INTT inTest Corporation

inTest Corporation Adds to it’s Thermal Division

Ken Nagy, CFA

On December 12, 2011, inTest Corporation (INTT), an independent designer, manufacturer and marketer of semiconductor automatic test equipment interface solutions and temperature management products, announced that Temptronic Corporation, a member of its Thermal Solutions Group, signed an agreement to acquire the assets and certain liabilities of Thermonics, Inc.

inTest Corporation’s Thermal Solutions Group provides customized temperature test solutions as well as thermal solutions.The Thermal Solutions Group combines the strengths of Temptronic Corporation’s temperature forcing systems for the semiconductor and broader electronic test market as well as Sigma Systems Corporation’s custom chambers and thermal platforms.

Thermonics, Inc., a division of Test Enterprises, Inc., is a Sunnyvale, California-based developer of precision temperature testing systems and supplier of temperature-testing equipment.
Thermonics' products provide a range of precision temperature forcing systems used in a number of different industries, which is expected to expand inTEST's customer base in both the semiconductor and non-semiconductor industries.

The acquisition, which is expected to close in January 2012, continues to further diversify and leverage the Company’s Thermal Products Segment as well as penetrate and address growth markets in both the semiconductor and non-semiconductor areas including include Automotive, Aerospace, Industrial, and Telecommunications.
As a result of this diversification strategy, non-semi related bookings consisted of 18 percent of the Company’s consolidated bookings at the beginning of the year which compares to third quarter 2011 non-semi bookings comprising  of 41 percent of inTest’s consolidated bookings.

Similarly, nearly 60 percent of the Company’s Thermal Group's bookings during the third quarter 2011, came from non-semi customers, which were driven by requirements from manufacturers of oscillators, industrial sensors, LEDs, equipment for the nuclear process industry, and Military / Aerospace applications. The Company expects this trend to continue and predicts that non semiconductor related products will play an even greater role in company’s success going forward.

Management’s goal is for the thermal non semi business to reach $100 million within three years and for the segment to compensate for recent weakness in semi equipment.

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