inTEST Corporation Announces Third Quarter Results
Three Months Ended Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
(000 omitted except for per share earnings)
Revenues $4,468 $6,212 $15,257 $14,719
Gross profit 2,331 3,893 8,785 8,963
Operating income 260 2,066 3,264 4,367
Net earnings 227 1,266 2,289 3,153
Net earnings per share
- basic $.04 $.21 $.38 $.69
Weighted average shares
outstanding - basic 6,312 5,911 6,046 4,598
Net earnings per share
- diluted $.04 $.21 $.38 $.68
Weighted average shares
outstanding - diluted 6,318 5,966 6,055 4,617
The results for the quarter and the nine months ended September 30, 1998 include the results of TestDesign Corporation, from the date of acquisition on August 3, 1998. As previously reported, part of the consideration in this acquisition was the issuance of 625,000 shares of inTEST common stock which had a proportional impact on average shares outstanding for both the quarter and the nine months ended September 30, 1998.
Robert E. Matthiessen, President and CEO said, ``Although the semiconductor capital equipment sector is still in the doldrums, there is reason to believe that a turn-around is coming: the inventory of computer chips, both microprocessor and memory, has been substantially consumed; also, personal computer inventory has been burned off and new product is being shipped. We feel that our present job is to carefully balance the tasks of watching costs while at the same time doing those things that will see us fully prepared for the up-turn.'' Douglas W. Smith, Senior Vice President and COO added, ``We feel it is extremely important to be well-positioned for the recovery. Therefore, we have initiated several important R&D projects to address the emerging requirements of the ATE industry. At the same time, we are investing significant effort on improving our infrastructure so that we are in a strong position when the turn-around arrives.''
inTEST Corporation is a leader in the design and manufacture of docking hardware and test head manipulators, which are used with automatic test equipment (ATE) by semiconductor manufacturers during the testing of wafers and packaged devices. In addition, the Company manufacturers high quality, production worthy wafer test interfaces for the semiconductor industry marketed under the TestDesign product line. The Company also designs and markets related ATE interface products including high performance test sockets and interface boards. Headquartered in Cherry Hill, New Jersey, the Company has manufacturing facilities in New Jersey, California and the UK and design, sales, service and support offices in New Jersey, California, the UK, Japan and Singapore.
Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, a further decline in the demand for semiconductor devices, changes in rates of capital expenditures by semiconductor manufacturers, progress of product development programs, unanticipated costs associated with the integration of acquired operations, and other factors set forth in the Company's SEC filings, including its form 10-K for the year ended December 31, 1997.
SELECTED FINANCIAL DATA
(in thousands, except per share)
Selected Consolidated Statement of Earnings Data:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1998 1997 1998 1997
Revenues $4,468 $6,212 $15,257 $14,719
Gross profit 2,331 3,893 8,785 8,963
Operating expenses:
Selling expense 862 706 2,281 1,799
Research and development
expense 483 455 1,338 1,230
General and administrative
expense 726 666 1,902 1,567
Operating income 260 2,066 3,264 4,367
Income tax expense 133 924 1,351 1,373
Net earnings 227 1,266 2,289 3,153
Net earnings per
share - basic $0.04 $0.21 $0.38 $0.69
Weighted average common
and common equivalent shares
outstanding - basic 6,312 5,911 6,046 4,598
Net earnings per share
- diluted $0.04 $0.21 $0.38 $0.68
Weighted average common
and common equivalent shares
outstanding - diluted 6,318 5,966 6,055 4,617
Selected Consolidated Balance Sheet Data:
September 30,
1998 1997
Cash and cash equivalents $8,551 $10,247
Trade accounts and notes receivable 3,293 4,521
Inventories 2,631 1,308
Total current assets 15,456 16,394
Net property and equipment 804 500
Total assets 23,415 18,345
Accounts payable 1,136 1,126
Accrued expenses 803 770
Total current liabilities 1,939 2,909
Total shareholders' equity 21,476 15,436