Aetrium Inc. announced revenue and results of operations for the first quarter ended March 31 that were consistent with previously disclosed guidance. Revenue for the first quarter was $8,057,000, a 61% decrease from the same period a year ago. The operating loss for the quarter was $3,968,000 and included $190,000 of costs for severance due to work force reductions implemented in the first quarter. This is compared with operating income of $3,004,000 for the first quarter of 1998. The net loss for the first quarter was $2,294,000, compared with net income of $2,383,000 for the first quarter of 1998. On a per share basis, Aetrium reported a net loss of $0.24 for the first quarter of 1999, including the restructuring costs. Excluding these costs, the loss per share was $0.23.
The operating loss for the quarter included approximately $960,000 of non-cash depreciation and amortization expense, mostly related to the amortization of intangible assets acquired in recent business acquisitions.
"Bookings and shipments in the first quarter were disappointing, as we discussed in the guidance we announced a month ago," said Joseph C. Levesque, president and chief executive officer. "The primary factor was that we had two customers delay planned new equipment purchases, mostly for budgetary reasons, and we also had a cancellation from a customer who no longer needed the equipment. The overall market for our products appears to be beginning a recovery from its very depressed level, and we've seen an increase in new business quote activity over the past few weeks. Our near-term outlook, however, remains cautious until we see further evidence of significantly stronger bookings.
"In March, we implemented cost reductions that will reduce manufacturing costs by approximately $500,000 per quarter," Levesque continued. "We have implemented additional reductions in operating expenses that will allow the company to operate more efficiently, and our leaner cost structure should allow us to return to profitability once we see an improvement in industry conditions. We will continue aggressively funding development of new handling products for logic integrated circuits and discrete components and of a next generation IC test handler that employs the proprietary thermal control technology that has been developed by our Lawrence Division."
Aetrium is a supplier of proprietary technologies and equipment used by the semiconductor industry to assemble and test integrated circuits (ICs) and other electronic components. Aetrium's products are used by customers to advance reliability, improve quality, increase product yield or improve the manufacturing process.
Aetrium Inc. 651-704-1822