**Key Takeaways**
- **Revenue Recovery Signs**: Q3 orders jump 42% YoY to $37.6 million, with automotive and defense/aerospace leading. Backlog surges to $49.3 million, positioning for Q4 rebound to $30-32 million.
- **New Product Success**: Acculogic's RF probes win multiple orders, Alfamation's life sciences bookings hit record levels. Innovation driving growth in new markets.
- **Challenges Resolved**: $2 million in delayed shipments resolved, with customers satisfied and follow-on orders secured.
- **Financial Strength**: $21.1 million cash, $61 million liquidity. Operating expenses down 5.6% YoY, with $500k annual savings from facility consolidation.
- **Market Outlook**: Gradual recovery expected, with automotive programs extending into 2027. Semi market cautious, but long-term optimism for 2026-2027.

**【CEO Summary Section】**
- **Revenue and Orders**: Q3 revenue of $26.2 million, down 6.8% sequentially due to $2 million in delayed shipments. Orders surged 42% YoY to $37.6 million, the highest since Q2 2022, with a 34.2% YoY increase driven by automotive (up $7.4 million) and defense/aerospace (up $1.9 million). Backlog rose to $49.3 million, up $11.4 million sequentially.
- **Market Performance**: Automotive/EV orders doubled to $14.6 million, defense/aerospace orders more than doubled to $6.4 million. Semi remained sluggish, but Alfamation (life sciences) bookings hit an all-time high. New product innovations, like Acculogic's RF and oscilloscope probes, won multiple orders from new customers.
- **Challenges and Wins**: Technical delays in two systems (life sciences and semi) caused Q3 revenue miss, but issues resolved, and tools shipped. Customer satisfaction high, with Alfamation receiving LOI for additional systems.
- **Strategy**: Focused on market diversification, new customer penetration, and VISION 2030 goals. Strong funnel suggests gradual recovery, but semi hesitancy persists.

**【CFO Financial Commentary】**
- **Financials**: Q3 GAAP net loss of $0.9 million (-$0.08 EPS), with adjusted EBITDA of $0.4 million. Gross margin 41.9%, down 70 bps sequentially due to lower volume. Operating expenses decreased $0.7 million sequentially to $12.2 million, benefiting from $500k annualized savings from Videology facility consolidation.
- **Liquidity**: $21.1 million cash, $61 million liquidity. Debt reduced $6.2 million year-to-date, ending at $8.9 million with 1.7x leverage ratio.
- **Guidance**: Q4 revenue expected $30-32 million (up 14-22% from Q3), driven by $2 million in delayed shipments and backlog conversion. Gross margin ~43%, operating expenses $12.3-12.7 million.

**【Q&A Highlights】**
- **Slippage Details**: $1.5 million from life sciences (Alfamation delays), $0.5 million from semi (Acculogic RF probe delays). Both resolved, with customer satisfaction.
- **Automotive Momentum**: 2027 model year programs driving demand, with healthy funnel for future orders. Test equipment investments for infotainment, CCUs, and lighting expected to continue.
- **Semi Market**: Front-end activity anemic, back-end softer due to tariff uncertainty. Long-term optimism for 2026-2027, but near-term sluggishness persists.
- **Industrial Segment**: Stable with book-to-bill >1 for 5 of last 6 quarters, but growth constrained by cautious customer CapEx.
- **Guidance Context**: Q4 range reflects cautious execution, with upside potential from backlog. Teams focused on minimizing risks, with confidence in long-term recovery.

inTEST Corporation (INTT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

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Net Interest Expense

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Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

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Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS

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INTT

INTT fundamentals

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