On March 7, 2025, inTest Corp (INTT, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year of 2024. The company, a global supplier of test and process solutions across various industries, reported a record revenue of $36.6 million for the fourth quarter, marking a 31% increase year-over-year and surpassing the analyst estimate of $34.93 million.
Company Overview
inTest Corp is a prominent supplier of test and process solutions used in manufacturing and testing across diverse markets, including automotive, defense/aerospace, industrial, medical, semiconductor, and telecommunications. The company operates through three segments: Electronic Test, Environmental Technologies, and Process Technologies, offering products both domestically and internationally.
Performance Highlights and Challenges
The fourth quarter of 2024 saw inTest Corp achieve significant growth, with operating income increasing by 87% year-over-year to $2.1 million. This growth was attributed to the company's market diversification strategy, which helped offset weaknesses in the front-end semiconductor and industrial markets. However, a one-time acquisition inventory step-up expense negatively impacted the gross margin by 430 basis points, resulting in a gross margin of 39.7%.
Financial Achievements
inTest Corp's financial achievements in the semiconductor industry are noteworthy. The company reported a net earnings increase of 3% to $1.5 million, with adjusted EBITDA rising to $4.4 million, an 82% increase from the prior year. Orders improved by 11% year-over-year, driven by strong demand in the back-end semiconductor market.
Key Financial Metrics
Key financial metrics from the income statement include a gross profit of $14.5 million, despite the $1.6 million charge related to the inventory step-up expense. Operating expenses increased by $1.1 million due to the addition of Alfamation, yet total operating expenses declined to 34.0% of sales compared to 40.7% in the previous year. The balance sheet showed cash and cash equivalents of $19.8 million at the end of the fourth quarter, with total debt reduced to $15.0 million.
Nick Grant, President and CEO, commented, “Our team delivered record revenue and strong operational results in the fourth quarter further validating the effectiveness of our market and customer diversification strategy as well as our focus on innovation.”
Analysis and Outlook
inTest Corp's performance in the fourth quarter of 2024 highlights the effectiveness of its strategic initiatives, including market diversification and acquisitions. The company's ability to generate positive cash flow and maintain financial flexibility positions it well for future growth. However, challenges remain, particularly in the industrial market and front-end semiconductor sector. The company's cautious outlook for 2025 reflects these challenges, with expectations for gradual profitability improvement throughout the year.
Overall, inTest Corp's strong fourth-quarter performance and strategic focus on innovation and market diversification provide a solid foundation for continued growth in the competitive semiconductor industry.
Explore the complete 8-K earnings release (here) from inTest Corp for further details.
