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 2023
ended August 31, 2022.
Fiscal First Quarter Financial Results:
- Net sales were $10.7 million, up 89% from $5.6 million in the
first quarter of fiscal 2022.
- GAAP net income was $589,000, or $0.02 per diluted share,
compared to GAAP net income of $696,000, or $0.03 per diluted
share, in the first quarter of fiscal 2022, which includes the
impact of forgiveness of $1.7 million in loans from the Paycheck
Protection Program (“PPP”).
- Non-GAAP net income was $1.3 million, or $0.05 per diluted
share, which excludes the impact of stock-based compensation,
compared to a non-GAAP net loss of $414,000, or $0.02 per diluted
share, in the first quarter of fiscal 2022, which excludes the
impact of stock-based compensation and forgiveness of the PPP
loan.
- Bookings were $19.1 million for the quarter ended August 31,
2022.
- Backlog as of August 31, 2022 was $19.5 million.
- Total cash and cash equivalents as of August 31, 2022 were
$36.1 million, up from $6.5 million at the end of the first quarter
of fiscal 2022.
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 good start this year, finishing the first
quarter with revenue and net income ahead of consensus estimates,
and with strong bookings of $19.1 million.
“We are currently engaged or in discussions with almost all the
existing and future silicon carbide suppliers regarding our unique,
low cost, multi-wafer level test and burn-in solution that provides
test electronics and device contactor technology that enables
contact to 100% of devices on a single wafer. This allows our
customers to burn-in every device at a lower cost than they could
in any other form due to our ability to contact thousands of
devices on a single wafer and test 18 wafers in a single system at
one time with our FOX-XPTM multi-wafer test and burn-in system and
proprietary FOX full wafer contact WaferPaksTM. The major silicon
carbide companies expect that most electric vehicle traction
inverters will move to multi-chip modules, and they have told us
that they must move to wafer-level stress and burn-in to remove the
inherent failures before they put these devices into multi-die
modules to meet their cost, yield, and reliability goals of these
modules. Aehr’s technology provides a total turnkey single vendor
solution to meet these customers’ critical test and stress
requirements.
“Our lead customer for silicon carbide wafer level burn-in
continues to ramp up use of our FOX-XP multi-wafer test and burn-in
systems and WaferPaks, placing another significant order with us
during this quarter. Similar to past orders, they purchased the
systems without the necessary WaferPak full wafer contactors and as
such, we expect significant orders from them for WaferPaks to match
these systems. This need for additional capacity is being driven by
increased demand for silicon carbide semiconductors for electric
vehicles. This customer recently announced that they expect their
growth rate to accelerate faster than previously forecasted, and
they continue to forecast orders for a significant number of FOX
systems and WaferPak Contactors over the next several years.
“Our previously announced benchmarks and evaluations with two
additional major silicon carbide semiconductor suppliers continued
to move forward with great progress during the quarter. Following
the end of the quarter, we announced an initial purchase order from
one of these suppliers for our FOX-NP multi-wafer test and burn-in
system, multiple WaferPak Contactors, and a FOX WaferPak Aligner to
be used for qualification of our wafer level burn-in solution for
silicon carbide devices for electric vehicles and other markets.
This new customer is one of the world’s largest suppliers of
silicon carbide devices serving several significant markets
including the electric vehicle industry. We have already shipped
the system to them, and we believe we will achieve their specific
performance and functionality evaluation criteria on their test
floor during the next three to six months as well as expect that
they will be purchasing our FOX-XP production systems for shipment
before the end of this fiscal year ending May 31, 2023. The
benchmark with the other potential customer has also progressed
significantly since last quarter’s conference call. We completed a
significant milestone with a large number of wafers being tested,
and we believe that we will successfully complete their correlation
over the next few months, allowing them to also move forward with
our FOX solution. We expect both of these major silicon carbide
suppliers to implement our FOX platform solution into their volume
manufacturing production flow as they look to capitalize on the
fast-growing demand for silicon carbide devices in electric
vehicles.
“We see demand building for wafer level burn-in of silicon
carbide devices and specifically for traction inverters and onboard
and offboard chargers for electric vehicles. During the last few
months, multiple additional silicon carbide suppliers have asked us
to provide technical feasibility, quotations, and schedules for
production test and burn-in of their wafers. While some of these
companies want to do on-wafer validation of our solutions before
they place orders for systems from us, others are planning to move
directly to purchasing our FOX systems and WaferPaks to accelerate
their time to market. The silicon carbide market for electric
vehicles and its supporting infrastructure requirements are growing
at a tremendous rate, with Canaccord Genuity estimating that wafer
capacity will increase from 125,000 6-inch wafers in 2021 to over
four million 6-inch equivalent wafers in 2030 to meet the electric
vehicle market alone.
“In addition to our progress with silicon carbide applications,
we are seeing an increase in our wafer level burn-in business for
silicon photonics devices used in data communications. We shipped
multiple FOX-NP systems this quarter to support the
characterization and product qualification of new photonics-based
devices. We have also received multiple orders for upgrades to
existing systems that enable a higher number of devices and higher
power per wafer, as well as for new designs for WaferPaks that we
expect will first be ordered for engineering and new product
introduction, and then turn to volume production with higher
quantity
orders.
“We are very encouraged by the continued positive momentum and
expanding growth opportunities we are seeing with current and
prospective customers and are reiterating our previously announced
guidance for revenue this fiscal year as we expect revenue to grow
over the next three quarters. We believe that we will receive
production orders from several silicon carbide customers beyond our
lead customer and begin shipping systems to meet their production
capacity by the end of our current fiscal year that ends May 31,
2023. Beyond our engagements with some of the top major automotive
suppliers, we are also seeing high levels of interest and
discussion with other silicon carbide prospects across the spectrum
of industrial, solar, wind, and charging infrastructure markets
that is expanding our potential customer base and giving us
increased confidence about our growth prospects for fiscal 2024 and
beyond.”
Fiscal 2023 Financial Guidance:
For the fiscal year ending May 31, 2023, Aehr is reiterating its
previously provided guidance for total revenue to be at least $60
million to $70 million, with strong profit margins similar to last
fiscal year. Aehr also continues to expect bookings to grow faster
than revenues in fiscal 2023 as the ramp in demand for silicon
carbide in electric vehicles increases exponentially throughout the
decade.
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 first quarter
fiscal 2023 operating results. To access the live call, dial +1
877-270-2148 (US and Canada) or +1 412-902-6510 (International) and
ask to join the Aehr Test Systems earnings call. 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 may also be accessed by clicking here. A replay of the
conference call will also be available via telephone beginning
approximately two hours after conclusion of the call and will
remain available for one week. To access the call replay, dial +1
877-344-7529 (US and Canada) or +1 412-317-0088 (International) and
enter replay passcode 8724719.
About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a
worldwide provider of test systems for burning-in semiconductor
devices in wafer level, singulated die, and package part form, 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 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 silicon carbide-based power semiconductors, 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," “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 second quarter of fiscal 2023; 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 2023, including
related to revenue and profitability, and expectations regarding
fiscal 2023; 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, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
10,671 |
|
|
$ |
20,289 |
|
|
$ |
5,646 |
|
Cost of sales |
6,190 |
|
|
9,821 |
|
|
3,365 |
|
Gross profit |
4,481 |
|
|
10,468 |
|
|
2,281 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
2,525 |
|
|
2,993 |
|
|
1,953 |
|
Research and development |
1,498 |
|
|
1,655 |
|
|
1,321 |
|
Total operating expenses |
4,023 |
|
|
4,648 |
|
|
3,274 |
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
458 |
|
|
5,820 |
|
|
(993 |
) |
|
|
|
|
|
|
|
|
|
Interest income (expense),
net |
121 |
|
|
22 |
|
|
(9 |
) |
Gain from forgiveness of PPP
loan |
- |
|
|
- |
|
|
1,698 |
|
Other income (expense), net |
24 |
|
|
(38 |
) |
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
603 |
|
|
5,804 |
|
|
719 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(14 |
) |
|
(10 |
) |
|
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
589 |
|
|
$ |
5,794 |
|
|
$ |
696 |
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
0.21 |
|
|
$ |
0.03 |
|
Diluted |
$ |
0.02 |
|
|
$ |
0.20 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
Shares used in per share
calculations: |
|
|
|
|
|
|
|
|
Basic |
27,242 |
|
|
27,003 |
|
|
23,999 |
|
Diluted |
28,788 |
|
|
28,568 |
|
|
25,356 |
|
|
|
|
|
|
|
|
|
|
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, |
|
|
2022 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
GAAP net income |
$ |
589 |
|
$ |
5,794 |
|
$ |
696 |
|
Stock-based compensation
expense |
710 |
|
737 |
|
588 |
|
Gain from forgiveness of PPP
loan |
- |
|
- |
|
(1,698 |
) |
Non-GAAP net income
(loss) |
$ |
1,299 |
|
$ |
6,531 |
|
$ |
(414 |
) |
|
|
|
|
|
|
|
GAAP net income per diluted
share |
$ |
0.02 |
|
$ |
0.20 |
|
$ |
0.03 |
|
Non-GAAP net income (loss) per
diluted share |
$ |
0.05 |
|
$ |
0.23 |
|
$ |
(0.02 |
) |
Shares used in GAAP diluted
shares calculation |
28,788 |
|
28,568 |
|
25,356 |
|
Shares used in non-GAAP
diluted shares calculation |
28,788 |
|
28,568 |
|
23,999 |
|
|
|
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) |
(unaudited) |
|
|
|
|
|
August 31, |
|
May 31, |
|
2022 |
|
2022 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
36,147 |
|
$ |
31,484 |
Accounts receivable, net |
5,116 |
|
12,859 |
Inventories |
17,233 |
|
15,051 |
Prepaid expenses and other |
833 |
|
613 |
Total current assets |
59,329 |
|
60,007 |
|
|
|
|
Property and equipment,
net |
1,322 |
|
1,203 |
Operating lease right-of-use
assets |
740 |
|
917 |
Other assets |
187 |
|
201 |
Total assets |
$ |
61,578 |
|
$ |
62,328 |
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
3,387 |
|
4,195 |
Accrued expenses |
2,479 |
|
3,610 |
Operating lease liabilities, short-term |
741 |
|
794 |
Customer deposits and deferred revenue, short-term |
3,292 |
|
2,415 |
Total current liabilities |
9,899 |
|
11,014 |
|
|
|
|
Operating lease liabilities,
long-term |
73 |
|
212 |
Deferred revenue,
long-term |
47 |
|
69 |
Other liabilities |
41 |
|
44 |
Total liabilities |
10,060 |
|
11,339 |
|
|
|
|
Total shareholders' equity |
51,518 |
|
50,989 |
|
|
|
|
Total liabilities and shareholders' equity |
$ |
61,578 |
|
$ |
62,328 |
|
|
|
|
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 |
(213) 277-5550 |
|
aehr@mkr-group.com |
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