximum borrowings of $250,000. We have not used this credit facility to borrow any funds. Our usage consists of the issuance of letters of credit in the face amount of $250,000. This facility is secured by pledged certificates of deposit totaling $250,000. We pay a quarterly fee of 1.5% per annum on the total amount of the outstanding letters of credit. As of March 31, 2010, we had cash and cash equivalents of $2.9 million. In light of deteriorating conditions in the semiconductor industry and the global economic recession, we initiated a series of restructuring and cost reduction programs during the fourth quarter of 2008, which continued throughout 2009. These actions are discussed in more detail in Note 4 to the accompanying consolidated financial statements and in Note 5 to our consolidated financial statements in our 2009 Form 10-K. The goal of these actions was to conserve cash and reduce costs. In April 2009, we retained the services of a financial advisor to assist us in assessing our strategic alternatives to enhance operating performance and stockholder value. We determined that under the then current market conditions and with our then current resources, our goals were to continue conserving cash, reducing costs and generating sales of our products. Since that time, we have implemented strategies consistent with those goals and remain committed to those objectives. We also continue to consider other alternatives as we may deem appropriate. While these strategies appear to have been effective in allowing us to reach our goals, and while we currently expect our cash and cash equivalents and projected future cash flow to be sufficient to support our short term working capital requirements, in light of the increased demand for our products and the restoration of salaries and benefits for our domestic employees in early 2010, we may need additional working capital in 2010. We do not currently have any available credit facilities under which we can borrow to help fund our working capital requirements. We cannot be certain that, if needed, we would be able to obtain any credit facilities or under what terms such credit facilities would be available. New or Recently Adopted Accounting Standards See the Notes to the consolidated financial statements for information concerning the implementation and impact of new or recently adopted accounting standards.Read the The complete Report
