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 2022
ended August 31, 2021. The Company also raised its revenue guidance
for fiscal 2022 by approximately 80% to at least $50 million.
Fiscal First Quarter Financial Results:
- Net sales were $5.6 million, up 181% from $2.0 million in the
first quarter of fiscal 2021.
- GAAP net income was $696,000, or $0.03 per diluted share, which
includes the impact of forgiveness of $1.7 million in loans from
the Paycheck Protection Program (“PPP”) it received in fiscal 2020.
This compares to GAAP net income of $107,000, or $0.00 per diluted
share, in the first quarter of fiscal 2021, which includes the
impact of a gain of $2.4 million related to the closure of Aehr’s
Japan subsidiary during the quarter.
- Non-GAAP net loss was $414,000, or $0.02 per diluted share,
which excludes the impact of stock-based compensation and
forgiveness of the PPP loan. This compares to non-GAAP net loss of
$2.0 million, or $0.09 per diluted share, in the first quarter of
fiscal 2021, which excludes the impact of stock-based compensation,
and the non-cash net gain related to the closure of Aehr’s Japan
subsidiary.
- Backlog as of August 31, 2021 was $16.6 million, up from $1.6
million as of May 31, 2021. Effective backlog, which includes all
orders announced since the end of the first quarter, is over $36
million.
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 off to a strong start for fiscal 2022, finishing the
first quarter with record bookings for a single quarter of $20.7
million. Since the end of the quarter, we have announced an
additional $19.4 million in bookings, bringing our total bookings
for the fiscal year to over $40 million as of today’s date.
“Our strong bookings include several sizable orders received
over the past few months from our lead silicon carbide test and
burn-in customer for our FOX-XP™ systems and WaferPak™ Contactors
to support testing of silicon carbide power devices for electric
vehicles. Each of these silicon carbide-focused FOX-XP systems is
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. This Fortune 500 customer is a major automotive
semiconductor supplier, and we continue to work closely with them
to achieve their test and burn-in requirements and capacity needs.
They continue to forecast orders for additional FOX systems and
WaferPaks this fiscal year and a significant number of systems and
WaferPaks over the next several years driven by electric vehicle
semiconductor test and burn-in demand.
“In addition to this large opportunity with our lead silicon
carbide customer, we are currently in detailed discussions with
multiple other major silicon carbide suppliers regarding their
wafer level test and burn-in needs. We believe we will add several
new silicon carbide customers over the next 18 months that will
ramp into production on our solutions.
“We are seeing very strong demand across the industry for wafer
level burn-in of silicon carbide devices and continue to ramp our
FOX multi-wafer test and burn-in systems and full wafer WaferPaks
to meet this silicon carbide market opportunity which we believe is
only just beginning. We believe silicon carbide power
semiconductors have emerged as the preferred technology for the
electric power conversion and control of the electric engines in
what are called traction inverters as well as the on-board electric
vehicle battery chargers.
“The silicon carbide power semiconductor device market is
expected to increase over 500% between 2020 and 2026, growing at a
compound average growth rate (“CAGR”) of 36% to $4.5 billion,
according to Yole Research’s latest forecast. And a report
from Deloitte forecasts that the total electric vehicle
industry will likely grow at a CAGR of 29% from 2020 to 2025,
before reaching 31.1 million vehicles by 2030 and securing
approximately 32% of the total market share for new car sales.
Market research firm Exawatt (exa-watt.com) estimates that the
total market for silicon carbide wafers for power semiconductors
for electric vehicles in 2021 will be 133,000 150mm equivalent
wafers and the total market will exceed 1.23 million 150 mm
equivalent wafers in 2030. These stats highlight the tremendous
opportunity Aehr Test has in front of it with its wafer level test
and burn-in solution for electric vehicle semiconductors.
“In addition to the devices in the electric vehicles, the energy
infrastructure market that includes charging stations, wind farms,
and solar panels in both solar farms and for individual homes and
businesses all are markets that are consuming more silicon
carbide devices than electric vehicles today and are growing at a
rapid rate over the next decade. We believe it is very clear that
this infrastructure is going to need to grow to support the
electric vehicle demand. Many countries including the United States
are putting in place government subsidies and infrastructure for
these charging stations, wind farms, and solar farms to be
installed to support a greener, more sustainable, and reduced
carbon emission world.
“Our FOX family of products are cost-effective solutions for
ensuring the critical quality and reliability of devices in these
markets, and we anticipate that wafer level test and burn-in will
become the industry standard for quality and reliability screening
of silicon carbide devices. With the most cost-effective solution
in the market to address this opportunity, we believe that Aehr has
the chance to achieve a significant market share.
“In addition to our success in the silicon carbide applications,
we continue to see signs of strengthening in the silicon photonics
test and burn-in market. During this quarter we received and
shipped our first order in China for our FOX solution for
production test of silicon photonics devices, expanding our
customer base for silicon photonics with this new customer that
serves international as well as China markets.
“Several other customers addressing the silicon photonics market
have also forecast additional system and contactor capacity needs
this fiscal year. These include needs to address incremental
production capacity as well as capacity to address new customer and
new product qualification and engineering. Silicon photonics
devices address the 5G and data center infrastructure industry as
well as several other key markets, and Yole Research predicts that
the silicon photonics market will grow at a 36% CAGR from 2020 to
2025.
“Our customers are using our FOX wafer level solutions for 100%
test and burn-in rather than just sampling 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.
“We also continue with multiple programs using our FOX systems
for production test and burn-in of new applications for 2D/3D
sensors for mobile devices. We expect to see meaningful bookings
and revenue from these programs this fiscal year and continue to be
optimistic about this market space.
“As we discussed and anticipated last year during the beginning
of the COVID-19 pandemic, we have emerged a stronger company, with
more production customers, more markets and applications, and
higher value products than we had before the start of the pandemic.
With our record bookings and the strength of our semiconductor test
and burn-in solutions as well as the positive response we are
getting from multiple new potential customers in the silicon
carbide space, we are confident in our growth and are raising our
guidance for revenue for the year.”
Fiscal 2022 Financial Guidance:
For the fiscal year ending May 31, 2022, Aehr is raising its
previously provided guidance for full year total revenue of greater
than $28 million by approximately 80% to at least $50 million,
which is over three times the previous fiscal year’s revenue. The
Company expects to be profitable for the fiscal year at these
revenue levels based upon its operating model.
Management Conference Call and
Webcast
Aehr 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 2022
first quarter operating results. To access the live call, dial
800-437-2398 (US and Canada) or +1 323-289-6576 (International) and
give the participant passcode 5352296. 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 and at
the following link https://edge.media-server.com/mmc/p/vc27gd8n. 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 September 30, 2021. 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 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
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," “sees,” 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 WaferPakTM 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-PTM 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 recent 10-K, 10-Q 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 |
|
Aug 31, |
|
May 31, |
|
Aug 31, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Net
sales |
$ |
5,646 |
|
|
$ |
7,638 |
|
|
$ |
2,012 |
|
Cost of
sales |
|
3,365 |
|
|
|
4,104 |
|
|
|
1,785 |
|
Gross
profit |
|
2,281 |
|
|
|
3,534 |
|
|
|
227 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
Selling, general and administrative |
|
1,953 |
|
|
|
1,904 |
|
|
|
1,514 |
|
Research and development |
|
1,321 |
|
|
|
1,029 |
|
|
|
900 |
|
Total operating expenses |
|
3,274 |
|
|
|
2,933 |
|
|
|
2,414 |
|
|
|
|
|
|
|
(Loss) income from operations |
|
(993 |
) |
|
|
601 |
|
|
|
(2,187 |
) |
|
|
|
|
|
|
Interest
expense, net |
|
(9 |
) |
|
|
(11 |
) |
|
|
(13 |
) |
Net gain
from dissolution of Aehr Test Systems Japan |
|
- |
|
|
|
- |
|
|
|
2,186 |
|
Income from
forgiveness of PPP loan |
|
1,698 |
|
|
|
- |
|
|
|
- |
|
Other income (expense), net |
|
23 |
|
|
|
(23 |
) |
|
|
(94 |
) |
|
|
|
|
|
|
Income (loss) before income tax (expense) benefit |
|
719 |
|
|
|
567 |
|
|
|
(108 |
) |
|
|
|
|
|
|
Income tax
(expense) benefit |
|
(23 |
) |
|
|
- |
|
|
|
215 |
|
|
|
|
|
|
|
Net income |
$ |
696 |
|
|
$ |
567 |
|
|
$ |
107 |
|
|
|
|
|
|
|
Net income
per share |
|
|
|
|
|
Basic |
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.00 |
|
Diluted |
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.00 |
|
|
|
|
|
|
|
Shares used
in per share calculations: |
|
|
|
|
|
Basic |
|
23,999 |
|
|
|
23,659 |
|
|
|
23,248 |
|
Diluted |
|
25,356 |
|
|
|
23,916 |
|
|
|
23,455 |
|
|
|
|
|
|
|
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, |
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
GAAP net
income |
$ |
696 |
|
|
$ |
567 |
|
|
$ |
107 |
|
Stock-based
compensation expense |
|
588 |
|
|
|
303 |
|
|
|
270 |
|
Dissolution
of Aehr Test Systems Japan |
|
- |
|
|
|
- |
|
|
|
(2,401 |
) |
Income from
forgiveness of PPP loan |
|
(1,698 |
) |
|
|
- |
|
|
|
- |
|
Non-GAAP net
(loss) income |
$ |
(414 |
) |
|
$ |
870 |
|
|
$ |
(2,024 |
) |
|
|
|
|
|
|
GAAP net
income per diluted share |
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.00 |
|
Non-GAAP net
(loss) income per diluted share |
$ |
(0.02 |
) |
|
$ |
0.04 |
|
|
$ |
(0.09 |
) |
Shares used
in GAAP diluted shares calculation |
|
25,356 |
|
|
|
23,916 |
|
|
|
23,455 |
|
Shares used
in non-GAAP diluted shares calculation |
|
23,999 |
|
|
|
23,916 |
|
|
|
23,248 |
|
|
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, |
|
|
2021 |
|
|
|
2021 |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
6,530 |
|
|
$ |
4,582 |
|
Accounts receivable, net |
|
4,264 |
|
|
|
5,202 |
|
Inventories |
|
10,146 |
|
|
|
8,849 |
|
Prepaid expenses and other |
|
759 |
|
|
|
551 |
|
Total current assets |
|
21,699 |
|
|
|
19,184 |
|
|
|
|
|
Property and equipment, net |
|
676 |
|
|
|
677 |
|
Operating lease right-of-use assets |
|
1,437 |
|
|
|
1,606 |
|
Other assets |
|
189 |
|
|
|
198 |
|
Total assets |
$ |
24,001 |
|
|
$ |
21,665 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
2,753 |
|
|
|
2,893 |
|
Accrued expenses |
|
1,978 |
|
|
|
2,163 |
|
Operating lease liabilities, short-term |
|
750 |
|
|
|
737 |
|
Customer deposits and deferred revenue, short-term |
|
3,279 |
|
|
|
189 |
|
Line of credit |
|
- |
|
|
|
1,400 |
|
Current portion of long-term debt |
|
- |
|
|
|
1,679 |
|
Total current liabilities |
|
8,760 |
|
|
|
9,061 |
|
|
|
|
|
Operating lease liabilities, long-term |
|
813 |
|
|
|
1,007 |
|
Deferred revenue, long-term |
|
150 |
|
|
|
99 |
|
Other liabilities |
|
46 |
|
|
|
49 |
|
Total liabilities |
|
9,769 |
|
|
|
10,216 |
|
|
|
|
|
Total shareholders' equity |
|
14,232 |
|
|
|
11,449 |
|
Total liabilities and shareholders' equity |
$ |
24,001 |
|
|
$ |
21,665 |
|
|
|
|
|
Contacts:
Aehr Test SystemsKen SpinkChief Financial
Officer(510) 623-9400 x309 |
|
MKR Investor Relations Inc.Todd Kehrli or Jim
ByersAnalyst/Investor Contact (323) 468-2300aehr@mkr-group.com |
|
|
|
Aehr Test Systems (NASDAQ:AEHR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Aehr Test Systems (NASDAQ:AEHR)
Historical Stock Chart
From Sep 2023 to Sep 2024