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 2019
ended November 30, 2018.
Fiscal Second Quarter Financial Results:
- Net sales were $5.9 million, compared to $7.9 million in the
second quarter of fiscal 2018.
- GAAP net loss was $629,000, or $0.03 per diluted share,
compared to GAAP net income of $60,000, or $0.00 per diluted share,
in the second quarter of fiscal 2018.
- Non-GAAP net loss, which excludes the impact of stock-based
compensation expense, was $405,000, or $0.02 per diluted share,
compared to non-GAAP net income of $424,000, or $0.02 per diluted
share, in the second quarter of fiscal 2018.
- Backlog as of November 30, 2018 was $4.3 million.
Fiscal First Six Months Financial Results:
- Net sales were $10.7 million, compared to $14.9 million in the
first six months of fiscal 2018.
- GAAP net loss was $2.1 million, or $0.10 per diluted share,
compared to GAAP net income of $70,000, or $0.00 per diluted share,
in the first six months of fiscal 2018.
- Non-GAAP net loss was $1.7 million, or $0.07 per diluted share,
compared to non-GAAP net income of $650,000, or $0.03 per diluted
share, in the first six months of fiscal 2018.
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.
Second Quarter and Recent Business
Highlights:
- Received an order for and shipped a follow-on FOX-XPTM
Multi-Wafer Test and Burn-in System and WaferPakTM Aligner to the
company’s lead customer for wafer level test and burn-in of silicon
photonics devices.
- Shipped follow-on ABTSTM Test and Burn-in System to a wireless
communications chipset company for use in high volume production
burn-in of automotive devices.
- Announced today the addition of a new product in Aehr Test’s
FOX-PTM platform, the FOX-NPTM system, which increases the market
opportunity for the company’s FOXTM systems and contactors with a
low cost, small footprint entry-level system that provides a
configuration for initial product development, production
qualification and New Production Introduction (NPI).
- Received a commitment and expect an order imminently from a new
customer to use Aehr Test’s FOX-P Platform for test and burn-in of
silicon photonics devices. This additional production test and
burn-in customer plans to utilize Aehr Test’s new FOX-NP system to
begin their production ramp and then transition to high volume
production test and burn-in of 100% of their silicon photonics
devices using Aehr Test’s FOX-XP systems.
- Appointed new Executive Vice President of Sales and Marketing
to oversee all aspects of the Company’s customer facing sales,
marketing and support team, including direct sales, distributors
and representatives in Asia and Europe, and its subsidiaries in
Japan and Germany.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“While our revenue in the second quarter was lower on a
year-over-year basis, it was in line with the expectations that we
discussed in last quarter’s call for a softer first half of the
fiscal year, with many of our customers’ capacity ramps expected in
the second half of our fiscal year. We continue to feel positive
about the second half, but there are in fact both positive and
negative events that impact our expectations for the fiscal second
half and full year.
“Our lead customer for our FOX-XP system for production wafer
level burn-in of silicon photonics devices continues to drive
increased business for us. This customer, who is one of the world’s
largest semiconductor manufacturers, has a very strong forecast for
their capacity ramp, which will consume the system capacity they
have ordered to date. We continue to expect orders for a
significant number of our WaferPak Contactors by the end of this
fiscal year to populate their FOX-XP systems, as well as orders for
additional FOX-XP systems and WaferPak Contactors throughout
calendar year 2019 and beyond.
“We are pleased to announce that just this week we received a
commitment from a new customer to use our FOX-P Platform for test
and burn-in of silicon photonics devices. This additional
production customer will utilize our new FOX-NP system to begin
their production ramp and then transition to high volume production
test and burn-in of 100% of their silicon photonics devices using
our FOX-XP systems, which have the capacity to test and burn-in
over 4,600 singulated die devices in parallel. We are expecting
imminent placement of an order by this customer for their initial
design verification, qualification and production needs.
“The FOX-NP system is a new product within Aehr Test’s FOX-P
family that offers a lower cost entry-level system to provide a
configuration and price point for companies to do initial
production qualification and new product introduction, enabling an
easier transition to the FOX-XP for full production test. This new
FOX-NP system is 100% compatible with the FOX-XP system and is
configurable with up to two blades per system compared to up to 18
blades in the FOX-XP system.
“As we had discussed last quarter, many of our customers had
substantial forecasts for bookings and shipments that we forecasted
by the end of our fiscal year. We have seen push outs of orders for
capacity increases from our installed base due to customer device
delays that do not appear to be related to macro industry trends.
We also believe some of our customers have taken a cautious stance
which has impacted the timing of their orders to Aehr due to
general market concerns and trade uncertainties between the US and
China, as well as slow-downs in the mobile space that have been
widely reported. Specifically, we are seeing orders that are
delayed such that we will no longer be able to ship them within
this current fiscal third quarter and/or our fiscal year.
“As a result of the current customer product delays and market
conditions, as well as delays in expected orders, we are lowering
our revenue guidance for fiscal 2019 from a range of $30 million to
$35 million to a new range of $20 million to $25 million. However,
we expect to see an improvement in bookings in our second half,
with an increase in backlog heading into our fiscal 2020, which
begins June 1, 2019.
“We believe that the long-term fundamentals for Aehr Test
Systems have not changed. We continue to see an increase in
semiconductor content in every part of life as well as an increased
need for reliability, security, safety, and confidence in those
semiconductors and electronic products. We also see the macro trend
of semiconductor devices with heterogeneous integration or stacked
die increasing the need for reliability and burn-in of devices
before they are integrated or stacked into multi-die packages. Aehr
Test’s unique products allow our customers to test and burn-in
their devices with the 100% confidence and traceability which are
needed to address the safety, security, and confidence for mission
critical applications. We feel we are very well positioned to
capitalize on these long-term market trends.”
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 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 1583827. 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 10, 2019. 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, 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 ABTSTM and FOX-PTM
families of test and burn-in systems and FOX WaferPakTM 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 |
|
Six Months Ended |
|
|
Nov 30, |
|
Aug 31, |
|
Nov 30, |
|
Nov 30, |
|
Nov 30, |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
5,911 |
|
|
$ |
4,740 |
|
|
$ |
7,923 |
|
|
$ |
10,651 |
|
|
$ |
14,893 |
|
Cost of
sales |
|
3,513 |
|
|
|
3,187 |
|
|
|
4,792 |
|
|
|
6,700 |
|
|
|
8,844 |
|
Gross
profit |
|
2,398 |
|
|
|
1,553 |
|
|
|
3,131 |
|
|
|
3,951 |
|
|
|
6,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
1,977 |
|
|
|
1,879 |
|
|
|
1,854 |
|
|
|
3,856 |
|
|
|
3,645 |
|
Research and development |
|
986 |
|
|
|
1,116 |
|
|
|
1,090 |
|
|
|
2,102 |
|
|
|
2,045 |
|
Total operating expenses |
|
2,963 |
|
|
|
2,995 |
|
|
|
2,944 |
|
|
|
5,958 |
|
|
|
5,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
(565 |
) |
|
|
(1,442 |
) |
|
|
187 |
|
|
|
(2,007 |
) |
|
|
359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
(74 |
) |
|
|
(78 |
) |
|
|
(105 |
) |
|
|
(152 |
) |
|
|
(212 |
) |
Other income (expense), net |
|
29 |
|
|
|
9 |
|
|
|
(7 |
) |
|
|
38 |
|
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax expense |
|
(610 |
) |
|
|
(1,511 |
) |
|
|
75 |
|
|
|
(2,121 |
) |
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
(19 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(23 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
(629 |
) |
|
|
(1,515 |
) |
|
|
60 |
|
|
|
(2,144 |
) |
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Net income attributable to the |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Aehr Test |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems
common shareholders |
$ |
(629 |
) |
|
$ |
(1,515 |
) |
|
$ |
60 |
|
|
$ |
(2,144 |
) |
|
$ |
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.00 |
|
|
$ |
(0.10 |
) |
|
$ |
0.00 |
|
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.00 |
|
|
$ |
(0.10 |
) |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used
in per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
22,294 |
|
|
|
22,190 |
|
|
|
21,645 |
|
|
|
22,242 |
|
|
|
21,531 |
|
Diluted |
|
22,294 |
|
|
|
22,190 |
|
|
|
22,883 |
|
|
|
22,242 |
|
|
|
22,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2017 |
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss)
income |
|
$ |
(629 |
) |
|
$ |
(1,515 |
) |
|
$ |
60 |
|
$ |
(2,144 |
) |
|
$ |
70 |
Stock-based
compensation expense |
|
|
224 |
|
|
|
256 |
|
|
|
364 |
|
|
480 |
|
|
|
580 |
Non-GAAP net (loss)
income |
|
$ |
(405 |
) |
|
$ |
(1,259 |
) |
|
$ |
424 |
|
$ |
(1,664 |
) |
|
$ |
650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income
per diluted share |
|
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.00 |
|
$ |
(0.10 |
) |
|
$ |
0.00 |
Non-GAAP net (loss)
income per diluted share |
|
$ |
(0.02 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.02 |
|
$ |
(0.07 |
) |
|
$ |
0.03 |
Shares used in GAAP
diluted shares calculation |
|
|
22,294 |
|
|
|
22,190 |
|
|
|
22,883 |
|
|
22,242 |
|
|
|
22,937 |
Shares used in non-GAAP
diluted shares calculation |
|
|
22,294 |
|
|
|
22,190 |
|
|
|
22,883 |
|
|
22,242 |
|
|
|
22,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
November 30, |
|
August 31, |
|
May 31, |
|
2018 |
|
2018 |
|
2018 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
14,002 |
|
|
$ |
15,864 |
|
|
$ |
16,848 |
|
Accounts
receivable, net |
|
3,868 |
|
|
|
2,272 |
|
|
|
2,856 |
|
Inventories |
|
9,983 |
|
|
|
9,585 |
|
|
|
9,049 |
|
Prepaid
expenses and other |
|
688 |
|
|
|
727 |
|
|
|
703 |
|
Total
current assets |
|
28,541 |
|
|
|
28,448 |
|
|
|
29,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
1,074 |
|
|
|
1,174 |
|
|
|
1,203 |
|
Other assets |
|
286 |
|
|
|
266 |
|
|
|
296 |
|
Total
assets |
$ |
29,901 |
|
|
$ |
29,888 |
|
|
$ |
30,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Current
portion of long-term debt |
$ |
6,110 |
|
|
$ |
6,110 |
|
|
$ |
6,110 |
|
Accounts
payable |
|
1,953 |
|
|
|
1,317 |
|
|
|
1,762 |
|
Accrued
expenses |
|
1,487 |
|
|
|
1,498 |
|
|
|
1,646 |
|
Customer
deposits and deferred revenue, short-term |
|
2,068 |
|
|
|
2,339 |
|
|
|
1,630 |
|
Total
current liabilities |
|
11,618 |
|
|
|
11,264 |
|
|
|
11,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent |
|
147 |
|
|
|
145 |
|
|
|
63 |
|
Deferred revenue,
long-term |
|
252 |
|
|
|
359 |
|
|
|
459 |
|
Total
liabilities |
|
12,017 |
|
|
|
11,768 |
|
|
|
11,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity |
|
17,902 |
|
|
|
18,139 |
|
|
|
19,305 |
|
Noncontrolling
interest |
|
(18 |
) |
|
|
(19 |
) |
|
|
(20 |
) |
Total
shareholders' equity |
|
17,884 |
|
|
|
18,120 |
|
|
|
19,285 |
|
Total
liabilities and shareholders' equity |
$ |
29,901 |
|
|
$ |
29,888 |
|
|
$ |
30,955 |
|
|
|
|
|
|
|
Aehr Test Systems Ken Spink Chief Financial
Officer(510) 623-9400 x309 Investor Relations
Contact:Todd Kehrli or Jim Byers MKR Group, Inc.(323)
468-2300aehr@mkr-group.com
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