Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of
semiconductor test and reliability qualification equipment, today
announced financial results for its fiscal 2021 fourth quarter and
full year ended May 31, 2021.
Fiscal Fourth Quarter Financial Results:
- Net sales were $7.6 million, up 102% from $3.8 million in the
fourth quarter of fiscal 2020.
- GAAP net income was $567,000, or $0.02 per diluted share,
compared to a GAAP net loss of $2.9 million, or $0.13 per diluted
share, which included approximately $1.9 million in inventory and
restructuring charges, or $0.08 per share, in the fourth quarter of
2020.
- Non-GAAP net income was $870,000, or $0.04 per diluted share,
which excludes the impact of stock-based compensation, compared to
a non-GAAP net loss of $720,000, or $0.03 per diluted share, which
excludes the impact of stock-based compensation expense and
inventory and restructuring charges, in the fourth quarter of
2020.
- Bookings were $5.5 million for the quarter, up 113% from $2.6
million in the fourth quarter of fiscal 2020.
- Backlog as of May 31, 2021 was $1.6 million. Effective backlog,
which includes backlog at the end of the fourth quarter plus orders
since the end of the fourth quarter, is $7.0 million.
Fiscal Year Financial Results:
- Net sales were $16.6 million, compared to $22.3 million in
fiscal 2020.
- GAAP net loss was $2.0 million, which included the impact of a
non-cash net gain of $2.2 million and tax benefit of $215,000
related to the closure of Aehr’s Japan subsidiary in the first
quarter, or $0.09 per diluted share, compared to a GAAP net loss of
$2.8 million, or $0.12 per diluted share, which included
approximately $1.9 million in inventory and restructuring charges,
or $0.08 per share, in fiscal 2020.
- Non-GAAP net loss was $3.3 million, or $0.14 per diluted share,
which excludes the impact of stock-based compensation and the $2.4
million related to the closure of Aehr’s Japan subsidiary. This
compares to non-GAAP net loss of $27,000, or $0.00 per diluted
share, which excludes the impact of stock-based compensation
expense and inventory and restructuring charges, in fiscal
2020.
An explanation of the use of non-GAAP financial measures and a
reconciliation of Aehr’s non-GAAP financial measures to the most
directly comparable GAAP financial measures can be found in the
accompanying tables.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“We are pleased to report improved revenue and operating profit
in the fiscal fourth quarter that reflect a return to above
pre-pandemic levels. We are also encouraged by the strong increase
in customer demand during the quarter, which is a positive
turnaround from customer production ramp delays and push outs we
experienced this past year related to COVID-19. We are off to a
strong start for fiscal 2022 with $5.4 million in bookings and an
effective backlog of $7 million quarter to date.
“We made significant inroads this past fiscal year into the
emerging silicon carbide device market, which continues to be a
very promising growth driver for Aehr and will be a major focus in
the coming fiscal year. Silicon carbide power semiconductors have
emerged as the preferred technology for battery electric vehicle
power conversion in on-board and off-board electric vehicle battery
chargers and the electric power conversion and control of the
electric engines. Our FOX-P family of products are very
cost-effective solutions for ensuring the critical quality and
reliability of devices in this market, where performance and
reliability can not only mean increased battery life, but also
whether you have to walk home from a vehicle whose power
semiconductor fails in the power train.
“During this last fiscal year, our lead silicon carbide
customer, a leading Fortune 500 supplier of semiconductor devices
with a significant customer base in the automotive semiconductor
market, qualified Aehr’s FOX-XP system for high volume production
burn-in and infant mortality screening of silicon carbide power
devices at wafer level for electric vehicle power modules.
“This customer has now qualified several devices for automotive
applications on our solution, ordered multiple FOX-XP systems, and
has purchased multiple new WaferPak Contactor designs that are
expected to be qualified and move to production during this fiscal
year. This customer is forecasting orders for multiple additional
FOX systems and Aehr proprietary full wafer WaferPaks this year and
a significant number of systems and WaferPaks over the next several
years. Our FOX-XP systems are configured to test eighteen silicon
carbide wafers in parallel in the footprint of a typical single
wafer test solution, while contacting and testing 100% of the
devices in parallel on each wafer. Aehr provides a unique fully
integrated solution that includes the test systems, full wafer
WaferPak Contactors, and WaferPak Aligners.
“Aehr is in discussions with several other silicon carbide
suppliers regarding our wafer level test and burn-in solutions and
we expect to move to on-wafer evaluations with multiple potential
new customers this fiscal year. We anticipate that wafer level test
and burn-in will become the industry standard for quality and
reliability screening for silicon carbide devices for the
automotive market, and that Aehr has the most cost-effective
solution on the market to address this opportunity.
“We are seeing improvement in multiple test and burn-in segments
including silicon photonics, which was significantly impacted by
the pandemic over the last 12 months. Silicon photonics fiber optic
transceivers which are used in data storage and 5G infrastructure,
require a process step in manufacturing called stabilization where
the devices are subjected to high temperatures and power to
stabilize their output power. Our customers are using our FOX wafer
level test and burn in solutions for test and burn-in of 100% of
their integrated silicon photonics devices, and we currently have
five silicon photonics customers that are shipping products to
their customers using our FOX solution. We see a significant
opportunity for growth as we expand within these customers and add
additional new silicon photonics customers.
“This last year we successfully implemented our FOX systems and
DiePak Carriers for production test and burn-in of two new
applications for 2D/3D sensors for mobile devices. We expect to see
follow on orders for system capacity and DiePaks this year and
continue to be optimistic about this market space. We are excited
about our newest DiePak solution that is capable of handling
extremely small and complex devices and very high power-density
devices with higher parallelism than available before.
“With the momentum we are seeing for wafer level test and
burn-in of silicon carbide devices for electric vehicles, silicon
photonics devices for data center and 5G infrastructure, and 2D/3D
sensors for mobile devices, we are very confident in our growth
projections this fiscal year.”
Fiscal 2022 Financial Guidance:For the fiscal
year ending May 31, 2022, Aehr expects full year total revenue to
be greater than $28 million, which would represent growth of
approximately 70% 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
fiscal 2021 fourth quarter and full year operating results. To
access the call dial 800-367-2403 (+1 334-777-6978 outside the
United States) and give the participant pass code 9748167. 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 July 22, 2021. 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 StatementThis press release
contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements
generally relate to future events or Aehr’s future financial or
operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
"may," "will," "should," "expects," "plans," "anticipates,” “going
to,” "could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," or "continue," or
the negative of these words or other similar terms or expressions
that concern Aehr’s expectations, strategy, priorities, plans, or
intentions. Forward-looking statements in this press release
include, but are not limited to, Aehr’s ability to generate
bookings and revenue increases in the future, including the first
quarter of fiscal 2022; future requirements and orders of Aehr’s
new and existing customers; bookings forecasted for proprietary
WaferPak™ and DiePak consumables across multiple market
segments; the temporary nature of customer pushouts; shipping
timelines for products and follow-on capacity orders; the growth of
Aehr’s systems and consumables, including as a percentage of total
sales; financial guidance for fiscal 2022, including related to
revenue and profitability, and expectations regarding fiscal 2022;
Aehr’s ability to expand its number of customers using its
FOX-P™ solutions; the ability to secure potential customer
engagements; expectations related to long-term demand for Aehr’s
productions and the attractiveness of key markets; the belief that
Aehr will be stronger after the current worldwide COVID-19
pandemic, including expectations related to greater production,
more customers, more applications, and higher value products. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more
fully described in Aehr’s Form 10-K for fiscal 2020, Form 10-Q for
the first, second and third fiscal quarters of fiscal 2021 and
other reports filed from time to time with the Securities and
Exchange Commission. 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 |
|
Year Ended |
|
May 31, |
|
Feb 28, |
|
May 31, |
|
May 31, |
|
May 31, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
7,638 |
|
|
$ |
5,267 |
|
|
$ |
3,773 |
|
|
$ |
16,600 |
|
|
$ |
22,291 |
|
Cost of
sales |
|
4,104 |
|
|
|
3,373 |
|
|
|
3,866 |
|
|
|
10,568 |
|
|
|
13,920 |
|
Gross profit
(loss) |
|
3,534 |
|
|
|
1,894 |
|
|
|
(93 |
) |
|
|
6,032 |
|
|
|
8,371 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
1,904 |
|
|
|
1,643 |
|
|
|
1,674 |
|
|
|
6,562 |
|
|
|
7,530 |
|
Research and development |
|
1,029 |
|
|
|
903 |
|
|
|
854 |
|
|
|
3,652 |
|
|
|
3,386 |
|
Restructuring |
|
- |
|
|
|
- |
|
|
|
220 |
|
|
|
- |
|
|
|
220 |
|
Total operating expenses |
|
2,933 |
|
|
|
2,546 |
|
|
|
2,748 |
|
|
|
10,214 |
|
|
|
11,136 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
601 |
|
|
|
(652 |
) |
|
|
(2,841 |
) |
|
|
(4,182 |
) |
|
|
(2,765 |
) |
|
|
|
|
|
|
|
|
|
|
Interest
(expense) income, net |
|
(11 |
) |
|
|
(10 |
) |
|
|
(17 |
) |
|
|
(46 |
) |
|
|
10 |
|
Net gain
from dissolution of Aehr Test Systems Japan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,186 |
|
|
|
- |
|
Other
expense, net |
|
(23 |
) |
|
|
(39 |
) |
|
|
(17 |
) |
|
|
(162 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax (expense) benefit |
|
567 |
|
|
|
(701 |
) |
|
|
(2,875 |
) |
|
|
(2,204 |
) |
|
|
(2,766 |
) |
|
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit |
|
- |
|
|
|
(34 |
) |
|
|
(10 |
) |
|
|
177 |
|
|
|
(36 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
567 |
|
|
|
(735 |
) |
|
|
(2,885 |
) |
|
|
(2,027 |
) |
|
|
(2,802 |
) |
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to the noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net income (loss) attributable to Aehr Test Systems common
shareholders |
$ |
567 |
|
|
$ |
(735 |
) |
|
$ |
(2,885 |
) |
|
$ |
(2,027 |
) |
|
$ |
(2,802 |
) |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
Shares used
in per share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
|
23,659 |
|
|
|
23,525 |
|
|
|
23,060 |
|
|
|
23,457 |
|
|
|
22,882 |
|
Diluted |
|
23,916 |
|
|
|
23,525 |
|
|
|
23,060 |
|
|
|
23,457 |
|
|
|
22,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEHR TEST
SYSTEMS AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Results |
(in thousands,
except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
May 31, |
|
Feb 28, |
|
May 31, |
|
May 31, |
|
May 31, |
|
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
567 |
|
$ |
(735 |
) |
|
$ |
(2,885 |
) |
|
$ |
(2,027 |
) |
|
$ |
(2,802 |
) |
Stock-based
compensation expense |
|
|
303 |
|
|
271 |
|
|
|
300 |
|
|
|
1,101 |
|
|
|
910 |
|
Restructuring |
|
|
- |
|
|
- |
|
|
|
220 |
|
|
|
- |
|
|
|
220 |
|
Excess and
obsolescence provision |
|
|
- |
|
|
- |
|
|
|
1,645 |
|
|
|
- |
|
|
|
1,645 |
|
Income from
dissolution of Aehr Test Systems Japan |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(2,401 |
) |
|
|
- |
|
Non-GAAP net
income (loss) |
|
$ |
870 |
|
$ |
(464 |
) |
|
$ |
(720 |
) |
|
$ |
(3,327 |
) |
|
$ |
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income (loss) per diluted share |
|
$ |
0.02 |
|
$ |
(0.03 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
Non-GAAP net
income (loss) per diluted share |
|
$ |
0.04 |
|
$ |
(0.02 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.00 |
) |
Shares used
in GAAP diluted shares calculation |
|
|
23,916 |
|
|
23,525 |
|
|
|
23,060 |
|
|
|
23,457 |
|
|
|
22,882 |
|
Shares used
in non-GAAP diluted shares calculation |
|
|
23,916 |
|
|
23,525 |
|
|
|
23,060 |
|
|
|
23,457 |
|
|
|
22,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss). 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) |
|
|
|
|
|
|
|
May 31, |
|
February 28, |
|
May 31, |
|
2021 |
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
4,582 |
|
$ |
4,738 |
|
$ |
5,433 |
|
Accounts receivable, net |
|
5,202 |
|
|
2,721 |
|
|
3,717 |
|
Inventories |
|
8,849 |
|
|
8,339 |
|
|
7,989 |
|
Prepaid expenses and other |
|
551 |
|
|
571 |
|
|
512 |
|
Total current assets |
|
19,184 |
|
|
16,369 |
|
|
17,651 |
|
|
|
|
|
|
|
Property and
equipment, net |
|
677 |
|
|
617 |
|
|
663 |
|
Operating
lease right-of-use assets |
|
1,606 |
|
|
1,763 |
|
|
2,107 |
|
Other
assets |
|
198 |
|
|
142 |
|
|
153 |
|
Total assets |
$ |
21,665 |
|
$ |
18,891 |
|
$ |
20,574 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
2,893 |
|
$ |
1,086 |
|
$ |
945 |
|
Accrued expenses |
|
2,163 |
|
|
1,624 |
|
|
1,439 |
|
Operating lease liabilities, short-term |
|
737 |
|
|
722 |
|
|
658 |
|
Customer deposits and deferred revenue, short-term |
|
189 |
|
|
587 |
|
|
170 |
|
Line of credit |
|
1,400 |
|
|
1,400 |
|
|
- |
|
Current portion of long-term debt |
|
1,679 |
|
|
1,492 |
|
|
653 |
|
Total current liabilities |
|
9,061 |
|
|
6,911 |
|
|
3,865 |
|
|
|
|
|
|
|
Operating
lease liabilities, long-term |
|
1,007 |
|
|
1,185 |
|
|
1,605 |
|
Long-term
debt, net of current portion |
|
- |
|
|
187 |
|
|
1,026 |
|
Deferred
revenue, long-term |
|
99 |
|
|
80 |
|
|
22 |
|
Other
liabilities |
|
49 |
|
|
43 |
|
|
- |
|
Total liabilities |
|
10,216 |
|
|
8,406 |
|
|
6,518 |
|
|
|
|
|
|
|
Aehr Test
Systems shareholders' equity |
|
11,449 |
|
|
10,485 |
|
|
14,077 |
|
Noncontrolling interest |
|
- |
|
|
- |
|
|
(21 |
) |
Total shareholders' equity |
|
11,449 |
|
|
10,485 |
|
|
14,056 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
21,665 |
|
$ |
18,891 |
|
$ |
20,574 |
|
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 |
Aehr Test Systems (NASDAQ:AEHR)
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Aehr Test Systems (NASDAQ:AEHR)
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