2019 Third Quarter Highlights

• Third quarter Thermal segment highlights included:
  • An Original Equipment Manufacturer (OEM) customer we won late last year is now placing significant orders for EKOHEAT induction heating equipment systems for automotive preheating applications, becoming Ambrell’s third largest customer to date.
  • A European manufacturer of extruded tubing for consumer products placed additional orders for EASYHEAT induction heating equipment.  This customer has placed more orders through the third quarter than it did in the entirety of 2018.
  • In our emerging Thermonics Chiller business, we also won two new customers (one integrator and one end-user), who use our products for chemical extraction for the expanding cannabis industry.
• Third quarter EMS segment highlights included:
  • Bookings increased 13% sequentially, due to an uptick in orders for docking products for consumer electronics and mobile applications, including 5G.
  • EMS received a large manipulator order from an OEM for automotive applications test, further demonstrating our value to the semiconductor related automotive industry.

inTEST President & CEO James Pelrin commented, “Despite continued challenging headwinds in the semiconductor market, we delivered profitable third quarter results with increased revenues, expanded gross margin and EBITDA, and we continued to generate cash.  Consolidated net revenues increased 2% sequentially; and while Semi Market revenues declined, Multimarket revenues increased over the prior quarter, driven by defense/aerospace and industrial customers, serving to reinforce our long-term strategy of building our base of less volatile, Multimarket related revenues.”

Mr. Pelrin added, “Semi market related variabilities are an inherent aspect of our business; and while there is still considerable market uncertainty, we are confident in our long-term diversification strategy of maximizing our Semi business while expanding inTEST’s Multimarket footprint.  Our customer base continues to grow, testament to the value of our technologies and the demand for our products.  We continue to strive to excel with our capabilities to deliver precision-engineered thermal, mechanical and electronic solutions.  We believe we are well positioned to participate as the semiconductor industry rebounds.”

2019 Fourth Quarter Financial Outlook
inTEST’s guidance for the 2019 fourth quarter includes both GAAP and non-GAAP estimates.  A reconciliation between these GAAP and non-GAAP financial measures is included below.

Actual results may differ materially as a result of, among other things, the factors described under “Forward-Looking Statements” below.

inTEST expects that net revenues for the fourth quarter of 2019 will be in the range of $14.0 million to $15.0 million and that net earnings per diluted share will range from $0.04 to $0.08.  On a non-GAAP basis, adjusted net earnings per diluted share is expected to be in the range of $0.07 to $0.11.  In addition, we expect that gross margin will range from 48% to 49%.  This outlook is based on the Company’s current views with respect to operating and market conditions and customers’ forecasts, which are subject to change.

2019 Third Quarter Supplemental Information and Conference Call Details
inTEST is providing Supplemental Information (“Information”) in combination with its press release.  This Information is offered to provide shareholders and analysts with additional time and detail for analyzing the Company’s financial results in advance of the Company’s quarterly conference call.  The Information will be available in conjunction with the press release at inTEST’s website www.intest.com, under the “Investors” section.

inTEST management will host a conference call on Friday, November 8, 2019 at 8:30 am Eastern Standard Time.  The conference call will address the Company’s 2019 third quarter financial results, and management’s current expectations and views of the industry.  The call may also include discussion of strategic, operating, product initiatives or developments, or other matters relating to the Company’s current or future performance.  To access the live conference call, please dial (646) 828-8193 or (888) 394-8218.  The Passcode for the conference call is 6975622.  Please reference the inTEST 2019 Q3 Financial Results Conference Call.

2019 Third Quarter Live Webcast Details
inTEST Corporation will provide a webcast in conjunction with the conference call.  To access the live webcast, please visit inTEST’s website www.intest.com under the “Investors” section.

2019 Third Quarter Replay Details (Webcast)
A replay of the webcast will be available on inTEST’s website for one year following the live broadcast.  To access the webcast replay, please visit inTEST’s website www.intest.com under the “Investors” section.

Submit Questions
In advance of the conference call, and for those investors accessing the webcast, inTEST Corporation welcomes individual investors to submit their questions via email to Email Contact.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, we also disclose non-GAAP financial measures.  These non-GAAP financial measures include adjusted net earnings (loss), adjusted net earnings (loss) per diluted share, EBITDA and adjusted EBITDA.  Adjusted net earnings (loss) is derived by adding acquired intangible amortization, adjusted for the related income tax expense (benefit), to net earnings (loss) and removing any change in the fair value of our contingent consideration liability from net earnings (loss).  Adjusted net earnings (loss) per diluted share is derived by dividing adjusted net earnings (loss) by diluted weighted average shares outstanding.  EBITDA is derived by adding acquired intangible amortization, interest expense, income tax expense, and depreciation to net earnings (loss). Adjusted EBITDA is derived by removing any change in the fair value of our contingent consideration liability from EBITDA.  These results are provided as a complement to the results provided in accordance with GAAP.  Adjusted net earnings (loss), adjusted net earnings (loss) per diluted share, EBITDA and adjusted EBITDA are non-GAAP financial measures presented to provide investors with meaningful, supplemental information regarding our baseline performance before acquired intangible amortization charges and changes in the estimate of future consideration that may be paid out related to prior acquisitions as these expenses or income items may not be indicative of our current core business or future outlook.  These non-GAAP financial measures are used by management 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.  A reconciliation from net earnings (loss) and net earnings (loss) per diluted share to adjusted net earnings (loss) and adjusted net earnings (loss) per diluted share and from net earnings (loss) to EBITDA and adjusted EBITDA, which are discussed in this earnings release, is contained in the tables below.  The non-GAAP financial measures discussed in this earnings release may not be comparable to similarly titled measures used by other companies.  The presentation of non-GAAP financial measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.