Aetrium Reports Fourth Quarter and Fiscal Year 2012 Results and Announces Decision to Explore Strategic Alternatives

Wed Feb 27, 2013 4:00pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130227:nGNXUXGMPa

ST. PAUL, Minn., Feb. 27, 2013 (GLOBE NEWSWIRE) -- Aetrium Incorporated (Nasdaq:ATRM) today
announced results for its fourth quarter and fiscal year ended December 31, 2012.

Revenue for the fourth quarter of 2012 was $1,543,000 as compared to revenue of $2,371,000 in the
fourth quarter of 2011. Net loss for the fourth quarter of 2012 was $865,000, or $0.08 per share,
as compared with a net loss of $602,000, or $0.06 per share, in the fourth quarter of 2011.
Revenue for the 2012 fiscal year was $6,241,000 as compared to revenue of $9,009,000 for fiscal
year 2011. The net loss for fiscal year 2012 was $6,111,000, or $0.57 per share, as compared to a
net loss of $4,748,000, or $0.44 per share, in fiscal year 2011.

"Our fourth quarter sales increased sequentially from the third quarter of 2012 due primarily to
an increase in sales of our reliability test products," said Joseph C. Levesque, president and CEO
of Aetrium Incorporated. "We sold reliability test systems to two new customers in the quarter,
including a high capacity system sold to a government sponsored location in India involved in the
aerospace field. This is our first sale to a customer in India and this will be a high profile
installation. Although the reliability test equipment side of our business is doing well, it is
still feeling the impact of the extreme caution exhibited by our customers as they scrutinize and
limit their capital spending amid uncertain economic and generally weak industry conditions.
However, we believe our technically superior products and growing customer base will continue to
serve us well in the current business climate as the industry develops even more advanced geometry
IC's, and in the next industry up cycle.

"The continued poor financial results for our test handler product line remain the result of weak
business conditions in the Integrated Circuit (IC) industry characterized by weak IC demand and
low production equipment utilization rates," added Mr. Levesque. "As we indicated last quarter, we
continue to believe that excess production capacity in the industry will not likely be absorbed
and capacity-driven equipment purchases will not likely resume until the second half of 2013 at
the earliest. Accordingly, we are focusing our efforts on containing costs and pursuing sales
opportunities in niche applications and unique situations where little or no excess capacity
exists."

Aetrium also announced that it believes it is the right time to reignite its efforts to explore
strategic alternatives for the company. Based on its recent business portfolio review to determine
the optimal mix of businesses for maximizing shareholder value, the company is considering options
that may include, among others, a sale or other disposition of one or both of its reliability test
and test handler product groups. Given the distinct natures of its two product groups, the company
may pursue a different strategic alternative for each business.

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 December 31, 2011 and its Form 10-Q for the
quarter ended September 30, 2012.

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 ICs. 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
http://www.globenewswire.com/newsroom/ctr?d=10023406&l=7&a=www.Aetrium.com&u=http%3A%2F%2Fwww.aetrium.com%2F
.

The Aetrium Incorporated logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6943
http://www.globenewswire.com/newsroom/ctr?d=10023406&l=8&u=http%3A%2F%2Fwww.globenewswire.com%2Fnewsroom%2Fprs%2F%3Fpkgid%3D6943

 Aetrium Incorporated                                                                                                        
 Consolidated Statements of Operations                                                                                       
 (Unaudited)                                                                                                                 
 (in thousands, except per share data)                                                                                       
                                                                                                                         
                                                                                                                         
                                                                           Three Months ended       Year ended             
                                                                           December 31,             December 31,           
                                                                           2012        2011        2012       2011       
                                                                                                                         
                                                                                                                         
 Net sales                                                                 $ 1,543     $ 2,371     $ 6,241    $ 9,009    
 Cost of goods sold (1)                                                    759         1,149       6,162      6,203      
 Gross profit                                                              784         1,222       79         2,806      
 Gross profit percent                                                      50.8%       51.5%       1.3%       31.1%      
                                                                                                                         
 Operating expenses:                                                                                                     
 Selling, general and administrative (2)                                   1,428       1,484       4,811      5,101      
 Research and development (3)                                              221         345         1,382      2,487      
 Total operating expenses                                                  1,649       1,829       6,193      7,588      
                                                                                                                         
 Loss from operations                                                      (865)       (607)       (6,114)    (4,782)    
 Interest income                                                           2           5           9          34         
 Interest expense                                                          (2)         --          (6)        --         
 Loss before income taxes                                                  (865)       (602)       (6,111)    (4,748)    
 Income taxes                                                              --          --          --         --         
                                                                                                                         
 Net loss                                                                  $ (865)     $ (602)     $ (6,111)  $ (4,748)  
                                                                                                                         
                                                                                                                         
 Net loss per share (basic and diluted)                                    $ (0.08)    $ (0.06)    $ (0.57)   $ (0.44)   
                                                                                                                         
 Weighted average common shares outstanding (basic and diluted)            10,781      10,781      10,781     10,781     
                                                                                                                         
                                                                                                                         
                                                                                                                         
                                                                           Three Months ended       Year ended             
                                                                           December 31,             December 31,           
                                                                           2012        2011        2012       2011       
 (1) Cost of goods sold includes the following:                                                                          
 Excess and obsolete inventory charges                                     $ 10        $ 15        $ 2,776    $ 1,131    
 Severance charges                                                         --          --          93         57         
                                                                                                                         
 (2) Selling, general and administrative expenses includes the following:                                                
 Severance charges                                                         --          205         39         275        
                                                                                                                         
 (3) Research and development expenses includes the following:                                                           
 Credit related to state refundable research credits                       (37)        (70)        (37)       (70)       
 Severance charges                                                         --          --          95         141        


                                                                           
 Aetrium Incorporated                                                      
 Consolidated Balance Sheets                                               
 (Unaudited)                                                               
 (In Thousands)                                                            
                                                                         
                                                                         
                                             December 31,  December 31,  
                                             2012          2011          
 Assets:                                                                 
 Current assets:                                                         
 Cash and cash equivalents                   $ 3,013       $ 5,008       
 Accounts receivable, net                    466           1,324         
 Inventories, current                        2,347         7,731         
 Other current assets                        143           53            
 Total current assets                        5,969         14,116        
                                                                         
 Property and equipment, net                 162           109           
                                                                         
 Inventories, noncurrent                     1,810         --            
 Other asset                                 58            30            
                                                                         
 Total assets                                $ 7,999       $ 14,255      
                                                                         
                                                                         
 Liabilities and shareholders' equity:                                   
 Current liabilities:                                                    
 Trade accounts payable                      $ 596         $ 506         
 Other current liabilities                   692           1,051         
 Total current liabilities                   1,288         1,557         
                                                                         
 Noncurrent liabilities                      131           256           
                                                                         
 Shareholders' equity                        6,580         12,442        
                                                                         
 Total liabilities and shareholders' equity  $ 7,999       $ 14,255      


CONTACT: Paul Askegaard
         Aetrium Incorporated
         (651) 704-1812