Aehr Test Systems Reports First Quarter Fiscal 2019 Financial Results
September 27 2018 - 4:05PM
Aehr Test Systems (NASDAQ: AEHR), a worldwide
supplier of semiconductor test and burn-in equipment, today
announced financial results for its first quarter of fiscal 2019
ended August 31, 2018.
Fiscal First Quarter Financial Results:
- Net sales were $4.7 million, compared to $7.0 million in the
first quarter of fiscal 2018.
- GAAP net loss was $1.5 million, or $0.07 per diluted share,
compared to GAAP net income of $10,000, or $0.00 per diluted share,
in the first quarter of fiscal 2018.
- Non-GAAP net loss, which excludes the impact of stock-based
compensation expense, was $1.3 million, or $0.06 per diluted share,
compared to non-GAAP net income of $226,000, or $0.01 per diluted
share, in the first quarter of fiscal 2018.
- Backlog as of August 31, 2018 was $6.1 million.
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 the
accompanying tables.
First Quarter and Recent Business
Highlights:
- Successfully installed initial production FOX-XP™ system to new
customer for test and burn-in of integrated silicon photonics
devices for data communications applications using Aehr’s
proprietary DiePak® carriers, which allow single socketing for both
functional test and burn-in of their singulated bare die.
- Completed shipment and acceptance on initial order for new
DiePak carrier design from Aehr’s FOX-XP lead customer for a
next-generation sensor device expected to ramp later this fiscal
year using their installed base of FOX-XP test and burn-in
systems.
- Booked $1.8 million during the quarter for WaferPak™ and
DiePak full-wafer and singulated die/module contactors for use on
Aehr’s installed base of FOX test and burn-in systems.
- Delivered ABTS™ Test and Burn-in System to a new customer
for use in military and aerospace packaged part qualification and
production burn-in.
- Delivered follow-on ABTS Test and Burn-in System to a wireless
communications chipset company for use in production burn-in of
automotive devices.
- Announced today a $2.7 million follow-on order from one of the
company’s lead FOX-XP Test and Burn-in System customers for a FOX-
XP Multi-Wafer Test and Burn-in System and WaferPak Aligner to
provide additional test capacity for the customer’s increasing
silicon photonics device production requirements.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“Our revenue in the first quarter was lower on a year-over-year
basis with many of our customers’ capacity ramps expected later in
our fiscal year. Our first quarter revenue and bottom line reflect
the impact of two key shipments anticipated near quarter end that
pushed into the second quarter. The revenue from these two
shipments will now show up in our second quarter, which ends
November 30. We continue to see our customers forecasting the need
for additional volume capacity by the end of our current fiscal
year that ends in May 2019, with a heavy concentration of shipments
in the second half of our fiscal year.
“Today we are pleased to announce another production order from
our lead customer for our FOX-XP system for production wafer level
burn-in of silicon photonics devices. This customer continues to
increase their capacity and is also forecasting orders for delivery
of a significant number of WaferPak Contactors by the end of this
fiscal year to meet this capacity. They are also forecasting
additional capacity for FOX-XP systems and WaferPak Contactors
throughout calendar year 2019 and beyond. We now have two lead
customers ramping their production capacity for Silicon Photonics
devices using our FOX-XP system, and we see this market as a
significant and growing opportunity for our solutions over at least
the next several years.
“Our program with our lead customer using the FOX-XP system for
testing singulated die/modules for mobile device sensors with our
DiePak Carriers continues to move forward. We completed the initial
qualification and acceptance of the new DiePak and production test
program for a new device and we are expecting them to add capacity
for our DiePak Carriers during this fiscal year as this new product
ramps into production. We continue to work with this customer on
other applications and believe we are well positioned to win
additional applications for wafer level and singulated die/module
test and burn-in of sensors they produce.
“While we are pleased with the strong forecast for increased
capacity that we are seeing from multiple customers and programs in
calendar year 2019, one of the new programs at our lead FOX-XP
customer that we anticipated to begin volume shipments in our
fiscal second half has pushed out a few months. The impact of this
shift is that we now expect our fiscal 2019 revenue to be in the
range of $30 million to $35 million. Our GAAP profit range is
expected to be between break-even and $2.5 million, including the
investments we are making in manufacturing operations, sales, and
marketing. Even with the push out of this customer program, we
expect to have a significant increase in bookings and backlog year
over year in fiscal 2019.
“We remain very optimistic about our market opportunities and
our unique capabilities to serve our customers’ test needs.”
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
first quarter fiscal 2019 operating results. To access the call
dial 800-458-4121 (+1 323-794-2093 outside the
United States) and give the participant pass code
6249614. 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 October 4, 2018. To access the replay dial-in
information, please click here.
About Aehr Test Systems Headquartered in
Fremont, California, Aehr Test Systems is a worldwide provider of
test systems for burning-in and testing logic, optical and memory
integrated circuits and has over 2,500 systems installed worldwide.
Increased quality and reliability needs of the Automotive and
Mobility integrated circuit markets are driving additional test
requirements, incremental capacity needs, and new opportunities for
Aehr Test products in package, wafer level, and singulated
die/module level test. Aehr Test has developed and introduced
several innovative products, including the ABTS™ and FOX-P™
families of test and burn-in systems and FOX WaferPak™ Aligner,
FOX-XP WaferPak Contactor, FOX DiePak® Carrier and FOX DiePak
Loader. The ABTS system is used in production and qualification
testing of packaged parts for both lower power and higher power
logic devices as well as all common types of memory devices. The
FOX-XP system is a full wafer contact and singulated die/module
test and burn-in system used for burn-in and functional test of
complex devices, such as leading-edge memories, digital signal
processors, microprocessors, microcontrollers, systems-on-a-chip,
and integrated optical devices. 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. The DiePak Carrier is a reusable,
temporary package that enables IC manufacturers to perform
cost-effective final test and burn-in of both bare die and modules.
For more information, please visit Aehr Test Systems’ website at
www.aehr.com.
Safe Harbor Statement This 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 |
|
|
|
Aug 31, |
|
May 31, |
|
Aug 31, |
|
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
4,740 |
|
|
$ |
7,269 |
|
|
$ |
6,970 |
|
|
Cost of
sales |
|
3,187 |
|
|
|
4,108 |
|
|
|
4,052 |
|
|
Gross
profit |
|
1,553 |
|
|
|
3,161 |
|
|
|
2,918 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Selling, general and administrative |
|
1,879 |
|
|
|
1,816 |
|
|
|
1,791 |
|
|
Research and development |
|
1,116 |
|
|
|
1,096 |
|
|
|
955 |
|
|
Total operating expenses |
|
2,995 |
|
|
|
2,912 |
|
|
|
2,746 |
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
(1,442 |
) |
|
|
249 |
|
|
|
172 |
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(78 |
) |
|
|
(89 |
) |
|
|
(107 |
) |
|
Other
income (expense), net |
|
9 |
|
|
|
39 |
|
|
|
(60 |
) |
|
|
|
|
|
|
|
|
|
(Loss) income before income tax |
|
|
|
|
|
|
(expense) benefit |
|
(1,511 |
) |
|
|
199 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit |
|
(4 |
) |
|
|
(8 |
) |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
(1,515 |
) |
|
|
191 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
Less:
Net income attributable to the |
|
|
|
|
|
|
|
noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Aehr |
|
|
|
|
|
|
|
Test
Systems common shareholders |
$ |
(1,515 |
) |
|
$ |
191 |
|
|
$ |
10 |
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per share |
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
$ |
0.00 |
|
|
Diluted |
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
Shares used
in per share calculations: |
|
|
|
|
|
|
Basic |
|
22,190 |
|
|
|
22,033 |
|
|
|
21,417 |
|
|
Diluted |
|
22,190 |
|
|
|
22,614 |
|
|
|
22,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEHR TEST SYSTEMS AND
SUBSIDIARIES |
|
Reconciliation of GAAP to Non-GAAP
Results |
|
(in thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Aug 31, |
|
May 31, |
|
Aug 31, |
|
|
|
|
|
|
2018 |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
(loss) income |
|
$ |
(1,515 |
) |
|
$ |
191 |
|
$ |
10 |
|
|
Stock-based
compensation expense |
|
|
256 |
|
|
|
174 |
|
|
216 |
|
|
Non-GAAP
net (loss) income |
|
$ |
(1,259 |
) |
|
$ |
365 |
|
$ |
226 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
(loss) income per diluted share |
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
$ |
0.00 |
|
|
Non-GAAP
net (loss) income per diluted share |
|
$ |
(0.06 |
) |
|
$ |
0.02 |
|
$ |
0.01 |
|
|
Shares used
in GAAP diluted shares calculation |
|
|
22,190 |
|
|
|
22,614 |
|
|
22,991 |
|
|
Shares used
in non-GAAP diluted shares calculation |
|
|
22,190 |
|
|
|
22,614 |
|
|
22,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net (loss) income is a non-GAAP measure and should not be
considered a replacement for GAAP results. Non-GAAP net
(loss) income 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 income. This
limitation is best addressed by using this measure in combination
with net (loss) income (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) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
August 31, |
|
May 31, |
|
|
|
|
2018 |
|
2018 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
15,864 |
|
|
$ |
16,848 |
|
|
Accounts receivable, net |
|
2,272 |
|
|
|
2,856 |
|
|
Inventories |
|
|
9,585 |
|
|
|
9,049 |
|
|
Prepaid expenses and other |
|
727 |
|
|
|
703 |
|
|
Total current assets |
|
28,448 |
|
|
|
29,456 |
|
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
1,174 |
|
|
|
1,203 |
|
|
Other
assets |
|
|
266 |
|
|
|
296 |
|
|
Total assets |
|
$ |
29,888 |
|
|
$ |
30,955 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
6,110 |
|
|
$ |
6,110 |
|
|
Accounts payable |
|
1,317 |
|
|
|
1,762 |
|
|
Accrued expenses |
|
1,498 |
|
|
|
1,646 |
|
|
Customer deposits and deferred revenue, short-term |
|
2,339 |
|
|
|
1,630 |
|
|
Total current liabilities |
|
11,264 |
|
|
|
11,148 |
|
|
|
|
|
|
|
|
|
Deferred
rent |
|
|
145 |
|
|
|
63 |
|
|
Deferred
revenue, long-term |
|
359 |
|
|
|
459 |
|
|
Total liabilities |
|
11,768 |
|
|
|
11,670 |
|
|
|
|
|
|
|
|
|
Aehr Test
Systems shareholders' equity |
|
18,139 |
|
|
|
19,305 |
|
|
Noncontrolling interest |
|
(19 |
) |
|
|
(20 |
) |
|
Total shareholders' equity |
|
18,120 |
|
|
|
19,285 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
29,888 |
|
|
$ |
30,955 |
|
|
|
|
|
|
|
|
Aehr Test
Systems |
|
|
|
|
|
Investor
Relations Contact: |
Ken Spink |
|
|
|
|
|
Todd Kehrli or Jim
Byers |
Chief Financial
Officer |
|
|
|
|
|
MKR Group, Inc. |
(510) 623-9400
x309 |
|
|
|
|
|
(323) 468-2300 |
|
|
|
|
|
|
aehr@mkr-group.com |
Aehr Test Systems (NASDAQ:AEHR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aehr Test Systems (NASDAQ:AEHR)
Historical Stock Chart
From Apr 2023 to Apr 2024