inTest Coproration designs, manufactures and markets docking hardware and test head manipulators used by semiconductor manufactures during the testing of wafers and packaged devices. They also design and market related automatic test equipment interface products.
The company controls about 60-70% of the Docking hardward market. This hardward is used to connect test heads to either probers (front end testing) or test handlers (back end testing).
The company controls about 40-45% of the test head manipulators market. Manipulators are large machines that position test heads that can weigh up to 1000 pounds during testing of both waffers and packaged devises.
If the market for ATE is doing well, like it is now, inTest will benefit along with the rest of the companies in this industry. I recently visited with the company (locate 10 minutes from my house) and the CFO reported that 'business is booming'. They are expanding both in their NJ manufacturing facilities and in Singapore.
The stock got punished during the recent industry down turn and has only recovered slightly from its lows. Earnings have rebounded nicely from the loss reported during the 4th quarter of 1998 (Just like COHU). Projections call for EPS of $0.16 and $0.23 for the rest of this year. Year 2000 estimates call for EPS of $1.07. Two analysis cover the company now, a third should initiate coverage soon. My guess is that actual earnings will exceed these estimates.
The stock trades for $7 ... something tells me when the good earnings are reported, $12-$15 should be a very conservative target for the next six months.
Let me know what you think.
Chris Brainard |
