Aetrium Reports Third Quarter 2012 Results

Aetrium Reports Third Quarter 2012 Results

ST. PAUL, Minn., Oct. 25, 2012 (GLOBE NEWSWIRE) -- Aetrium Incorporated
(Nasdaq:ATRM) today announced results for its third quarter ended September
30, 2012. Revenue for the third quarter was $796,000, down sequentially from
$2,012,000 in the second quarter of 2012. Net loss for the third quarter was
$4,140,000, or $0.38 per share, which included a charge for excess and
obsolete inventories of $2,766,000 and a restructuring charge of $68,000
related to a workforce reduction implemented in September. The loss compared
to a net loss of $483,000, or $0.04 per share, in the second quarter of 2012.

"Continued improvement in industry conditions in the second half of 2012 that
forecasters had led us to expect has not materialized," said Joseph C.
Levesque, president and CEO of Aetrium Incorporated. "We expect that
semiconductor production levels in the third quarter will prove to have been
flat at best, and we are not anticipating that production levels will improve
in fourth quarter. Accordingly, we are planning that the demand for our test
handler products will remain muted into 2013, and that we are not likely to
see absorption of existing excess semiconductor production capacity until the
second half of 2013. Accordingly, we have recently taken action to further
trim our workforce, for a total reduction of 49% over the past year, and we
have reevaluated our inventories and taken additional reserves, to reflect our
expectations of an extended period of difficult industry conditions.

"Our reliability test products, driven by the requirements of emerging
semiconductor technologies, continue to draw the keen interest of our
customers, who include most of the top semiconductor manufacturers in the
world," added Mr. Levesque. "However, while we expect these products to
continue to do well into 2013, we are also feeling the impact of tightening
capital budgets on these products as our customers gear down for continued
lackluster semiconductor demand."

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 June 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.

The Aetrium Incorporated logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6943

Aetrium Incorporated
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
                                                                
                                  Three Months ended   Nine Months ended
                                   September 30,         September 30,
                                  2012       2011       2012       2011
                                                                
                                                                
Net sales                          $796     $1,459   $4,698   $6,638
Cost of goods sold (1)            3,361      2,125      5,403      5,054
Gross profit (loss)                (2,565)    (666)      (705)      1,584
Gross profit percent               -322.2%    -45.6%     -15.0%     23.9%
                                                                
Operating expenses:                                              
Selling, general and               1,205      1,245      3,383      3,617
administrative (2)
Research and development (3)       371        913        1,161      2,142
Total operating expenses           1,576      2,158      4,544      5,759
                                                                
Loss from operations               (4,141)    (2,824)    (5,249)    (4,175)
Interest income, net               1         7          3          29
Loss before income taxes           (4,140)    (2,817)    (5,246)    (4,146)
Income taxes                       --        --        --        --
                                                                
Net loss                           $(4,140) $(2,817) $(5,246) $(4,146)
                                                                
                                                                
Loss per share (basic and diluted) $(0.38)  $(0.26)  $(0.49)  $(0.38)
                                                                
Weighted average common shares     10,781    10,781    10,781    10,781
outstanding (basic and diluted)
                                                                
                                                                
                                                                
                                  Three Months ended   Nine Months ended
                                   September 30,         September 30,
                                  2012       2011       2012       2011
(1) Cost of goods sold includes                                  
the following:
Excess and obsolete inventory      $2,766   $1,116   $2,766   $1,116
charges
Severance charges                  45        57        93        57
                                                                
(2) Selling, general and
administrative expenses includes                                 
the following:
Severance charges                  --        70        39        70
                                                                
(3) Research and development                                     
expenses includes the following:
Severance charges                  23        141       95         141


Aetrium Incorporated
Consolidated Balance Sheets
(Unaudited)
(In Thousands)
                                                       
                                          September 30, December 31,
                                          2012          2011
Assets:                                                 
Current assets:                                         
Cash and cash equivalents                  $3,677      $5,008
Accounts receivable, net                   520          1,324
Inventories, current                       2,605        7,731
Other current assets                       71           53
Total current assets                       6,873        14,116
                                                       
Property and equipment, net                184          109
                                                       
Inventories, noncurrent                    1,810        --
Other asset                                21           30
                                                       
Total assets                               $8,888      $14,255
                                                       
                                                       
Liabilities and shareholders' equity:                   
Current liabilities:                                    
Trade accounts payable                     $641        $506
Other current liabilities                  686          1,051
Total current liabilities                  1,327        1,557
                                                       
Noncurrent liabilities                     182          256
                                                       
Shareholders' equity                       7,379        12,442
                                                       
Total liabilities and shareholders' equity $8,888      $14,255

CONTACT: Doug Hemer
         Aetrium Incorporated
         (651) 773-4274

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