inTEST Reports 2012 Fourth Quarter and Year-End Results

inTEST Reports 2012 Fourth Quarter and Year-End Results 
2012 Marks inTEST's Third Consecutive Year of Profitability; Fourth
Quarter Total Bookings Increased 7 Percent; Fourth Quarter
Non-Semiconductor Test Bookings Increased 23 Percent; Fourth Quarter
Non-Semiconductor Test Net Revenues Increased 16 Percent 
MOUNT LAUREL, NJ -- (Marketwire) -- 03/06/13 --  inTEST Corporation
(NASDAQ: INTT), an independent designer, manufacturer and marketer of
temperature management products and semiconductor automatic test
equipment (ATE) interface solutions, today announced financial
results for the fourth quarter and year ended December 31, 2012. 
2012 Fourth Quarter 

--  Fourth quarter 2012 bookings were $9.3 million, as compared with third
    quarter 2012 bookings of $8.7 million, and fourth quarter 2011
    bookings of $8.1 million; 20% of fourth quarter 2012 bookings derived
    from non-semiconductor test.
--  Fourth quarter 2012 net revenues were $8.3 million, as compared with
    third quarter 2012 net revenues of $10.8 million, and fourth quarter
    2011 net revenues of $10.1 million; 15% of fourth quarter 2012 net
    revenues derived from non-semiconductor test.
--  Fourth quarter 2012 gross margin was $3.5 million, or 42%
, as compared
    with third quarter 2012 gross margin of $4.8 million, or 44%, and
    fourth quarter 2011 gross margin of $4.9 million, or 48%.
--  Fourth quarter 2012 net income was $201,000, or $0.02 per diluted
    share, as compared with third quarter 2012 net income of $664,000, or
    $0.06 per diluted share, and fourth quarter 2011 net earnings of
    $769,000, or $0.08 per diluted share.
--  Cash and cash equivalents of $15.6 million at December 31, 2012
    increased by $876,000 as compared with September 30, 2012.

2012 Year-End 

--  2012 net revenues were $43.4 million as compared with 2011 net
    revenues of $47.3 million.
--  2012 gross margin was $19.1 million, or 44%, as compared with 2011
    gross margin of $22.9 million, or 48%.
--  2012 net earnings were $2.2 million, or $0.21 per diluted share,
    compared with 2011 net earnings of $9.9 million, or $0.96 per diluted
    share. Net earnings in 2012 reflect the effect of approximately
    $650,000 in non-recurring costs related to the acquisition of
    Thermonics on January 16, 2012; these costs include restructuring
    costs of $313,000 (related to facility closure costs) and acquisition
    related expenses of $337,000. Net earnings in 2011 reflect the effect
    of a reversal of $3.1 million of valuation allowance against our
    deferred tax assets. The impact of the reversal of the valuation
    allowance was an increase in our diluted earnings per share of $0.30.
    Absent the reversal of the deferred tax valuation allowance, 2011 net
    earnings would have been $0.66 per diluted share.

Robert E. Matthiessen, president and chief executive officer,
commented, "2012 marks inTEST's third consecutive year of
profitability, and we ended the year well positioned for growth, with
a solid balance sheet. During 2012, we maintained profitability,
generated cash and continue to carry no debt. We operated this past
year amidst challenging industry conditions that were driven by a
number of capital equipment suppliers and semiconductor companies who
delayed certain capital expenditures. We met these challenges head-on
and further strengthened and grew inTEST's operations, particularly
with our acquisition of Thermonics Corporation, which provides us
with considerable growth opportunities."  
The Company noted that fourth quarter overall bookings increased by
approximately 7% as compared with the third quarter of 2012, and
non-semiconductor test bookings and revenue increased both in terms
of absolute dollars and as a percent of revenue. Non-semi related
bookings increased 23% sequentially and represented nearly 20% of
total fourth quarter bookings, while non-semi related net revenues
sequentially increased 16% and represented 15% of total fourth
quarter net revenues. 
Mr. Matthiessen continued, "The fourth quarter is a clear testament
to the resiliency that has resulted from our past restructuring
efforts, which we undertook in 2009. One of our primary goals was to
structure inTEST such that we would be break-even operationally even
at the lower revenue levels we were seeing in our core semiconductor
businesses. Despite fourth quarter revenues being at their lowest
point since we restructured, we delivered profitable results, and
have what we consider a stable business as a platform to operate and
grow from. Over the last few years we have transformed inTEST through
the strategic diversification of our Thermal Products segment, and we
now address growth markets in both the semiconductor and
non-semiconductor areas, including aerospace, defense, automotive,
telecommunications, and energy. Our long-term objective is to grow
and evolve inTEST Corporation into a broad-based industrial test
company as we continue to execute on our differentiated product
trategy. We enter 2013 with a diversified product portfolio, serving
growth markets, and we are well positioned to meet the needs of our
customers who continue to strategically increase their overall test
capacity as they seek to meet end market demand for a broad range of
2012 Business Highlights  

--  inTEST declared a special one-time cash dividend of $0.08 per share,
    which was paid on December 17, 2012 to stockholders of record at close
    of business on December 10, 2012. The special dividend was
    economically advantageous to stockholders due to the increase in 2013
    tax rates, and was funded with $834,000 of available cash on hand.
--  inTEST was recognized for excellence by Texas Instruments and awarded
    TI's 2011 Supplier Excellence Award in recognition of its role in
    supporting the manufacture of TI's innovative products. Specifically,
    inTEST's Mechanical and Electrical Product Segments were recognized
    for their docking, manipulator, and wafer probing interface products.
--  inTEST Thermal Solutions Group launched the Thermostream(R) ATS
    Series, the industry's most comprehensive line of precision
    temperature forcing systems. With temperature range extremes as high
    as +300 degrees C (+570 degrees F) and as low as -100 degrees C (-148
    degrees F), countless test and conditioning applications can now be
    solved with a compact, precise, portable system. The ATS product
    line's increased thermal capacity translates to a broader range of
    applications, addressing an expanded market, and the increased number
    of models offered in the ATS product line will enhance the
    Thermostream(R) margin profile.
--  Temptronic Corporation, a member of inTEST's Thermal Solutions Group,
    closed on the acquisition of Thermonics, Inc., a division of Test
    Enterprises, Inc., on January 16, 2012. The purchase price for the
    assets, including net working capital of $1.1 million, was
    approximately $3.8 million in cash. The addition of Thermonics further
    enhanced inTEST's presence in the ATE industry, while, at the same
    time it provided additional leverage into growth industries outside of
    the semiconductor industry. As inTEST evolves from its origins as an
    ATE company with a primary focus on semiconductors to a broad-based
    industrial test company, we expect that non-semiconductor related
    products will play an even greater role in our growth strategy and

First Quarter 2013 Financial Outlook:
 We expect that net revenues for
the first quarter ended March 31, 2013 will be in the range of $8.0
million to $9.0 million and that financial results will range from a
net loss of $(0.02) per diluted share to net earnings of $0.03 per
diluted share. Our outlook is based on our current views with respect
to operating and market conditions and customers' forecasts, which
are subject to change. 
Investor Conference Call / Webcast Details:
 There will be a
conference call with investors and analysts this evening at 5:00 pm
EST to discuss inTEST's fourth quarter and year-end 2012 results and
management's current expectations and views of the industry. The call
may also include discussion of strategic, operating, product
initiatives or developments, or other matters relating to inTEST's
current or future performance. 
The dial-in number for the live audio call beginning at 5:00 pm EST
on March 6, 2013 is (480) 629-9664. The Passcode for the conference
call is 4600894. Please reference inTEST 2012 Q4 Financial Results
Conference Call. inTEST Corporation will provide a live webcast in
conjunction with the conference call. To access the live webcast,
please visit inTEST's website under the "Investors"
2012 Q4 & YE Replay Details (Webcast)
 A replay of the webcast will
be available on inTEST's website for one year following the live
broadcast. To access the webcast replay, please visit inTEST's
website under the "Investors" section. 
About inTEST Corporation
 inTEST Corporation is an independent
designer, manufacturer and marketer of temperature management
products and ATE interface solutions, which are used by semiconductor
manufacturers to perform final testing of integrated circuits (ICs)
and wafers. inTEST's high-performance products are designed to enable
semiconductor manufacturers to improve the speed, reliability,
efficiency and profitability of IC test processes. inTEST's products
are also sold into the automotive, consumer electronics,
defense/aerospace, energy and telecommunications industries. Specific
products include temperature management systems, manipulator and
docking hardware products and customized interface solutions. inTEST
has established strong relationships with its customers globally,
which it supports through a network of local offices. For more
information visit  
Forward-Looking Statements:
 This press release includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements do not
convey historical information, but relate to predicted or potential
future events that are based upon management's current expectations.
These statements are subject to risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. In addition to the factors mentioned in
this press release, such risks and uncertainties include, but are not
limited to, changes in business conditions and the economy,
generally; changes in the demand for semiconductors, generally;
changes in the rates of, and timing of, capital expenditures by
semiconductor manufacturers; progress of product development
programs; increases in raw material and fabrication costs associated
with our products; implementation of additional restructuring
initiatives and other risk factors set forth from time to time in our
SEC filings, including, but not limited to, our periodic reports on
Form 10-K and Form 10-Q. inTEST undertakes no obligation to update
the information in this press release to reflect events or
s after the date hereof or to reflect the occurrence of
anticipated or unanticipated events. 
-Tables Follow - 

                          SELECTED FINANCIAL DATA                           
                   (In thousands, except per share data)                    
Condensed Consolidated Statements of Operations Data:                       
                            Three Months Ended             Years Ended      
                     -------------------------------- --------------------- 
                     12/31/2012  12/31/2011 9/30/2012 12/31/2012 12/31/2011 
                     ----------  ---------- --------- ---------- ---------- 
Net revenues         $    8,270  $   10,081 $  10,799 $   43,376 $   47,266 
Gross margin              3,507       4,869     4,762     19,059     22,893 
Operating expenses:                                                         
   Selling expense        1,142       1,275     1,322      5,425      5,708 
   Engineering and                                                          
    expense                 985         796     1,006      3,895      3,240 
   General and                                                              
    expense               1,329       1,619     1,445      6,430      6,367 
   Restructuring and                                                        
    other charges           (46)          -         -        313          - 
Other income                 21          10        23         57         81 
Earnings before                                                             
 income tax expense                                                         
 (benefit)                  118       1,189     1,012      3,053      7,659 
Income tax expense                                                          
 (benefit)                  (83)        420       348        897     (2,204)
Net earnings                2
01         769       664      2,156      9,863 
Net earnings per                                                            
 share - basic       $     0.02  $     0.08 $    0.06 $     0.21 $     0.97 
Weighted average                                                            
 shares outstanding -                                                       
 basic                   10,311      10,192    10,302     10,273     10,148 
Net earnings per                                                            
 share - diluted     $     0.02  $     0.08 $    0.06 $     0.21 $     0.96 
Weighted average                                                            
 shares outstanding -                                                       
 diluted                 10,344      10,281    10,360     10,347     10,286 
Condensed Consolidated Balance Sheets Data:                                 
                                                        As of:              
                                          12/31/2012  9/30/2012   12/31/2011
                                         ----------- ----------- -----------
Cash and cash equivalents                $    15,576 $    14,700 $    13,957
Trade accounts receivable, net                 5,501       6,892       6,189
Inventories                                    3,135       3,843       3,896
Total current assets                          25,579      26,246      24,797
Net property and equipment                     1,250       1,246       1,134
Total assets                                  32,399      33,668      31,237
Accounts payable                               1,041       1,488       1,031
Accrued expenses                               3,455       3,583       3,960
Total current liabilities                      4,579       5,287       5,038
Noncurrent liabilities                             -           -           -
Total stockholders' equity                    27,820      28,381      26,199

inTEST Corporation 
Hugh T. Regan, Jr. 
Treasurer and Chief Financial Officer 
Tel: 856-5
Laura Guerrant-Oiye, Principal
Guerrant Associates 
Tel: (808) 882-1467 
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