Welcome to inTEST Corporation's 2015 second 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. At that time if you have a question you'll need to press star, one on your pushbutton phone. As a reminder, this conference is being recorded. A replay will be accessible at www.intest.com.

I would now like to turn the call over the call over to Hugh Regan, inTEST's Chief Financial Officer.

I'd like to welcome everyone to our 2015 second quarter conference call. While Hugh will review the financial results in detail, as he just said, I'll review some of the highlights and then will discuss our markets and what we are seeing in our customer base.

We delivered another strong quarter, increasing nearly all metrics and driven predominantly by strength in the telecom industry where we are making head roads with a number of customers, as well as the auto and industrial segments. On a sequential basis, second quarter net revenues increased by 14% and exceeded guidance. Second quarter gross margin grew by 19%, while net earnings substantially increased by 147%. Net earnings per diluted share grew by $0.06, marking inTEST'S 23rd 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 Product 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 second quarter were $6.1 million compared with first-quarter bookings of $6.4 million. Second-quarter thermal segment revenues were $6.7 million compared with first-quarter thermal segment revenues of $5.7 million.

Revenue has trended up, with non-semi improving. Semi declined in the quarter consistent with the industry. Semi is, of course, cyclical and variable - with up-cycles balanced against down-cycles, and forward looking can be murky at times. While it's declined it can reverse quickly at any moment - as anyone in this industry already knows. We are at one of those frustrating points were we just can't see what is on the horizon. We do not believe that we have lost market share, it's more that the customers that we typically serve have put a damper on ordering. So it isn't a matter in which we have lost to competitors, rather the order pattern has changed over time and the size of the orders has diminished.

In Mil/Aero, overall bookings were down slightly in Q2 compared to Q1. Q1 actually benefited from a single large order for a proprietary defense product from a customer that periodically gives us very large orders. No additional orders are expected this year. If we exclude this Q1 order we have actually had an increase in Mil/Aero bookings in Q2. North American bookings are also attributable to industrial and the Internet of Things.

In Europe we have delivered six air chiller systems to a system integrator for automotive radar testing. Of note is the fact that in June 2015 our German operation achieved an all-time high monthly revenue of 365,000 Euros.

And in Asia, telecom is up after having slowed down somewhat in the previous quarter. Although the big players in telecom are still not buying much, we've now gained a number of new accounts among the smaller manufacturers from which we are garnering bookings and revenues. This accounted for heavy telecom bookings in June including multiple system orders from four Chinese telecom manufacturers.

In chillers we successfully installed and received factory buy-off of two 3 kilowatt chillers in a major energy customer. These chillers were actually shipped in Q4 of 2014 but not installed until Q2 of 2015 due to the customer's construction delays.

We have increased spending on product development in the thermal product group and recently introduced two new products that were very well received at SEMICON West, one for the semi market and the other for semi and electronics tests. We introduced a pair of benchtop systems for temperature testing ICs, including high-watt emitting devices. A launch of the ThermoSpot benchtop product line broadens the temperature forcing solutions available for semiconductor testing from Temptronic. IC developers now have the option to test ICs with an efficient direct contact method in addition to the widely used ThermoStream systems that can generate extreme temperatures very quickly.

In addition we introduce an environmentally friendly series of Temptronic ThermoStream temperature forcing systems that use one-third less energy than the standard models and with very low audible noise. These portable systems are ideal for temperature test in a lab environment. Moreover these systems provide remote communications and set up, touch screen operation and a wide-reaching thermal head for easy positioning over the test device.

Turning to the mechanical product segment, second-quarter mechanical product bookings were $1.9 million compared with first quarter bookings of $2.5 million. Bookings slowed down in the second half of Q2 which is attributable to a slowdown by our largest customer for docking components. Mechanical sales for the second quarter were $2.5 million compared with $2.4 million for the first quarter.

During Q1 we won new business with a domestic IDM for test cells for their ETS 800 tester. We were actually in direct competition with the tester manufacturer for that sale. The first manipulator, docking and interface were successfully installed during Q2 for this new tester. Also National Instruments has entered the tester business and we installed our first Cobal 250 for this new tester in Asia. And additionally we are developing a new manipulator in the 400KG class for which we will have improved capability to handle variable loads over our counter balanced units.

Now let me turn to our Electrical segment which is doing quite well. Overall Electrical had a good quarter with bookings and revenues above forecast. Q2 bookings were $2.3 million compared with first-quarter bookings of $2.5 million. Q2 electrical revenues were $2.4 million compared with Q1 bookings of $2.0 million. It bears noting as always that the sale cycle and the electrical division is a lengthy one, upwards to a year and a half and we are seeing the benefit of the considerable effort and infrastructure we put in place a few years ago. Some of these products continue to ship and we would expect to see continued improvements in Electrical.

Several highlights for the quarter included the fact that the booking of a significant new project for development of very high frequency interface for probe test of automobile radar chips. We've also been using our proprietary Lynx tester that we've developed recently to offer refurbishment for interfaces for our own and competitors units. We delivered the first of a new interface to a major domestic IDM for use with their Teradyne J750HD test system and the first 440MM inFLEX interface sold. We have previously concentrated on 300MM. We shipped ten interfaces to a major domestic IDM for use by their optical test group and our inFLEX wafer probe interfaces for a major family of testers, the Teradyne FLEX series, continue to sell well. And we continue to develop a new piece of equipment to measure probe card deflection under load that would occur in an actual prober while testing wafers. So the overall outlook continues to improve for Electrical and orders have continued strong into Q3 of 2015.

Before I turn the call back over to Hugh, let me wrap up. In summary our operating results reinforce the strength of our business model which is centered on our core market in semiconductor ATE complemented by an expanded product offering for non-traditional electronics markets that require thermal testing. Our long-term objective is to grow and transform inTEST into a broad-based thermal test solutions company while continuing to supply our valued customers in the semiconductor test arena. Leveraging the strength of our semiconductor business we have increased our footprint with the evolution of our non-semi thermal test solutions and we offer a comprehensive product portfolio capable of addressing growth markets in both the semiconductor and non-semiconductor sectors including automotive, consumer electronics, defense/aerospace, energy, industrial and telecommunications. We aim to be recognized authority on extreme temperature environments and provide highly engineered application-specific thermal solutions with timely delivery, superior quality and reliability, and we believe the conditions for our long-term success remain firmly in place.

With that I'd like to turn the call back over to Hugh.

Ladies and gentlemen, if you would like to ask an audio question at this time simply press star and the number one on your telephone keypad. That's star one for questions.

Your first question comes from the line of Srini Sundararajan with Summit Research.

Thanks. Congratulations on a good quarter and thanks for taking my question. I have one question and a quick follow-up. Can you make any comments on your China sales in the second quarter versus China sales in the first quarter?

Good question, Srini. This is Hugh.

It's funny, I don't have geographic data in front of me here on the call. The one thing I can do is ask Jim Pelrin if he can recall for the thermo group sales into China Q1 versus Q2. It's not a normal metric, Srini, we have available on this call so I apologize that we may not have that available.

Jim, would you have that readily -

Yes, I can answer qualitatively. We experienced an increase in sales in China in the fourth quarter of last year, the first quarter of 2015. Most of our telecom sales were to the big three as we call them and now we have developed sales and -- bookings and sales into some of the smaller players.

OK, great. And then I'm not expecting guidance from you on the fourth quarter, but could you give me any qualitative highlights of the various segments in the fourth quarter?

Good question, Srini. You know, our fourth quarter trails down seasonally from Q3, like Q1 they tend to be trough quarters for us. I understand you've got a model that you need to update at this point and that we don't provide guidance for the fourth quarter, but I would expect our results in the fourth quarter at this point to be probably somewhat consistent with the first quarter of the year.

OK, great. Thank you very much.

You're very welcome

As a reminder you may ask an audio question by pressing star and the number one on your telephone keypad. That's star, one for questions.

There are no further questions at this time. I would now like to turn the call back over to Mr. Matthiessen for any closing remarks.