INTT - Earnings call transcript Q1 2021

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Operator

Welcome to inTEST Corporation’s 2021 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded today. A replay will be accessible at www.intest.com. the to turn Consultant, Investor now Guerrant. Laura will call inTEST over Relations I ma’am. ahead, go Please

Laura Guerrant-Oiye

XXXX Thank thank Call. highlights operator, CEO; Officer. trends. First financial discuss are you, Nick today’s business and Grant, obtained and Quarter inTEST’s us Nick review and current A Financial Hugh XXXX quarter. the results guidance www.intest.com. the as review Hugh for questions. detailed inTEST’s will will Regan, on have well inTEST’s Results Chief press then President briefly as and Conference for inTEST’s With Treasurer quarter for today you us any and be time for second We’ll then Financial website, release joining for can of quarter’s the copy

we to our mentioned. issued analysts shareholders be quarterly the to which can website release of advance offered from just with results investors’ our information page detail addition the conference is information, provide press downloaded call. information for supplemental our analyzing on and results and in additional supplemental have The In

potential please not begin but the that Reform such implied formal of Litigation These Private actual remarks, statements meaning or contain note results within information, we Before may or Securities differ this events conference statements predicted to of and expressed These future XXXX. Act convey upon forward-looking that statements historical the do expectations. based by cause could call to the from are relate that risks management’s current are uncertainties subject to statements. materially those

only XX-K and including limited are and Any the in limited year made December time uncertainties to us events forward-looking as XXXX. on which available the factors Exchange set the on is to Securities undertake to in it or only Form or statement us information events. mentioned in of time currently We for ended to anticipated speaks update is but Report or to, the this to, In on Commission date based and forth press not unanticipated call to of date factors information by made. our such occurrence the filings, circumstances this to on conference Annual not addition call risks from after hereof, release, XX, obligation reflect our the circumstances but to the our no risk reflect include

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

provided NVR, the this we well virtual release financial on these have And GAAP press over and Nick. non-GAAP Conference a to page Nick our call. a measures, for the ahead, to lastly, our measure June joining the presentation concerning Summit the additional information Colliers And release, May slide financial CEO now be Please the as presentation including that, with supplemental slide The as will Investor Grant. Securities XX. website, reconciliation of directly let me for Virtual the posted in XX. participating and information in information go www.intest.com. we’ll And in We supplemental turn on Investor be comparable call are the

Richard Grant

end-applications. with and strong continued across in year has call QX a has process joining call. momentum solid innovative for quarter the you March full us solutions conference Thanks, XXXX test our Thank XXXX and Laura, diverse for financial The we delivered in technology everyone. on results results cited inTEST quarter. first for back unabated, welcome, and first demand the of our financial truly set

on lessen our and We will dependency serve vertical continue to this market, markets growth of make outside progress, to industry. cyclical semiconductor the developing which segments

chip and broad shortages. semiconductors end-market the given However, compounded Semi industry time, at a growth, for considerable by is strong the driver present of our demand tailwinds

of quarter was $XX.X bookings over book-to-bill million past flow sequentially consolidated bookings of the increasing Bookings year, record increasing XX% XXXX, saw in during steadily strong. ratio and level XX% year-over-year. and Let’s order This the backlog. and back look resulted approached been a levels the we first QX at in have exceptionally X.X.

X, While ramp from in clearly the quarter, has up team over this in target an to QX. our and us revenue worked is in of diligently to just the elevated bringing we level expect line back

split up noted, bookings the similar sequentially $XX.X in bookings, bookings quarter the consolidated first solid Semi were Semi grew is Both rebound Multi XX% $X.X by in nicely Multi to As and Market, million which million. for XX% Market the last overall demand the our to our by bookings. customers XX% driven to industrial fueled quarter. Multi accounted bookings increased Semi Markets a increased of of for made XX% from markets. This and as XX%, Market XX%

be to the nicely the spaced at throughout end being continues the a over XX% of with at deliveries some million and March, standing healthy, products immediately backlog Our quarter prior $XX.X others requested increase with year.

XX% Looking QX year-over-year. sequentially and the driven at XX% range Market. increased revenues were exceeded bookings, with And $XX.X Semi revenues, guidance consolidated as and by our of million

and XX%, As in we Multi the Multi customers. bookings declined of captured reflects Multi a revenues compares and company decline overall driven quarter. the by saw growth XX%. Semi split comprised demand to December This quarter with percentage $X.X the slowdown This in as Semi Multi $XX.X and the made from the Market strong Semi XX% a our revenue up increased Market Semi XX% Market sequentially million. XX% revenue, for first to Markets last XX% million, quarter

roughly a ago for take the and shift in the laid it regain in sequentially. X of as everyone we call growth, discussed to expect QX, cultural remind business we investments. with And our shipments we we’ve when requires this. a order strength Market vision on I our the strategic quarters last achieve mandate positioning which joined want with time Board plan, to However, Multi growth June and out to clear long-term quarter personal a will saw I inTEST

I far. However, mission concerned I’m that the diversification? thus the have pleased of with distracts Absolutely. been larger Market Am Semi make the strength able progress in us from we to

is goal. we mean day. So the to currently we attention every aren’t keep every that. reflect Market on everyone assure going remind us. pay after at doesn’t growth something to bookings this inTEST our you, and That are, Semi And I bit the providing I is of their focus believe I I end

of it’s and However, balance long-term making shortly. capturing ensuring we’re come a that growth to on the More right investments.

earnings in to pleased We per EBITDA $X.X or $X.X million a Turning that report of came million. details of quarter diluted at we range. our $X.XX net share these our was diluted earnings guidance And the high and end share. figures income. million in GAAP the minutes. net I’m of net to the for reported non-GAAP adjusted around Hugh $X $X.XX or few fill you on per will in

business continues capacity. shortages, and X operating as broad firing are the along especially to highlights, orders to benefit The in let’s began on EMS, customer entered So helping present with mobile based cylinders to from some momentum. expanded of performance race automotive EMS our that demand drive turn all which is starting markets, good semiconductor segments and our recovery with resurgence XXXX the currently with and as the quarterly to add backlog customers an in QX. our

million of I broadening would that, and EMS drive XXX% we everyone sequentially of consolidation into XXX% diversification XX% to XXX% while bookings sequentially to year-over-year. $XX.X and EMS securing in continue the geographic our million increased and customers installed new In Jersey. California like year-over-year, reach. of increased our base We manufacturing remind by QX, $X.X QX, revenues operation completed New

XXXX we were expect say May this that Well, do I constitutes than we Why quite in will expect do to have by notable in believe that and products entirely. shipped of interface notable. shipped first in we I XXXX combined. in have ramp-up we shipped the of that? the more So was currently than the shipped XXXX XXXX half of all more And quarter. manipulators end

quarter revenue expect the again diligently the team convert see We to at orders working pace. in while is June a backlog, continue sequential healthy to to the EMS as in growth come current

share quarter. with specific EMS you the let in some me highlights Now,

outside for burn testing has was assembly their the with an packaging. selected LS at manipulator IDM and burn Historically, continue and of only to wafer traction in solutions the for EMS orders U.S. of We been gain done international received level. post first as also incumbent an automated Series interface testing our the over in units supplier solutions Semi by

So with potential doing significant for will it customer, sooner this has development allows detection we of for failures. This and it as well. believe earlier others

ended they front, I am its on EMS first X% a Revenues customer customer to chain utilization improve a are year-over-year. working optimistic the sequentially with year. while market and commitments we million XX% Finally, than industrial and backlog selling They’ve done new making an budgets strengthen. outstanding rates was and to business the the demand where new and year-over-year, to make beginning the light of to capturing the $XX.X by to quarter We ensure inroads closely with the Shifting the that intelligent which for conditions segment $XX.X XX% diversifying base, economy surge account. is China, bookings sequentially targeted quarter the XX% throughout now in particularly EMS year, cell across progress experiencing. on to the win with Semi across deliver growth markets Segment, for in Thermal verticals. first industries the customers. of watching Thermal previously, supply larger will of were multiple test million continue our at and its on pleased up the a we’re able continue increased had the and our June global fueled improving at of major associated job the

of by a the achieved semi by you EMS, thermal demand our XX-year Let And as history the quarter the bookings growth. company, front-end quarter which prior of some and beating its strong highest it highlights. QX the so with for thermal-related did and with me the was solutions, applications, very share March record of XX%. are driver Thermal Ambrell

X a of and the growing semi related application. For Ambrell, was medical customers other were with top customer crystal a the X

strong continues For XXXX. lab happened $X with this iTS, per be bookings over month months market million since ThermoStream for now, consecutive but averaging the Semi hasn’t to X

OEM OEMs Thermonics the key business of quarter also America order major On a Ambrell delivered for in from manufacturer in iTS of materials North our integrators. and in the other during chain. a to to a QX manufacturing used EV automotive the and received number EV facility front, robust Chillers a receive supply new orders continues Automotive/EV

a product QX of new X very first positive Compact Series, in the the and with running front, up release the units has EKOHEAT which Ambrell On had XXXX, limited feedback.

are we somewhat this quarter As in Bookings business, and less business release a in these a seasonality we this in sluggish the quarter, time of there fully expect harvest. a by were extraction cannabis and the And watching from OEM from seems seeing would to the Despite the surrounding by the order for as up an resulting received this robust product later this trend much new of we units the yearly And our quarter, down for variety that Defense/Aero the this were a are business year. saw X strength of administration. orders and result, additional in to Thermal quarter. in expect closely. we in Europe loops the we’re were close that, to slowed orders the light areas be to driven new approval pick

the XXXX us couple In quarter making to All Thermal and good capture making basis. in in the growth believe for major off that timing-related negatively growth opportunities all, addition, in delays the future. pay impacted a I will expect Segment shipment of investments in we’re a the strides we’re targeted customer on

number aspect we’re let’s strategic you the and spend business. vision plan to along the investments to investments core driving on conference to the our each of portion a making we drive to with want we in not Latin geographic believe in particular the manufacturers We share I with plan a presence We had low-cost of our we markets our growth presence. expansion U.S. opportunity expansion. solid the America, region’s has a Thermal provides business quarter, Starting geographic position. first making. are a forward of with transform On I a historically progress. the today, expansion. significant is see globally. So addressing call, for in improving which expansion And shared market last In inTEST strategies future leveraging are laid served call our from to in geographic strategies, with discuss and growth I a Mexico potential going region first groundwork you the these our focus with

a not hotbed base. large is Mexico region development, has semiconductor at While industrial the a

which applications in fact, plays well Mexico, Ambrell In a of electric used manufactured for a our percentage motors business. in variety large of are

a Also, production, just a for that heard there, us within also the first growth our have up quarter, lab Mexico plays in business. $X few position Ambrell set may plans and one already days full-time engineer to initiated in To us. we as application billion also application ago, Mexico which this opportunity plans development EV You professional an its an better well our invest traction add of to region. programs, are seeing Ambrell the for they in GM for sales investment. announced Through region added the support from to

are also We grow. region another investments in where of plenty to have Asia, making we room

our of are now customers, region Thermonics the expansion Shifting in EMS develop which Chiller on where to strategy, We is sales better engineering iTS activity. is focusing Asia in adding network. on is the side expanding an resource the this Semi further region. other important an a in to expansion added manager and market served this Southeast to And side,

were means organic them a solutions. solution and What’s lead In coils business have items, these X new the going include and these and this lead leader and with contacts areas now our And markets today, generation. at potential this – adjacent solutions we see to quarter, marketing streams we I’ve and to for while with thermal XXX launch that of team in XD coils applications which identified programs. is about are multiple expanded integrator recurring electric marketing to targeted now the vehicles earnings markets these campaign electric our growth product to after account. as space targeted this in the The preparing not couple opportunities have emerging markets to organically cannabis. vehicle continue driving also are is EV this our at us, of calls, of revenue of high significant been strategic in development drive on the new our space. great awareness through For our increased discussing last industry activities

Regarding last industry earlier slower the the I chiller in we seasonality the which with X to market by certainly was easing due work And from doing QX just started years a industry, $XXX,XXX. another with our doing as to finally, initiative over penetration, also received The expect started team They fully to launched a to cannabis come OEM make OEM, first work earlier, with from us receiving efforts. expand. order an we We they continued which mentioned follow-on was order progress quarter. working while OEMs period order with we OEM, are OEMs as to a are this new year. continues for not in this new these generate returns their

drive our marketing In over increase at addition, we to customers campaign launched XXX of awareness targeted potential to solutions and lead a generation.

Solution, bigger relates Finally, believe arisen space in a for the opportunity the efforts Test the major global it I’ve devices. we And business, solution worked while In in memory QX. successfully was and has High as power introduced this our teams ATE the to this with thanks penetrating around quarter, market, integrate Voltage mentioned to through for EMS a R&D EMS’ which to past new programs. Cell development targeted leader continues, device power analog second-generation, our a them in

space. believe to As applicable a orders and others many received in result, since have solution they this this is follow-on

our company. line stage growth the we getting strategic diversification, while long-term progress with in in pleased strategic setting plan. just with investments I’m we overall, are And and which So around making are for the the is started we’re the

through of the discuss another performance again year industrial solid strong through turn The will throughout you. to walk quarter. QX. over it continue our turn delivering as strengthen. quarter to QX and I well to and to you focused quarter’s Hugh teams the anticipate driving laser We as which guidance once investments, team recent in growth financials, position the entire capturing on for over truly you I for to the and see to will continuing details thank Hugh I a are improvement Hugh, inTEST want most over to the now it our markets Before economies walk long-term. us

Hugh Regan

Thanks, Nick.

came the bottom was quarter. improved quarter fourth Our in of the for and our XX% gross first the margin guidance of from we margin at gross reported range

our increased costs. quarter, net revenue better increased customer in increased compared expense and expense and levels quarter. for in million well benefit costs levels $X.X first grew with at basis development partially driven product revenue the on spending future revenues our expense XXXX stock-based has experienced product improvement compensation reduced line price, in to stock-based costs compensation to a recent behind XXX as over awards the levels driven driven factor plan. higher points our We of fourth XX.X%, QX, most sequentially manufacturing While in were larger our increased motivation legal. million, by first recently were our million primarily vital quarter, in million of last The mix $X.X below expect strategic award in increases growth former changes the key retention of supplies expense X% and will XXXX significant warranty. to million, amounts. fixed by of on to compared the expense stock $X.X the by in result in compensation tripled as Selling compensation to $XXX,XXX and material higher and The months. is development several factors, But success including administrative the accruals and, to Engineering XX% $X.X as a stock-based across chain our which been adopted and and currently $X.X which salary being The broader incurred has a along and awards driven and is stock-based distribution costs were CEO. business A net stock-based lesser with of costs. offset XX% forfeiture up the spending absorbed commission XX.X% reduction product tenet to primarily component of employees net all of in increased on compared costs and the extent, of QX material and costs the the expense increased primarily in supply units by QX employee profit-related bonuses product and higher higher of by be by XXXX consultants, just sequentially in patent stock expense representing in was XXXX XXXX. to component were increased X% in made XX% our benefit X driven to expense increased General to increased sequentially levels $XXX,XXX

During the million other fourth first compared the quarter. quarter, restructuring $XX,XXX we of charges in and incurred to $X.X

first restructuring the the recently which action this The charges majority also manufacturing of consolidation products related EMS were quarter the charges the segment, to $XXX,XXX with restructuring totaled fourth completed associated costs by driven quarter. of fourth were quarter while our for

action We accrued $XXX,XXX our approximately expect annual in savings, quarter $XXX,XXX exiting space in Massachusetts will offices. the in associated lease restructuring also were charges for with and included costs fourth generate restructuring Mansfield, consolidation EMS additional the

charges tax accrued with income expense the this additional connection the to first which QX, consolidation deductions. process rate. not the related EMS do saw an in $XXX,XXX restructuring to fourth during in of levels overseas rate shipments accrued increased any and the some anticipate consistent quarter tax segment in XX% quarter, reflected with reduction in as did beyond occur quarter, quarter, This in expect we of tax which expected EMS consolidation. restructuring rate of fee in level and income complete $XX,XXX XX%. reflecting effective to the as the costs tax compares increased manufacturing as significant a fees result other further of well effective quarter, tax second in We benefit effective the higher the The and deduction our tax We manufacturing we was our a the R&D

to diluted now quarter. expect or We from earnings or $X.X $X.XX range share first $XXX,XXX a XXXX $X.XX the share per quarter compared for will net had effective net rate loss XX% diluted million XX%. We per that tax in for of our of fourth the to

As when amounted previously and noted, our first charges. $XX,XXX per to than affected, And quarter costs tax restructuring other results share. $X.XX less $XX,XXX or these in included

million share. when And to $X.X and included or results per nonrecurring costs. in amounted quarter diluted these fourth tax Our million $X.X restructuring $X.XX other affected costs

Excluding nonrecurring would other earnings fourth diluted our non-GAAP. $X.XX these costs, restructuring net have share and per quarter been

quarter We posted any in this repurchase but during nor quarter were summary for outstanding the of information have first to have not the shares XXXX. restricted shares quarter, with any website of call. $XX.X issued our shares. provided of a million restricted our we did Diluted costs of by stock, did supplemental the average connection we stock in And nonrecurring XX,XXX forfeitures

quarter, our During December in manufacturing our XX,XXX of that at XX This to primarily $X level terminated raised turn the $XX,XXX reported from increased which X quarter balance in first XXwas a XXX, of net overlap for manufacturing the an which month as quarter. from shares saw operation I’ll increase the at option consolidation, of new were proceeds. the we from resources. our add included sheet. fourth March had staff in and represented now cash segment. thermal exercised, million California heads quarter, EBITDA X to up interface first headcount $XXX,XXX result the staff we Consolidated the for of is

demand by the As change, today expect first million. currently approximately equivalents and cash expected, balance subject quarter. of during to $XXX,XXX We increase at sequentially to of operations million equivalents to throughout used Bank $X.X In X-year cash XXXX, $XX.X from facility cash to $XX,XXX facility stands in cash the any and strategic declined this we mature million and Cash cash with $XX from sequentially Accounts or grew to DSO raw with by million DSO, also XX% at March up receivable XX% XX to $XX.X XX a $XXX,XXX XX XX driven XX. basis fee. Inventories point at support imposed to million, $X.X M&T influx investments make. grew $X.X to XXXX. our or sequentially million will December seeing. the primarily bank X, in of $XX and credit first was non-usage April, facility material that the to April from million Semi New capital changed committed during a our first quarter Laurel, up XXX-day from choose $XXX,XXX we related Jersey tenant consolidation. early may facility to fourth to $XXX,XXX on Capital the improvements we to we increased increased the the complete line expenditures connection quarter. quarter in In Mount Included are with the a $XXX,XXX expenditures the were EMS the

at XX% Our March $XX.X up million, backlog was sequentially. XX million $X.X or

net of basis, to XX% $X.XX XX%. range On As our guidance, margin in earnings per $XX quarter diluted from our million that noted that from results our as for $XX the our we earnings will share. gross non-GAAP range quarter June ended GAAP currently per adjusted a release million, XXXX, $X.XX second to share net to will that will from range and expect range we earnings be of to financial revenues diluted $X.XX the to expect XX, will We net $X.XX. expect in

Our guidance for strategic We including press the formal based quarter and the information make. balance of, any described the company’s respect well our result with the to the materially the are supplemental may among as subject customer release, views market choose Operator, Actual are in subject forecasts, conference operating and change the call, remarks. that factors to concludes our on materials and investments can things, expectations conditions we current statements the now is of under to as to found as forward-looking deck. a that accompany other results take questions. and this differ which

Operator

question can take go first Please Lake of Jaeson Thank you. Street. now we our [Operator Instructions] Schmidt And from ahead.

Jaeson Schmidt

my to the there. questions. want the chain. on discussed Thanks been Obviously, guys. chain start from just well for supply it’s out constraints supply and taking Hey, I component

how if forward from those with you’re an that yourselves seeing and going curious you’re deal positioning to impact challenges. Just

Richard Grant

the our meet Nick. This carefully in we’re for thanks to pleased And have I’m ability these ramp chain a is Supply very quite the team’s deliveries And here. great been able that Jaeson. with and able to managing that. committed is guys question Hi, we and up one. something be customer to

really now, I’d I is chain. point, But opportunities working time to over they’re chain. there well working everything supply think say, this supply strengthen are well. the at And So for right with our us

Jaeson Schmidt

those That’s helpful. you to seeing along increased lines? sort due of any guess, Okay. And I freight gross are relatedly, expedited impact costs, costs margin

Richard Grant

absolutely, would I say. Yeah,

With our on was business speak. quite of part in we so happens going there business, of the expediting EMS And a saw bit to in QX. any as surge expediting regularly

we was to it So updated requested. to that in volume bring in materials sure was the support QX being for as work

our was we’ve quite flow got heavy it now So in QX, increased inventories. We’ve through the there. material coming

I’d expect in levels in QX. that normal be So back to

Jaeson Schmidt

for of driving that I’ll really you Seeing Okay. handler into uptick? sort And jump then, some me is just a queue. with nice last one what traction your and about products, can just talk

Richard Grant

been to applications customers technology we’ve there. on better of, support a with their well, Yeah, out the working it’s combination

one can job. new that our the pleased I’m challenging the implemented one I’d I to is, like at onboard And And segments teams penetrated working market this and and the how penetrate came teams power. all end-user really actively we drivers so, And that we’re spaces and doing But application further quite look it, we started know. and time new an progress. a working say, are accounts, customers, key with power behind to on it as this penetrate when they’re great But takes with ATE the of high-current we is the high-voltage, the side successfully.

Jaeson Schmidt

Okay.

lot, a guys. Sounds good. Thanks

Richard Grant

Thanks, Jaeson.

Operator

from Colliers. take next ahead. can question Ryan now Please And of we our go Dick

Dick Ryan

What’s of I specific you. not know Nick, you asking but the commentary the guidance, how that. second-half Thank general handicap Hey, what second versus has improved sort with first-half? the half of you do year? Semi into sense? have for I’m visibility cap you do your

Richard Grant

what projects. them new that. we Dick. we at now of the it’s Yeah, slowdown, visibility We’ve discussed everything. the of that Joe that everything the – legs only been leader backfilling EMS projects question, beyond to that say, we it right XX-day been as around with saying can. we lot and more these the aren’t but And capture what’s in about visibility as health and we’re clarity us and try industries, I pipeline. other that looking And of to I with kind business a there, great only long strong. something as have a positioned we the – let’s there as funnel else, really have are on McManus out the said, orders seeing having But and And XX-day book like any really, With folks meaningful they and of have do

Dick Ryan

One drive to service where increase revenue. What of of your eventually? and nice revenue percent initiatives now is service your that can level is

Richard Grant

great I’ll we level could aspect haven’t But Hugh there. I on you on let the our Yeah, underway got particular question. quite yet there. initiatives you, specific give service that tell

So that’s it’s traditional in resulting still the the numbers of service more here.

QX you have do Hugh, So, the figure? service

Hugh Regan

quarter. we Yes, And over I ago $X.X was just do, That same that was $X.X was return component seasonably that $X more in perform to normal the QX year due a Nick. QX of service, during down and but number in some a But quarter. into actual about not service factors order of level QX. the to seasonality, to get to expect in to that saw million. from million a service about level we first and an ability saw we just million our clients

Dick Ryan

have QX. heard I Okay. I it for may missed your stock-based was And, but commentary comp the what Hugh, in year,

Hugh Regan

$XXX,XXX. was QX, Oh, stock-based in comp

Dick Ryan

and your one cannabis. these any mentioned and be last expanding Nick, you M&A of kind this you out And me. into But there? would talked for point? you view EV at One said What’s you markets other about at where efforts M&A of organically. looking Okay.

Richard Grant

question. Great Yeah.

is and partnerships. it’s that are time core looking absolutely we know, on amount in targeted complement portfolios that you spending that fit companies long-term position as as our X and fair would acquisitions of we strategies for an technologies X area of strategic strategic our As us. that would well And see as markets current us at

of inTEST can’t and it’s details active as So core But on being into space focused always really one we’re that. has much a on go it. in, certainly too our we’re strategies, we done,

Dick Ryan

execution. And strong you. thank Okay. on Great, congratulations

Richard Grant

thanks, Hey, Dick.

Operator

question next our Pic [Robert take And Capital] from Please with we Merson can [ph]. go now ahead.

Unidentified Analyst

on my Congratulation taking also. quarter question, excellent for Thanks an guys.

mentioned going there the increase your cap been fruit you’ve material markets? cycle, pursuing as Regarding the well geographical Have and in of think the for as you amount that diversification came when you’ve since to equipment do in in the increased improvement the another in applications low in business, achieved? money TAM able you in made you invested size products. kind aboard, penetration a addressable of Nick, Semi was market EMS you other Just have hanging adjustments the way of peak-to-peak after asking what these

Richard Grant

is see working up there] we Hey, the And for well market available space. Today, product comments to they the the absolutely high-power, served opening attractive [ph]. their a TAM. Thanks are been actively Joe, with we EMS as that expanding on [size test higher this targeted TAM, that expansions intelligent also on ATE Yeah. They new like that new about working Robert. on. cell, the with Relative as Certainly, with quarter. their test is million. pushing they’ve nice high-current roughly our solution question was $XXX TAM, the your from believe

it’s million we’re opening we inching we solutions, And that geographic increase. with $XX of So higher and up spaces, we But additional enter up other with we to over these time. additional are when higher chunks succeed of at much our $X expanding ATEs as and TAM. regions will coming only how in that million as say

Unidentified Analyst

period? the Is cited, is Or you X-year to that too over upside or optimistic? there Xx, being number X- a

Richard Grant

Well, and that’s that. have internally limitations in test in, market due certain have know, we this a but EMS we’re do fact as ATEs huge to capabilities the that some playing that these space, as that – you

with say as around have working penetrate working to that, trying I as be able them and if to space But know there. visibility and we our expand that. much yet give we’re enough Xx? I don’t So possible could to

Unidentified Analyst

right. All

for The priced to Regarding or are at X, X times priced keep business, that. we’re the maybe businesses priced. guys small where X something your is products to thermal guess, That’s X to a that but business perspective. today The means from industrial, acquisitions, marketplace non-Semi you’ve diversification, different the The address which I’m adding – business. you sales. already customers probably for want going from a come non-Semi question. big semiconductor obviously, in around I like equipment X, revenues, times it X.X,

Semi be and obviously own that tends valued same stock. business to you of diversification your highly at you that and time, both issue, the the in away more cyclicality So for valuing face acquiring more business. do some But want the from deeper

the trade-offs industrial look niche acquiring benefits you with first go quarters, where any you’d And there at you’ve X to on semi-cap-equipped more and had have the conclusions now and acquisition? businesses businesses? have the valuations of As to versus the chance your you a come prefer to been

Richard Grant

are the add you’re But And is there. we there. Semi alluded valuations as question past, to great elevated our in a as portfolio. will be in inorganically hot being Yeah, it that to on. space spot it is, as I’ve looking to Market

we appropriate got the and shareholders the our we’ve the to acquisitions do is at for So valuations when make right business there. sure time and

that in space now. challenging is it So

So because the just in I more weighted valuations expect. is line we would with say, our activity, are would in more focus our what non-Semi,

Unidentified Analyst

would would that thermal you and or of to area new address? in stay a you area whole outside And move of market have the

Richard Grant

testing can our do the are but to building think more Ambrell technology space thermal, that side, more do in out how to benefit and we beyond we’re there. only I cetera, bring then we and technologies technologies, and that’s into into across alluded moving not process capabilities automation piece that around getting expanding that looking support and EMS just a thermal is out like our thermal. so expand beyond I humidity, no, environmental, looking – into vibration we’re really and et that Yeah, There

So, too. yeah, of environmental automation, would in we’re looking, electronics I and, course, say,

Unidentified Analyst

that in luck Good interesting. pursuit. very that’s Thank So you.

Richard Grant

Robert. thanks, Hey,

Operator

our from We DA next now Please Instructions] [Operator Davidson. Diffely go have got ahead. Tom of question

Tom Diffely

was I or of market, Yeah, new silicon some intrigued a a it and good optical wafer-level like morning. or by is about new it is trend, semi traditional specialty Is kind carbide? your in test. burn comments this

Richard Grant

with working to we’ve the This their what is big is But space, a operations. and move well testing, at they to the is process really earlier the obviously buy been when Tom. power it’s looking their hey, And from Yeah, doing it space the ATE wanted in end-user that actually to the that doing they’re and there sense. mature in one is challenges.

these they prior that’s wafers much device, earlier they already a the the had improve waste doing check end and failure, yields cost they’ve there. up at get device, it, the a packaged been start there’s building in order from don’t testing. So if after of time single doing perspective. and package They they line and to the the before things But wanted a

So we proved this which stage, we it work testing with on at the orders process, that has them account. success their in to working successful the ATE now, led to here, one around. through the follow-on quite opportunities earlier particular burn move And the in see to in duplicate

Tom Diffely

very sounds interesting. appreciate It it. Great. I

Richard Grant

Absolutely.

Operator

And this now concludes back session. to closing would hand to our for the Nick Grant question-and-answer I like comments. call

Richard Grant

forward here, again here in. look All your everyone, participation delivering exceptional results right, the in you. again, want I performance. team for And with for thanks, thank thank And to our to for thanks and inTEST the Really QX listening today. momentum pleased QX. continuing entire

Operator

for your you This all call. concludes participation. Thank today’s

now may disconnect. You

inTEST (INTT) 8 May 212021 Q1 Earnings call transcript