Allied Motion Announces Results for the Quarter and Year Ended December 31, 2012

  Allied Motion Announces Results for the Quarter and Year Ended December 31,
  2012

Business Wire

DENVER -- February 19, 2013

Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced that it
achieved net income for the year ended December 31, 2012 of $5,397,000 or $.63
per diluted share compared to adjusted net income of $5,866,000 or $.68 per
diluted share for the year ended December 31, 2011. Adjusted net income for
2011 excludes the $1,101,000 adjustment to the contingent consideration
recorded as part of the purchase price for Ostergrens Elmotor AB, acquired on
December 31, 2010. Including the adjustment, net income was $6,967,000 or $.81
per diluted share for the year ended December 31, 2011.

“While sales in 2012 decreased by $8,973,000 or 8% for the year when compared
to 2011, the decrease in our net income was limited to $469,000 when compared
to adjusted net income for 2011 which factors out the acquisition earn-out
gain of $1,101,000 that was recorded in 2011,” commented Dick Warzala,
President and CEO of Allied Motion. “Most of our operating units and served
markets experienced decreased levels of business in 2012. During 2013, we will
continue to closely monitor our served markets as we expect them to begin
firming up and stabilizing as we move through the year. In the meantime, we
will execute our Strategy for the long term growth and development of our
Company by designing innovative “Motion Solutions That Change the Game” and
meet the current and emerging needs of customers in our served market
segments.”

Revenues for this year were $101,968,000 a 8.1% decrease from the record
revenues of $110,941,000 for last year with $6,346,000, or 71% of the decrease
due to lower volume and $2,627,000 or 29% due to the dollar strengthening
against the Euro and the Swedish Krona. Backlog at December 31, 2012 was
$32,915,000 down 25% from the record backlog at December 31, 2011 of
$44,005,000. The decrease in backlog is primarily the result of the current
market conditions and the delay of certain blanket order placements.

The Company also achieved net income for the fourth quarter ended December 31,
2012 of $1,101,000 or $.13 per diluted share compared to adjusted net income
of $1,615,000 or $.19 per diluted share for the quarter ended December 31,
2011. Adjusted net income for the fourth quarter of 2011 excludes the
$1,101,000 adjustment to the contingent consideration recorded for Ostergrens
Elmotor AB that was acquired on December 31, 2010. Net income was $2,716,000
or $.32 per diluted share for the quarter ended December 31, 2011 and revenues
for the quarter decreased 14.5% to $23,969,000 from $28,024,000 last year with
96% of the decrease due to lower volume and 4% due to the dollar strengthening
against the Euro.

Adjusted EBITDA (excludes stock compensation expense and non-recurring items
such as the $1,101,000 adjustment to the contingent consideration for
Ostergrens) decreased 12% for 2012 to $9,918,000 compared to $11,376,000 last
year.

Headquartered in Denver, Colorado, Allied Motion designs, manufactures and
sells motion control products into applications that serve many industry
sectors. Allied Motion is a leading supplier of precision and specialty motion
control components and systems to a broad spectrum of customers throughout the
world.

The statements in this press release and in the Company’s February 19, 2013
conference call that relate to future plans, events or performance are
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include, without
limitation, any statements that may predict, forecast, indicate, or imply
future results, performance, or achievements. Forward-looking statements
involve known and unknown risks and uncertainties that may cause actual
results of the Company to differ materially from the forward-looking
statements. The risks and uncertainties include international, national and
local general business and economic conditions in the Company’s motion
markets, introduction of new technologies, products and competitors, the
ability to protect the Company’s intellectual property, the ability of the
Company to sustain, manage or forecast its growth and product acceptance,
success of new corporation strategies and implementation of defined critical
issues designed for growth and improvement in profits, the continued success
of the Company’s customers to allow the Company to realize revenues from its
order backlog and to support the Company’s expected delivery schedules, the
continued viability of the Company’s customers and their ability to adapt to
changing technology and product demand, the ability of the Company to meet the
technical specifications of its customers, the continued availability of parts
and components, increased competition and changes in competitor responses to
the Company’s products and services, changes in government regulations,
availability of financing, the ability of the Company’s lenders and financial
institutions to provide additional funds if needed for operations or for
making future acquisitions or the ability of the Company to obtain alternate
financing if present sources of financing are terminated, the ability to
attract and retain qualified personnel who can design new applications and
products for the motion industry, the ability of the Company to identify and
consummate favorable acquisitions to support growth and new technology, and
the ability of the Company to control costs for the purpose of improving
profitability. The Company’s ability to compete in this market depends upon
its capacity to anticipate the need for new products, and to continue to
design and market those products to meet customers’ needs in a competitive
world. Actual results, events and performance may differ materially. Readers
are cautioned not to place undue reliance on these forward-looking statements
as a prediction of actual results. The Company has no obligation or intent to
release publicly any revisions to any forward looking statements, whether as a
result of new information, future events, or otherwise.

ALLIED MOTION TECHNOLOGIES INC.
FINANCIAL SUMMARY (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

                          For the Three Months     For the Year
                           Ended December 31,        Ended December 31,
HIGHLIGHTS OF OPERATING   2012        2011        2012         2011
RESULTS
Revenues                   $ 23,969    $ 28,024     $ 101,968    $ 110,941
Cost of products sold       17,216    19,455    72,328     77,410  
Gross margin                 6,753        8,569        29,640        33,531
Selling expenses             1,295        1,355        5,093         5,626
General and                  2,506        3,249        10,811        12,639
administrative expenses
Engineering and              1,490        1,482        6,060         5,983
development expenses
Adjustment to contingent     --           (1,101 )     --            (1,101  )
consideration
Amortization of             82        180       548        732     
intangible assets
Total Operating Expenses     5,373        5,165        22,512        23,879
Interest expense             1            16           13            84
Other (income) expense,     (45    )   (7     )   (383    )   49      
net
Income before income         1,424        3,395        7,498         9,519
taxes
Provision for income        (323   )   (679   )   (2,101  )   (2,552  )
taxes
                                                                             
Net income                 $ 1,101    $ 2,716    $ 5,397     $ 6,967   
PER SHARE AMOUNTS:
Diluted income per share   $ 0.13     $ 0.32     $ 0.63      $ 0.81    
Diluted weighted average    8,646     8,512     8,616      8,575   
common shares
                                                                             

                                                         
CONDENSED BALANCE SHEETS                    December 31,  December 31,
                                             2012           2011
Assets
Current Assets:
Cash and cash equivalents                    $   9,728      $   9,155
Trade receivables, net                           10,806         11,689
Inventories, net                                 14,701         14,429
Other current assets                            2,794        2,447
Total Current Assets                             38,029         37,720
Property, plant and equipment, net               8,631          7,352
Deferred income taxes                            4,103          4,326
Intangible assets, net                           2,431          2,936
Goodwill                                         5,782          5,665
Other long term assets                          1,991        688
Total Assets                                 $   60,967    $   58,687
                                                                
Liabilities and Stockholders’ Equity
Current Liabilities:
Debt obligations                             $   397        $   157
Accounts payable                                 5,748          6,598
Accrued liabilities                              5,926          7,842
Income taxes payable                             --             1,272
Contingent consideration                        --           1,313
Total Current Liabilities                        12,071         17,182
Deferred Income Taxes                            935            973
Other long-term liabilities                     5,809        4,210
Total Liabilities                                18,815         22,365
Stockholders’ Equity                            42,152       36,322
Total Liabilities and Stockholders’ Equity   $   60,967    $   58,687
                                                                

                                                 
                                                   For the Year Ended
                                                   December 31,
CONDENSED STATEMENTS OF CASH FLOWS                2012        2011
Cash flows from operating activities:                         
Net income                                         $ 5,397      $ 6,967
Depreciation and amortization                        1,798        2,171
Other                                                2,429        (31    )
Changes in working capital                          (5,020 )   (226   )
Net cash provided by operating activities            4,604        8,881
                                                                
Cash flows from investing activities:
Consideration paid for acquisition                   (1,350 )     (332   )
Purchase of property and equipment                  (2,597 )   (1,849 )
Net cash used in investing activities                (3,947 )     (2,181 )
                                                                
Borrowings (repayments) on lines-of-credit, net      230          (667   )
Stock transactions under company stock plans         365          162
Dividends paid                                      (839   )   (333   )
Net cash used in financing activities                (244   )     (838   )
                                                                
Effect of foreign exchange rate changes on cash     160       (260   )
Net increase in cash and cash equivalents            573          5,602
Cash and cash equivalents at beginning of period    9,155     3,553  
Cash and cash equivalents at December 31           $ 9,728    $ 9,155  

Contact:

Allied Motion Technologies Inc.
Robert Maida, 303-799-8520
or
Sue Chiarmonte, 303-799-8520 ext. 24
 
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