Aetrium Reports Third Quarter Results.ST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn. -- Aetrium Incorporated (Nasdaq:ATRM ATRM Aluminum Technology Roadmap ATRM ATO Transmit and Receive Module ) today announced results for its third quarter ending September September: see month. 30, 2004. Revenue for the third quarter was $7,073,000, down 22% from revenue of $9,107,000 for the prior quarter, but up 113% from revenue of $3,325,000 for the third quarter of 2003. Net income for the third quarter was $821,000, or $.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income for the second quarter of 2004 of $2,003,000, or $.19 per diluted share, and a net loss in the third quarter of 2003 of $516,000, or ($.05) per diluted share. The company's gross margins for the third quarter improved sequentially from 56.7% to 59.8%, due to a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. mix of products sold and a favorable mix of direct sales and sales through distributors. "As the third quarter unfolded, a slowing demand for integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. (ICs) and a corresponding reduction in demand for additional capacity within the IC industry became apparent," said Joseph C. Levesque Lé·vesque , René 1922-1987. Canadian politician who cofounded (1967) the Parti Québecois to further the cause of French-Canadian separatism. He served as premier of Quebec (1976-1985). , president and chief executive officer. "We believe the reduced demand is directly attributable to a seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in IC purchases by end users and the IC industry's response to the slowdown by reducing IC inventories that had been established in the first half of the year. These conditions are not surprising, particularly when the growth that the industry has experienced over the last year is considered. But the slowdown was deeper than we had anticipated early in the third quarter, and our customer base was certainly not immune to these conditions. The result is that we ended the quarter with lower than expected revenues and a reduced backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . We believe that the conservative inventory and capital acquisition practices now being employed by the IC industry are a healthy brake to prevent the overheating Overheating An economy that is growing very quickly, with the risk of high inflation. that was so prevalent prevalent widespread occurrence. prior to and well into the last major industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . While the actions of the IC industry were painful in the short term, we believe that the corrections taken during the third quarter were positive for our industry for the longer term. Unfortunately, the IC industry and our customers continue to sort out the strength and direction of end user demand for ICs, where the industry is in the current inventory correction, and whether or not we are at the beginning of a down cycle as some industry pundits have recently speculated. Under these conditions, we lack the visibility at this time that would allow us to offer meaningful guidance on our fourth quarter." "Although our industry is currently in an unsettled state," Mr. Levesque continued, "we nevertheless reached some important milestones during the quarter that are very important to our future success. We shipped our first two Model 55V8 gravity test handlers handlers persons involved in the handling of, for example, circus animals. Includes grooms, milkers, herdsmen, strappers. Used mostly in referring to persons handling animals for show or auction. to one of our large IDM (1) See identity management. (2) (Integrated Device Manufacturer) A company that performs every step of the chip-making process, including design, manufacture, test and packaging. Examples of IDMs are Intel, AMD, Motorola, IBM, TI and Lucent. customers. We believe the Model 55V8, which can be configured con·fig·ure tr.v. con·fig·ured, con·fig·ur·ing, con·fig·ures To design, arrange, set up, or shape with a view to specific applications or uses: for up to eight test sites, outperforms competing products and provides us with an exciting opportunity to expand our presence in the substantial market for multi-site gravity feed test handlers. We expect to ship a Model 55V8 evaluation unit to a second large IDM customer later this month and we will be shipping another evaluation unit to a third customer by the end of the fourth quarter. We also made significant progress in the development of our next generation reliability test products, to be released over the next several quarters. The new reliability test products are specifically targeted at the emerging technologies related to the continuing migration to copper. And finally we again added new customers in the third quarter to our growing customer base. Accordingly, we believe we continue to be well positioned to take full advantage of the opportunities our markets offer, and to grow at a faster rate than our industry segment." "Finally, last June June: see month. we reported that we had engaged an investment banking firm to assist us in exploring our strategic alternatives," Mr. Levesque said. "We have completed that process and determined that the best course for the company at this time is to continue to operate our business in its current mode. We remain committed to our mission of being one of the best and most profitable equipment suppliers to the worldwide electronic component industry." Certain matters in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. industry, changes in the rates of capital expenditures by semiconductor manufacturers, progress of product development programs, unanticipated costs associated with the integration or restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of operations, and other risk factors set forth in the company's SEC filings, including its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2003. Aetrium, based in North St. Paul, Minnesota North St. Paul is a city in Ramsey County, Minnesota, east of the city of Saint Paul, Minnesota. The population was 11,929 at the 2000 census. In 1870, Henry A. Castle founded Castle Site along the shore of Silver Lake extending to the south and west. , is a leading supplier of proprietary technologies and equipment that are used by the worldwide semiconductor industry to assemble and test ICs and other electronic components. The company's products are used by customers to advance reliability, improve quality, increase product yield or improve manufacturing processes. Aetrium has manufacturing facilities in North St. Paul, Minn. and Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . 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
(in thousands, except per share data)
Three Months ended Nine Months ended
September 30, September 30,
------------------ -----------------
2004 2003 2004 2003
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Net sales $7,073 $3,325 $22,321 $9,638
Cost of goods sold 2,843 1,588 9,487 4,665
------------------ -----------------
Gross profit 4,230 1,737 12,834 4,973
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Gross profit percent 59.8% 52.2% 57.5% 51.6%
Operating expenses:
Selling, general and
administrative 2,485 1,549 6,748 4,734
Research and development 927 714 2,662 1,929
------------------ -----------------
Total operating expenses 3,412 2,263 9,410 6,663
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Income (loss) from operations 818 (526) 3,424 (1,690)
Interest and other income, net 16 10 167 33
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Income (loss) before income taxes 834 (516) 3,591 (1,657)
Income tax expense (13) - (54) -
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Net income (loss) $821 $(516) $3,537 $(1,657)
================== =================
Income (loss) per common share:
Basic $0.09 $(0.05) $0.37 $(0.17)
Diluted $0.08 $(0.05) $0.35 $(0.17)
Weighted average common shares
outstanding:
Basic 9,625 9,477 9,576 9,477
Diluted 10,159 9,477 10,145 9,477
Aetrium Incorporated
Consolidated Balance Sheets
(In Thousands)
September 30, December 31,
2004 2003
------------- ------------
Assets:
Cash and cash equivalents $6,717 $4,087
Accounts receivable, net 4,114 3,320
Inventories - operations 7,955 6,365
Inventories - shipped equipment subject
to revenue deferral 676 324
Other current assets 249 209
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Total current assets 19,711 14,305
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Property and equipment, net 375 386
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Identifiable intangible assets, net 1,087 1,750
Other assets 94 28
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Total assets $21,267 $16,469
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Liabilities and shareholders' equity:
Current liabilities:
Current portion of long-term debt $34 $-
Trade accounts payable 1,794 1,540
Accrued liabilities 1,860 1,258
------------- ------------
Total current liabilities 3,688 2,798
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Long-term debt, less current portion 139 -
------------- ------------
Shareholders' equity 17,440 13,671
------------- ------------
Total liabilities and shareholders'
equity $21,267 $16,469
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