EX-99.1 2 e991-8k030607.htm Exh 99.1-8K-3/6/07

EXHIBIT 99.1

[inTEST News Release Letterhead]


inTEST REPORTS FOURTH QUARTER AND YEAR END 2006 RESULTS

CHERRY HILL, NJ, March 7, 2007 - inTEST Corporation (Nasdaq: INTT), an independent designer, manufacturer and marketer of semiconductor automatic test equipment (ATE) interface solutions and temperature management products, today announced results for the quarter and year ended December 31, 2006.

Net revenues for the quarter ended December 31, 2006 were $13.2 million, compared to $16.6 million reported for the third quarter of 2006. Net income for the fourth quarter of 2006 was $81,000 or $0.01 per diluted share, compared to $508,000 or $0.06 per diluted share for the third quarter of 2006. Net revenues for the year ended December 31, 2006 were $62.3 million, compared to $53.4 million for 2005. Net income for the year ended December 31, 2006 was $2.9 million or $0.31 per diluted share, compared to a net loss of ($3.6) million or ($0.41) per diluted share for 2005.

Robert E. Matthiessen, President and Chief Executive Officer of inTEST commented, "Our previous cost cutting initiatives and ongoing R&D efforts helped us achieve net income for the fourth quarter of 2006 in what continues to be a difficult market. Our Temperature Management Product segment continues to perform well. As expected, bookings declined in the fourth quarter of 2006 to $12.2 million, compared to $13.0 million in the third quarter of 2006. Looking into 2007, we expect the first and second quarters to be the low point with results improving in the second half of the year. As in prior downturns, new product innovations tend to lead the rebound in results. We have several promising products, some of which are already at the customer beta testing point. Based on the initial feedback, value of performance and cost benefits offered, we expect new products to remain a significant revenue driver for inTEST during 2007."

Hugh T. Regan, Jr., Treasurer and Chief Financial Officer of inTEST said, "We are pleased with our return to full year profitability in 2006. Our continued efforts to diligently manage operating expenses helped us achieve net income in the fourth quarter of 2006 despite a 21% decline in net revenues between the third and fourth quarter. Importantly, while we remain focused on running a lean, cash flow positive operation, we have continued to fund our strategic product development efforts. This underscores our commitment to providing customers with the continued high level of product innovation and support they have come to expect from inTEST."

Investor Conference Call / Webcast Details

inTEST will review fourth quarter 2006 results today, Wednesday, March 7, 2007 at 5:00 p.m. EST. The conference call will be available at www.intest.com and by telephone at (201) 689-8560 or toll free at (877) 407-0784. A replay of the call will be available 2 hours following the call through 11:59 p.m. EST on Wednesday, March 14 at www.intest.com and by telephone at (201) 612-7415 or toll free at (877) 660-6853. The account number to access the replay is 3055 and the conference ID number is 227992. A transcript of the conference call will be filed as an exhibit to a Current Report on Form 8-K as soon as practicable after the conference call is completed.

About inTEST Corporation

inTEST Corporation is an independent designer, manufacturer and marketer of ATE interface solutions and temperature management products, which are used by semiconductor manufacturers to perform final testing of integrated circuits (ICs) and wafers. The Company's high-performance products are designed to enable semiconductor manufacturers to improve the speed, reliability, efficiency and profitability of IC test processes. Specific products include positioner and docking hardware products, temperature management systems and customized interface solutions. The Company has established strong relationships with semiconductor manufacturers globally, which it supports through a network of local offices. For more information visit www.intest.com.

CONTACTS:

Hugh T. Regan, Jr., Treasurer and Chief Financial Officer, inTEST Corporation, 856-424-6886, ext 201.
David Pasquale, 646-536-7006 or Joseph Villalta, 646-536-7003
Both of The Ruth Group, www.TheRuthGroup.com

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; costs associated with compliance with Sarbanes Oxley 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. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.

 

 

(Financials Attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL DATA
(In thousands, except per share data)

Condensed Consolidated Statements of Operations Data:

 

          Three Months Ended          

 

       Year Ended        

 

 

12/31/2006

 

12/31/2005

 

9/30/2006

 

12/31/2006

 

12/31/2005

 

Net revenues

$13,159

 

$14,071

 

$16,566

 

$62,346

 

$53,359

 

Gross margin

5,226

 

5,912

 

6,923

 

26,394

 

19,780

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

   Selling expense

2,001

 

1,904

 

2,232

 

8,955

 

8,928

 

   Engineering and product development expense

1,329

 

1,483

 

1,662

 

5,439

 

5,941

 

   General and administrative expense

1,956

 

1,957

 

2,097

 

8,457

 

7,847

 

   Restructuring and other charges

23

 

124

 

-

 

23

 

572

 

Operating income (loss)

(83

)

444

 

932

 

3,520

 

(3,508

)

Other income (expense)

241

 

(26

85

 

470

 

124

 

Earnings (loss) before income taxes

158

 

418

 

1,017

 

3,990

 

(3,384

)

Income tax expense

77

 

226

 

509

 

1,119

 

236

 

Net earnings (loss)

81

 

192

 

508

 

2,871

 

(3,620

)

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share - basic

$0.01

 

$0.02

 

$0.06

 

$0.32

 

$(0.41

)

Weighted average shares outstanding - basic

9,125

 

8,932

 

9,054

 

9,047

 

8,807

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) per share - diluted

$0.01

 

$0.02

 

$0.06

 

$0.31

 

$(0.41

)

Weighted average shares outstanding - diluted

9,293

 

9,006

 

9,265

 

9,188

 

8,807

 

 

Condensed Consolidated Balance Sheets Data:

 

As of

 

12/31/2006

 

9/30/2006

 

12/31/2005

Cash and cash equivalents

$13,174

 

$12,060

 

$ 7,295

Trade accounts and notes receivable, net

8,678

 

10,695

 

9,443

Inventories

6,193

 

6,792

 

6,235

Total current assets

28,803

 

30,538

 

23,606

Net property and equipment

3,328

 

3,403

 

3,951

Total assets

35,759

 

37,443

 

30,869

Accounts payable

3,145

 

4,387

 

2,527

Accrued expenses

4,169

 

4,860

 

4,295

Total current liabilities

8,410

 

10,401

 

7,411

Noncurrent liabilities

527

 

558

 

652

Total stockholders' equity

26,822

 

26,484

 

22,806