Q2 2023 inTEST Corporation Earnings Call
Greetings and welcome to the Intest Corporation second quarter 2023 financial results call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I would now like to turn the conference over to your host Mr. Shawn Southern Investor Relations for Intest Corporation. Please go ahead.
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 second quarter 2023 financial results.
Lease, 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 Dot Com Slash Investor Relations.
After our presentation, we will open the lines for Q&A.
Now please turn to slide two.
I will review the Safe Harbor statement you.
You should be aware that we may make some forward looking statements during the formal discussion as well.
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 SEC Gov.
During today's call. We will also 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.
Now I'll turn the call over to Nick.
Thank you, Sean and good morning, everyone.
Thanks for joining us for our second quarter 2023 earnings call.
Once again, the intestine has delivered strong results through execution of our five point strategy for growth.
I want to take a moment to recognize our team members.
Thanks them for their commitment and dedication to our strategy and their hard work delivering to plan.
Their outstanding performance allowed us to achieve record revenue was $32 6 million for the second quarter.
This growth reflects strength in a number of our markets.
Our thermal test solution had some nice wins in the defense aerospace market.
Sales of our analog mixed signal backend semi test solutions remain robot.
We also continue to have strong shipments of our front end semi induction heating solutions for the silicon carbide in epitaxy critical growth.
I believe these results are reflection of our success diversifying into new target market, capturing additional market share through go to market and innovation investments.
And the broader market opportunity, we gained with the acquisitions, we made in 2021.
We are delivering on our efforts to expand our presence globally.
For example, our environmental Technologies Division was recently in Japan for the automotive engineering activation promoting our thermal solutions.
From a competitive market our participation informs us new ideas on product development.
You added engineering requirements and opens up new opportunities.
The division also landed a new customer in Guadalajara, Mexico for several pharma strained precision temperature systems in the quarter.
This is an example of our efforts to further penetrate the market Latin America or medical device manufacturers have a good price.
Innovation of course is a key element of our growth.
And our electronic test Division had a number of wins for new Super set high voltage high current interface and new Elisa automate it would be later.
These wins helped each sales robust backend semi space, even as others have reported experiencing moderated capital equipment sales.
Our process technologies Division continues to win new customers that create opportunities for further growth.
For example, we announced earlier in the quarter the win at a utility industry customer, which is replacing its natural gas pre heating system with our environmentally preferred electric induction heating system.
<unk> metals and the preparation for welding.
Our systems provide a green solution and improve quality and throughput.
This initial win per system be used in multiple production lines in our customers' operation and has the potential to expand into additional facilities.
We're seeing more opportunities for this application of our induction heating system.
As companies embrace greener factories.
As we're growing we are demonstrating our strengthening earnings power as well.
Our 10% increase in sales versus a year ago contributed to our 11% growth in gross profit.
23% increase in operating income and 32% growth in that Tony.
We believe these results demonstrate our operating leverage potential as we scale the organization.
And for new business booked in the June quarter, we saw strong demand in our defense aerospace industrial and security market with second quarter orders of $31 million up 2% sequentially.
We ended the quarter with a backlog of approximately 45 million.
The slight decline both year over year and quarter over quarter.
We believe is a reflection of the supply chain returning to more normal trends.
Customers are no longer ordering far in advance of their needs with improving lead tax.
And before I turn it over to Duncan I'll, just comment I'm pleased with the success of our recently completed $20 million at the market equity offering.
It just over $19 million raised enhances our balance sheet and provides us with additional capital to support our organic and inorganic growth ambitions.
With that let me turn it over to Duncan to review the financials in more detail.
Duncan over to you.
Thank you Nick.
Starting on slide four as Nick noted revenue for the second quarter was a record $32 6 million.
10.1% versus the same period last year and at the upper end of our Q2 guidance range of 31 to 33 million.
The 3 million year over year revenue growth.
Strong demand for induction heating solutions and front end semi traditional testing applications and backend semi.
Thermal test chambers in flying probe test systems into defense aerospace industry, and industrial grade image capture technology in the security industry as well as a variety of our solutions in other markets.
Moving to slide five gross margin of 46, 2% in the quarter increase.
Increased 40 basis points compared with the prior year period, driven by better product mix and improved pricing.
Compared with the trailing quarter gross margin declined primarily due to an especially favorable product mix in the first quarter.
Our trailing 12 month gross profit was 59 million grew 5.6 million reflected our success in scaling the business.
Trailing 12 month gross margin of 46, 2% is in line, but our outlook for full year gross margin of approximately 46%.
As you can sleep see on slide six and operating expenses as a percent of sales improved by 70 basis points.
Five 9% as compared with the prior year period.
The dollar basis operating expenses increased 866000, as a result of annual Merit increases and continued investments in engineering sales and marketing.
Turning to slide seven you can see our bottom line and adjusted EBITDA results we.
We had net earnings of 2.8 million or 24 cents per diluted share for the second quarter, which is up from $2 1 million or 20 cents per diluted share in Q2 2022.
Adjusted EBITDA was $4 8 million up from $4 2 million last year, and adjusted EBITA margin expanded 50 basis points to 14, 7%.
On an adjusted basis non-GAAP EPS was 28 cents per diluted share compared with 25 cents per diluted share in the second quarter of 2022.
Adjusted EPS reflects adding back tax effected acquired intangible amortization on.
On an after tax basis acquired intangible amortization, a 92 434000 in the second quarter.
We expect after tax intangible amortization for the third quarter to be similar.
Slide eight shows our capital structure and cash flow.
We raised $19 2 million in net proceeds from an at the market equity offering during the quarter.
Increases their share king such that our weighted average diluted common shares outstanding will be approximately $12 4 million for Q3 2023.
We also generated $2 9 million in cash from operations in the quarter, given our modest capital requirements to grow the business free cash flow was $2 5 million or about 89% of net earnings.
Cash and equivalents at the end of the second quarter, or 37, 4 million up $22 million from the trailing quarter, reflecting the $2 9 million from operations and $19 2 million from the offering.
As Nick indicated our capital priorities remain focused on organic and acquired growth.
We have 30 million available with our delayed draw term loan and 10 million available under our untapped revolver.
Our current leverage ratio is below one just 0.73, giving us considerable flexibility.
As we have done in prior quarters, we repaid 1 million of debt, bringing total debt down to $14 1 million.
No debt repayments of debt does not increase funding available under the terms of our term loan facility.
Turning to slide nine our second quarter orders of $31 4 million were up 2% sequentially on.
On the strength in orders from security Defense Aerospace automotive D D industrial and other market.
Specifically for E D.
So strong for our Chillers for testing and production of high powered traction inverters.
The industrial market orders was strong for our induction heating solutions as companies see coach more environmentally friendly solutions for their production needs.
Water levels in 2023 have become more normalized given improvements in the supply chain and the resulting reduction bleed types.
Backlog at June 30th 2023 was $44 6 million three 1% lower than the prior year and down two 5% compared with the trailing quarter.
Approximately 45% of the backlog is expected to ship beyond the third quarter of 2023.
Turning to slide 10, we'll review our updated outlook for 2023.
Coming off a strong second quarter out we remain excited about the remainder of 2023, we believe we're on track to achieve high single digit to low double digit organic growth and reach our full year revenue target.
For the third quarter of 2023, we expect revenue and gross margin to be similar to the second quarter.
Third quarter operating expenses, including amortization.
It could be similar to Q2.
Which was approximately $11 7 million.
Tangible asset amortization off the tax is expected to be approximately 430000.
We expect third quarter interest expense of approximately 175000, and our effective tax rate to be between 16% and 17%.
EPS for the third quarter should be in the range of 20 to 24 cents per diluted share while adjusted EPS should be in the range of 23 to 27 cents per diluted share as a reminder, we simply adjusts for tax effected amortization expense.
Looking further ahead, we believe demand will remain strong across our technology offerings and market it.
Additionally, we continue to pursue strategic acquisitions and partnerships to extend our reach and expand our portfolio.
Based on our results for the first half 2023 we are updating our revenue outlook for 'twenty to 'twenty three to approximately 127 to 131 million.
Based on our backlog and forecast yeah narrowing the range of our gross margin outlook for 2023 to approximately 46% and our expected operating expenses to be 46 to 47 million raising the low end by 1 million.
This includes tax adjusted intangible asset amortization expense of approximately $1 7 million for determining adjusted earnings.
The expected effective tax rate remains approximately 16% to 17%.
Finally, our capital expenditures for 2023 are expected to continue to run between one 2% of sales.
As usual our guidance does not include the potential impact from any unusual nonoperating expenses that may occur from time to time.
With that if you'll turn to slide 11, I will now turn the call back over to Nick.
Thanks Duncan on Slide 11, we would like to highlight the solid progress we are making towards our stated 2025 revenue goal of $200 million to $250 million.
We expect to continue driving high single digit revenue growth with our base business in the coming years, and we anticipate future acquisition will complement our organic growth to reach our 2025 I believable.
Our pipeline of acquisitions and partnership opportunities remains active and with the net proceeds from our recent ATM equity offering we believe we have the sufficient flexibility with our capital structure to execute on our plan.
Slide 12 shows how we expect our revenue growth will translate into strong earnings growth.
Our plan is to deliver divisional operating income of over $40 million.
Adjusted EBITDA of over $30 million and improved earning power.
Over 20 million in 2025.
Our strategy is primarily focused on scaling the company, while maintaining our margin profile.
Let me sum up on slide 13.
As I have noted throughout my prepared comments.
Our five point strategy is delivering results for shareholders.
Our engineered solutions are in high demand.
Even our customers to improve productivity or create more effective solution within their own portfolio of products.
Our technology segmented organization structure has generated focused and we are driving greater collaboration across the company.
That's a good example, a few weeks ago I was up at our new Akea logic facility outside of Toronto.
Saw one of our flying probe system preparing to be shipped that included three of our video cameras.
Providing these types of broader solution supports our growth plan and enables us to provide more value to our customers.
We could not have created this kind of synergistic they'll even a year ago.
I'm pleased with what our team has been able to accomplish we continue to unleash the potential of intact on our journey to becoming a supplier of choice for innovative tap and process technology solutions.
We are driving organic growth, while actively pursuing acquisition opportunities to enhance our product offering expand our addressable market and deepen our presence in targeted industry.
With that operator, let's open the line for questions.
Thank you at this time well be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question can you May press star two if you'd 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. Our first question comes from the line of Jason Smith with Lake Street Capital Markets. Please proceed with your question.
Hey, guys. Thanks for taking my questions I just wanted to start on your commentary regarding the supply chain. It sounds like those pressures continue to ease, but I was just curious if they at all caused any sort of headwinds in the quarter any demand you were unable to ship and I guess Relatedly would you expect the pressures to can.
Senior debt he's here in the second half of the year.
No major impact you on the courts are.
I would expect these pressures to continue to normalize like I said.
I mean, I think the pain and suffering of 12 months ago 12.
12 to 18 months ago is kind of behind us.
Yeah, and it's great Jason that it's allowing us to free up our our engineering resources are our our manufacturing.
Manufacturing engineers to.
Focus more on new products on cost out initiatives and activities that that really will deliver a lot of value rather than re qualifying suppliers or new new components et cetera.
It's good to get back to normalized our supply chain.
Okay. No. That's that's good to hear and then just following up on your comments on the security market I know, it's a smaller piece of the pie, but it does sound like you're seeing some increasing momentum. There I was just wondering if you guys could provide some more color on what's really driving that momentum. It suggests you've had more.
Time with it under the Intest umbrella is that new customers any additional thoughts there.
It's a combination it's absolutely some of what you described there is some new products that would that we've launched.
With but.
The updated sensors into the cameras, it's improving supply our go to market with added.
Distribution channels on that so yeah, it's really across the board in our efforts to scale the business there.
Okay.
Perfect and then just a last one for me when you look at sort of the pricing environment are you guys playing to implement any price increases going forward.
I mean, I think as I've talked about before I mean always looking at our pricing and our input costs and to the extent you know those things are increasing and we need to kind of price up to that you know we're looking at that you know we're not just.
Once a year kind of a price increase a kind of a rotation. If you will so something we're constantly looking at.
Okay sounds good thanks, a lot guys.
Thanks, Jason.
Thank you. Our next question comes from the line of Peter Wright with interact. Please proceed with your question.
Great. Thank you for taking my question and congratulations on a fantastic quarter.
Thanks Peter.
My first question Nick.
If some some great color on the innovation development in the quarter on the utility scale induction heating.
Any color you can share on.
Uh Huh, how big this opportunity you think can be that sounds that sounds quite significant and maybe some thoughts around the average sale that goes there is it a much bigger ticket item than than your average sale and then also you gave great color on innovation and global any any case out of your comment.
On the service side of your business as well and then I've got one follow up.
Okay. So yeah. There's this as noted in the prepared remarks there.
The screen or trend that we're seeing is gaining more momentum out in the marketplace. There companies are are you know as they expand capacity or update their automated automation on their production lines, they're looking for greener alternatives in our induction heating solutions.
Or are you.
It's becoming more and more popular out there so as to how big it can be I mean, it really just depends on how much of that mega trend of around Green technology adoption.
It plays out there, but we're well positioned or as for the size of the sale or our induction heating systems range from you know the.
25000, low wind if you will relative to like our easy heat systems more tabletop.
You know 200, and 300000 for larger systems out there. So it's a pretty wide gamut, depending on the application and the systems that are sold into it.
Wonderful.
And on the ASP on the service side of things.
So far year to date, where our services talking about 9% to 10% Oh, Yeah. That's right. So we're seeing some some you know improvement as a percent of sales there and of course like to get that 15 to 20, So we're continuing to drive that but.
Service initiatives are underway across all the businesses.
Fantastic and my second question.
Is is really around kind of.
You've given a model now that you've raised in the equity in the quarter of around a two dollar earnings power number on your 2025 Hum.
Our guidance and here's Here's my question. If you just continue to organically grow 10%. It suggests about a $65 million gap at the midpoint for acquisitions.
Historically, you know you bought that it wanted.
Good times sales can.
Can you validate kind of the expectation there and I guess the question is you know with 37 and a half of cash and 40 of borrowing capacity do you think you've got the sufficient capital already raised where no dilutive capital.
<unk> will be required to to achieve kind of your acquisition.
Our goals over the next two years.
Yes, I mean, you certainly kind of we've talked before about the need to be ballpark $50 million of inorganic.
Activity to get to our top line goals for 2025. So you know you're at your kind of exactly right. There, obviously, you're raising money in the in the in the second quarter. There helps us helps our balance sheet helps us from a cash position. So just you know further increases our financial flexibility.
<unk> ability I mean, obviously and we will continue to look are you even going beyond 2025, we do kind of envision continuing to be an acquisitive company and continuing to look.
For opportunities, which would lens, which would mean, we would have to continue to look at our equity as well is that as we look further kind of down the road.
As for you know our approach on acquisitions you know, we we've remained disciplined.
Who are our objectives on returns on more you know.
Multiples in market market multiples out there and that so we feel confident that we are we can identify and achieve the.
The right strategic acquisitions to support our plan you know and ranges that makes sense for our shareholders.
And very last question just on that so the EBITDA leverage ratio you think could tick above one times forthright acquisitions and that would be an increasing mix of capital choice.
Yeah, I mean, we've talked a number of times I. The fact, we'd be comfortable going up as much as two and a half times trailing 12 months EBITDA in terms of total leverage depending on.
Again that equity cash et cetera. So the way we are just now at <unk> 73, we have plenty of room to take on additional debt.
Fantastic Congratulations guys.
Thanks Peter.
Thank you, ladies and gentlemen, as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad. Our next question comes from the line of Ted Jackson with Northland Securities. Please proceed with your question.
Thanks, Yeah that train of thought on M&A was actually what I really wanted to order into with this call, but I have a couple of other questions for you guys and congratulations on the quarter.
Thanks Ted.
I wanted to circle back into the supply chain.
On supply chain you know there is two fronts to it one is the stuff that's coming in to you and then the other is from your ability to send stuff out and.
I mean, youre seeing an improvement in velocity viscosity whatever it is you want to call it for the supply chain and it's allowing you to.
See your backlog kind of trend down because youre being able to deliver things in a more timely manner.
I've had some companies.
And a follow and pay attention to in the last few weeks.
The other side of that is just that their customers are able to get here.
We were able to get to your products, a little bit quicker too and I guess my question is as you know.
How are you.
Finding that any kind of not necessarily cancellation of orders, but maybe deferral of deliveries is your ability to deliver solutions to your customers is.
Perhaps.
Faster than maybe they had built within their plans, so what I'm, saying and then beyond that you know.
You yourself have.
Brought up your inventory levels too.
Compensate for the supply chain issues, you've had in terms of either suppliers to you.
No plenty of other companies that I deal with that have done the same thing.
Do you have any concerns that you could have sort of a sort of a two ways, one way or because of your ability to deliver things faster that they are just kind of deferring orders and then you might end up later on and seeing more deferrals as people will start bringing their inventory levels down and just more of a conceptual art.
Are you seeing any of that and how do you think about that as we.
Probably roll through the rest of this year and into 2024, and then I've got a follow up thanks.
Okay. I mean, let me take a can of cracker that Ted So I mean, you're exactly right lead times for our raw materials material inputs have come down right, which helps US then reduce our own kind of lead times to customers.
Yeah. There is just improved sentiment there with respect to trusting the overall global supply chain, which means youre customers are more comfortable.
Youll ordering in a more traditional kind of lead time, I guess versus where we were six nine months ago, where people were wanting to get their place in the queue and and more placing orders well in advance of quote unquote normality.
Certainly so so that's when we talk about the kind of overall normalization effect.
And I think as you indicated many companies there are you're talking about that and seeing that we did increase inventory somewhat to help overcome many of the challenges we saw there.
And yes, we have seen them in inventory has come down here in Q.
But here in kind of Q2 versus Q1, so we are seeing the.
Impact of that normalization on our balance sheet as well.
And as I indicated I mean.
I mean, we've actually been I'd say our results have been relatively stable. The last couple of quarters. Our guidance indicates another kind of stable kind of quarter from an activity standpoint. So.
All of that is there's a lot of normalization there.
You know that I'm kind of talking to so you know I think you are.
Kind of exactly right yeah.
As for delays I would say we are you know, we really haven't had customers push push things.
That theyre getting getting their systems more.
In line with their project timings et cetera, and that that you know so we're not the longest lead time items. So our deliveries are usually you know pretty.
Pretty well dialed in on that side of it there so no no major delays in shipments or.
The push outs, if you will from customers and I think you touched on casualty I mean, we never really saw any major cancellations at any point shooting the lost.
10 months or so.
So that's not something we you know we have really seen.
Yes.
The sense I get with what I'm listening to different companies, it's less it's not that.
Let's call. It the markets are all softening or it's a recession or anything it's just more of.
Kind of.
Like an ebb and flow kind of like traffic on a on a highway it's all moving but you know what I'm, saying, it's like that as we kind of these things kind of normalize out you know things Theres, a little maybe for lack of a better term like a little backwash in Dunkin' listening to you talk before it sounds like perhaps you are seeing that but.
It's not that it's like causing your sales to fall off it's just maybe moderating the sequential.
The sequential growth that you were experiencing right now as this as things kind of normalized.
Underlying demand thing, it's not causing any kind of reset for your business, but perhaps if supply chains were say you know we're not going through this readjustment that some of the growth that in test has had might've been even just a little bit better.
Is that a fair way to summarize the response.
And in some ways I mean, I look at I look at it.
Yes.
<unk> for example.
12, 24 months ago. If you wanted to buy a car you have to wait forever right. Now you don't need to wait forever. So youre not going to place an order for a car for delivery in two years' time.
And get you a place in the queues. So we're just seeing customers returning to normal buying patterns of buying you know a few months ahead of when they need equipment instead of Oh, My goodness I need to buy 12 months out or I need to get my order and no because I'm concerned that this thing isn't going to be available so that solved.
The change if anything you buy that backlog is.
Normalizing if you will of normalization here and doesn't extend I would just far because people aren't as concerned debates.
Our ability to deliver.
But with our improved lead times were able to capture more book ship in the quarters in that.
That's where the.
The decline.
I'm not worried about that I mean that it makes sense to me I mean, it's like.
I expect every company I cover to see their backlog numbers go down I mean, it's just they're all at levels that are.
Like if you said that youre going to have those kind of backlog is three years ago people would have laughed at you.
Let's move onto the next question and then I'll get I'll I'll step out because I'm guessing, there's probably more people around.
Just kind of talk about.
The longer term and margin gains and things like that and one thing that.
Has worked its way into the global economy is wage inflation and the cost of actually.
People has clearly gone up those are usually pretty sticky things that they don't go the other way when they happen.
And I'm kind of curious if it's something that came up in a.
Colorado earlier this week that had never thought about do you ever have any kind of do you have any kind of like a supply contracts that are longer term in nature.
Things like that.
Youll build in.
Cost riders and pass throughs for commodity cost, but I mean, I don't think anyone really thinks about it from.
Cost of people and you get into some <unk>.
Markets, I mean, particularly when you get into Europe , where they you know like.
European legislation, that's passed where theres mandatory like 10, 15% wage gains and you've seen him, saying and if you don't have things like that structured into your contracts, it's kind of an issue and so it just kind of made me think in terms of like a train of thought what's going on with regards to you know the ability to actually compensate people and how is that for.
Go through within your margins and does it have is there any issues with the with regard to that kind of stuff and your ability to kind of.
<unk> down the path of reaching your leverage goals that you have in your business plan and Thats My last question. Thanks.
Yeah, I mean, obviously.
Obviously wages are one of the bigger kind of line items, if we kind of break down our costs.
We talked a little bit and the discussion on operating expenses at Bay Merit being one of the you know the bigger headwinds in our operating expenses.
And obviously, we factor that in as a big into cost we think about it in relation to pricing touched on pricing a little bit earlier. So when we're looking at price increases and what do we have to do to maintain margins then it's one of the bigger components.
From an overall cost based perspective, so it's something we're always thinking about we're also always wanting to make sure we're paying our employees fairly.
And you know, making sure that where you're kind of doing the right thing for them as well as kind of a shareholder. So I mean, it's a constant cycle I wouldn't say, there's anything special or unique that we face there.
Yeah, I am not aware of us having any.
Constraints horizons mandate mandated increases in any of the jurisdictions that we have employees. So.
Don't think that's an item you have any particular concern, but I mean thats the way I think about it Ted I Duane cause anything unique there.
Yes.
I'd just add you know 12 18 months ago, when we were getting these <unk>.
Anchor orders placed on us for four quarters or are longer than that.
That's where we kind of got behind the eight ball, where we couldnt pass price along to certain customers with higher volumes or what have you.
But now that things are more normalized you know, we're in a better position to be able to capture.
Price adjustments on the next orders that come through et cetera, because because they're coming in more frequently on that side. So it's a better position out there, but yeah, absolutely focused to make sure. We have the people on board to be able to deliver to our plans to meet our customers' expectations out there.
So our wages is something we watch carefully.
Great. Thanks for taking my questions and then a shameless plug I look forward to seeing you all at the Northland Securities Conference in September anyone on the phone that wants to come and meet with some great companies, including this one and the management team. Please come to Minnesota, the Weather's Fabulous in September .
Yeah.
The fee for the advertising.
And you kind of stole my Thunder, if we've got that coming up too. So thanks Ted.
Okay.
Thank you ladies and gentlemen, this concludes our question and answer session I'll turn the floor back to Mr. Grant for final comments.
Thank you Melissa.
Before we close I want to express my gratitude again to our global team as they continue to deliver outstanding results.
And finally, we will be participating in oppenheimer's virtual 26th annual technology Internet and Communications conference on August eight.
And the Needham virtual semiconductor and semi cap conference on August 22nd and then we'll be in Chicago on August 23rd for the Midwest ideas Conference.
Then looking into September will be participating in the Lake Street, a big seven conference in New York and as Ted noted, the Northland and institutional Investor Conference in Minneapolis.
And for the first time since Duncan and I have taken over at the helm here will be participating in the LD Micro conference in early October in L. A we hope to connect with you at these events.
And we appreciate you taking the time to join US on our call today and for your interest in Intest. Thank you all and have a great day.
Thank you. This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation.