Aehr Test Systems Reports Second Quarter Fiscal 2017 Financial Results
January 05 2017 - 4:01PM
Aehr Test Systems (NASDAQ:AEHR), a worldwide
supplier of semiconductor test and burn-in equipment, today
announced financial results for its second quarter of fiscal 2017
ended November 30, 2016.
Fiscal Second Quarter Financial Results:
- Net sales were $4.2 million, compared to $4.6 million in the
second quarter of fiscal 2016.
- GAAP net loss was $1.5 million, or $0.09 per diluted share,
compared to a GAAP net loss of $1.0 million, or $0.08 per diluted
share, in the same quarter a year ago.
- Non-GAAP net loss was $1.2 million, or $0.08 per diluted share,
compared to a non-GAAP net loss of $794,000, or $0.06 per diluted
share, in the same quarter a year ago.
Fiscal First Six Months Financial Results:
- Net sales were $9.5 million, compared to $11.3 million in the
first six months of fiscal 2016.
- GAAP net loss was $2.2 million, or $0.15 per diluted share,
compared to a GAAP net loss of $754,000, or $0.06 per diluted
share, in the same period a year ago.
- Non-GAAP net loss was $1.7 million, or $0.11 per diluted share,
compared to a non-GAAP net loss of $181,000, or $0.01 per diluted
share, in the same period a year ago.
An explanation of the use of non-GAAP financial information and
a reconciliation of the non-GAAP financial measures to the most
directly comparable GAAP financial measures can be found in this
release.
Recent Business Highlights:
- Completed shipment of the initial production order for the
company’s new FOXTM-1P single wafer test system to the lead
customer.
- Completing FOX-P platform development with first FOX-XP
production configuration shipment planned for the third quarter for
previously announced order from one of the world’s top
semiconductor manufacturers.
- Shipped multiple ABTSTM packaged part burn-in and test systems
to a leading multi-national manufacturer of advanced logic
integrated circuits (ICs) for automotive, embedded processing,
digital signal processing and analog applications.
- Successfully completed previously announced private placement
of approximately $5.9 million in shares of the company’s common
stock.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“While our year to date revenue is down from last year, we
continue to hold to our forecast for strong year over year growth
in our revenue, bookings, and bottom line.
“We continue to make significant progress completing the
development of our new FOX-P platform of both single and
multi-wafer test and burn-in systems.
“During the second quarter we shipped multiple FOX-1P Single
Wafer Level Test and Burn-in Systems to our lead customer for this
product. The FOX-1P cost effectively addresses full wafer parallel
testing of devices with long test times, including flash memories,
microcontrollers, and automotive ICs. This system has applications
that include burn-in and/or test of wafers that have a need for
significant test resources and can deliver over 16,000 individual
device power supplies or digital test channels with our unique
FOX-P system architecture of Universal Channels. This provides our
customers with a never before offered test capability for devices
while still in wafer form.
“We are also pleased with our progress on the FOX-XP Multi-Wafer
Test and Burn-in System, and we expect to ship our initial FOX-XP
test cell in the third quarter to our previously announced second
lead customer for this system. This system is configured for
testing 18 wafers in parallel and provides unprecedented capability
for high power wafers, with 18 individual thermal chucks supporting
temperatures of 125 degrees Celsius or more. This application is
for production burn-in of optical devices to be used in high
performance server and data centers. This is a very exciting new
market that Aehr Test’s new FOX-XP system is uniquely positioned to
address due to its ability to test and burn-in these devices while
still in wafer form, which allows for an extremely low cost and
high quality alternative to burning in these devices further
downstream in module format. We are very optimistic about the
prospects for this market for Aehr Test.
“We also continue to engage with our initial lead customer that
purchased and accepted the first FOX-XP system in an engineering
configuration earlier in 2016. We are successfully demonstrating
burn-in of their devices on the FOX-XP system in our factory today
and continue to believe they will need systems to support their
production burn-in requirements. We remain optimistic about the
opportunity to address this customer’s needs that span across
multiple programs and applications, and look forward to a very
exciting calendar year 2017.”
Management Conference Call and
WebcastAehr Test Systems will host a conference call and
webcast today at 5:00 p.m. Eastern (2:00 p.m. PT) to discuss its
second quarter fiscal 2017 operating results. To access the call
dial 888-239-5343 (+1
913-312-1448 outside the United States) and give
the participant pass code 7947996. In addition, a
live and archived webcast of the conference call will be available
over the Internet at www.aehr.com in the Investor Relations
section. A replay of the conference call will also be available via
telephone beginning approximately two hours after conclusion of the
call through 8:00 p.m. ET on January 12, 2017. To access the replay
dial-in information, please click here.
About Aehr Test SystemsHeadquartered in
Fremont, California, Aehr Test Systems is a worldwide provider of
test systems for burning-in and testing logic and memory integrated
circuits and has an installed base of more than 2,500 systems
worldwide. Increased quality and reliability needs of the
Automotive and Mobility integrated circuit markets are driving
additional test requirements, capacity needs and opportunities for
Aehr Test products in package and wafer level test. Aehr Test has
developed and introduced several innovative products, including the
ABTS and FOX families of test and burn-in systems and WaferPak
contactors. The ABTS systems are used in production and
qualification testing of packaged parts for both low-power and
high-power logic as well as memory devices. The FOX family of
systems includes single and multi-wafer full wafer contact test and
burn-in systems used for burn-in and functional test of complex
devices, such as leading-edge memories, digital signal processors,
microprocessors, microcontrollers and systems-on-a-chip. The
WaferPak contactor contains a unique full wafer probe card capable
of testing wafers up to 300mm that enables IC manufacturers to
perform test and burn-in of full wafers on Aehr Test FOX systems.
For more information, please visit Aehr Test’s website at
www.aehr.com.
Safe Harbor StatementThis press release
contains certain forward-looking statements based on current
expectations, forecasts and assumptions that involve risks and
uncertainties. These statements are based on information
available to Aehr Test as of the date hereof and actual results
could differ materially from those stated or implied due to
risks and uncertainties. Forward-looking statements include
statements regarding Aehr Test's expectations, beliefs, intentions
or strategies regarding the future including statements
regarding future market opportunities and conditions, expected
product shipment dates, customer orders or commitments and future
operating results. The risks and uncertainties that could cause
Aehr Test’s results to differ materially from those expressed or
implied by such forward-looking statements include, without
limitation, general market conditions, customer demand and
acceptance of Aehr Test’s products and Aehr Test’s ability to
execute on its business strategy. See Aehr Test’s recent 10-K, 10-Q
and other reports from time to time filed with the Securities and
Exchange Commission for a more detailed description of the risks
facing Aehr Test’s business. Aehr Test disclaims any obligation to
update information contained in any forward-looking statement to
reflect events or circumstances occurring after the date of this
press release.
– Financial Tables to Follow
–
AEHR TEST SYSTEMS AND
SUBSIDIARIES |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
Nov 30, |
|
Aug 31, |
|
Nov 30, |
|
Nov 30, |
|
Nov 30, |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
4,216 |
|
|
$ |
5,318 |
|
|
$ |
4,620 |
|
|
$ |
9,534 |
|
|
$ |
11,253 |
|
Cost of
sales |
|
2,753 |
|
|
|
3,112 |
|
|
|
2,929 |
|
|
|
5,865 |
|
|
|
6,179 |
|
Gross
profit |
|
1,463 |
|
|
|
2,206 |
|
|
|
1,691 |
|
|
|
3,669 |
|
|
|
5,074 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
1,707 |
|
|
|
1,716 |
|
|
|
1,713 |
|
|
|
3,423 |
|
|
|
3,558 |
|
Research and development |
|
1,040 |
|
|
|
1,060 |
|
|
|
923 |
|
|
|
2,100 |
|
|
|
1,985 |
|
Total operating expenses |
|
2,747 |
|
|
|
2,776 |
|
|
|
2,636 |
|
|
|
5,523 |
|
|
|
5,543 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(1,284 |
) |
|
|
(570 |
) |
|
|
(945 |
) |
|
|
(1,854 |
) |
|
|
(469 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(181 |
) |
|
|
(178 |
) |
|
|
(137 |
) |
|
|
(359 |
) |
|
|
(272 |
) |
Other income (expense), net |
|
43 |
|
|
|
(3 |
) |
|
|
55 |
|
|
|
40 |
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax expense |
|
(1,422 |
) |
|
|
(751 |
) |
|
|
(1,027 |
) |
|
|
(2,173 |
) |
|
|
(710 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
(30 |
) |
|
|
(4 |
) |
|
|
(21 |
) |
|
|
(34 |
) |
|
|
(44 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(1,452 |
) |
|
|
(755 |
) |
|
|
(1,048 |
) |
|
|
(2,207 |
) |
|
|
(754 |
) |
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to the noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Aehr Test Systems common shareholders |
$ |
(1,452 |
) |
|
$ |
(755 |
) |
|
$ |
(1,048 |
) |
|
$ |
(2,207 |
) |
|
$ |
(754 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.06 |
) |
Diluted |
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
Shares used
in per share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
|
16,029 |
|
|
|
13,317 |
|
|
|
13,048 |
|
|
|
14,673 |
|
|
|
13,005 |
|
Diluted |
|
16,029 |
|
|
|
13,317 |
|
|
|
13,048 |
|
|
|
14,673 |
|
|
|
13,005 |
|
|
AEHR TEST SYSTEMS AND
SUBSIDIARIES |
|
|
Reconciliation of GAAP and Non-GAAP
Results |
|
|
(in thousands, except per share data) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
Nov 30, |
|
Aug 31, |
|
Nov 30, |
|
Nov 30, |
|
Nov 30, |
|
|
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss |
|
$ |
(1,452 |
) |
|
$ |
(755 |
) |
|
$ |
(1,048 |
) |
|
$ |
(2,207 |
) |
|
$ |
(754 |
) |
|
|
Stock-based
compensation expense |
|
|
215 |
|
|
|
319 |
|
|
|
254 |
|
|
|
534 |
|
|
|
573 |
|
|
|
Non-GAAP net loss |
|
$ |
(1,237 |
) |
|
$ |
(436 |
) |
|
$ |
(794 |
) |
|
$ |
(1,673 |
) |
|
$ |
(181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per
diluted share |
|
$ |
(0.09 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.06 |
) |
|
|
Non-GAAP net loss per
diluted share |
|
$ |
(0.08 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.01 |
) |
|
|
Shares used in diluted
shares calculation |
|
|
16,029 |
|
|
|
13,317 |
|
|
|
13,048 |
|
|
|
14,673 |
|
|
|
13,005 |
|
|
|
Shares used in non-GAAP
diluted shares calculation |
|
|
16,029 |
|
|
|
13,317 |
|
|
|
13,048 |
|
|
|
14,673 |
|
|
|
13,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss is a non-GAAP measure and should not be
considered a replacement for GAAP results. Non-GAAP net loss
is a financial measure the Company uses to evaluate the underlying
results and operating performance of the business. The
limitation of this measure is that it excludes items that impact
the Company's current period net loss. This limitation is
best addressed by using this measure in combination with net loss
(the most directly comparable GAAP financial measure). These
measures are not in accordance with GAAP and may differ from
non-GAAP methods of accounting and reporting used by other
companies. We believe these measures enhance investors’
ability to review the company’s business from the same perspective
as the company’s management and facilitate comparisons of this
period’s results with prior periods. |
|
|
|
|
AEHR TEST SYSTEMS AND
SUBSIDIARIES |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
November 30, |
|
August 31, |
|
May 31, |
|
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
5,154 |
|
|
$ |
2,342 |
|
|
$ |
939 |
|
|
|
Accounts
receivable, net |
|
1,429 |
|
|
|
1,774 |
|
|
|
522 |
|
|
|
Inventories |
|
6,069 |
|
|
|
6,031 |
|
|
|
7,033 |
|
|
|
Prepaid
expenses and other |
|
390 |
|
|
|
305 |
|
|
|
254 |
|
|
|
Total
current assets |
|
13,042 |
|
|
|
10,452 |
|
|
|
8,748 |
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net |
|
793 |
|
|
|
789 |
|
|
|
1,204 |
|
|
|
Other
assets |
|
95 |
|
|
|
95 |
|
|
|
94 |
|
|
|
Total
assets |
$ |
13,930 |
|
|
$ |
11,336 |
|
|
$ |
10,046 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
1,770 |
|
|
$ |
1,906 |
|
|
$ |
1,413 |
|
|
|
Accrued
expenses |
|
1,366 |
|
|
|
1,372 |
|
|
|
1,553 |
|
|
|
Customer
deposits and deferred revenue, short-term |
|
1,055 |
|
|
|
2,724 |
|
|
|
1,714 |
|
|
|
Total
current liabilities |
|
4,191 |
|
|
|
6,002 |
|
|
|
4,680 |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
6,051 |
|
|
|
6,006 |
|
|
|
5,962 |
|
|
|
Deferred revenue,
long-term |
|
47 |
|
|
|
63 |
|
|
|
127 |
|
|
|
Total
liabilities |
|
10,289 |
|
|
|
12,071 |
|
|
|
10,769 |
|
|
|
|
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity (deficit) |
|
3,660 |
|
|
|
(714 |
) |
|
|
(703 |
) |
|
|
Noncontrolling
interest |
|
(19 |
) |
|
|
(21 |
) |
|
|
(20 |
) |
|
|
Total
shareholders' equity (deficit) |
|
3,641 |
|
|
|
(735 |
) |
|
|
(723 |
) |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity (deficit) |
$ |
13,930 |
|
|
$ |
11,336 |
|
|
$ |
10,046 |
|
|
|
|
|
|
|
|
|
|
Aehr Test Systems
Ken Spink
Chief Financial Officer
(510) 623-9400 x309
Investor Relations Contact:
Todd Kehrli or Jim Byers
MKR Group, Inc.
(323) 468-2300
aehr@mkr-group.com
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