Knobias Clip Report (07-24-2008) ATRM
Submitted By Knobias ClipReport
ATRM: CEO Discusses Q2 Earnings Results; Sees Better Second Half of Year
By Fain Hughes, fhughes@knobias.com
Shares of Aetrium Inc. (ATRM) were higher on Thursday, despite weaker-than-expected results for the second quarter ended June 30, 2008. Revenue for the quarter was $3,222,000, versus revenue of $5,866,000 in the second quarter of 2007. Net loss for the quarter was $441,000, or $0.04 per share, as compared to net income of $612,000, or $0.06 per diluted share, in the second quarter of last year. Analysts had expected a gain of $0.03.
Joseph C. Levesque, Chairman and CEO of Aetrium, explained in a conference call, “Our Q2 performance was below earlier projections and expectations, but signs of recovery became evident as the quarter progresssed. The industry actually grew, but at a slower-than-expected rate due to the economic climate. The long term prospects for our industry are strong.”
He added, “On a positive note, we experienced positive book-to-ship and book-to-revenue ratios in Q2 for the first time in three quarters. Our marketing and engineering strategies continue to be sharply focused on near term revenue opportunities. Our products are well-positioned for above average growth in the future, especially as industry conditions improve.”
“The nature of our industry is cyclical and being managed very conservatively due to economic conditions. The 2008 cycle is increasingly looking like 2007 with the weaker periods being the first half and stonger periods at the end. Revenue for Q3 is difficult to predict, but we believe that Q2 was likely the bottom of the cycle. We expect that business conditions will improve materially in Q3 and as the year progresses. We are expecting orders for multiple units from one of our largest customers and two new customers this month.”
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