* Total revenue of $118.5 million down 12.6% from second quarter 2008  * Reported loss per share of $0.85 from continuing operations, or    adjusted earnings per share of $0.54 excluding goodwill impairment    and restructuring charges  * Logistics segment delivered solid performance  * Liquidity position remains strong  * Updates 2009 Guidance 

DOWNERS GROVE, Ill., July 28, 2009 (GLOBE NEWSWIRE) -- ATC Technology Corporation (ATC) (Nasdaq:ATAC), today reported financial results for the second quarter of 2009.

Second Quarter Results

For the quarter ended June 30, 2009, revenue decreased 12.6% to $118.5 million from $135.6 million for the same period in 2008. Loss from continuing operations for the second quarter of 2009 was $16.6 million versus income of $9.0 million for the second quarter of 2008. During the second quarter, the Company recorded a pre-tax goodwill impairment charge of $37 million related to the impending loss of its Honda automatic transmission remanufacturing program and a $2.1 million restructuring charge in its Drivetrain segment. Loss per share from continuing operations for the quarter was $0.85, as compared to earnings of $0.42 per diluted share for the second quarter of 2008. On an adjusted basis, excluding the goodwill impairment and restructuring costs, earnings were $0.54 per diluted share for the second quarter of 2009. The Company expects to record additional restructuring charges of $1.5 million in the Drivetrain segment during the second half of this year.

The Company's Logistics segment's revenue for the quarter decreased 1.8% to $84.9 million from $86.5 million for the second quarter of 2008. Logistics segment profit for the quarter increased 37.7% to $15.7 million from $11.4 million in the same quarter of last year. The increase in profit was primarily attributable to a favorable mix of services and the benefit of the Company's cost reduction initiatives.

The Company's Drivetrain segment's revenue decreased 31.6% to $33.6 million, compared to $49.1 million for the second quarter of 2008. Adjusted segment profit decreased to $1.6 million for the quarter, compared to segment profit of $3.1 million for the second quarter of 2008. Drivetrain results were impacted by across-the-board reduction in volume for all significant customers.

Management Comments

Todd R. Peters, President and CEO said, "During the first half of the year our Logistics segment has delivered better than expected results, as underlying demand for our customers' products and services remained strong despite a tough market environment. I am also pleased to report that we have launched initial programs with three new brand-name customers in the consumer electronics space. These initial programs provide the opportunity for us to develop longer-term relationships. We have won $29 million in new business year-to-date with new and existing customers. I remain very enthusiastic about new business prospects in our Logistics segment. We also benefited from a favorable mix of services and cost reduction initiatives resulting in solid operating margin performance in the Logistics segment."

"Revenues for our Drivetrain business were disappointing, as we experienced across-the-board softness with all of the segment's customers. It is worth noting that profitability in the segment is up sequentially due to benefits beginning to be realized from our restructuring efforts, which began late last year. I am pleased that we have been awarded new business with Chrysler and Subaru to supply remanufactured engines, thereby strengthening our product profile in North America as a natural extension of our core capabilities. These new programs with existing customers are an important element in our efforts to stabilize the Drivetrain business and are expected to contribute approximately $15-$17 million in annualized revenue."

"Our liquidity remains strong with approximately $99 million in cash as of June 30, 2009 in addition to the $79 million of availability on our $150 million credit facility."

"While the first half of the year has been challenging, we now expect full year revenue of $485-$505 million. We expect Logistics revenue of $338-$355 million, which reflects the combination of current demand with an anticipated seasonal increase in connection with the holiday season. We expect continued strong margin performance and segment profit of $59-$62 million. For Drivetrain, we expect $147-$150 million in revenue and adjusted segment profit of $6-$7 million. We expect earnings per diluted share from continuing operations of $0.51-$0.61, including charges of $1.54 per share this year for the goodwill impairment and restructuring. Accordingly, our revised 2009 earnings per share guidance on an adjusted basis is $2.05-$2.15," Peters concluded.

ATC will simultaneously host a conference call (dial-in number is 877-856-1958) and webcast to discuss the operating highlights and financial results for the second quarter 2009 on Wednesday, July 29, 2009 at 9:00 A.M. Central time.

Conference call information (for those interested in asking questions after the presentation and the webcast link for those interested in listening only) is available at the Company's web site at www.goATC.com. Click on Investor Relations and select Webcasts. You can access the web site at least one hour prior to the call to register, download slides and install any necessary audio/video software. A "no audio-slides only" link is also available and will allow conference call participants to view slides in sync with the conference call.

The call and slides will be archived for one year on the ATC Technology Corporation web site and will be available two hours subsequent to the call.

For further information, please see the Company's periodic reports filed with the Securities and Exchange Commission.

ATC Technology Corporation is headquartered in Downers Grove, Illinois. The Company provides comprehensive engineered solutions for logistics and refurbishment services to the consumer electronics industries and the light and medium/heavy-duty vehicle service parts markets.

The ATC Technology Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5184

Certain statements in this news release are "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). These forward-looking statements generally include all statements other than statements of historical fact, including statements that are predictive, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "hopes," and similar expressions.