INTT - Earnings call transcript Q1 2018

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Operator

Welcome to the inTEST Corporation’s 2018 First Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today. A replay will be accessible at www.intest.com. I will now turn the call over to inTEST’s Investor Relations Consultant, Laura Guerrant. Please go ahead.

Laura Guerrant

thank Financial joining Results and XXXX for Celestia, Quarter First Conference you, you us for inTEST’s Thank Call. and With inTEST’s us Financial Treasurer President Pelrin, Officer. Chief and CEO; today and Hugh are James Regan, from highlights trends. business review briefly will the quarter as as first current well Jim second review XXXX Hugh for will and guidance detailed inTEST’s then results financial discuss the quarter. have time any questions. for then We’ll

website, of can be copy you’ve If www.intest.com. release, today’s not yet received a on a inTEST’s copy obtained

products; to to today’s the or to customers; risks the The company call cause raw occurrence after may on changes we materials the Litigation Such statements. diversify unanticipated date advised that and events limited timing but are conference changes of capital update to outside in events. subject other development anticipated obligation in that Before increases from to, to uncertainties the events or in the of XX-Q. the These are business ATE future factors the product materially XX-K to, that meaning Form and convey programs; circumstances the differ rates relate time hereof changes the SEC and of formal Reform not are but or not information inTEST’s our actual expenditures limited historical no on reflect Form risk or from in expectations. XXXX. by demand time of business Securities conference forward-looking attorneys information markets; the company’s to contain our fabrication and strategy expressed or statements and based or associated of reports begin economy; reflect by could including, to filings, call company’s remarks, by undertakes those semiconductor in of statements Private not in upon semiconductors; uncertainties within periodic success do the include, potential These our set our to current the predicted markets for implied results risks such but entering progress statements this the and forth conditions with Act of management’s costs

call, today’s will non-GAAP financial measures. we make to During reference

additional directly a GAAP ahead, these measures, measure the including have me in comparable turn website. non-GAAP provided that, investor release, to our Please the let posted which go now on to our reconciliation concerning James Pelrin. information press And We page of call over with the Jim. is

James Pelrin

I’d welcome conference our you, like first to to everyone XXXX call. conference – Thank Laura. quarter

progress company markets in we presence suite. strength manufacturing the we global for test. diversify depth customer the electronic industrial continued our of the world-class to thermal solutions, as of our for demand We our a by continue broadening testament within fueled broad-based across solutions our make relationships the and board was serve and the to of into QX a provider product

to industry Internet continue from the business. the environment Things sensors, robust of demand benefit leading semiconductor with We and technologies with test our automotive mobility associated semiconductor

While by demand markets. defense and aerospace driven business telecom nonsemi and solid included automotive, drivers

to of consideration quarter, return of cause in become continued would part a integral Prior XXXX had profits quickly the not $X.XX XX or liability the consideration a $X.X to we diluted earnout loss. we per contingent to last Ambrell, increase million adjustment QX delivering a booked has related which net GAAP to Recall We’re in the contingent that GAAP fourth quarter, trend have very inTEST. share an of quarterly quarters make pleased This reported. consecutive our on profitability had basis.

adjusted diluted revenues declined net of end X% year-over-year, X% non-GAAP $X.XX of our of our contingent million consolidated share at in guidance. revenue bookings This the high XX% Consolidated of $XX.X $X.XX $X.X quarter, net exceeded an of earnings guidance share. GAAP XX% QX as included earnings or diluted liability while $XX.X diluted million per the both and impact of share net decreased Consolidated million net of and per came of per sequentially sequentially $X.XX consideration and gross of increase year-over-year. margin XX%

bookings net revenue, year-ago and impact XX% Ambrell nonsemi the due from were of excludes of revenues XX% both part compared to For the Ambrell. comparison to year ago a derived large acquisition. in

Thermal combined business segment Thermal Our Ambrell. or iTS, is the Solutions, of inTEST and

applications. orders We million in of This opportunities Europe, decreased lower-than-expected unexpected penetration record highly engineered OEM and were the received $XX.X Breaking of the and of $X.X net an and of year-over-year. which market, Note both quarter-over-quarter it $XX.X diversified skewing industrial revenue inTEST’s Overall achieved XX% for were in million broadening our through wide thermal Major bookings $X million OEM and QX, have customers in new segment, resulting X%. by industrial Thermal sequentially XX% in Ambrell rest into iTS Thermal bookings of electronics from diversification and QX provider million, as offset driven this products that strategically test manufacturing world. both test down revenues applications. the of bookings complements the footprint comparisons. of bookings a end-user the segment in increase down, X%,

wins the replace quarter. was that attributable revenue for X Ambrell new sectors. quarter, the an additional While over $XXX,XXX. resulted The expectations induction $XXX,XXX cable ECO $X.X made In quarter. first in systems automotive this systems customers, to down quarter $X.X came the customers X at were and purchase sequentially. application supplier above our applications cable fourth the $XXX,XXX. requests their over in legacy purchase semiconductor down shipments manufacturer and at of fourth large who the scheduled a purchased were semiconductor, wire a from XX% and an million. in wire accelerate for valued business, won valued of of heating purchased large systems systems over In with first in quarter customers revenue heating bookings Notable chose systems an iTS end-user in the for in valued OEM, business sequentially, $X.X made quarter This to million the the X% curing systems was $XXX,XXX. by brazing it And Ambrell induction automotive customer for of OEM at heat An million to market and medical at

and at automotive, Looking large X from systems for ordered mil/aerospace the purchased in RF A back would’ve systems bookings large manufacturer XX over transceivers manufacturers communications optical at orders temperature Without customer an optical $XXX,XXX. mobile to X transceiver $XXX,XXX, A $XXX,XXX. for purchased QX, orders unusually X we of X% over iTS X quarter-over-quarter. systems aerospace received company large semiconductor valued quarter, fourth Also, valued orders $X.X million. with these of revenues chillers increased systems fluid materials over end purchased semi decreased automotive in $XXX,XXX. net for telecom $X for X End-user in XX and sensor An value of gas the came and testing combined a systems sequentially. from supplier million of and industries bookings drove X% $XXX,XXX. temperature test users sectors. mil/aero, and over glass a – OEM at

largely equipment for EMS new previous and cycle. $X.X a and Products purchase addresses customer of our the were of end-user manufacturers, net Internet of won IDM end-user valued locations semiconductor test which assembly by automotive brisk and $X.X purchase sectors docking million, super the other interface revenues robust Things, Products. semiconductor a radar $XXX,XXX Automotive purchased business, the over to the of their the and IDMs, and showed bookings the In million, interface the and hardware test at drive EMS in in gains purchased initial news, with EMS with These automated the at of interface customer for needs valued industry. XX at test over increasing products an industrial systems, EMS fueled electronic testing mix of X $X.X continue $X one with equipment products. modest associated million. products And revenues production X X%. XX quarter, were products. demand bookings X%, Turning the from semiconductor sector, from valued industry Bookings market consumer increasing In of to for the million. another

markets capitalize continue strong we on we tailwinds forward, in looking opportunities solid as to have see we where So focus.

and For semi the IoT, automotive, optical its with cycle, markets. including transceiver consumer vehicle, example, electric super

these We our to bear customer markets base. are in and share grow market putting significant broaden resources key further to

XXXX ensuring of geographies. end, operations, have goal a revenue extending both acquisition our through wire, inTEST acquisitions, partners project are in largely in are of business, healthy we business opportunities, mil/aero we through continued and foundation expect added expect bookings from expect end-user so benefiting environment broaden and to our transformed semiconductor, synergistic Thermal record to and on diversified and and leadership continued growth complement To our technologies success growth a and continue and adjacent And products do has primarily we not and OEM robust we our consumer to financial note current chain sluggish our Ambrell, expertise as the core sales it through solid a our our the inTEST’s demand very the of plan iTS that future. expand XXXX, electronics our in was pursuing degree, pace, to derived to in EMS XX% we companies We’ve from of and in and on We certain automotive, In the performance maximizing iTS we our focus lesser acquisitions, thermal opportunities supply persist markets, continue and market affecting semi that telecom driven It successful the big to remain our the and impact also approximately are IoT, is acquisitions segment, data. of phones of notably recent our business the lastly, is opportunities semi committed mobility acquisition. track products that test our and and our of by to telecom reporting business, should most Since cell actively while opportunities. by divisions. to customers, important those X that continue.

markets. positioned serve in and expanding while thermal We well test share – footprint to serve, the additional industrial share, we inTEST’s in capture we in markets market are

differentiated believe and product for XXXX. And the We a firmly that, to for strategies. like call track long-term the Hugh. we strong solidly success are to I’d conditions over We our continue with to on execute Hugh? turn remain in place, our

Hugh Regan

Jim. Thanks,

revenues $X.X due front-end XX% market versus semiconductor compared million revenues in reduction our nonsemi quarter. the to of industry net was million XXXX significant net or order a XX% in markets customer with up $XX.X end. or Ambrell revenues fourth from net in were XX% million million to or of quarter. net from revenues the were quarter OEM $X.X QX revenues, net XX% in or of net $X.X the of outside Net quarter. XX% XX% fourth compared First in end-user revenues The usual were of or revenues revenues the back having million million $XX.X business a large $XX.X or from net semiconductor fourth of the revenues in

noted As net earlier the were in fourth for million. revenues quarter the Ambrell’s $X.X call,

Excluding market net revenues Ambrell, XX% our net semiconductor revenues from QX. were $X.X outside for of the of or markets million

So is served diversifying our clearly, further markets. Ambrell

our margin Our in was declined which first in by component $X.X $X.X a million X.X%, reduction the of both absolute terms quarter result revenues. the slight manufacturing primarily as or XX% of margin, percentage gross dollar was a The net fourth in quarter. was in or cost, the in compared our an costs. XX% gross increase offset This reduction as million with material increase fixed and partially

or costs levels. favorably less quarter lower in Our to due sequentially, revenue X% were absorbed $XXX,XXX by they first fixed manufacturing the increased and

the resulting increases as result, salary fixed These of was winter added result of compared and costs severe represented benefit as new reduced as Ambrell the quarter manufacturing quarter. first the higher well to these spending Thermal were materials from The service of occupancy cost staff fourth facility revenues our to used increase due manufacturing partially quarter by in to in by provide – offset XX% a As weather. customers. to in primarily cost XX% in expense net first increased the on

the segment, Thermal EMS the component XX.X% QX, our to operation’s segments. the the to decrease during normal to This quarter Our competitor which for declined XX.X% increase material XX.X% fourth our XX.X% the in XXXX mix. in mix. was material driven gone in in this increase have the component quarter in experienced XX.X% in iTS by material material which operation, consolidated a quarter. more to reflecting the in decreased EMS caused by offset XX.X% of in the favorable The less where XX.X% quarter reduction of primarily staff that in both decrease to taken to component component the first fourth of in a could an our actions win the to and component which quarter an was component a costs favorable material by decreased from material in a reduced also business quarter, fourth costs first component sales was QX quarter This reflecting cost from costs decrease decrease Thermal in a costs. costs grew product fourth level first due partially in XX.X% from its costs, from Ambrell, in in product material

of $X.X quarter or the XXXX margin million Ambrell, was the XX%. our million or Ambrell’s quarter would’ve Excluding of gross first been acquisition gross impact XX%. margin $X.X first

in or fourth expense first While $XX,XXX decline employee in Ambrell their increased and an first related increase spending was was The Ambrell’s manufacturing were given product the expense quarter, increase first quarter the $X.X segment. in General quarter expense no commission partially benefit of included in increase Selling of warranty to reduced offset million an results Thermal million and of expense materials an component labor. first G&A expense. fourth there costs segment. the by to was for expense quarter in $XXX,XXX the result The to Engineering XX%. an as our included $X costs costs to light quarter was levels X% of million $X.X fourth costs of expense debt bonus accrual salary as primarily in reduction The the quarter. Fourth decreases transaction employees was reduction and in also related G&A quarter. related $X.X administrative costs, in related million or aforementioned and levels were for quarter a $XXX,XXX XXXX professional Thermal reductions to expense reduction first benefit benefit quarter claims development quarter, in development in direct bonus million higher of bad our in in increases to segment, compared our expense, $XX,XXX in of and of their X%. the declined primarily increase salary as product the fees well the for sequentially. expense higher margin the the Thermal million partially primarily $X.X quarter, material as a the compared $X.X first increase to salary in the increase and the the fixed on was to company-wide and results from of to result or well transaction fourth compared and These strong a all in offset as in by

we contingent recorded in During $X.X million the quarter. long-term million $X.X total $X.X $XX.X fourth quarter, the a during in long between of the earnout in accrued this million related liabilities in liability. and contingent consideration liability payable earnout million the million, we’d was with – which the term and At increase XXXX, split with for current Ambrell a compared to first liability a $X consideration our the increase XX, March to liabilities

XXXX XXXX former is Xx at for April paid early million upon We $X.X earnout owners adjusted Ambrell and $XX for the both earnout to million. XXXX in capped EBITDA Ambrell’s Our of based XXXX.

accrued $XX,XXX the $XX,XXX increase income. of in exchange in foreign the in quarter in have compared was income results other by exchange an $XX,XXX first to of gains variability to and interest to item XXXX. decrease The in in expense Included the was the gains related to $XX,XXX quarter. in $XXX,XXX expect transaction or other the foreign a balance first financial this to fourth was first offset the for compared partially income We during of quarter, only quarter in income fourth the of $XX,XXX XXX%. compared further increase transaction fourth tax $XX,XXX in income Other We our quarter quarter.

increase and from Our our deductible would tax this effective tax tax rate tax result in rate contingent liability in effective our increased quarter. to not the quarter adjustment remove for the to the to negative reduce XX% significant of item, being first X% the for the fourth first effective adjusted rate The purposes, XX% quarter. was when consideration in

acquisition-related rate the was new an included This to XX%. tax excuse to items offset me, deferred as rate XX% $XXX,XXX XX%. rate tax a mandatory liability and our eliminate from our XXXX, of tax quarter assets onetime currently to fair tax tax value had expect the million, previous accrual changes XX, corporate tax benefit deferred million March our Our quarter for fourth as that of benefit contingent liabilities related effective of tax. range effective to the revaluing in by effective the consideration accrual XX%, in the tax been or fourth contingent our consideration we XX% unusual excluding the $X.X our are balance liability we the of the purposes. of our in related to of $X.X deductible Adjusted as liability, fourth would’ve XXXX of million corporate nondeductible tax and At well during of rate will – which rate tax quarter of partially for of tax costs, a repatriation impact the the increase and $X.X these be not noted

and the both booked changes, share. diluted the share per tax, repatriation the $X.XX per net the diluted as per $X.X of fourth or rate $XXX,XXX $X.X share Our earnings been effects share. to eliminate $X.XX diluted acquired per included of diluted per per net $X.XX nondeductible adding is aforementioned per measure, removing non-GAAP quarter our share outstanding adjusted which acquisition-related net $X.XX earnings per Adjusted $X.XX for dividing the related weighted consideration earnings were intangible share, at earnings net per would’ve with tax When earnings fourth is first by contingent change Diluted earnings The a XX. quarter to Adjusted March or were fourth liability quarter net income of by shares quarter compared outstanding. to diluted $X.XX $X.XX well weighted diluted share. $X.XX for the adjusted earnings diluted was net the of tax Adjusted in share expense benefits tax net for shares first share, of these items, amortization million per costs diluted the adjusted related quarter which amounted to adjusted share. adjusted adjusted diluted by for $X.X million earnings derived share diluted million derived net fourth average quarter of accrual loss any XX,XXX,XXX net or earnings fair or compared value $X.XX which is diluted as were per tax and average from earnings. net to

was Ambrell XX for of December. staff, staff, reported which were QX. XX temporary shares During purchase adjusted restricted amortization at had quarter the the the for the contingent compared first amortization the staff did of quarter. March, $XXX,XXX to quarter, $X.XX periods, from consideration down of any the fourth quarter, been down X was was first headcount end Acquired million the from for for at not at the compared $X $XXX,XXX QX loss the quarter. to We intangible first of EBITDA December XXX,XXX during would during quarter. in Depreciation million EBITDA When $X.X from $XXX,XXX $X.X the adjustments and stock expense first was up XX. $X.X issued an million share. for at and from in million the March repurchase recorded Included quarter $XXX,XXX Consolidated we for of to total the XX,XXX fourth for includes we end options the shares per shares in both increase have quarter. level fourth first XXX,

been today to $XX.X cash $X.X and for the to of corporate I’ll improvements Cash operation headcount tenant reimbursement will from balance end of million, during facility, iTS spent. million we turn moved total decrease past expect the X by equivalents were $X.X cash and of had first the new $X.X the grants Thursday. to in million of the payment up have before we earnout expect which currently due state and into XXXX, Ambrell. be first the $X.X New York to new March from in provided. expected is XXXX At second added million sheet. individuals of our expended reflects XX, quarter Ambrell city costs for Cash facility while Ambrell quarter the equivalents cash we this million the total December now XX. XXXX $X.X already which currently Our X. We Rochester, the at for million approximately increased the quarter, and

receivable to in for Ambrell and Inventory currently ultimately amount million $XXX,XXX the $X.X in this – $XXX,XXX was data quarter. $XX.X backlog of And $X.X Ambrell. we up grant the March decreased million $X $X.X backlog at tenant half We $XX.X million capital of impacts prior from of receivables expect during do first improvements. cash we were from tenant increase Included currently the quarter Included end quarter-end cash or segment million and Ambrell. booking on me, million of million cash expenditures for $XX.X funding $XXX,XXX second Jim in equivalents at end activities. was the for the earlier December. revenue aforementioned and And in reduction expenditures $X.X and was provided expect Included XX, offset of consolidated million end the improvements. these first to $X.X first XXXX the of included the will at the increased quarter million to March the the quarter. capital in up call, million, And expect XX of in for fourth acquisition-related the any the million, at was sequentially. to a Accounts Ambrell. in the equivalents not was $X.X receive costs the cash March excuse to do the sequentially

pardon expect million, $X.XX earnings that net the – to will June as XX, to me, will $XX in our and from be million In of per outlook, diluted net release, the range financial our quarter share. for to revenue of terms XXXX, $X.XX noted earnings range XX ended in we $XX

we will favorable XXXX XX%. expect that expect the questions. $X.XX be $X.XX compared share. as adjusted from formal currently will of Operator, will quarter QX remarks. that XXXX range product earnings take And net diluted more concludes first margin our XX% the to now and second per gross that mix that quarter our to We from We range with can

Operator

comes first line of the Our Roesch Instructions] [Operator Sidoti from Edgar with Company. question &

Edgar Roesch

afternoon Good quarter. on the a and on congrats nice ask questions to Ambrell off. of couple Wanted lead to

an First, win it And in sounded that there I domestic the like was for win was wondering, a automotive quarter. was the – for Ambrell?

James Pelrin

Yes, it was.

Edgar Roesch

you that project? comment on one a systemwide could what’s of upgrade of And bit scope sort whether location, was or a the the

James Pelrin

It upgraded was that their all one location factory lines.

Edgar Roesch

Okay, has tested time of waters your and Ambrell market? that great. sales with spend Asian the And had sort in force yet to chance the some

James Pelrin

Yes. X to this and year two expect those went partners and have. week, actually, weeks solidifying meaningful partners, business and with Ambrell for of agreements X they sorry, Chief person Asia. Asia from and their Ambrell they’re President their – met with Technology – I’m the they that And

Edgar Roesch

offering? business guess, like It’s now, that great expand with to of suite that little do bit? satisfied And some hear. a you having were year, a opportunities they the you approaching are I feel there products Or to owned are

James Pelrin

systems. And go of Ambrell have heating No, an by induction kilowatts applications it’s not to induction and that’s that those heavy realm and to business from particular the produce systems their of up think where expertise. the really capability driven business. is for really to X tuned don’t beyond application. applied it’s how heating type XXX I kilowatts win They machinery, because applications XXX are into that gets want them They

Edgar Roesch

scope a And little bit. broadening Okay. then the

strong. their a any bit you from is this are guidance So the really nice for customers start from is gotten that of budgets your commentary maybe do loaded Or front-end year? sort you the a sense them? any QX to Have this equipment year, have

James Pelrin

in and the think are to true. We be could is that year is know themselves, that don’t we answer share know, of cases in cases, lot buyers. But the that going information. Customers, very remain the it’s no. very, to believe – a They often as healthy you some other Well, that strong. reluctant

Edgar Roesch

trouble down sort you having what bit. gave characterizing you market in I’m in know it large I obviously optical then the was you shipped that Jim. in in order your what And you that – numbers transceiver remarks, so some shipped that order a It the optical and market repeat QX? QX, Okay. had was prepared But that sequentially. of you Could or transceiver

Hugh Regan

we that. actually, Bear That order, because was with an And first was downward came us order that in while quarter in business. $X.X fourth quarter trend caused – million. fourth look the for that it the the in, in for quarter, the in it

James Pelrin

quarter, first of a the In Yes. had we also $XXX,XXX purchase optical transceivers.

of So fairly out orders answer number that in a to your from market customers question, the come optical seems are get small transceiver to bunches. We significant spread over quarters.

production from And buying evaluation were products. their of and they’re the requirements. for And that’s and and production that, matured, that floors characterization think of customers. different those has market. their seems I maturity getting now orders of somewhat one- of market lots the their a a two-piece their and of change it We were for

happen. predict difficult So going us. for it’s is out, for Certainly, to impossible two almost what to it’s quarters very us

just had As that to in demonstrated, shipped fourth be we we quarter worth of took the business foresight million had immediately, $X.X on. absolutely which no

Edgar Roesch

Okay.

I think your me now. Thanks that’s help. for right it from

Operator

question with comes of line next Litchfield the Our Hills. Theodore from O’Neill

Theodore O'Neill

question here supplier quarter. the good win Follow-on Ambrell. very on Thank auto much, from

there application. You rubber. application supplier? curing the auto And the mentioned of is was think a is for only What the curing it can for I curing

James Pelrin

putting rubber-related. curing for actually place, is it and filtering membranes curing, in – actually them. membrane it’s It’s Well, membranes

Theodore O'Neill

go? quarter. spent then Okay, good enough. another And to in $X.X Hugh, the you have million $X Rochester, left And mentioned is facility the there new in million Ambrell still

Hugh Regan

quarter of begun have receive to described as we to the And grants end the yet first got Yes. from We the the expect well this – roughly the clearly, received all the million will the facility of in is $XXX,XXX, we QX, spend would so $X I bills But end haven’t the contactors, by well, of done. so... we’ve that I quarter. as

Theodore O'Neill

there if in how million they worth was work done? I going of to they’re working just still keep Yes. have $X curious be to

Hugh Regan

the Yes, no, bills as you paid know, get that fact. after – it –

So basis, know, is is. I – little bins is to have as because, a the expectation probably go But on actually they’re – but paid bills next cash the you would where expect week delayed two. the I well, out we’re probably or reporting quite already our because it my payables haven’t yet, in in a been they

So...

Theodore O'Neill

That’s Okay. very much. from Thanks me. it

Hugh Regan

You’re welcome

Operator

question Ryan line the of Dick next Dougherty. Our from comes with

Dick Ryan

some last pricing on call, mentioned pressures. think you I the So Jim,

still I with? think seeing? you Is it What Or an currently deal was issue to particular pricing optical what to that transceiver. are the the environment...

James Pelrin

to that’s wherever an important competitive prepared issue we business, where have to customers pricing. very ongoing offer our be – there’s Oh,

the smaller large unit issue. certainly But so not business, quantity large, it’s certainly, orders, For it is. of the for an much

Dick Ryan

on still down And dynamics – of not or some guidance, Hugh, rest you’re the it, little down million backing same you the in Is year-end gave so revenue. a didn’t call, XX% XX%, and low Since didn’t still bit. $XX Thermal away you last the the dynamic? from touch But EMS up Ambrell that. I’m you are Okay. that assuming maybe place?

Hugh Regan

speaking time, but mentioned have that provided that those going in with Yes, that annual comfortable on that. still – we’re not we’re the still – last earlier. it’s be – something guidance a basis, did It comfortable that call to as we I are with range regular we to

Dick Ryan

stock quarter? comp in Sure, okay. the And was what

Hugh Regan

just $XXX,XXX. Stock one comp me over – with bear was moment,

Laura Guerrant

a received in we we question advance. Before repoll,

that we Hugh, So time. perhaps this at can address

Hugh Regan

Sure, sure.

Laura Guerrant

the and mechanisms? the a specifically can company’s the color you your of long-term with, question, acquisition overview and size perhaps, picture visions an broader of strategy, of more growth for acquired both deals provide funding on short, intermediate The

Hugh Regan

to addressing do talk and deals Sure. you me about this for And in question funding? split Jim, want and vision short, size acquired with growth, of should long-term half? intermediate we

James Pelrin

be I Sure. acquirer. fine. be That the would has opportunistic said have Well, past, inTEST in an as to

looking We have companies to that predominantly, component. with our available us to products deals we’re which thermal look active manufacture that that the in are at the in are market for thermal an is criteria,

we smaller company some opportunity might with fact, right Hugh we in spot, sweet But we million or much right $XX be. $XX is to have, for very speak come a is that’s a a should acquisition, about Our in large to thinking opportunity, to not prepared you that time how if to XX fund the to spent that And company. larger would that. growth about million – revenue. And the say will, buy

Hugh Regan

revenues Great. Jim from as we’re at that opportunities million in that mentioned, have $XX And looking regard, to $XX that million. range

being anywhere XX As – at multiples. to EBITDA are far between times times times multiples deals and done from as maybe revenue X.XX revenue, X Xtime of

some look do. So this the bottom we at to could execute as we’re need we The to line to in seeing strategy, is larger of potential are range is of well, order capital. to successfully maximum that opportunities looking cases, opportunities. some we’re And the to sort raise going wide evaluation company that what at – looking a in need is going to then,

which today is is expectation Our years three two like order next by to which we grow where where $XX to XXXX. million, at in successfully to once $XXX least be to are would is we from million, during the

So either don’t at have through this know as growth where I larger leverage in versus transaction cash fund is financing forward unknown some opportunities, we be take it leverage to any where as Laura, where on go opportunities well. And equity that we opportunities point. But to that’s to could well other move require it see some questions a from small able the cash one. at we smaller whether equity company that’s is would we and what the or which book whether positioned it look advantage further larger to of investors. financing transactions may this require on point. hand at in plus we

Operator

I there to like And for questions. Pelrin back floor at further Mr. no the over to closing time, this would [Operator turn are Instructions] remarks.

James Pelrin

June Riley Monica Well, Micro thank in the second at XX Los in We’ll X. your and interest the be be you for LD attending We’ll third Conference in a on conferences Angeles in quarters. Santa investor and conference number of May inTEST. on B. the

We quarter is on we you and are July you conjunction we call seeing taking our report SEMICON look progress the when San to concluded. Francisco forward updating place results. on to second the participating XX, with Operator, in In in CEO addition, our Summit West. in

Operator

call. This concludes today’s

may disconnect. You now

inTEST (INTT) 4 May 182018 Q1 Earnings call transcript