inTest Corporation

Greetings and welcome to the Intest Corporation first quarter 2023 financial results. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sean Southard of Administrative Relations.

Thank you. Good morning, everyone. We appreciate your interest and thank you for sharing your time with Intest Corporation. Here with me are Nick Grant, our president and CEO, and Duncan Gilmore, our chief financial officer and treasurer. You should have a copy of the first quarter 2023 financial results, which we released earlier this morning. If not, you can access the release as well as the slides that will accompany our conversation on our website at intest.com slash investor dash relations. After our presentation, we will open the lines for Q&A. If you'll turn to slide two, I'll review the safe harbor statement. You should be aware that we may make some forward-looking statements during the formal discussions, as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties, and other factors are provided in the earnings release as well as in other documents filed by the company with the Securities and Exchange Commission. These documents can be found on our website or at sec.gov. During today's call, we will discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. With that, please turn to slide three, and I'll now turn the call over to Nick.

Thank you, Sean, and good morning, everyone. Thanks for joining us. on our first quarter 2023 earnings call. We delivered another strong quarter as the team is continuing to execute well on our five-point strategy for growth. I would like to once again thank the entire organization for their commitment to our strategy and for delivering the plan. Revenue grew 33% year-over-year to $32 million, driven by strong performance across most markets, with particular strength shown in front-end Semi for silicon carbide crystal growth and epitaxy applications, as well as defense aero and life science markets. The revenue growth was all organic as we now have a full year of the acquisitions under our belt. I believe our results are demonstrating the success we are having with the integration of those three businesses. Under our five-point strategy, we are beginning to unlock their potential. I should point out that we believe innovation is at the heart of our success, which is validated with every new product we launch. For example, our compact EcoHeat system is now a standard offering in our induction heating solutions. We've made significant headway in our electronic test business with our high voltage, high current superset interface solution for testing higher power chips, as well as our continued expansion of our automated manipulator portfolio with our new LSC and LSL manipulators. And we are excited about Videology's new ScaleX ZoomBlock camera with AI-capable edge computing technology, which formally launched last quarter and will start shipping in June. Innovation is driving demand. Our sales and marketing efforts to expand our business are also validated by our continued success. We are consistently adding new customers deepening our reach into existing customers and key markets while expanding into new applications. A good example of this is our industrial-grade embedded video cameras, which are finding their way into pipe inspections for the energy industry. Our opportunities also continue to expand in silicon carbide and gallium nitride as those markets develop. We are supporting our customers in this space as they ramp capacity and optimize operations. Profitability in the quarter increased year-over-year on favorable mix and realization from our ongoing pricing efforts. Our year-over-year expanded operating margin also demonstrates the power of operating leverage as we achieve higher sales. As to demand, we continue to see strength in semiconductor, industrial, defense aero, and life sciences markets. These markets drove first quarter orders of $31 million, up 23% versus the prior year. Larger orders can often create lumpy comparisons quarter to quarter. For example, while auto EV orders were down year over year, they were up sequentially, and we just announced this morning a nearly $2 million order from an EV customer for a brand new application utilizing our chiller solutions. In fact, this is just another example of where our focus on this target market is helping to uncover new opportunities in the manufacturing of EVs for our portfolio of technologies. And our backlog at the end of the first quarter remained solid at approximately 46 million. Organizationally, we continue to add talent to the team, and we are pleased to have announced the addition of Michael Tanneru as President of our Environmental Technologies Division. He joins us from Cincinnati Test Systems, and I had the opportunity to work with Mike in the past at both Emerson and Ametek where he had a track record of success. We are excited to welcome him to the team and look forward to seeing the impact he will have in the role. With that, let me turn it over to Duncan to review the financials in more detail. Duncan, over to you.