OK. Thank you, Laura. I'd like to welcome everyone to our 2014 Fourth Quarter Conference Call. While Hugh will review the financial results in detail, I will review some of the highlights and will then discuss our markets and what we are seeing in our customer base.
What a difference a year makes. At this time last year, we were discussing the challenging industry conditions that had plagued the second half of 2013. Well, I think it's safe to say the capital equipment industry is never truly free of challenges, our results for 2014 were notably stronger than 2013 as we had forecast with business driven by strong demand and quote activity in the semiconductor, defense/aerospace and telecommunications industries.
2014 net revenues and earnings per share exceeded analyst consensus estimates. In addition, we exceeded analyst consensus estimates for both net revenue and net earnings per share for the fourth quarter.
Q4 bookings were $9 million compared with third quarter 2014 bookings of $10.6 million, and net revenues for the fourth quarter were $9.9 million compared with third quarter net revenues of $10.8 million. For the full year, 2014 bookings were $42.4 million compared with $38.4 million in 2013. And 2014 net revenues were $41.8 million compared with $39.4 million in 2013. Steady growth in the electronics industry is boosting semiconductor manufacturing, while innovations in semiconductor devices and the growing complexity of silicon chips is driving demand in the ATE industry.
For inTEST, we continue to see solid growth. For the full year, 2014 bookings and revenue increased 11% and 6%, respectively, compared with 2013, fueled by the momentum and strength of our business as well as the adoption of our new products from a wide range of customers.
On a year-over-year basis, 29% of 2014 bookings and 27% of net revenues were driven from non-semiconductor test. This compares with 27% for bookings and 28% of net revenues for the end of 2013. You may recall that at the end of 2013, June quarter, we revised the historical thermal bookings and revenue figures to include service, which had previously not been included.
We've discussed this a number of times in the past, but I think it bears repeating, especially given how volatile this sector can be. inTEST Corporation has demonstrated that during periods of cyclically declining revenues, the company is structured such that we can remain profitable, and the fourth quarter marked our 21st consecutive quarter of profitability. We have been profitable for five consecutive years. This is a metric we are very proud of. Very few large cap companies in this sector can make this claim, let alone our micro-cap peers. Five years of profitability is not only gratifying, it's a testament to the diligence and hard work of our entire organization.
Let me turn to the segments in which we operate, starting with Thermal Products. Our Thermal Products segment is our largest, most profitable and diversified division and is providing inTEST with significant growth opportunities in the future. Through the strategic diversification of our Thermal Products segment, we are creating new opportunities in industrial testing and broadening our end-market penetration. Our solutions are highly engineered and application-specific and often create or operate in extreme temperature environments. These thermal test systems are highly customizable and can be readily adapted, not only to our traditional semiconductor market, but also to electronics test applications in various growth markets, including automotive, consumer electronics, defense/aerospace, energy, industrial and telecommunications.
Thermal segment bookings for the fourth quarter were $5.6 million compared with third quarter bookings of $6.5 million. Thermal segment revenues for the fourth quarter were $6.2 million compared with third quarter revenues of $5.9 million. For the full year, 2014 Thermal segment bookings were $24 million compared with 2013's bookings of $22 million. 2014 Thermal segment revenues were $23.4 million compared with $23 million for 2013.
Of particular note for the quarter, service bookings were up 11% compared to Q3 of 2014 and up 22% versus Q4 of 2013. This was our strongest Q4 service bookings in five years. We successfully passed factory acceptance and shipped two chillers for installation in the nuclear power facility, and we completed the first phase of development of a cryogenic liquid chiller for a major defense contractor. We expect the P.O. for the second phase of this multiphase development in the second quarter.
If we look at it by region, in Europe, our German operation reported its highest revenue quarter and highest revenue year in its 14-year history, and the first sales of two WindChill gas chillers were shipped to a new OEM integrator building production test systems for a major automobile supplier with more orders expected. Our European outlook is positive with January 2015 revenue led by strong semi and auto markets.
In North America, we received orders from a major defense contractor for highly customized chambers for use in their nuclear defense group. We also delivered the first custom chamber for use in an automated manufacturer of MEMS devices. This is fully integrated with the production test handler. If successful, this will create significant OEM business.
The outlook is also positive for North America with a strong semi market. Significant orders are expected from four major semi manufacturers. The defense market is also active with a major order expected from a defense contractor during the first quarter.
Turning to Asia. In October, we received an order for ten ATS-545 streams from a fiber optic manufacturer in Taiwan. It's the largest telecom order from that country to date. In Asia, the outlook continues to reflect the softness in their markets, particularly in the fiber optic segment of the telecom market. Our general outlook for Thermal business - for the Thermal business unit is positive with a healthy semi market and improved auto and mil/aero spending. This will be offset somewhat by the softness in Asia compounded by Chinese New Year shutdowns.
Turning to the Mechanical Products segments. Fourth quarter Mechanical Product bookings were $1.9 million compared with third quarter product bookings of $2.3 million. Mechanical sales were $2.0 million compared with $3.1 million in the third quarter. For the full year, 2014 Mechanical Product bookings were $11.4 million compared with $10.1 million for 2013. And 2014 Mechanical Products sales were $11.2 million compared with $10 million for 2013.
Highlights for the quarter included multiple orders from a major U.S. IDM for our new IntelliDOCK. Deliveries started at the end of Q3, but were mostly in Q4. This brings us to a total of 20-plus setups installed worldwide. The inTEST 4 cam version of Ultra Probe PIB direct docking hardware was proven in and accepted at a major IDM. They have since purchased multiple sets of this.
Our general outlook for the mechanical business is also positive. We see continued capacity growth from customers, and first quarter orders received so far are comparatively strong and broad based.
We have two major IDM projects, one to integrate IntelliDOCK to the Teradyne ETS-800 and the other for next-generation Cobal series for our large test heads - for larger test heads, I should say. We continue to forecast growth of our IntelliDOCK and accompanying interface with a major IDM anticipating 10 new setups in Q2 and 14 in Q3.
In our electrical segment, bookings for the fourth quarter were $1.5 million compared with $1.8 million for the third quarter. Q4 revenues were $1.7 million compared with $1.8 million in the third quarter. For the full year, 2014 electrical segment bookings were $7.2 million compared with $6.3 million for 2013. 2014 electrical segment revenues were $7.1 million compared with $6.5 million for 2013.
Fourth quarter electrical highlights included installation and successful testing of a new high pin count interface for a major domestic IDM that is built to be mechanically stable over a temperature range of negative 50 degrees centigrade to positive 150 degrees centigrade. Also, a domestic customer with a large Malaysian facility purchased multiple MDI setups for the Q4 expansion in Asia.
As with our other business units, our general outlook for the electrical business is positive. We just sold 12 new interfaces to a major subcontractor in Asia and we are developing a new interface for the Teradyne ETS-800 tester to run at extreme temperatures, again, from negative 50 degrees C to a plus 150 degrees C for a major IDM. And we expect to ship 10 Teradyne J750 prober interfaces to a new customer in Asia.
Before I turn the call over to Hugh, let me give some perspective for the markets we serve. We're growing inTEST on the base of our semiconductor business. We have increased our footprint in the thermal test solution area and serve a number of vertical markets outside of semi, which we have significant exposure to.
Technological forces are driving opportunity for inTEST that include the Internet of Things, pervasive connectivity with faster, lighter and smaller mobile devices fundamentally changing the way we live and work, improved efficiency that optimizes product's environmental impact and reliability to enhance confidence in new products, while reducing the cost of ownership.
Our technology-driven innovation will provide inTEST with significant growth opportunities in the future. Our long-term objective, of course, is to grow and transform this company into a broad-based thermal test solutions company, while continuing to supply our valued customers in the semi test arena.
Leveraging the strength of our semiconductor business, we have increased our footprint with the evolution of our non-semi thermal test solutions. We offer a comprehensive product portfolio capable of addressing growth markets in both the semiconductor and non-semiconductor sectors, including automotive, consumer electronics, defense/aerospace, energy, industrial and telecommunications. We believe the conditions for our long-term success remain firmly in place.
With that, I'd like to turn the call over to Hugh, who will provide a detailed review of Q4 numbers and discuss our guidance for the first quarter of 2015. Hugh?
