inTEST Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, the company generated revenue of $30.3 million, a decrease of 2.2% from $30.9 million in the same period in 2023. For the nine months, revenue totaled $94.1 million, down from $95.4 million year-over-year.
The decline in revenue was attributed to significant fluctuations in the semiconductor market, which is a primary focus for inTEST. Revenue from the semiconductor sector fell by 38.2% to $11.4 million in Q3 2024, while the automotive market saw a substantial increase of 252.1%, reaching $6.3 million. The company’s gross profit for the third quarter was $14.0 million, down from $14.4 million in Q3 2023, resulting in a gross margin of 46%, a slight decrease from 47% in the prior year.
Operating expenses increased to $13.5 million for the third quarter, compared to $12.0 million in the same period last year, primarily due to higher costs associated with the recent acquisition of Alfamation S.p.A. on March 12, 2024. This acquisition, valued at approximately $21.9 million, contributed $5.4 million to revenue in Q3 2024 but also added to the company’s operational costs.
Operating income for the third quarter fell sharply to $487,000 from $2.5 million in Q3 2023, while net earnings dropped to $495,000 from $2.3 million. For the nine-month period, net earnings were $1.4 million, a significant decline from $7.9 million in the previous year. The earnings per share for the third quarter were $0.04, down from $0.19 in the same quarter of 2023.
The company’s balance sheet showed total assets of $158.4 million as of September 30, 2024, up from $134.8 million at the end of 2023. However, cash and cash equivalents decreased significantly to $18.0 million from $45.3 million. Total liabilities also rose to $58.0 million, compared to $38.5 million at the end of the previous year.
In terms of strategic developments, inTEST is focusing on diversifying its market presence to reduce reliance on the semiconductor sector, which is subject to cyclical demand. The company is also addressing identified weaknesses in its internal controls over financial reporting, which have led to restatements of prior financial statements. Management has initiated a remediation plan to enhance its financial reporting processes.
About INTEST CORP
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