• Maintaining strong market position with customers while managing global geopolitical and macroeconomic uncertainty; positioning for stronger earnings when target markets recover
• Strong cash generation and balance sheet: generated $5.5 million in cash from operations in first quarter; total debt down $3.2 million from December 31, 2024; cash balances up $2.2 million
• Orders1 improved 11%, or $2.6 million, year-over-year reflecting strength in automotive/EV, driven by Alfamation, and a large industrial order for induction heating technology; sequentially orders declined $5.3 million as customers delayed orders due to current market environment
• Operating loss for the quarter was $2.9 million reflecting low sales volume
• Net loss was $2.3 million; Adjusted EBITDA2 was a loss of $0.9 million
• Management driving further actions to improve profitability including cost reductions, consolidations and austerity cost containment

MT. LAUREL, N.J.: InTest Corporation (NYSE American: INTT), a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include semiconductor (“semi”), automotive/EV, defense/aerospace, industrial, life sciences, and safety/security, today announced financial results for the first quarter of 2025 ended March 31, 2025. Results include Alfamation S.p.A. (“acquisition” or “Alfamation”) from the date of the acquisition, which was March 12, 2024. Alfamation is included in the Electronic Test division.

Nick Grant, President and CEO, commented, “During the quarter, we generated cash, further strengthened our balance sheet by reducing debt and increasing our cash balance. We also continued to address our cost structure and operating expenses. Even amid the turmoil resulting from shifting policies regarding global tariffs, we gained traction with new product introductions, added new customers, and enhanced our channels to market. We continue to see signs of market stagnation as customers hesitate to move forward with their capital spending plans. Orders in the quarter were $25.3 million and, while improved over last year’s first quarter, are still sluggish.”

He added, “While market conditions remain tenuous, and the full ramifications of the global trade situation and resulting impact to demand are not yet fully understood, we believe we are well positioned for when markets recover. We have leading market positions with customers, we are building our presence in our target markets by winning new applications, and we are working to accelerate new product introductions. Our geographic expansion actions to build sales, engineering and manufacturing in Southeast Asia, specifically our Malaysia operation, are progressing well. Our plans to begin manufacturing in the Malaysia facility during the second half of 2025 are on schedule and we believe will enable us to better serve that region. During this period of uncertainty, we are focused on managing costs while remaining sufficiently agile to address our increasing funnel of opportunities. We remain on track with our plan to consolidate our image capture operations, are implementing headcount reductions and have strict controls on discretionary spending."

Mr. Grant continued, "Regarding tariffs, while not immune to whatever the outcome may be, we believe we are fairly insulated from direct impacts on our supply chain and sales. We are primarily a U.S. manufacturer and the majority of our supplies are locally sourced. Our operation in Canada ships USMCA compliant products to the U.S. and, the majority of what we produce in Italy remains in Europe. We are taking steps to mitigate impacts where we can such as shifting supply sources and expect to pass on any incremental costs to customers. Thinking longer term, we believe we are well positioned to support our customers globally with a sizable manufacturing footprint in Europe and adding manufacturing in Malaysia."

First Quarter 2025 Review (see revenue by market and by segments in accompanying tables)

Compared with the prior-year period, first quarter revenue was down $3.2 million as semi was impacted by $6.0 million in lower sales and industrial market sales declined $1.2 million. This was partially offset by increases of $2.0 million to auto/EV, $1.0 million to life sciences, and $1.3 million to other markets. Sequentially, revenue was down $10.0 million. Revenue from industrial, life sciences and other markets increased compared with the trailing fourth quarter.

Gross margin was 41.5% in the first quarter, a 230-basis point contraction compared with the prior-year period, primarily due to under absorption of fixed costs on lower volume. Sequentially, gross margin increased 180 basis points compared with the fourth quarter of 2024 which had been negatively impacted by 430 basis points related to an inventory step-up charge.

Operating expenses increased $1.4 million over the prior-year period which included $0.3 million in restructuring costs and $1.3 million in incremental operating expenses related to Alfamation. These increases were partially offset by cost reduction efforts and reduced corporate development costs. Sequentially, operating expenses increased $1.5 million as the fourth quarter of 2024 benefited from an amortization credit of $0.8 million.

Net loss for the quarter was $2.3 million, or $(0.19) per diluted share. Adjusted net loss (Non-GAAP)3 was $1.4 million, or $(0.11) adjusted EPS (Non-GAAP)3.

Balance Sheet and Cash Flow Review

During the quarter, the Company generated $5.5 million in cash from operations. Cash and cash equivalents at the end of the first quarter of 2025 were $22.0 million, up $2.2 million from the end of the fourth quarter. During the quarter, the Company reduced total debt by $3.2 million from December 31, 2024 to $11.8 million. Capital expenditures were $0.2 million in the first quarter of 2025, lower than previous quarters due to the timing of projects.

At March 31, 2025, the Company had $30 million available under its delayed draw term loan facility and no borrowings under the $10 million revolving credit facility.

First Quarter 2025 Orders2 and Backlog2 (see orders by market in accompanying tables)

First quarter orders of $25.3 million grew $2.6 million, or 11.2%, versus the prior-year period, and declined $5.3 million, or 17.3%, compared with the fourth quarter of 2024. The year-over-year increase reflects strength in industrial, auto/EV, safety/security and life sciences markets while orders slowed in defense/aerospace and semi markets. Specifically in semi, orders from back-end were essentially flat, while demand in front-end remains low.

Sequentially, the 17.3% decrease in orders was partially the result of customer delays during economic uncertainty, especially in the semi market where orders declined $6.0 million. Additionally, demand from defense/aerospace and life sciences slowed during the first quarter outweighing gains in demand from life sciences, auto/EV and safety/security markets. Alfamation contributed $3.1 million in orders in the first quarter.

Backlog at March 31, 2025, was $38.2 million and included $5.8 million of backlog associated with Alfamation. Approximately 48% of the backlog is expected to ship beyond the second quarter of 2025.

Focusing Outlook on Forward Quarter

Mr. Grant concluded, "These are certainly challenging times that further reduce our visibility through the year. As a result, we are focusing our guidance on the second quarter until we have better clarity regarding the second half of 2025. We expect a modest improvement in financial results in the second quarter over the first quarter with better volume and cost reductions. Our plans call for continued sequential improvement through the balance of the year although we do not know how the global trade situation could indirectly impact demand. We believe the long-term fundamentals of the markets we serve remain intact and that the innovative products we offer, the strong position we have with customers and the continual addition of new customers and market reach bode well for our business as market conditions improve."

Second quarter 2025 revenue is forecasted to be $27 million to $29 million with gross margin of approximately 42% and operating expenses of $13.0 million to $13.5 million, which excludes approximately $0.2 million in Videology and other restructuring expenses. The Company’s expectations for the quarter reflect previously reported customer delivery pushouts of orders in backlog to the latter half of the year as well as the slowing receipt of orders due to the uncertainty in end markets as a result of recent and impending tariffs.

The foregoing guidance is based on management’s current views with respect to operating and market conditions and customers’ forecasts. It also assumes macroeconomic conditions remain unchanged through the second quarter. Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Conference Call and Webcast

The Company will host a conference call and webcast today at 8:30 a.m. ET. During the conference call, management will review the financial and operating results and discuss InTest’s corporate strategy and outlook. A question-and-answer session will follow. To listen to the live call, dial (201) 689-8263. In addition, the webcast and slide presentation may be found at intest.com/investor-relations.

A telephonic replay will be available from 12:30 p.m. ET on the day of the call through Friday, May 16, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13752647. The webcast replay can be accessed via the investor relations section of intest.com, where a transcript will also be posted once available.

About InTest Corporation

InTest Corporation is a global supplier of innovative test and process tec