Welcome inTEST Corporation’s 2015 First Quarter Financial Results Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded today. A replay will be accessible at www.intest.com. I would now like to turn the call over to Laura Guerrant, inTEST’s Investor Relations consultant.

Thank you Susan, and thank you for joining us for inTEST’s 2015 first quarter financial results conference call. With us today are Robert Matthiessen, President and CEO; Hugh Regan, Treasurer and Chief Financial Officer; Jim Pelrin, Vice President and General Manager of inTEST’s Thermal Products Segment; and Dan Graham, Senior Vice President and General Manager of inTEST’s Electrical and Mechanical Products segment. Mr. Regan will review inTEST’s detailed financial results and Mr. Matthiessen will briefly review highlights from the first quarter, as well as current business trends. Mr. Regan will then discuss guidance for the second quarter of 2015 and we’ll then have time for any questions. If you have not yet received a copy of today’s release, a copy may be obtained on inTEST’s website www.intest.com. Before we begin the formal remarks, the company’s attorneys advise that this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not convey historical information, but relate to predictive or potential future events that are based upon management’s current expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to changes in business conditions in the economy, changes in the demand for semiconductors, changes in the rates of and timing of capital expenditures by semiconductor manufacturers, the success of our strategy to diversify our business by entering markets outside the semiconductor or ATE markets, progress of product development programs, increases in raw material and fabrication costs associated with our products and other risk factors set forth from time-to-time in the company’s SEC filings, including but not limited to inTEST’s periodic reports on Form 10-K and Form 10-Q. The company undertakes no obligation to update the information on today’s conference call to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events. And with that, let me now turn the call over to Hugh Regan. Please go ahead Hugh.

Thank you Laura and I’d like to welcome everyone to our 2015 first quarter results conference call. I’ll be reviewing the financial results in detail and then Bob will provide color on our markets and what we are seeing in our customer base, and then I’ll be back to give guidance for the second quarter. First quarter 2015 end user net revenues were unchanged sequentially at $9.4 million or 92% of net revenues compared to 95% of net revenues in the fourth quarter of 2014. OEM net revenues were $793,000 or 8% of net revenues, up from $504,000 or 5% for the fourth quarter of 2014. Net revenues from markets outside of semiconductor test were $1.8 million or 18% of net revenues compared with $3.4 million or 34% of net revenues in the fourth quarter. The company’s gross margin for the first quarter was $4.9 million or 48% as compared with $5 million or 51% in the fourth quarter. The decline in the gross margin was the result of an expected increase in our component material costs, which grew from 30.7% in the fourth quarter to 33.8% in the first quarter. In addition our fixed manufacturing cost increased in absolute dollars of $80,000 or 6% sequentially to $1.5 million, while remaining fixed as a percentage of our net revenue at 15%. The increase in our consolidated component material costs in the first quarter was driven by increases in our Mechanical and Thermal Products segments. Our Mechanical Products segments component material costs increased from 36.3% in Q4 to 44.9% in Q1, while our Thermal Product segment saw its component material costs grow slightly from 28.3% in Q4 to 28.5% in Q1. The increase in component material costs in both segments was driven by changes in product and customer mix. Our Electrical…

Okay Hugh, thanks. Our operating results reinforce the soundness of our business model, which is centered on our core market and semiconductor ATE, complemented by expanded product offering for non-traditional electronics markets that require thermal testing. As Hugh noted, our Q1 results were quite solid with business driven by strong demand in quote activity in the semiconductor and defense/aerospace industries. The first quarter bookings of $11.4 million increased 27% sequentially and 12% year-over-year. Both gross margin of 48% and revenues of $10.2 million exceeded company guidance and earnings per share of $0.04 were at the high end of our guidance range marking inTEST’s 22nd consecutive quarter of profitability. Our Thermal Products segment is our largest most profitable and diversified division and is providing inTEST with growth opportunities in the future. Through the strategic diversification of our Thermal Products segment, we are creating new opportunities in industrial testing and broadening our end market penetration. Our solutions are highly engineered and application-specific and often create or operate in extreme temperature environments. These thermal test systems are highly customizable and can be readily adapted not only to our traditional semiconductor market, but also to electronics test applications in various growth markets including automotive, consumer electronics, defense, aerospace, energy, industrial and telecommunications. Thermal segment bookings for the first quarter were $6.4 million compared with fourth quarter 2014 bookings of $5.6 million. First quarter thermal segment revenues were $5.7 million compared with fourth quarter 2014 revenues of $6.2 million. Thermal semi related booking in North America were up 46% sequentially and 16% year-over-year. This was the best quarter for semi bookings in the U.S. since Q4, 2000 and was a result of significant orders from companies in the telecom and processor sectors within the semiconductor market in addition to numerous sales to others in the…

Thanks Bob. In terms of our financial outlook, as noted in our earnings release, based upon the normal seasonality we see each year in our business, we expect that net revenues for the quarter ended June 30, 2015 will be in the range of $10.5 million to $11.5 million and net earnings will range from $0.07 to $0.10 per diluted share. We currently expect that our Q2 2015 product mix will be slightly less favorable than Q1 2015 and as the second quarter gross margin will range from 48% to 50%. Operator, that concludes our formal remarks. We can now take questions.

[Operator Instructions] Your first question comes from the line of Srini Sundararajan with Summit Research.

Thanks for taking the call. My question is…

Hi Srini.

Hi Hugh. I just wanted to ask you how the second half of the year looks versus the first half of the year, do you expect normal seasonality?

All right, Srini right now as we’ve always told people, we see clear for about one quarter. So we’ve got clear visibility through right now basically the second quarter and a little bit into the third. So as we currently expect it, the year will progress as if we would expect it normally too with the strong Q2 and Q3 performance. Q1 was a little stronger this year for us, so we’re optimistic that that means possibly a stronger year. We do recognize that a number of people have said that the semi and ATE sectors will be flat to slightly down, but that’s driven as we understand and primarily by the SSC market and lack of demand there, which we serve a broader subset of semi. So we’re optimistic that our results will be at least equal to or possibly exceed those of 2014. As Bob said in our last call, we expect the year to be up 3% to 5% year-over-year.

And if you look at the – are your telecom revenues for calendar Q2, are they facing the same challenges at some of these bigger companies have faced or do you know not maybe see any effect?

We’ve seen that sector significantly reduce demand. Jim, I don’t know whether you’d like to offer some thoughts on that, Jim Pelrin.

Yes, as you were saying, we have seen some of the demand go down. Many of the larger customers are currently reaching saturation and they are building out additional facilities. So there has been some softness in that sector.

Okay. And the last question is which particular mega-trend that the Internet of Things or BIG Data or the data centers, which particular mega-trend are you banking on to help with your growth in the next few years. This is kind of a broad question, so please feel free to give...

Well, that’s a big question Srini. This is Bob. BIG Data is a big deal, we understand that. In our searches for companies to partner with, we are certainly concentrating in that area. For instance we see in the future rapid growth in the SSD markets. Those are places that we haven’t participated in the past and perhaps it would be a place to look. So BIG Data is driving a lot of what’s going on there and we are very aware of it.

We also think the Internet of Things will also drive a lot of data.

The Internet of Things, will most of the sensors undergo thermal testing, especially if they are in hostile environments, would that be a tailwind for you guys?

Absolutely, because the Internet of Things includes as you know products we haven’t even thought of yet. It’s virtually everything and so you can absolutely expect hostile environments for a lot of those things and so not only will they have to be tested temperature wise, but probably mechanically in terms of shaking and humidity and that sort of thing. So we look forward to the Internet of Things expanding, because it will definitely broaden our markets.

All right, thanks Bob, that’s Jim and thanks Hugh. Thank you very much.

You’re welcome Srini.

Thanks Srini.

[Operator Instructions] At this time there are no further questions. I would now like to turn the call back over to Mr. Matthiessen for any closing remarks.

Well, thank you and thank you for your interest in inTEST. We look forward to updating you on our progress when we report second quarter results and we’ll probably see many of you at SEMICON West and the 7th Annual CEO Summit on July 15 in San Francisco. Thanks for tuning in and good evening.

Thank you for participating in today’s conference. You may now disconnect.