inTEST Corp Announces Consolidation, Closes Netherlands Unit

Published 03/03/2025, 22:38
inTEST Corp Announces Consolidation, Closes Netherlands Unit

MT. LAUREL, NJ— inTEST Corporation (NYSE American: INTT), a company specializing in instruments for measuring and testing of electricity and electronic signals, disclosed its plans for a strategic consolidation of operations, leading to the closure of its subsidiary’s Netherlands facility. The announcement made on Monday, March 03, 2025, comes as the company, with annual revenue of $122 million, seeks to enhance efficiency and reduce operating costs. According to InvestingPro data, the company maintains a healthy current ratio of 2.26, indicating strong short-term financial stability.

The subsidiary, Videology Imaging Corporation, will centralize its operations at the Mansfield, Massachusetts location. This move will result in the termination of certain employees at the Netherlands facility. The company expects the consolidation process to be largely completed by the end of the year, with the full vacation of the Netherlands facility. This strategic shift comes as InvestingPro analysis shows the company operates with a moderate debt level, with a debt-to-equity ratio of 0.28.

Financially, inTEST anticipates incurring cash charges related to severance and other one-time termination benefits amounting to approximately $350,000. Additional costs, including moving expenses, lease termination of the Netherlands facility, and other associated consolidation expenses, are estimated to range from $200,000 to $300,000.

This strategic decision comes as inTEST aims to streamline its operations within Videology, a wholly-owned subsidiary. The consolidation is intended to bolster operational efficiencies and cut down on the overhead associated with running multiple facilities.

The information provided in this article is based on a press release statement.

In other recent news, Oak Ridge Financial has initiated coverage on inTEST Corporation with a Buy rating and a price target of $14. This development comes as inTEST continues its efforts to diversify its business and lessen its dependence on the semiconductor industry. Oak Ridge Financial highlighted that despite these strategic moves, the market has not yet adjusted inTEST’s valuation to account for these changes. The research firm anticipates a positive shift in order and revenue trends for inTEST later in the year. They expect these changes to correct the current underperformance of inTEST’s stock. Oak Ridge Financial predicts that the stock price will align more closely with its intrinsic value, potentially providing returns to shareholders. The price target of $14 implies a significant potential upside from the company’s recent trading price. Investors will be closely watching how inTEST’s stock responds to this new coverage and if the company can capitalize on the expected industry turnaround.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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