inTEST Corporation (NYSE American: INTT), a global provider of cutting-edge test and process technology solutions for various industries including automotive/EV, defense/aerospace, industrial, life sciences, security, and semiconductor (“semi”), has announced its intention to revise previously issued consolidated financial statements for the third quarter and nine months ended September 30, 2023. This revision stems from the deferral of revenue linked to purchases made on behalf of specific customers for “last time buys” of discontinued materials/components, potentially for future orders.
Preliminary assessments suggest that the restatement for the third quarter of 2023 will likely lead to a decrease in revenue by approximately $1.7 million, accompanied by a corresponding increase in deferred revenue on the balance sheet. After factoring in the deferral of associated costs and tax implications, it is estimated that net income for the third quarter of 2023 will be approximately $700,000 lower. Consequently, the previously reported earnings per diluted share for the third quarter of 2023 are anticipated to decrease from $0.24 to $0.19.
Additionally, the revenue deferral is expected to minimally affect the preliminary fourth-quarter results previously announced. Fourth-quarter 2023 revenue is now projected to be approximately $27.9 million with net earnings of $1.5 million, translating to $0.12 per diluted share.
The company aims to amend and file its third-quarter 2023 10-Q/A at the earliest opportunity. Investors are advised not to rely on the company’s previously released financial statements for the third quarter and nine months ended September 30, 2023, as well as prior related press releases, earnings releases, and investor communications detailing the financial statements for those periods, and preliminary results reported for the fourth quarter ended December 31, 2023. Furthermore, the company intends to file its 2023 10-K as soon as feasible and anticipates hosting a conference call subsequent to the filing and release of the fourth-quarter 2023 financial results. Considering the factors prompting the restatement, the company expects to report a material weakness in its internal control over financial reporting.
