EX-99.HTM 2 ex99-1.htm PRESS RELEASE ex99-1.htm

 
 

 

Exhibit 99.1
GRAPHIC

 
FOR IMMEDIATE RELEASE:
 
February 10, 2010      
CONTACT:
 
Doug Hemer
   
Aetrium Incorporated
   
(651) 773-4274
NASDAQ:
 
ATRM


AETRIUM REPORTS FOURTH QUARTER
AND YEAR-END 2009 RESULTS

St. Paul, Minn (2/10/10)—Aetrium Incorporated (Nasdaq:ATRM) today announced results for its fourth quarter and fiscal year ended December 31, 2009. Revenue for the fourth quarter of 2009 was $2,685,000. This compared to revenue of $2,851,000 in the fourth quarter of 2008. Revenue for the 2009 fiscal year was $8,649,000 as compared to revenue of $17,217,000 in fiscal year 2008.

Net loss for the fourth quarter was $4,818,000, or $0.45 per share, as compared with net loss of $687,000, or $0.06 per share, in the fourth quarter of 2008. Net loss for the fourth quarter of 2009 included charges for inventory obsolescence of $155,000, a reserve of $372,000 for loss on amounts due from a subtenant of the Company’s leased facility in Poway, California, and an increase of $4,064,000 in the Company’s valuation allowance for its deferred tax assets. The impact of these three items was to increase the fourth quarter 2009 net loss from $411,000, or $0.04 per share to $4,818,000, or $0.45 per share. Net loss for the fourth quarter of 2008 included a charge of approximately $100,000 in connection with a workforce reduction.

Net loss for fiscal year 2009 was $6,728,000, or $0.63 per share as compared to a net loss of $613,000, or $0.06 per share in fiscal year 2008. Net loss for 2009 included the charges for inventory obsolescence, subtenant loss reserve and increase in the deferred tax asset valuation allowance described above. The impact of these three items was to increase the 2009 net loss from $2,321,000, or $0.22 per share to $6,728,000, or $0.63 per share. Net loss for 2008 included the workforce reduction charge described above.


“Aetrium’s deferred tax assets consist primarily of federal and state net operating loss (NOL) and tax credit carryforwards,” said Douglas L. Hemer, chief administrative officer. “Accounting guidelines require that companies assess whether a valuation allowance should be recorded against deferred tax assets based on all available evidence. As a result of the steep decline that our industry has been experiencing, we were in a three year cumulative loss position at the end of fiscal 2009. Based upon that position and in accordance with accounting guidelines, we increased our valuation allowance to fully reserve our deferred tax assets. The increase in the valuation allowance did not impact our cash or our ability to utilize our NOL and tax credit carryforwards in the future and does not reflect a change in our positive outlook for Aetrium.”

“Despite the difficult economic and industry conditions and disappointing operating results we experienced in fiscal 2009, we are encouraged by the growing signs of a recovery in progress in the semiconductor and semiconductor equipment industries,” said John J. Pollock, president. “Forecasters are now projecting continued strengthening in our industries well into 2011 and perhaps beyond. This trend is consistent with the increased activities we see in our customers. Based on orders received or expected, we anticipate significant improvement in our revenues for first quarter. Provided this trend continues, we believe the competitiveness of our products and our expanding customer base position us to outperform our sector and take fullest advantage of improving conditions.”

Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, adverse domestic or global economic conditions, slowing growth in the demand for semiconductor devices, the volatility and cyclicality of the microelectronics industry, changes in the rates of capital expenditures by semiconductor manufacturers, progress of product development programs, unanticipated costs associated with the integration or restructuring of operations, and other risk factors set forth in the company’s SEC filings, including its Form 10-K for the year ended Dec. 31, 2008.

Aetrium, based in North St. Paul, Minnesota, is a leading supplier of proprietary technologies and equipment that are used by the worldwide semiconductor industry to test integrated circuits.  The company’s products are used by customers to advance reliability, improve quality, increase product yield or improve manufacturing processes.  Aetrium’s common stock is publicly traded on the Nasdaq market under the symbol ATRM.  More information about Aetrium is available on the internet at www.Aetrium.com.

 
 

 


Aetrium Incorporated
 
Consolidated Statements of Operations
 
(Unaudited)
 
(in thousands, except per share data)
 
                         
                         
   
Three Months ended December 31,
   
Year ended December 31,
 
   
2009
   
2008
   
2009
   
2008
 
                         
                         
Net sales
  $ 2,685     $ 2,851     $ 8,649     $ 17,217  
  Cost of goods sold (1)
    1,781       1,659       5,528       8,949  
Gross profit
    904       1,192       3,121       8,268  
Gross profit percent (1)
    33.7 %     41.8 %     36.1 %     48.0 %
                                 
Operating expenses:
                               
  Selling, general and administrative (2)
    1,557       1,563       5,169       6,521  
  Research and development
    544       743       2,195       3,018  
    Total operating expenses
    2,101       2,306       7,364       9,539  
                                 
Loss from operations
    (1,197 )     (1,114 )     (4,243 )     (1,271 )
  Interest income, net
    23       73       136       347  
Loss before income taxes
    (1,174 )     (1,041 )     (4,107 )     (924 )
  Income tax benefit (expense) (3)
    (3,644 )     354       (2,621 )     311  
                                 
Net loss (4)
  $ (4,818 )   $ (687 )   $ (6,728 )   $ (613 )
                                 
                                 
Loss per share (basic and diluted) (4)
  $ (0.45 )   $ (0.06 )   $ (0.63 )   $ (0.06 )
                                 
Weighted average common shares
                               
  outstanding (basic and diluted)
    10,600       10,598       10,599       10,583  
                                 
 
                                 
(1)
 
Cost of goods sold for the three months and year ended December 31, 2009 includes a $155 inventory obsolescence charge. The impact of this charge was to reduce gross profit percent from 39.4% to 33.7% and from 37.9% to 36.1% for the three months and year ended December 31, 2009 respectively.
 
                                 
(2)
 
Selling, general and administrative expenses for the three months and year ended December 31, 2009 includes a $372 charge to reserve for loss on amounts due from a subtenant of the Company’s leased facility in Poway, California.
 
                                 
(3)
Income tax benefit (expense) for the three months and year ended December 31, 2009 includes a $4,064 increase in a valuation allowance on deferred tax assets.
 
                                 
(4)
 
 
The impact of the $155 inventory obsolescence charge, the $372 reserve for subtenant loss, and the $4,064 increase in the deferred tax asset valuation allowance noted above was to increase net loss from $411 ($0.04 per share) to $4,818 ($0.45 per share) for the three months ended December 31, 2009 and from $2,321 ($0.22 per share) to $6,728 ($0.63 per share) for the year ended December 31, 2009.
 


 
 

 


Aetrium Incorporated
 
Consolidated Balance Sheets
 
(Unaudited)
 
(In Thousands)
 
             
             
   
December 31,
   
December 31,
 
   
2009
   
2008
 
Assets:
           
  Current assets:
           
  Cash and cash equivalents
  $ 9,476     $ 11,629  
  Accounts receivable, net
    2,114       1,539  
  Inventories - operations
    7,472       9,120  
  Inventories -  shipped equipment, subject to
               
     revenue deferral
    -       42  
  Deferred income taxes
    -       127  
  Other current assets
    234       298  
Total current assets
    19,296       22,755  
                 
   Property and equipment, net
    98       143  
   Deferred income taxes
    -       2,489  
   Other assets
    -       215  
                 
Total assets
  $ 19,394     $ 25,602  
                 
                 
Liabilities and shareholders' equity:
               
   Current liabilities:
               
  Current portion of long-term debt
  $ -     $ 12  
  Trade accounts payable
    707       571  
  Other current liabilities
    669       919  
Total current liabilities
    1,376       1,502  
                 
  Shareholders' equity
    18,018       24,100  
                 
Total liabilities and shareholders' equity
  $ 19,394     $ 25,602