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Mar 31, 2023
inTEST Q1 2023 Earnings Report
Consistent strong execution validated by revenue growth.
Key Takeaways
inTEST Corporation reported a strong first quarter in 2023, with revenue reaching $31.9 million, a 32.5% increase year-over-year. The company achieved a gross margin of 47.2% and net income of $2.8 million, with adjusted EBITDA margin at 15.1%. Strong demand drove orders of $30.8 million, resulting in a backlog of $45.7 million.
Revenue grew by 32.5% year-over-year to $31.9 million, driven by strong performance across most markets.
Gross margin was strong at 47.2%, reflecting favorable mix and the impact of pricing actions.
Orders increased by 23.0% over the prior year, indicating robust demand for inTEST's technologies.
The company continues to expect 2023 revenue in the range of $125 million to $130 million.
inTEST
inTEST
Forward Guidance
The company expects revenue for the second quarter of 2023 to be in the range of $31 million to $33 million, with a gross margin of approximately 46%. Full year revenue expectations are held, while gross margin and operating expense expectations are modestly revised.
Positive Outlook
- Revenue for the second quarter of 2023 is expected to be in the range of $31 million to $33 million.
- Gross margin for the second quarter is expected to be approximately 46%.
- EPS is expected to be in the range of $0.21 to $0.26
- Adjusted EPS is expected to be in the range of $0.25 to $0.30
- Continue to expect 2023 revenue in the range of $125 million to $130 million
Challenges Ahead
- Second quarter 2023 operating expenses, including amortization, are expected to run at approximately $11.4 million to $11.7 million, reflecting annual merit increases.
- Intangible asset amortization is expected to be approximately $540,000 pre-tax, or approximately $450,000 after tax.
- Interest expense is expected to be approximately $190,000 for the quarter
- Effective tax rate is expected to be approximately 16% to 17% for the year.
- Approximately 45% of the backlog is expected to ship beyond the second quarter of 2023.