INTT - Liberty Park Capital - inTest Corp: Early Stages Of A Great Compounding Journey

2024-02-07 05:05:00 ET

Summary

• Historically, InTest derived most of its revenues from the semiconductor capital equipment end market.
• The company is intentionally growing its business in other end markets to reduce cyclicality and provide a more stable base of cash flows to deploy into acquisitions.
• We increased our stake in InTest after the company lowered its 2023 guidance due to a slowdown in the semiconductor market.

The following segment was excerpted from this fund letter.

inTEST Corp ( INTT )

inTEST Corp manufactures process and test equipment, such as docking stations, manipulators, thermal test chambers, induction heating tools, and image capture systems. Historically, inTEST derived most of its revenues from the semiconductor capital equipment end market (67% of sales in 2021), but the company is intentionally growing its business in other end markets to reduce cyclicality and provide a more stable base of cash flows to deploy into acquisitions. Other served end markets include aerospace and defense, general industrial, life sciences, automotive, and security....

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