Ladies and gentlemen, greetings and welcome to the InTest Corporation Q3 2024 Financial Results Conference Call. 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 zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shawn Southard, Investor Relations. Please go ahead. 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 Gilmour, 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-GAAP 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 GAAP. You can find reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. Now, please turn to slide four. Nick, I'll turn the call over to you. Thank you, Shawn, and good morning, everyone. Thanks for joining us for our Q3 2024 earnings call. First, I would like to thank the entire InTest team for their continued efforts executing on our strategy. We are adding new customers, we continue to optimize our channels to market, and we are driving innovation to differentiate our solutions. These efforts are helping offset some of the softness in a few of our key end markets. We are managing well through the current semiconductor cycle and benefiting more on our diversified markets, including automotive, life sciences, and consumer electronics, where our positions were strengthened by the acquisition of Alphamation. The integration continues to progress well as the teams are focused on driving product and technology synergies, leveraging our supply chain to improve cost and performance, as well as exploiting opportunities across the broader customer base. A highlight in the quarter was achieving gross margin of 46.3% on revenue of $30 million, which was impacted by $2 million in shipments being delayed into the Q4. During the Q3, Alphamation contributed $5.4 million in revenue, and sales to our diversified markets showed strength, while semi revenue demonstrated improving trends in the back end. In fact, sequential growth in back end semi outpaced the decline in front end. The 570 basis points expansion in gross margin compared with Q2 was driven by favorable product mix, improved volume from higher margin back end semi, and cost actions taken to adjust to market conditions. Our businesses have been aligning their cost structure with current market conditions through headcount reductions, less discretionary spending, and insourcing activities. Since the beginning of 2024, headcount in our base businesses has been reduced by 10%. Product mix and our cost management efforts are reflected in our sequential improvement and operating margin expanding 60 basis points and adjusted EBITDA margin improving 180 basis points. Turning to slide five, I'll review orders and backlog. Orders have modestly improved through the year and the quarter. Orders in Q3 were $28 million, including $3.9 million from Alphamation. Stronger demand in auto, EV, defense aerospace, industrial, and other markets outweighed the weakness in semi. Encouragingly, for the third consecutive quarter, back end semi orders were up sequentially, showing further signs of coming out of the trough. This improvement helped to offset the current pause we're experiencing in front end semi. Backlog has improved over the prior year period and was up $5 million, recognizing the $14.7 million contribution from the acquisition of Alphamation, which had an elevated backlog at closing. As mentioned in the past, Alphamation's orders can be lumpy as timing of their large multi-system projects can vary quarter- to- quarter. Compared with the trailing quarter, backlog declined as we worked down Alphamation's backlog. With that, let me turn it over to Duncan to review the financials and outlook in more detail. Duncan, over to you. Thank you, Nick. Starting on slide six, as Nick noted, revenue for the Q3 was $30 million, including $5.4 million from Alphamation. The $0.7 million decrease compared with Q3 2023 was driven by a $7.1 million sales decline in semi that was partially offset by $4.5 million of growth in auto, EV, primarily from Alphamation, and improved sales in industrial and other markets. Sequentially, Q3 revenue decreased $3.7 million as approximately two million in shipments were delayed into the Q4. As we communicated last quarter was going to be the case, revenue from Alphamation was down compared with an unusually strong Q2. Meanwhile, semi, industrial, and other markets demonstrated improving trends. Moving to slide seven, gross margin of 46.3% for the quarter expanded 570 basis points sequentially, driven by favorable product mix with improved volume and high margin back end semi solutions and cost actions, as Nick noted. On a year-over-year comparison, gross margin was nominally unchanged on lower revenue. On a trailing 12-month basis, our gross profit was $53.3 million, or 43.7% of sales. The decline reflects the weakness in higher margin semi sales. As you can see on slide eight, compared with the prior year, our operating expenses were up $1.5 million, reflecting the inclusion of Alphamation's operating expenses as partially offset by cost reductions and corporate development costs. Sequentially, operating expenses were essentially flat. Turning to slide nine, you can see our bottom line and adjusted EBITDA results. For the quarter, net earnings were $495,000 or $0.04 per diluted share. Adjusted net earnings were $1.2 million or $0.10 per diluted share. Adjusted EPS reflects adding back tax-affected acquired intangible amortization. On an after-tax basis, our acquired intangible amortization amounted to approximately $721,000 or about $0.06 per diluted share in the Q3. Adjusted EBITDA for Q3 was $2.4 million, representing an 8.1% adjusted EBITDA margin. Slide 10 shows our capital structure and cash flow. During the quarter, we generated $4.2 million of operating cash. Capital expenditures in the Q3 were approximately $500,000, and the resultant free cash flow was $3.7 million. We ended the quarter with total debt of $16.1 million. This reflects a total debt leverage ratio of 1.8x. During the quarter, we repaid approximately $5.3 million of debt and repurchased approximately 141,000 shares at an average price of $7.38 for a total investment of $1 million. Cash and equivalents at the end of the Q3 were $18 million, down $2 million from the trailing quarter, reflecting net debt repayments and repurchase shares. We continue to have $30 million available with our delayed draw term loan and an incremental $10 million available under our revolver. Turning to slide 11, as we review our outlook for 2024, we have tightened our full year outlook and now expect 2024 revenue to range from $128 million - $131 million. Gross margin for 2024 is expected to be approximately 42%-43%, with expected operating expenses of approximately $53 million. This includes intangible asset amortization expense of approximately $3.3 million or $2.7 million on a tax-adjusted basis. Our expected effective tax rate remains at about 17%-19%. The implied Q4 results from the tightened guidance imply revenue of $34-$37 million, with gross margins of approximately 42%. Operating expenses, including amortization, are expected to be approximately $13.5 million. Total intangible asset amortization is expected to be approximately $900,000 and approximately $700,000 after tax, or about $0.06 per share. Based on the midpoint of our revenue guidance range, we are expecting EPS and adjusted EPS for the Q4 to be approximately $0.08 and $0.14, respectively. As a reminder, we simply adjust for tax-affected amortization expense. We still expect our capital expenditures in 2024 to run between 1%-2% of sales. As usual, our guidance does not include the potential impact from any non-operating expenses, such as corporate development, that may occur from time to time, nor does it include the potential impact from any additional acquisitions we may make. With that, if you will turn to slide 12, I will now turn the call back over to Nick. Thanks, Duncan. While we have limited visibility beyond the Q4, we believe we are seeing signs of stability in our targeted industries. The order pipeline has increased, reflecting some gradual improvement with back end semi demand and larger automotive projects. We believe once we are past the elections and moving into the new year, CapEx projects will likely increase across a number of industries. The front end semi market, which for us serves silicon carbide and gallium nitride applications, is currently paused. While the longer-term picture for these power semiconductor materials is encouraging, there is a need for the market to improve efficiencies with existing production lines, consume existing inventory, and adapt to the changes in EV demand. We are especially excited about the evolving gallium nitride opportunity as that technology delivers higher efficiency and many high-power applications. We continue to optimize our go-to-market by adding or upgrading channel partners that can drive higher sales while expanding our geographic coverage throughout the U.S. and around the world. In Southeast Asia, our new Malaysia facility is coming along nicely, and we're already seeing the benefits from the engineers we have hired. In fact, our environmental technologies division has recently received their first order for a new product that was designed by their team in Penang. This modified thermal test solution was something that was on our new product roadmap for some time, but until now, we did not have the bandwidth to complete it. It's great to see the team members making an impact in their first few months of being on board. I look forward to many more future successes from the team. As noted in our five-point strategy, innovation is one of the keys to our success. In our electronic test division, our automated manipulator with our IntelliDOCK solution was recently installed at a key customer in Europe as an integrated solution that we expect could lead to many future opportunities. In addition, our automated manipulator has been coupled with the latest test technology and is in the test phase at a large intelligent computing company. Initial feedback is very positive. It's our know-how and expertise that differentiates us and opens up these types of competitive displacement opportunities. Our process technologies, EKOHEAT 2 induction heating system, is being leveraged in next-gen solutions for a number of key customers. With its industry-leading internal control and power delivery system, which, by the way, leverages silicon carbide technology, our EKOHEAT 2 can lower system operating costs, provide increased uptime, and has built-in performance diagnostics for asset health monitoring. Despite the headwinds we are experiencing in some of our key markets, we are not sitting still. We are driving innovation. We are constantly working to optimize our go-to-market approach. We are capturing price for our value-added solutions, and we continue to evaluate acquisitions that can complement or enhance our existing technologies. In short, we are executing on our strategy. With that, operator, let's open the line for questions. Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and one on a telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions. The first question is from the line of Jason Smith with Lake Street. Please go ahead. Hey, guys. Thanks for taking my questions. I just want to start on the order push-outs you highlighted. Curious if those are concentrated at a couple of customers or if it is just more broad-based. And then, I guess relatedly, what end market is that related to? Yeah. Good morning, Jason. So the roughly $2 million that we referenced in push-outs from Q3 to Q4 really were shipment delays that didn't reach a customer by the end of Q3 and basically arrived in early Q4 out there. So that's roughly the $2 million that we referenced there. With that said, we have seen customers push out. At At front end semi, we continue to work with customers in that space on shipments that they've placed orders. We've had in our backlog for a while on that. So just accommodating them there more so on the front end side. Gotcha. And then related to the front-end semi market, I know high-level there are some kind of longer-term tailwinds, but just curious how you guys are thinking about when to expect a pickup there, or is just visibility too clouded at this point? Yeah. What we're hearing from our customers and actually working with a number of them on their next-gen solutions there is that they're anticipating second half of 2025 is when additional deliveries would be needed at this stage. Obviously, that can change, but that's kind of the timeline we're hearing from multiple customers in that space. Okay. That's really helpful. And then just the last one for me, and I'll jump back into queue. I mean, really nice gross margin performance. I know you highlighted sort of the headcount reductions and insourcing and some just improved efficiencies. Just curious how much of this could potentially be permanent. I mean, when the demand profile picks back up, is this sort of the new level for gross margin? Yeah. I mean, it's tough to break down all the elements. Jason, as you know, mix is certainly the biggest driver of that very strong gross margin, but we also see the benefit of the cost initiatives that Nick highlighted. I mean, very roughly, but it is hard to discern. There's probably about a percentage point of benefit from cost actions and things like that flowing through that number, with the majority of the uptick being the mix factor with the higher back end semi that we highlighted. Okay. No, I appreciate that color. Thanks a lot, guys. Thanks, Jason. Thank you. The next question is from Ted Jackson with Northland Securities. Please go ahead. Good morning. I've only got a couple of questions, actually. A couple of mine were hit just now. First of all, just when you made a comment about the headcount reduction being down 10% in your base businesses, can you just define what the base businesses are? Yeah. It's our collective companies outside of Alphamation. At this stage, they're all part of our base businesses. Now, some of those five companies are not being impacted as severely as the others. So I would say collectively, the 10% is there, but it's more weighted towards businesses that are seeing the downturn in the front end semi space and the more industrial slowdowns that we've seen taking some actions. Okay, and then with a reduction like that, how do we see that playing through into the financials? I mean, I haven't gone through and really dug and tried to put my Q4 together again, so I mean, I assume we'll see some of this in the Q4. Does it play out almost immediately? Is it something that we'll see an additional impact as we get into the Q1 of 2025? Color there, please. Yeah, and just to provide a bit more clarity, last quarter we talked about a more specific action, about $1.2 million of annualized benefit, around 12 headcount I think we referenced, which took place towards the end of last quarter, starting to flow through this quarter and ongoing a little bit of severance, for example, associated with that relatively minor action. The total headcount that Nick's referring to is really over the course of the last nine months or so as demand has softened in a number of businesses. We've obviously adjusted direct labor, operational expenses. As we've seen that demand soften, it hasn't really been one action per se. It's been activity that's been occurring over the course of the last nine months. When we look back, we have reduced headcount in the base businesses, as we mentioned, by that 10%. But it's been a gradual process, and we've been seeing those benefits slowly creep through the numbers, so to speak. We're certainly seeing here in Q3, with the margin being strong, the impact of that, and we'll continue to see that going forward. I would re-emphasize, though, a lot of that margin uptick is driven by what was a favorable mix in Q3 versus very unfavorable mix in Q2 as a comparison. Okay. My next question, just maybe front end's been hit on, but just maybe a little more color around the back end. I mean, you've commented for several months, I guess, at this point, that you have seen the back end stabilize and improve. And maybe some color in terms of when you look at that business and the incremental strength that you're seeing in it. Is there anything to note in terms of kind of end market that's strengthening, or is it a geography, underlying drivers like reshoring? You see what I'm going? Just anything thematic within what's happening in that business that's worth calling out? Nothing in particular I would say worth calling out. It is a gradual improvement. It's not like an L-shape taken off, if you will. But we are seeing more and more requests for quotes. Our pipelines are growing. Some projects, CapEx projects, are signaled to kick off. I mean, they're kicked off here very soon. So yeah, we feel pretty good about that back end showing that gradual improvement. Now, on the flip side, front end is, for us, very anemic right now. Nope. Well, hopefully, that'll turn around in the near future for you too. Last question, and just more of just kind of a thematic kind of color thing. Just talk a bit about Alphamation and kind of help everyone, including myself, understand it better. It's still a good chunk of your backlog. You're working through it. I know it's a business that has a lot of exposure within the auto world, and that what happens within that is tied to kind of new models, model refreshes of cars and stuff. I was wondering if you could maybe provide a little kind of color in terms of where we are in terms of some of the cycles that impact Alphamation's revenue growth. Is there anything in terms of some model releases that you all are excited about? I mean, or is it you kind of get where I'm going with this? Just, is there anything to hang a hook to hang a hat on in terms of that we should be thinking about, like a new model refresh or a new design win within a particular vertical? Or I mean, it could even be getting into commercial heavy equipment as they start automating it and there's more electronics going into it. But just maybe sketch out some themes that drive the growth of that business. And that's it for me. Yeah. Sure. So I'm very excited still to have Alphamation part of the InTest family here. And the majority of their testers go into automotive. The automotive industry kind of doing a little bit of a reshuffling the last couple of quarters here as EVs, models kind of being slowed and moving more towards the ICE hybrid type vehicles. But for Alphamation, it's agnostic. For them, it's just a matter of which programs go forward from that. So encouraging is the pipelines at Alphamation. Really seeing some nice pickup on projects there. And this whole shift around the computing in vehicles, the onboard computing systems, moving more to a centralized computing system versus these computers within the different infotainment systems, what have you. Having one managing the entire car is a design shift, an infrastructure shift that is kind of underway across numerous OEMs out there, which is good for us, and we'll require new testers from around these onboard computing systems, as well as the changes in the electronics that are being managed. We'll also require testers to monitor them and evaluate quality, so yeah, there's a lot going on in cars. I think everyone's well aware of that, and new tech, new features, and so there's a lot of testing opportunities for us, and so we feel very positive about the future for Alphamation. Just timing-wise, as we pointed on, orders can be lumpy. Okay. Thanks very much. You guys have a great day. Thanks, Ted. Thank you. A reminder to all participants that you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question. As there are no further questions, I would now like to hand the conference over to Nick Grant for closing comments. Thank you, Zeko. We appreciate everyone joining us today, and thank you for your time. And we welcome the opportunity to answer any further questions you may have. On slide 13, you can find the details regarding the replay of this call and a list of upcoming events we'll be participating in. I hope to have a chance to see some of you at an upcoming conference. Thanks again for participating and have a nice day. Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.