Aehr Test Systems Reports First Quarter Fiscal 2020 Financial Results and Reiterates Financial Guidance for Significant Grow...
October 03 2019 - 04:05PM
Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of
semiconductor test and reliability qualification equipment, today
announced financial results for its first quarter of fiscal 2020
ended August 31, 2019.
Fiscal First Quarter Financial Results:
- Net sales were $5.5 million, compared to $4.7 million in the
first quarter of fiscal 2019.
- GAAP net loss was $413,000, or $0.02 per diluted share,
compared to a GAAP net loss of $1.5 million, or $0.07 per diluted
share, in the first quarter of fiscal 2019.
- Non-GAAP net loss was $214,000, or $0.01 per diluted share,
which excludes the impact of stock-based compensation expense,
compared to a non-GAAP net loss of $1.3 million, or $0.06 per
diluted share, in the first quarter of fiscal 2019.
- Backlog as of August 31, 2019 was $3.6 million. Backlog to
date, which includes orders announced since the end of the first
quarter, is $7.5 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.
Aehr First Quarter and Recent Business
Highlights:
- Received an initial order totaling more than $3 million from a
new customer for its FOX-XP™ Wafer Level Test and Burn-in system
and WaferPak™ Contactors for production test and burn-in of the
customer’s line of silicon carbide (SiC) devices.
- Completed customer acceptance and manufacturing release to a
new customer of its FOX-CP™ single-wafer test and burn-in system
for 100% test and burn-in of the customer’s new device for
forecasted high-volume production over a multi-year ramp of
products in the enterprise and data center market.
- Continued shipments of both its FOX-XP and FOX-NP™ systems to a
key customer for wafer level test and burn-in ahead of a forecasted
ramp of silicon photonics device production.
- Received factory acceptance from two new silicon photonics
customers announced during fiscal 2019 on their FOX systems,
including WaferPak Contactors, for wafer level test during burn-in
and DiePak Carriers for module level test and burn-in.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“We are seeing continued growth in customer engagements
worldwide, particularly for high growth applications that include
photonics, silicon carbide, automotive, and memory, and remain very
optimistic about the market acceptance and the new opportunities we
see for our full family of FOX-P™ wafer level and singulated die
test and burn-in solutions. This includes several new customer
opportunities in our existing markets as well as customer
engagement opportunities to penetrate new markets.
“Last week, we announced a new customer who will utilize the
unique high-voltage and high-power capabilities of our FOX-XP
system to enable wafer level production test and burn-in of its
line of silicon carbide devices. This new customer is a leading
Fortune 500 supplier of semiconductor devices with a significant
customer base in the automotive semiconductor market. This is a new
and very exciting market opportunity for Aehr as our FOX-P family
of products are cost effective solutions for ensuring the
reliability of wafers and bare die in the emerging silicon carbide
device market that is driven by the growing demand for electrical
vehicles.
“We also have multiple customers utilizing our FOX-P solutions
for test and reliability verification of silicon photonics devices
that have forecasted the need for additional production test and
burn-in capacity this year and into the future. We continue to work
closely with these customers to support their production ramps and
plans to transition to high volume production test and burn-in
using our systems. With our full family of FOX-P products, we are
able to provide a seamless transition from initial product
qualification to very high-volume production.
“As our customers move to high-volume production test, we see
their ramps driving significant incremental capacity of both
systems and also our proprietary WaferPak contactors and DiePak™
carriers.
“We believe the data storage market, the network infrastructure
market, multiple devices related to the worldwide 5G build-out, the
electric vehicles market, and the increased use of
heterogeneous packaging that enables new solutions with mixed
technologies are substantial new opportunities for our test
and burn-in systems, where these end markets and customers require
devices to have extremely high levels of quality and long-term
reliability.
“We saw a significant reduction in our operating expenses during
the quarter, reflecting the structural changes we made this past
year to improve efficiencies in key areas of our Company, and we
continue to streamline our sales organization and processes to
address the customer opportunities we see ahead for our FOX-P
platform.
“Looking ahead, we remain very optimistic about growth in
systems and consumables within our installed base of customers, as
well as expanding the number of customers with our family of FOX-P
solutions. We continue to expect to see a pickup in momentum, to
generate significant year-over-year revenue growth in fiscal 2020
and to be profitable for the fiscal year.”
Fiscal 2020 Financial Guidance:For the fiscal
year ending May 31, 2020, the Company reiterates its previously
provided guidance for full year total revenue to be between $27
million and $31 million, which would represent growth between 28%
and 47% year over year, and to be profitable for the fiscal
year.
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 2020 operating results. To access the call
dial 888-254-3590 (+1 323-794-2551 outside the United States) and
give the participant pass code 9820003. 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 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 installed over 2,500 systems 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 and FOX-NP systems are full wafer contact and singulated
die/module 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,
systems-on-a-chip, and integrated optical devices. The FOX-CP
system is a new low-cost single-wafer compact test and reliability
verification solution for logic, memory and photonic devices and
the newest addition to the FOX-P product family. 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 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’s expectations, beliefs, intentions or strategies
regarding its products and financial guidance, including statements
regarding future market opportunities and conditions, expected
product shipment dates, customer orders or commitments and future
operating results. These risks and uncertainties include, without
limitation, customer demand and acceptance of Aehr’s products, the
ability of new products to meet customer needs or perform as
described, as well as general market conditions, the deployment of
new technologies, such as 5G networks, and Aehr’s ability to
execute on its business strategy. See Aehr’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’s business. Aehr 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, |
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
|
Net sales |
$ |
5,533 |
|
|
$ |
7,242 |
|
|
$ |
4,740 |
|
Cost of sales |
|
3,262 |
|
|
|
3,863 |
|
|
|
3,187 |
|
Gross profit |
|
2,271 |
|
|
|
3,379 |
|
|
|
1,553 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Selling, general and administrative |
|
1,808 |
|
|
|
2,018 |
|
|
|
1,879 |
|
Research and development |
|
892 |
|
|
|
1,120 |
|
|
|
1,116 |
|
Restructuring |
|
- |
|
|
|
118 |
|
|
|
- |
|
Total operating expenses |
|
2,700 |
|
|
|
3,256 |
|
|
|
2,995 |
|
|
|
|
|
|
|
(Loss) income from operations |
|
(429 |
) |
|
|
123 |
|
|
|
(1,442 |
) |
|
|
|
|
|
|
Interest income (expense), net |
|
12 |
|
|
|
(24 |
) |
|
|
(78 |
) |
Other income, net |
|
10 |
|
|
|
17 |
|
|
|
9 |
|
|
|
|
|
|
|
(Loss) income before income tax expense |
|
(407 |
) |
|
|
116 |
|
|
|
(1,511 |
) |
|
|
|
|
|
|
Income tax expense |
|
(6 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
Net (loss) income |
|
(413 |
) |
|
|
110 |
|
|
|
(1,515 |
) |
|
|
|
|
|
|
Less: Net income attributable to the noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Net (loss) income attributable to Aehr Test Systems common
shareholders |
$ |
(413 |
) |
|
$ |
110 |
|
|
$ |
(1,515 |
) |
|
|
|
|
|
|
Net (loss) income per share |
|
|
|
|
|
Basic |
$ |
(0.02 |
) |
|
$ |
0.00 |
|
|
$ |
(0.07 |
) |
Diluted |
$ |
(0.02 |
) |
|
$ |
0.00 |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
|
|
|
Basic |
|
22,708 |
|
|
|
22,605 |
|
|
|
22,190 |
|
Diluted |
|
22,708 |
|
|
|
22,717 |
|
|
|
22,190 |
|
|
|
|
|
|
|
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, |
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
|
GAAP net (loss) income |
$ |
(413 |
) |
|
$ |
110 |
|
$ |
(1,515 |
) |
Stock-based compensation expense |
|
199 |
|
|
|
200 |
|
|
256 |
|
Restructuring |
|
- |
|
|
|
118 |
|
|
- |
|
Non-GAAP net (loss) income |
$ |
(214 |
) |
|
$ |
428 |
|
$ |
(1,259 |
) |
|
|
|
|
|
|
GAAP net (loss) income per diluted share |
$ |
(0.02 |
) |
|
$ |
0.00 |
|
$ |
(0.07 |
) |
Non-GAAP net (loss) income per diluted share |
$ |
(0.01 |
) |
|
$ |
0.02 |
|
$ |
(0.06 |
) |
Shares used in GAAP diluted shares calculation |
|
22,708 |
|
|
|
22,717 |
|
|
22,190 |
|
Shares used in non-GAAP diluted shares calculation |
|
22,708 |
|
|
|
22,717 |
|
|
22,190 |
|
|
|
|
|
|
|
|
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, |
|
2019 |
|
2019 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
5,266 |
|
|
$ |
5,428 |
|
Accounts receivable, net |
|
3,287 |
|
|
|
4,859 |
|
Inventories |
|
9,217 |
|
|
|
9,061 |
|
Prepaid expenses and other |
|
523 |
|
|
|
686 |
|
Total current assets |
|
18,293 |
|
|
|
20,034 |
|
|
|
|
|
Property and equipment, net |
|
1,000 |
|
|
|
1,045 |
|
Operating lease right-of-use assets |
|
2,533 |
|
|
|
- |
|
Other assets |
|
199 |
|
|
|
228 |
|
Total assets |
$ |
22,025 |
|
|
$ |
21,307 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,742 |
|
|
$ |
1,933 |
|
Accrued expenses |
|
2,183 |
|
|
|
2,034 |
|
Customer deposits and deferred revenue, short-term |
|
615 |
|
|
|
1,545 |
|
Total current liabilities |
|
4,540 |
|
|
|
5,512 |
|
|
|
|
|
Lease liability long-term portion |
|
2,086 |
|
|
|
- |
|
Deferred rent |
|
- |
|
|
|
153 |
|
Deferred revenue, long-term |
|
113 |
|
|
|
189 |
|
Total liabilities |
|
6,739 |
|
|
|
5,854 |
|
|
|
|
|
Aehr Test Systems shareholders' equity |
|
15,306 |
|
|
|
15,472 |
|
Noncontrolling interest |
|
(20 |
) |
|
|
(19 |
) |
Total shareholders' equity |
|
15,286 |
|
|
|
15,453 |
|
Total liabilities and shareholders' equity |
$ |
22,025 |
|
|
$ |
21,307 |
|
|
|
|
|
Contacts: |
|
|
|
Aehr Test Systems |
MKR Investor Relations Inc. |
Ken Spink |
Todd Kehrli or Jim Byers |
Chief Financial Officer |
Analyst/Investor Contact |
(510) 623-9400 x309 |
(323) 468-2300 |
|
aehr@mkr-group.com |
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