- In line with the Company’s 5-Point Strategy, Alfamation
augments inTEST’s automated test solutions and extends its
geographic market reach
- Alfamation brings strong test equipment engineering and
production capabilities for developing innovative test systems and
solutions for electronics, micro-optics and optoelectronics
manufacturing
- Designs and manufactures test solutions used for automotive
infotainment, telematics and central control systems, as well as
biometric monitoring equipment, mobile communications and
wafer-level optical components
- Alfamation’s annual revenue of approximately $25 million
increases inTEST’s scale while providing deeper penetration into
key target markets
- Conference call to discuss acquisition scheduled for Wednesday,
March 13 at 8:30 am ET
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
automotive/EV, defense/aerospace, industrial, life sciences,
security, and semiconductor (“semi”), announced today that it has
acquired Alfamation S.p.A. (“Alfamation”), a leading global
provider of state-of-the-art test and measurement solutions for the
automotive, life sciences and specialty consumer electronics
markets. Terms of the acquisition are being filed separately with
the Securities and Exchange Commission. Alfamation will become a
part of the Electronic Test division within inTEST.
Nick Grant, President and CEO, commented, “We identified the
opportunity with Alfamation through our disciplined pursuit for
acquisitions that will enhance our innovative test and process
technology solutions and further strengthen our position in key
target markets. We believe this acquisition is an excellent fit for
our Electronic Test division and advances all dimensions of our
5-Point Strategy. Alfamation will deepen our presence in
automotive/EV and life science markets, expand our exposure in
consumer electronics, extend our geographic reach with a sizable
footprint in Europe, and widen our portfolio of products and
solutions. Additionally, Alfamation brings exceptional engineering
talent and a strong management team that culturally aligns with
inTEST’s mission to provide innovative, engineered solutions that
address high-value challenges of our customers.”
Alfamation was established in 1991. Headquartered in Milan,
Italy, the business also has a small sales and service subsidiary
based in Suzhou City, China. Alfamation designs, builds, and
supports a wide range of products, from individual functional test
modules to fully automated systems for production quality control
and product development. Offerings include Alfamation's Hyperion™,
a functional test platform that addresses a broad range of test
requirements from wireless communication telematics through
automotive infotainment and computer control units. Alfamation’s
range of automated test solutions also includes wafer-level optical
component testers (WALOT™) and fully automated display and
instrument cluster testers with integrated robotics for haptic and
touch test functionality (Pixelshooter™).
Alfamation is well known in the automotive test and measurement
industry for Flexmedia XM®, its family of specialty test tools.
This is a modular, robust and cost-effective solution for building
flexible, scalable, functional testers for applications that
include audio and video generators and analyzers, automotive
ethernet and communication interfaces, and analog measurements.
At current exchange rates, Alfamation’s annual revenue in 2023
was approximately $25 million and had backlog at December 31, 2023
of approximately $15 million. The Company expects the acquisition
to be accretive in 2025. Alfamation has generated healthy,
double-digit, annual revenue growth over the last few years.
Updating Full Year 2024 Guidance As a result of the
acquisition, revenue for full year 2024 is expected to be in the
range of $145 million to $155 million. The acquisition is expected
to be dilutive to earnings per diluted share in 2024, but accretive
to non-GAAP adjusted earnings per diluted share(1) due to the
anticipated impacts associated with the amortization of intangible
assets.
Given the timing of the acquisition, the impact to first quarter
2024 results from operations are expected to be nominal.
Conference Call and Webcast The Company will host a
conference call and webcast tomorrow, March 13, 2024, at 8:30 a.m.
ET to discuss the acquisition. 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
www.intest.com/investor-relations.
A telephonic replay will be available from 11:30 a.m. ET on the
day of the call through Wednesday, March 20, 2024. To listen to the
archived call, dial (412) 317-6671 and enter replay pin number
13745130. The webcast replay can be accessed via the investor
relations section of www.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 technology solutions for
use in manufacturing and testing in key target markets including
automotive/EV, defense/aerospace, industrial, life sciences, and
security, as well as both the front-end and back-end of the
semiconductor manufacturing industry. Backed by decades of
engineering expertise and a culture of operational excellence,
inTEST solves difficult thermal, mechanical, and electronic
challenges for customers worldwide while generating strong cash
flow and profits. inTEST’s strategy leverages these strengths to
grow organically and with acquisitions through the addition of
innovative technologies, deeper and broader geographic reach, and
market expansion. For more information, visit www.intest.com.
Forward-Looking Non-GAAP Financial Measures This release
includes certain forward-looking non-GAAP financial measures,
including adjusted earnings per diluted share. Forward-looking
adjusted earnings per diluted share is derived by dividing
estimated adjusted net earnings by estimated diluted weighted
average shares outstanding. We have provided these forward-looking
non-GAAP financial measures because management uses such measures
to make operational decisions, to forecast future operational
results, and for comparison with our business plan, historical
operating results and the operating results of our peers.
Forward-looking non-GAAP financial measures have limitations as
analytical tools and should not be viewed in isolation or as a
substitute for GAAP measures of earnings. The Company has not
quantified forward-looking adjusted earnings per diluted share or
provided a reconciliation to comparable GAAP measures because the
Company cannot do so without unreasonable efforts.
Key Performance Indicators Management uses backlog as a
key performance metric to analyze and measure the Company’s
financial performance and results of operations. Management uses
backlog as a measure of current and future business and financial
performance, and it may not be comparable with measures provided by
other companies. Backlog is calculated on the basis of firm
purchase orders we receive for which revenue has not yet been
recognized. Management believes tracking backlog is useful as it
often times is a leading indicator of future performance. In
accordance with industry practice, contracts may include provisions
for cancellation, termination, or suspension at the discretion of
the customer.
Given that backlog is an operational measure and that the
Company's methodology for calculating backlog does not meet the
definition of a non-GAAP measure, as that term is defined by the
U.S. Securities and Exchange Commission, a quantitative
reconciliation for backlog is not required or provided.
Forward-Looking Statements This press release includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. These
statements do not convey historical information but relate to
predicted or potential future events and financial results, such as
statements of the Company’s plans, strategies and intentions, or
our future performance or goals, that are based upon management's
current expectations. These forward-looking statements can often be
identified by the use of forward-looking terminology such as
“believe,” “expects,” “further,” “expand,” “extend,” “widen,”
“will,” “plan,” “potential,” “anticipates,” “target,” or similar
terminology. These statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements. Such risks and
uncertainties include, but are not limited to, any mentioned in
this press release as well as the Company’s ability to execute on
its 5-Point Strategy, realize the potential benefits of
acquisitions and successfully integrate any acquired operations,
including the operations of Alfamation, grow the Company’s presence
in its key target and international markets, manage supply chain
challenges, convert backlog to sales and to ship product in a
timely manner; the success of the Company’s strategy to diversify
its markets; the impact of inflation on the Company’s business and
financial condition; indications of a change in the market cycles
in the semi market or other markets served; changes in business
conditions and general economic conditions both domestically and
globally including rising interest rates and fluctuation in foreign
currency exchange rates; changes in the demand for semiconductors;
access to capital and the ability to borrow funds or raise capital
to finance potential acquisitions or for working capital; changes
in the rates and timing of capital expenditures by the Company’s
customers; and other risk factors set forth from time to time in
the Company’s Securities and Exchange Commission filings,
including, but not limited to, the Annual Report on Form 10-K for
the year ended December 31, 2022. Any forward-looking statement
made by the Company in this press release is based only on
information currently available to management and speaks to
circumstances only as of the date on which it is made. 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,
except as required by law.
1 Estimated adjusted earnings per diluted share is a
forward-looking non-GAAP financial measure. Further information can
be found under “Forward-Looking Non-GAAP Financial Measures.”
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version on businesswire.com: https://www.businesswire.com/news/home/20240312778751/en/
inTEST Corporation Duncan Gilmour Chief Financial Officer
and Treasurer Tel: (856) 505-8999
Investors: Deborah K. Pawlowski Kei Advisors LLC
dpawlowski@keiadvisors.com Tel: (716) 843-3908
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