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inTEST Corporation Announces Third Quarter Results

inTEST Corporation Announces Third Quarter Results

Oct 28, 1998
inTEST Corporation Announces Third Quarter Results CHERRY HILL, N.J., Oct. 28 /PRNewswire/ -- inTEST Corporation (Nasdaq: INTT) announced today third quarter results. Net earnings for the quarter ended September 30, 1998 were $227,000 or $.04 per diluted share compared with $1.3 million or $.21 per diluted share for the comparable period in 1997. Net earnings for the nine months ended September 30, 1998 were $2.3 million or $.38 per diluted share compared with $3.2 million or $.68 per diluted share for the comparable period in 1997. The results for the third quarter of 1998 were in line with inTEST management's previously announced revised estimate of quarterly results. The following is summary financial information for the periods ended September 30, 1998 and 1997:
                               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