ATRM (ATRM) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document Information [Line Items]	'	'
Entity Registrant Name	'AETRIUM INC	'
Entity Central Index Key	'0000908598	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Trading Symbol	'ATRM	'
Entity Common Stock, Shares Outstanding	'	1,078,176
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$2,036	$3,013
Accounts receivable, net of allowance for doubtful accounts of $0 at September 30, 2013 and $25 at December 31, 2012	367	243
Inventories, current	1,644	1,577
Other current assets	377	143
Current assets - discontinued operations	0	993
Total current assets	4,424	5,969
Property and equipment, net	97	143
Property and equipment, net - discontinued operations	0	19
Inventories, noncurrent	302	1,810
Other assets	250	58
Total assets	5,073	7,999
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Capitalized lease obligation, less current portion	31	29
Trade accounts payable	740	501
Accrued compensation	118	256
Other accrued liabilities	188	310
Current liabilities - discontinued operations	0	192
Total current liabilities	1,077	1,288
Capitalized lease obligation, less current portion	11	35
Noncurrent accrued expenses	22	96
Commitments and contingencies	'	'
Shareholders' equity:	'	'
Common stock, $.001 par value; 3,000,000 shares authorized; 1,078,176 issued and outstanding	1	1
Additional paid-in capital	65,816	65,644
Accumulated deficit	-61,854	-59,065
Total shareholders' equity	3,963	6,580
Total liabilities and shareholders' equity	$5,073	$7,999

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Accounts receivable, allowance for doubtful accounts (in dollars)	$0	$25
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	3,000,000	3,000,000
Common stock, shares issued	1,078,176	1,078,176
Common stock, shares outstanding	1,078,176	1,078,176

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net sales	$715	$409	$1,927	$2,091
Cost of goods sold	765	3,194	2,305	4,456
Gross loss	-50	-2,785	-378	-2,365
Operating expenses:	'	'	'	'
Selling, general and administrative	771	1,007	2,838	2,687
Research and development	103	233	368	795
Total operating expenses	874	1,240	3,206	3,482
Loss from operations	-924	-4,025	-3,584	-5,847
Interest income	0	2	1	7
Interest expense	0	-1	-3	-4
Loss from continuing operations before income taxes	-924	-4,024	-3,586	-5,844
Income tax benefit (expense)	279	-41	279	209
Loss from continuing operations	-645	-4,065	-3,307	-5,635
Discontinued operations (see Note 2):	'	'	'	'
Income (loss) from operations	-121	-116	-224	598
Gain on sale of discontinued operations	1,021	0	1,021	0
Income (loss) before income taxes	900	-116	797	598
Income tax benefit (expense)	-279	41	-279	-209
Income (loss) from discontinued operations	621	-75	518	389
Net loss	($24)	($4,140)	($2,789)	($5,246)
Income (loss) per share - basic and diluted:	'	'	'	'
Continuing operations (in dollars per share)	($0.60)	($3.77)	($3.07)	($5.23)
Discontinued operations (in dollars per share)	$0.58	($0.07)	$0.48	$0.36
Net loss (in dollars per share)	($0.02)	($3.84)	($2.59)	($4.87)
Weighted average common shares outstanding - basic and diluted (in shares)	1,078	1,078	1,078	1,078

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($2,789)	($5,246)
Gain on sale of discontinued operations	-1,021	0
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	52	59
Share-based compensation expense	172	183
Credit to allowance for bad debts	-25	0
Provision for excess and obsolete inventories	1,177	2,766
Changes in assets and liabilities:	'	'
Accounts receivable	-216	804
Inventories	200	550
Other current assets	65	-18
Other assets	8	9
Trade accounts payable	193	135
Accrued compensation	-216	-82
Other accrued liabilities	-202	-429
Net cash used in operating activities	-2,602	-1,269
Cash flows from investing activities:	'	'
Proceeds from sale of discontinued operations, net of transaction costs	1,651	0
Purchase of property and equipment	-5	-45
Net cash provided by (used in) investing activities	1,646	-45
Cash flows from financing activities:	'	'
Principal payments on capital lease	-21	-17
Net cash used by financing activities	-21	-17
Net decrease in cash and cash equivalents	-977	-1,331
Cash and cash equivalents at beginning of period	3,013	5,008
Cash and cash equivalents at end of period	2,036	3,677
Supplemental cash flow information:	'	'
Cash paid for interest expense	0	3
Equipment acquired by capital lease	$0	$89

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	1.        BASIS OF PRESENTATION
	The condensed consolidated balance sheet at December 31, 2012 has been derived from our audited financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments (consisting only of normal, recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the nine months ended September 30, 2013 are not necessarily indicative of the operating results to be expected for the full year or any future period.
	The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted, pursuant to such rules and regulations. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2012.
	On October 11, 2013 Aetrium effected a one-for-ten reverse split of its common stock.  The reverse split reduced the number of outstanding shares of our common stock from 10,781,451 shares to 1,078,176 shares. The reverse stock split had no impact on the rights or preferences of the holders of the outstanding shares of our common stock. A proportional adjustment was also made to all outstanding stock options to reflect the reverse split.  All share and per share amounts in our consolidated financial statements and accompanying footnotes have been retroactively adjusted to reflect the reverse stock split.
	In the nine months ended September 30, 2013, we incurred a loss from continuing operations of $3.3 million and we used $2.6 million of cash to fund our operations. Our losses and negative cash flows in recent periods were largely attributable to reduced net sales resulting from relatively weak business conditions and excess production capacity in the semiconductor industry. In addition, beginning in the third quarter of 2012, we incurred significant legal expenses related to litigation. We have taken aggressive actions to reduce our expenses and preserve cash, including salary reductions for executive officers, pay freezes and reductions in workforce. Effective July 31, 2013, as described in Note 2, we sold the assets related to our Reliability Test Products (RTP) business and received proceeds of approximately $1.7 million net of transaction expenses. We believe our cash balance of $2.0 million at September 30, 2013 will be sufficient to meet our working capital and capital expenditure requirements through at least the end of our current fiscal year. Industry forecasters predict that semiconductor industry conditions will improve in the fourth quarter of 2013 and in fiscal year 2014 as integrated circuit (IC) production volumes increase. Aetrium experienced an increase in sales order activity early in the fourth quarter of 2013. In addition, the lawsuit brought against us in  federal court by UTHE Technology Corporation (UTHE), for which we have incurred substantial legal costs since mid-2012, was dismissed by the court in September 2013. Although UTHE has filed an appeal, we believe our future legal expenses related to this action will be substantially lower than incurred in recent periods. However, we believe business conditions will continue to be challenging for us until the excess production capacity in the industry we serve is reduced. If semiconductor industry business conditions do not improve as predicted and/or we incur higher than anticipated legal expenses, our operating results and cash flows would be further adversely affected.  Given these circumstances, there can be no assurance that our existing cash reserves will be sufficient to avoid liquidity issues and/or fund operations beyond this fiscal year.

SALE_OF_PRODUCT_LINE_DISCONTIN

SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]	'
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	'
	2.        SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS
	On July 31, 2013 and pursuant to a letter of intent that was executed on June 14, 2013, we sold the assets related to our Reliability Test Products (RTP) line of products. The RTP product line includes test equipment that provides semiconductor manufacturers with structural performance data to aid in the evaluation and improvement of IC designs and manufacturing processes to increase IC yield and reliability.  The sale of our RTP product line resulted in an increase in our cash reserves, which have been significantly diminished in recent quarters due to operating losses and high legal costs related primarily to litigation.
	The RTP product line was sold to Cascade Microtech, Inc. (Cascade), a U.S. public company headquartered in Beaverton, OR. Cascade manufactures products and provides services for precision contact, electrical measurement and test of integrated circuits, optical devices and other small structures. The sale transaction included the following terms:
		⋅	Purchase price of approximately $3,400,000 including the following:
		o	$1,750,000 payable at closing, subject to working capital adjustment. (Cascade paid $1,910,000, including a $160,000 estimated working capital adjustment, to Aetrium at the closing of the transaction).
		o	$1,000,000 contingent earn-out payment. If RTP net revenues for the nine months ended April 30, 2014 are in the range of $2,250,000 to $3,750,000 or more, a pro rata earn-out payment will be payable to Aetrium on May 31, 2014.
		o	$500,000 holdback amount to secure Aetrium’s obligations related to representations, warranties and covenants. $300,000 of the holdback amount is payable on July 31, 2014 and $200,000 is payable on January 15, 2015, subject to indemnity claims by Cascade.
		⋅	Aetrium transferred receivables, inventories, equipment, intellectual property, and other assets associated with the RTP product line to Cascade.
		⋅	Cascade assumed certain liabilities related to the RTP product line, including accounts payable, accrued expenses and product support and warranty obligations.
		⋅	Cascade and Aetrium executed a sublease and transition services agreement providing for Cascade to continue to conduct RTP operations in approximately 9,000 square feet within Aetrium’s facility in North St. Paul, MN and for Aetrium to provide certain administrative services to Cascade. The sublease provides for monthly rent payments of $14,500 and an initial term of August 1, 2013 through April 30, 2014, after which Cascade may continue to sublease the space on a month-to-month basis.
		⋅	Eleven Aetrium employees were hired by Cascade in connection with the transaction.
	We recorded a pre-tax gain of approximately $1.0 million on the sale of the RTP product line as follows (in thousands):
	Proceeds:
	- Cash received		$	1,914
	- Due from Cascade, payable July 31, 2014			300
	- Due from Cascade, payable January 31, 2015			200
	Total proceeds			2,414
	Fair value of net assets transferred to Cascade:
	- Accounts receivable			340
	- Inventories			834
	- Prepaid expenses			1
	- Equipment			17
	- Accounts payable			-50
	- Accrued liabilities			-12
	Total net assets transferred			1,130
	Gain on sale, before transaction costs			1,284
	Transaction costs			-263
	Gain on sale		$	1,021
	The holdback amounts due from Cascade are included in our consolidated balance sheet at September 30, 2013 as follows: $300,000 is included in “Other current assets” and $200,000 is included in “Other assets.”
	In accordance with ASC 205-20, “Discontinued Operations,” assets and liabilities included in our consolidated balance sheet and the results of operations included in our consolidated statements of operations related to the RTP product line have been reclassified and presented as discontinued operations for all periods reported.
	Assets and liabilities related to the RTP product line presented as discontinued operations in our consolidated balance sheet at December 31, 2012 are summarized below (in thousands):
			December 31,
			2012
	Accounts receivable		$	223
	Inventories			770
	Current assets – discontinued operations		$	993
	Property and equipment		$	213
	Less, accumulated depreciation			-194
	Property and equipment, net – discontinued operations		$	19
	Accounts payable		$	96
	Accrued compensation			78
	Accrued warranty			12
	Other accrue liabilities			6
	Current liabilities – discontinued operations		$	192
	Condensed results from discontinued operations included in our consolidated statements of operations are summarized below (in thousands).
			Three months ended				Nine months ended
			September 30,				September 30,
			2013		2012		2013		2012
	Net sales		$	36	$	387	$	1,215	$	2,607
	Cost of goods sold			67		139		534		865
	Gross profit (loss)			-31		248		681		1,742
	Operating expenses			90		364		905		1,144
	Income (loss) from operations			-121		-116		-224		598
	Gain on sale of discontinued operations			1,021		—		1,021		—
	Income (loss) before income taxes			900		-116		797		598
	Income tax benefit (expense)			-279		41		-279		-209
	Income (loss) from discontinued operations		$	621	$	-75	$	518	$	389
	Operating results from discontinued operations exclude building rent, property taxes, and other facility-related and administrative costs that continue to be incurred following the disposition of the product line.

NET_LOSS_PER_COMMON_SHARE

NET LOSS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	3.        LOSS PER COMMON SHARE
	Basic and diluted loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during each period. The computation of diluted loss per share excludes the impact of stock options because they would be antidilutive. The weighted average number of common shares used to calculate loss per share in our condensed consolidated statements of operations has been adjusted to reflect the one-for-ten reverse stock split for all periods presented.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	4.        INVENTORIES
	Inventories are comprised of the following (in thousands):
		September 30,		December 31,
		2013		2012
	Purchased parts and completed subassemblies	$	405	$	918
	Work-in-process		430		459
	Finished goods, including saleable demonstration		1,111		2,010
	equipment
	Total inventories		1,946		3,387
	Noncurrent portion		-302		-1,810
	Current portion	$	1,644	$	1,577
	Inventories not expected to be realized within the following twelve months amounted to $0.3 million at September 30, 2013 and $1.8 million at December 31, 2012 and is included in the caption “Inventories, noncurrent” in our consolidated balance sheet.  We evaluated the inventories for certain of our older products and, based on updated sales forecasts, concluded we had excess inventories as of September 30, 2013. Accordingly, we reduced the carrying value of these inventories to their estimated net realizable values and recorded a corresponding charge of $0.3 million in cost of goods sold in the quarter ended September 30, 2013. The write-down related primarily to change kits for IC package types for which sales potential has declined. In the quarter ended June 30, 2013 we recorded a charge of $0.8 million in cost of goods sold to write-down certain inventories. The write-down related primarily to our Model V16 test handler for which sales prospects for eight-site testing applications have diminished in favor of our newer Model VMAX test handler. Charges for excess and obsolete inventories amounted to $1.2 million and $2.8 million for the nine-month periods ended September 30, 2013 and 2012, respectively.

CURRENT_LIABILITIES

CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	'
	5.        CURRENT LIABILITIES
	In November 2011, Joseph C. Levesque, the chairman of our board of directors, was appointed to serve as president and chief executive officer pending the appointment of a permanent replacement for these positions. At that time, we entered into an employment agreement with Mr. Levesque that provided for the payment of a majority of his 2011 and 2012 base salary to be deferred until 2013. Deferred payments under this agreement amounted to approximately $30,000 and $131,000 at September 30, 2013 and December 31, 2012, respectively, which amounts are included in “Accrued Compensation” in our condensed consolidated balance sheet.
	Other current accrued liabilities are comprised of the following (in thousands):
		September 30,		December 31,
		2013		2012
	Accrued retirement benefits, current portion	$	108	$	147
	Accrued commissions		—		9
	Accrued warranty		14		12
	Accrued obligation related to litigation settlement		—		85
	Other		66		57
	Total other current accrued liabilities	$	188	$	310
	In 2010, we recorded accrued retirement benefits awarded to our chief executive officer and our then current chief administrative officer. Accrued retirement benefits amounted to $130,000 ($108,000 current, $22,000 noncurrent) at September 30, 2013 and $243,000 ($147,000 current, $96,000 noncurrent) at December 31, 2012.  The current portion of accrued retirement benefits is included in “Other accrued liabilities” and the noncurrent portion is included in “Noncurrent accrued expenses” in our condensed consolidated balance sheet.
	Effective January 31, 2013, we entered into a settlement agreement with an activist shareholder group resolving these shareholders’ claims and our counterclaims related to litigation initiated in November 2012. We agreed to pay $85,000 to the shareholder group as part of the settlement. The settlement payment was covered under our directors and officers insurance policy and was paid directly to the shareholder group by our insurance carrier.
	Changes in accrued warranty are summarized below (in thousands):
		Nine months ended September 30,
		2013		2012
	Accrual balance, beginning of period	$	12	$	30
	Accruals for warranties		17		10
	Settlements made		-15		-28
	Accrual balance, end of period	$	14	$	12

STOCK_INCENTIVE_PLAN_AND_SHARE

STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	'
	6.        STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION
	The following table summarizes stock option activity under our stock incentive plan for the nine months ended September 30, 2013 (share and per share amounts have been retroactively adjusted to reflect a one-for-ten reverse stock split implemented on October 11, 2013 – see Note 1):
		Number		Weighted			Weighted		Aggregate
		of Shares		Average			Average		Intrinsic Value
				Exercise			Remaining		(in thousands)
				Price			Contract Term
	Outstanding, December 31, 2012	191,778		$	12.3
	Options forfeited	-22,536			9.64
	Options expired	-46,425			17.85
	Outstanding, September 30, 2013	122,817		$	10.74		3.29 years		$	0
	Exercisable, September 30, 2013	103,715		$	11.08		3.26 years		$	0
	All stock options outstanding at September 30, 2013 are nonqualified options that expire five years after the grant date. The aggregate intrinsic values in the table above are zero because the option exercise prices for all outstanding options exceeded Aetrium’s closing stock price on September 30, 2013.
	Aetrium uses the fair value method to measure and recognize share-based compensation. We determine the fair value of share-based awards on the grant date using the Black-Scholes option valuation model and recognize the compensation expense on a straight-line basis over the vesting period of the applicable awards. Effective March 13, 2013, we entered into an agreement with an activist shareholder group pursuant to which our board of directors was reconstituted to include three incumbent directors and three members of the shareholder group. As a result of this change of control, a total of 25,771 unvested stock options held by certain of our executive officers became immediately and fully exercisable pursuant to the terms of change of control agreements with such officers. Share-based compensation of approximately $77,000 was recorded in the nine months ended September 30, 2013 as a result of the accelerated vesting of such options.
	Share-based compensation expense included in our condensed consolidated statements of operations was as follows (in thousands):
		Three months ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	Cost of goods sold	$	1		$	—		$	5		$	4
	Selling, general and administrative		6			45			137			129
	Research and development		4			9			12			26
	Income (loss) from discontinued		2			9			18			24
	operations
	Total share-based compensation	$	13		$	63		$	172		$	183
	expense
	As of September 30, 2013, we had approximately $56,000 of unrecognized pretax share-based compensation expense, which is expected to be recognized over a weighted average period of 2.0 years.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	7.        INCOME TAXES
	We record the benefit we will derive in future accounting periods from tax losses and credits and deductible temporary differences as “deferred tax assets.”  In accordance with ASC 740, “Income Taxes,” we record a valuation allowance to reduce the carrying value of our deferred tax assets if, based on all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.  Since 2009, we have maintained a valuation allowance to fully reserve our deferred tax assets. We recorded a full valuation allowance in 2009 because we determined there was not sufficient positive evidence regarding our potential for future profits to outweigh the negative evidence of our three year cumulative loss position at that time under the guidance provided in ASC 740.  We expect to continue to maintain a full valuation allowance until we determine that we can sustain a level of profitability that demonstrates our ability to realize these assets. To the extent we determine that the realization of some or all of these benefits is more likely than not based upon expected future taxable income, a portion or all of the valuation allowance will be reversed.  Such a reversal would be recorded as an income tax benefit and, for some portion related to deductions for stock option exercises, an increase in shareholders' equity.

SALE_OF_PRODUCT_LINE_DISCONTIN1

SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]	'
Gain or loss from sale of discontinued operations [Table Text Block]	'
	We recorded a pre-tax gain of approximately $1.0 million on the sale of the RTP product line as follows (in thousands):
	Proceeds:
	- Cash received	$	1,914
	- Due from Cascade, payable July 31, 2014		300
	- Due from Cascade, payable January 31, 2015		200
	Total proceeds		2,414
	Fair value of net assets transferred to Cascade:
	- Accounts receivable		340
	- Inventories		834
	- Prepaid expenses		1
	- Equipment		17
	- Accounts payable		-50
	- Accrued liabilities		-12
	Total net assets transferred		1,130
	Gain on sale, before transaction costs		1,284
	Transaction costs		-263
	Gain on sale	$	1,021
Schedule Of Disposal Groups Including Discontinued Balance Sheet And Additional Disclosures [Table Text Block]	'
	Assets and liabilities related to the RTP product line presented as discontinued operations in our consolidated balance sheet at December 31, 2012 are summarized below (in thousands):
		December 31,
		2012
	Accounts receivable	$	223
	Inventories		770
	Current assets – discontinued operations	$	993
	Property and equipment	$	213
	Less, accumulated depreciation		-194
	Property and equipment, net – discontinued operations	$	19
	Accounts payable	$	96
	Accrued compensation		78
	Accrued warranty		12
	Other accrue liabilities		6
	Current liabilities – discontinued operations	$	192
Schedule Of Disposal Groups Including Discontinued Operations Income Statement And Additional Disclosures [Table Text Block]	'
	Condensed results from discontinued operations included in our consolidated statements of operations are summarized below (in thousands).
		Three months ended				Nine months ended
		September 30,				September 30,
		2013		2012		2013		2012
	Net sales	$	36	$	387	$	1,215	$	2,607
	Cost of goods sold		67		139		534		865
	Gross profit (loss)		-31		248		681		1,742
	Operating expenses		90		364		905		1,144
	Income (loss) from operations		-121		-116		-224		598
	Gain on sale of discontinued operations		1,021		—		1,021		—
	Income (loss) before income taxes		900		-116		797		598
	Income tax benefit (expense)		-279		41		-279		-209
	Income (loss) from discontinued operations	$	621	$	-75	$	518	$	389

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	Inventories are comprised of the following (in thousands):
		September 30,		December 31,
		2013		2012
	Purchased parts and completed subassemblies	$	405	$	918
	Work-in-process		430		459
	Finished goods, including saleable demonstration		1,111		2,010
	equipment
	Total inventories		1,946		3,387
	Noncurrent portion		-302		-1,810
	Current portion	$	1,644	$	1,577

CURRENT_LIABILITIES_Tables

CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	'
	Other current accrued liabilities are comprised of the following (in thousands):
		September 30,		December 31,
		2013		2012
	Accrued retirement benefits, current portion	$	108	$	147
	Accrued commissions		—		9
	Accrued warranty		14		12
	Accrued obligation related to litigation settlement		—		85
	Other		66		57
	Total other current accrued liabilities	$	188	$	310
Schedule of Product Warranty Liability [Table Text Block]	'
	Changes in accrued warranty are summarized below (in thousands):
		Nine months ended September 30,
		2013		2012
	Accrual balance, beginning of period	$	12	$	30
	Accruals for warranties		17		10
	Settlements made		-15		-28
	Accrual balance, end of period	$	14	$	12

STOCK_INCENTIVE_PLAN_AND_SHARE1

STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'
	The following table summarizes stock option activity under our stock incentive plan for the nine months ended September 30, 2013 (share and per share amounts have been retroactively adjusted to reflect a one-for-ten reverse stock split implemented on October 11, 2013 – see Note 1):
		Number		Weighted			Weighted		Aggregate
		of Shares		Average			Average		Intrinsic Value
				Exercise			Remaining		(in thousands)
				Price			Contract Term
	Outstanding, December 31, 2012	191,778		$	12.3
	Options forfeited	-22,536			9.64
	Options expired	-46,425			17.85
	Outstanding, September 30, 2013	122,817		$	10.74		3.29 years		$	0
	Exercisable, September 30, 2013	103,715		$	11.08		3.26 years		$	0
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	'
	Share-based compensation expense included in our condensed consolidated statements of operations was as follows (in thousands):
		Three months ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	Cost of goods sold	$	1		$	—		$	5		$	4
	Selling, general and administrative		6			45			137			129
	Research and development		4			9			12			26
	Income (loss) from discontinued		2			9			18			24
	operations
	Total share-based compensation	$	13		$	63		$	172		$	183
	expense

BASIS_OF_PRESENTATION_Details_

BASIS OF PRESENTATION (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Net Loss	$24,000	$4,140,000	$2,789,000	$5,246,000	'	'
Net Cash Used in Operating Activities	'	'	2,602,000	1,269,000	'	'
Proceeds from Sale of Productive Assets	'	'	1,651,000	0	'	'
Cash and Cash Equivalents, at Carrying Value	2,036,000	3,677,000	2,036,000	3,677,000	3,013,000	5,008,000
Shares Outstanding Before Reverse Stock Split	'	'	10,781,451	'	'	'
Shares Outstanding After Reverse Stock Split	'	'	1,078,176	'	'	'
Stockholders Equity, Reverse Stock Split	'	'	'one-for-ten reverse split of its common stock	'	'	'
Reliability Test Products [Member]	'	'	'	'	'	'
Proceeds from Sale of Productive Assets	'	'	$1,700,000	'	'	'

SALE_OF_PRODUCT_LINE_DISCONTIN2

SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Proceeds:	'	'	'	'
- Cash received	$1,914	'	$1,914	'
- Due from Cascade, payable July 31, 2014	300	'	300	'
- Due from Cascade, payable January 31, 2015	200	'	200	'
Total proceeds	2,414	'	2,414	'
Fair value of net assets transferred to Cascade:	'	'	'	'
Gain on sale, before transaction costs	1,284	'	1,284	'
Transaction costs	-263	'	-263	'
Gain on sale	1,021	0	1,021	0
Cascade [Member]	'	'	'	'
Fair value of net assets transferred to Cascade:	'	'	'	'
- Accounts receivable	340	'	340	'
- Inventories	834	'	834	'
- Prepaid expenses	1	'	1	'
- Equipment	17	'	17	'
- Accounts payable	-50	'	-50	'
- Accrued liabilities	-12	'	-12	'
Total net assets transferred	$1,130	'	$1,130	'

SALE_OF_PRODUCT_LINE_DISCONTIN3

SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Accounts receivable	'	$223
Inventories	'	770
Current assets - discontinued operations	0	993
Property and equipment	'	213
Less, accumulated depreciation	'	-194
Property and equipment, net - discontinued operations	0	19
Accounts payable	'	96
Accrued compensation	'	78
Accrued warranty	'	12
Other accrue liabilities	'	6
Current liabilities - discontinued operations	$0	$192

SALE_OF_PRODUCT_LINE_DISCONTIN4

SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net sales	$36	$387	$1,215	$2,607
Cost of goods sold	67	139	534	865
Gross profit (loss)	-31	248	681	1,742
Operating expenses	90	364	905	1,144
Income (loss) from operations	-121	-116	-224	598
Gain on sale of discontinued operations	1,021	0	1,021	0
Income (loss) before income taxes	900	-116	797	598
Income tax benefit (expense)	-279	41	-279	-209
Income (loss) from discontinued operations	$621	($75)	$518	$389

SALE_OF_PRODUCT_LINE_DISCONTIN5

SALE OF PRODUCT LINE - DISCONTINUED OPERATIONS (Details Textual) (USD $)	9 Months Ended			1 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Jul. 31, 2013	Sep. 30, 2013
				Cascade Microtech, Inc [Member]	Cascade Microtech, Inc [Member]
				sqft
Total Purchase Price for Divestiture of Business	'	'	'	$3,400,000	'
Proceeds from Divestiture of Businesses	1,651,000	0	'	1,750,000	'
Proceeds from Divestiture of Businesses Including Working Capital Adjustment	'	'	'	1,910,000	'
Sale of Business Working Capital Adjustment	'	'	'	160,000	'
Sale of Business Contingent Earn Out Payment	'	'	'	1,000,000	'
Obligations Related to Representations Warranties and Covenants	'	'	'	500,000	'
Obligations Payable Related to Representations Warranties and Covenants in Next Twelve Months	'	'	'	300,000	'
Obligations Payable Related to Representations Warranties and Covenants in Year Two	'	'	'	200,000	'
Business Operation, Area of Land Subleased	'	'	'	9,000	'
Sublease Rental Periodic Payment	'	'	'	14,500	'
Maximum Revenue Amount	'	'	'	3,750,000	'
Minimum Revenue Amount	'	'	'	2,250,000	'
Other Current Assets	377,000	'	143,000	'	300,000
Other Assets	$250,000	'	$58,000	'	$200,000

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Purchased parts and completed subassemblies	$405	$918
Work-in-process	430	459
Finished goods, including saleable demonstration equipment	1,111	2,010
Total inventories	1,946	3,387
Noncurrent portion	-302	-1,810
Current portion	$1,644	$1,577

INVENTORIES_Details_Textual

INVENTORIES (Details Textual) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Inventory, Noncurrent	$302	'	$302	'	$1,810
Inventory Write-down	$300	$800	$1,177	$2,766	'

CURRENT_LIABILITIES_Details

CURRENT LIABILITIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Accrued retirement benefits, current portion	$108	$147	'	'
Accrued commissions	0	9	'	'
Accrued warranty	14	12	12	30
Accrued obligation related to litigation settlement	0	85	'	'
Other	66	57	'	'
Total other current accrued liabilities	$188	$310	'	'

CURRENT_LIABILITIES_Details_1

CURRENT LIABILITIES (Details 1) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Accrual balance, beginning of period	$12	$30
Accruals for warranties	17	10
Settlements made	-15	-28
Accrual balance, end of period	$14	$12

CURRENT_LIABILITIES_Details_Te

CURRENT LIABILITIES (Details Textual) (USD $)	1 Months Ended
	Nov. 30, 2011	Sep. 30, 2013	Dec. 31, 2012
Accrued Retirement Benefits, Current and Noncurrent	'	$130,000	$243,000
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities, Current	'	108,000	147,000
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities, Noncurrent	'	22,000	96,000
Employment Agreement Period	'2013	'	'
Accrued Obligation Related To Litigation Settlement	'	85,000	'
Accrued Compensation [Member]	'	'	'
Deferred Compensation Liability, Current	'	$30,000	$131,000

STOCK_INCENTIVE_PLAN_AND_SHARE2

STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION (Details) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013
Number of Shares, Outstanding, December 31, 2012	191,778
Number of Shares, Options forfeited	-22,536
Number of Shares, Options expired	-46,425
Number of Shares, Outstanding, September 30, 2013	122,817
Number of Shares, Exercisable, September 30, 2013	103,715
Weighted Average Exercise Price, Outstanding, December 31, 2012	$12.30
Weighted Average Exercise Price, Options forfeited	$9.64
Weighted Average Exercise Price, Options expired	$17.85
Weighted Average Exercise Price, Outstanding, September 30, 2013	$10.74
Weighted Average Exercise Price, Exercisable, September 30, 2013	$11.08
Weighted Average Remaining Contract Term, Outstanding, September 30, 2013	'3 years 3 months 14 days
Weighted Average Remaining Contract Term, Exercisable, September 30, 2013	'3 years 3 months 4 days
Aggregate Intrinsic Value, Outstanding, September 30, 2013	$0
Aggregate Intrinsic Value, Exercisable, September 30, 2013	$0

STOCK_INCENTIVE_PLAN_AND_SHARE3

STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION (Details 1) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based compensation expense	$13	$63	$172	$183
Cost of Sales [Member]	'	'	'	'
Share-based compensation expense	1	0	5	4
Selling, General and Administrative Expenses [Member]	'	'	'	'
Share-based compensation expense	6	45	137	129
Research and Development Expense [Member]	'	'	'	'
Share-based compensation expense	4	9	12	26
Income (loss) from discontinued operations [Member]	'	'	'	'
Share-based compensation expense	$2	$9	$18	$24

STOCK_INCENTIVE_PLAN_AND_SHARE4

STOCK INCENTIVE PLAN AND SHARE-BASED COMPENSATION (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Expense Accelerated (in dollars)	$77,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options (in dollars)	$56,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	'2 years
Executive Officer [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Accelerated, Vesting in Period (in shares)	25,771

INCOME_TAXES_Details_Textual

INCOME TAXES (Details Textual)	9 Months Ended
	Sep. 30, 2013
Reserve and Deferred Tax Assets, Description	'Since 2009, we have maintained a valuation allowance to fully reserve our deferred tax assets. We recorded a full valuation allowance in 2009 because we determined there was not sufficient positive evidence regarding our potential for future profits to outweigh the negative evidence of our three year cumulative loss position at that time under the guidance provided in ASC 740.