Aehr Test Systems Reports 93% Revenue Growth Year over Year in Third Quarter
April 02 2020 - 4:05PM
Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of
semiconductor test and reliability qualification equipment, today
announced financial results for its third quarter of fiscal 2020
ended February 29, 2020.
Fiscal Third Quarter Financial Results:
- Net sales were $6.1 million, up 93% from $3.2 million in the
third quarter of fiscal 2019.
- GAAP net income was $245,000, or $0.01 per diluted share,
compared to a GAAP net loss of $3.2 million, or $0.14 per diluted
share, in the third quarter of fiscal 2019.
- Non-GAAP net income was $452,000, or $0.02 per diluted share,
which excludes the impact of stock-based compensation expense,
compared to a non-GAAP net loss of $1.6 million, or $0.07 per
diluted share, in the third quarter of fiscal 2019, which excluded
stocked based compensation expense, a $795,000 provision for excess
and obsolescence inventory, and $607,000 for restructuring charges
related to a reduction in work force.
- Backlog as of February 29, 2020 was $3.6 million.
Fiscal First Nine Months Financial Results:
- Net sales were $18.5 million, up 34% from $13.8 million in the
first nine months of fiscal 2019.
- GAAP net income was $83,000, or $0.00 per diluted share,
compared to a GAAP net loss of $5.3 million, or $0.24 per diluted
share, in the first nine months of fiscal 2019.
- Non-GAAP net income was $694,000, or $0.03 per diluted share,
compared to a non-GAAP net loss of $3.2 million, or $0.15 per
diluted share, in the first nine months of fiscal 2019.
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 Third Quarter and Recent Business
Highlights:
- Shipments for WaferPak™ Contactors and
DiePak™ Carriers, consumables for Aehr’s FOX™ wafer and
singulated die/module test and burn in systems, accounted for 51%
of total revenue for the third quarter.
- Shipped and reported revenue for an additional FOX-XP
multi-wafer test and burn-in system to meet the production ramp of
a leading supplier of silicon photonics devices.
- Received orders totaling more than $2.9 million from its
installed base of FOX test and burn-in system customers for its
proprietary WaferPaks and DiePaks, including orders for test of
mobile sensors and other device applications that include
production test of silicon carbide devices, flash memories, and
silicon photonics devices reflecting additional capacity
needs.
- Engaged with more than a dozen potential new customers for
production level test and burn-in of devices that include power
silicon carbide devices for automotive, silicon photonics devices
for 5G and data storage server farms, automotive and mobile
sensors, and memory devices.
- As a global supplier to Critical Infrastructure as outlined at
https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19,
Aehr is taking extraordinary measures to safely operate with our
full capacity available in manufacturing and across the company to
continue to support the vital needs of these Critical
Infrastructure customers while complying with the local and state
mandated “Shelter in Place” directives.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“We are pleased with our results for the fiscal third quarter,
which include continued profitability and strong gross margins.
Despite the current challenging global environment, we continue to
engage with a large number of customers who are evaluating the use
of our products to meet their production needs in test and burn-in
on a variety of applications. We are currently working with over a
dozen new potential customers, and our sales, marketing, and
applications teams remain busy supporting these sales efforts using
online conferences, videos, and other collaboration tools.
“Currently, all of our customers have their wafer fabrication
facilities open to support the critical infrastructure around the
globe in information technology, communications, and critical
manufacturing sectors and Aehr is able to ship orders for systems,
WaferPaks, DiePaks, and parts needed to support these customers
with little to no limitations or delays. However, due to the
uncertainty of the full impact of the COVID-19 pandemic on our
customers, we simply cannot predict how this will impact our
business in the near term and are taking the conservative stance to
withdraw our previously provided guidance for the fiscal 2020 year
ending May 31, 2020.
“As the rapidly evolving COVID-19 pandemic unfolds, our foremost
concern is to ensure the health and safety of our employees, their
families, and our worldwide community. On March 19, 2020, the
Executive Department of the State of California issued Executive
Order N-33-20 ordering individuals in the State of California to
stay home or at their place of residence except as needed to
maintain continuity of operations of the federal Critical
Infrastructure sectors. As a global supplier to Critical
Infrastructure, we are taking extraordinary measures to maintain
continuity of operations and to continue to safely operate with our
full capacity available in manufacturing and across the company to
support the vital needs of our Critical Infrastructure customers
while complying with the local and state mandated ‘Shelter in
Place’ directives. Through direct and indirect representatives,
Aehr also has engineers and infrastructure around the world to
support our customers and meet our contracts, response times, and
critical parts lead times for their installed base of Aehr Test
products.
“The fundamentals for Aehr Test remain strong long term, and we
believe that we will emerge from this difficult period even
stronger than we went in, with an even larger number of customers
committed to using our FOX systems to meet their production test
and burn-in 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
third quarter fiscal 2020 operating results. To access the call
dial 800-367-2403 (+1 334-777-6978 outside the United States) and
give the participant pass code 2336638. 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 April 9, 2020. 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 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 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, the impact of
COVID-19 and related shelter in place orders and economic effects
on production and demand for Aehr’s products, 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.
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 |
|
|
– Financial Tables to Follow
–
|
AEHR TEST SYSTEMS AND SUBSIDIARIES |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Feb 29, |
|
Nov 30, |
|
Feb 28, |
|
Feb 29, |
|
Feb 28, |
|
|
2020 |
|
2019 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
6,111 |
|
|
$ |
6,874 |
|
|
$ |
3,163 |
|
|
$ |
18,518 |
|
|
$ |
13,814 |
|
Cost of sales |
|
3,120 |
|
|
|
3,672 |
|
|
|
2,891 |
|
|
|
10,054 |
|
|
|
9,591 |
|
Gross profit |
|
2,991 |
|
|
|
3,202 |
|
|
|
272 |
|
|
|
8,464 |
|
|
|
4,223 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
1,891 |
|
|
|
2,157 |
|
|
|
1,850 |
|
|
|
5,856 |
|
|
|
5,706 |
|
Research and development |
|
845 |
|
|
|
795 |
|
|
|
931 |
|
|
|
2,532 |
|
|
|
3,033 |
|
Restructuring |
|
- |
|
|
|
- |
|
|
|
607 |
|
|
|
- |
|
|
|
607 |
|
Total operating expenses |
|
2,736 |
|
|
|
2,952 |
|
|
|
3,388 |
|
|
|
8,388 |
|
|
|
9,346 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
255 |
|
|
|
250 |
|
|
|
(3,116 |
) |
|
|
76 |
|
|
|
(5,123 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expense), net |
|
13 |
|
|
|
2 |
|
|
|
(76 |
) |
|
|
27 |
|
|
|
(228 |
) |
Other (expense)
income, net |
|
(9 |
) |
|
|
5 |
|
|
|
(11 |
) |
|
|
6 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax (expense) benefit |
|
259 |
|
|
|
257 |
|
|
|
(3,203 |
) |
|
|
109 |
|
|
|
(5,324 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit |
|
(14 |
) |
|
|
(6 |
) |
|
|
2 |
|
|
|
(26 |
) |
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
245 |
|
|
|
251 |
|
|
|
(3,201 |
) |
|
|
83 |
|
|
|
(5,345 |
) |
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to the |
|
|
|
|
|
|
|
|
|
|
noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Aehr Test |
|
|
|
|
|
|
|
|
|
|
Systems common shareholders |
$ |
245 |
|
|
$ |
251 |
|
|
$ |
(3,201 |
) |
|
$ |
83 |
|
|
$ |
(5,345 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
(0.14 |
) |
|
$ |
0.00 |
|
|
$ |
(0.24 |
) |
Diluted |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
(0.14 |
) |
|
$ |
0.00 |
|
|
$ |
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
|
22,937 |
|
|
|
22,823 |
|
|
|
22,459 |
|
|
|
22,823 |
|
|
|
22,314 |
|
Diluted |
|
23,130 |
|
|
|
22,912 |
|
|
|
22,459 |
|
|
|
22,940 |
|
|
|
22,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AEHR TEST SYSTEMS AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Results |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Feb 29, |
|
Nov 30, |
|
Feb 28, |
|
Feb 29, |
|
Feb 28, |
|
2020 |
|
2019 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
$ |
245 |
|
|
$ |
251 |
|
|
$ |
(3,201 |
) |
|
$ |
83 |
|
|
$ |
(5,345 |
) |
Stock-based compensation
expense |
|
207 |
|
|
|
205 |
|
|
|
225 |
|
|
|
611 |
|
|
|
705 |
|
Restructuring |
|
- |
|
|
|
- |
|
|
|
607 |
|
|
|
- |
|
|
|
607 |
|
Excess and obsolescence
provision |
|
- |
|
|
|
- |
|
|
|
795 |
|
|
|
- |
|
|
|
795 |
|
Non-GAAP net income
(loss) |
$ |
452 |
|
|
$ |
456 |
|
|
$ |
(1,574 |
) |
|
$ |
694 |
|
|
$ |
(3,238 |
) |
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per
diluted share |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
(0.14 |
) |
|
$ |
0.00 |
|
|
$ |
(0.24 |
) |
Non-GAAP net income (loss) per
diluted share |
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
(0.07 |
) |
|
$ |
0.03 |
|
|
$ |
(0.15 |
) |
Shares used in GAAP diluted
shares calculation |
|
23,130 |
|
|
|
22,912 |
|
|
|
22,459 |
|
|
|
22,940 |
|
|
|
22,314 |
|
Shares used in non-GAAP
diluted shares calculation |
|
23,130 |
|
|
|
22,912 |
|
|
|
22,459 |
|
|
|
22,940 |
|
|
|
22,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) is a non-GAAP measure and should not be
considered a replacement for GAAP results. Non-GAAP net
income (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 income.
This limitation is best addressed by using this measure in
combination with net income (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) |
|
|
|
|
|
|
|
|
|
February 29, |
|
November 30, |
|
May 31, |
|
|
2020 |
|
2019 |
|
2019 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
5,058 |
|
|
$ |
5,302 |
|
|
$ |
5,428 |
|
Accounts receivable, net |
|
3,511 |
|
|
|
5,231 |
|
|
|
4,859 |
|
Inventories |
|
|
9,330 |
|
|
|
9,800 |
|
|
|
9,061 |
|
Prepaid expenses and other |
|
586 |
|
|
|
534 |
|
|
|
686 |
|
Total current assets |
|
18,485 |
|
|
|
20,867 |
|
|
|
20,034 |
|
|
|
|
|
|
|
|
Property and
equipment, net |
|
783 |
|
|
|
860 |
|
|
|
1,045 |
|
Operating lease
right-of-use assets |
|
2,260 |
|
|
|
2,387 |
|
|
|
- |
|
Other assets |
|
|
160 |
|
|
|
186 |
|
|
|
228 |
|
Total assets |
|
$ |
21,688 |
|
|
$ |
24,300 |
|
|
$ |
21,307 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
925 |
|
|
$ |
2,320 |
|
|
$ |
1,933 |
|
Accrued expenses |
|
1,373 |
|
|
|
1,596 |
|
|
|
2,034 |
|
Operating lease liabilities, short-term |
|
644 |
|
|
|
619 |
|
|
|
- |
|
Customer deposits and deferred revenue, short-term |
|
385 |
|
|
|
1,809 |
|
|
|
1,545 |
|
Total current liabilities |
|
3,327 |
|
|
|
6,344 |
|
|
|
5,512 |
|
|
|
|
|
|
|
|
Deferred rent |
|
|
- |
|
|
|
- |
|
|
|
153 |
|
Operating lease
liabilities, long-term |
|
1,772 |
|
|
|
1,924 |
|
|
|
- |
|
Deferred revenue,
long-term |
|
34 |
|
|
|
64 |
|
|
|
189 |
|
Total liabilities |
|
5,133 |
|
|
|
8,332 |
|
|
|
5,854 |
|
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity |
|
16,575 |
|
|
|
15,988 |
|
|
|
15,472 |
|
Noncontrolling
interest |
|
(20 |
) |
|
|
(20 |
) |
|
|
(19 |
) |
Total shareholders' equity |
|
16,555 |
|
|
|
15,968 |
|
|
|
15,453 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
21,688 |
|
|
$ |
24,300 |
|
|
$ |
21,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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