inTest Corporation

Greetings and welcome to the Intest Corporation second quarter 2025 financial results call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sean Sutherd, Investor Relations for Intest. Thank you, you may begin.

Good morning, everyone. We certainly appreciate your interest in Intest Corporation and thank you for sharing your time with us today. Joining me on our call are Nick Grant, our President and Chief Executive Officer and Duncan Gilmore, our Chief Financial Officer and Treasurer. You should have the earnings release that went out this morning, as well as the slides that will accompany our conversation today. If not, you can find these documents on the Investor Relations section of our website, intest.com. Please turn to slide two as I review the Safe Harbor Statement. During this call, management may make some forward-looking statements about our current plans, beliefs and expectations. These statements apply to future events that are subject to risks, uncertainties and 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. Also as covered on slide three, management will refer to some non-GAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAP. You can find reconciliations of non-GAP measures with comparable GAP measures in the tables that accompany today's release and slides. Now please turn to slide four. I'll turn it over to Nick. Nick, over to you.

Thank you, Sean, and good morning, everyone. Thanks for joining us for our second quarter 2025 earnings call. The second quarter played out pretty much as we expected. While the ongoing global economic and tariff uncertainties continue to drive customer hesitancy as it relates to moving forward with larger capital projects, we were able to deliver incremental improvement in the quarter. I want to take a moment and thank the entire end-test team for staying focused and delivering results through these continuing challenges. We remain focused on driving innovation, market diversification, and geographic expansion to strengthen our position and preparation for market improvements. In the quarter, end-tests delivered just over $28 million in revenue with growth margins of about 42% and received orders of nearly $28 million as our recently introduced products continued to gain traction while our sales teams added new customers and optimized our channel network. Once again, our funnel of opportunities has increased to a new all-time high as customers recognize our innovative solutions are integral to their long-term capital plans. While overall, Cine and Industrial markets remain sluggish, our teams are focused on capturing opportunities in other markets that are more active, like Defense Arrow. In the quarter, our Process Technologies Division benefited from a meaningful commercial space order. And as you probably noted, we just announced a large defense order at our Environmental Technologies Division, which was a long time coming, for missile test systems to a prime defense contractor. Also in the quarter, we saw order activity gaining traction in AutoEV, which I'll touch on shortly. During these times of uncertainty, we continue to take actions to improve profitability, and we further reduce debt by $1.7 million. -to-date, we've reduced debt by nearly $5 million, bringing our total debt down to approximately $10 million.