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 2023
ended February 28, 2023.
Fiscal Third Quarter Financial Results:
- Net sales were $17.2 million, up 13% from $15.3 million in the
third quarter of fiscal 2022.
- GAAP net income was $4.1 million, or $0.14 per diluted share,
up 84% compared to GAAP net income of $2.2 million, or $0.08 per
diluted share, in the third quarter of fiscal 2022, which includes
the impact of a $1.0 million adjustment for excess and obsolete
inventory related to legacy products.
- Non-GAAP net income, which excludes the impact of stock-based
compensation, was $4.7 million, or $0.16 per diluted share,
compared to non-GAAP net income of $3.1 million, or $0.11 per
diluted share, in the third quarter of fiscal 2022.
- Bookings were $33.3 million, the highest quarterly bookings in
the Company’s history.
- Backlog as of February 28, 2023, was $31.6 million. Effective
backlog which includes all orders received since the end of the
third quarter is $41 million.
Fiscal First Nine Months Financial Results:
- Net sales were $42.7 million, up 40% from $30.5 million in the
first nine months of fiscal 2022.
- GAAP net income was $8.4 million, or $0.29 per diluted share,
compared to GAAP net income of $3.7 million, or $0.13 per diluted
share, in the first nine months of fiscal 2022, which includes the
impact of a $1.7 million gain from the forgiveness of the Paycheck
Protection Program loan and a $1.0 million excess and obsolete
inventory adjustment related to legacy products.
- Non-GAAP net income was $10.5 million, or $0.36 per diluted
share, which excludes the impact of stock-based compensation,
compared to non-GAAP net income of $4.1 million, or $0.15 per
diluted share, in the first nine months of fiscal 2022, which
excludes the impact of stock-based compensation, and forgiveness of
the Paycheck Protection Program loan.
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:
“Aehr had another great quarter, with revenue and net income
ahead of consensus estimates. We finished the quarter with record
bookings for a single quarter of $33.3 million and a strong backlog
of $31.6 million. Our effective backlog which includes all orders
received since the end of the third quarter is $41 million. Total
bookings for the fiscal year to date including over $9 million in
bookings received in March is $72.5 million.
“Our momentum in silicon carbide wafer level burn-in continues
to grow. During the quarter, our second major silicon carbide
semiconductor customer moved from an initial FOX-NP™ dual
wafer system for engineering and qualification to purchasing their
first production FOX-XP™ multi-wafer test and burn-in systems
including our new high voltage option with high voltage arc
suppression technology. These systems will be upgraded to include
our new fully integrated and automated WaferPak™ Aligner that
we are beginning shipments of this quarter. Last week, we announced
a follow-on order from this customer for production quantities of
our WaferPak full wafer Contactors that will be used with these
systems. We believe that this major silicon carbide customer will
purchase a large number of our FOX-XP systems to meet their
publicly announced significant increase in planned capacity and
revenue growth over the next several years and through the end of
the decade.
“In addition, our lead silicon carbide customer continued to
ramp up their production and their use of our FOX-XP production
systems and WaferPak Contactors. During the quarter, we received a
$25 million order for a significant number of additional FOX-XP
wafer level test and burn-in systems scheduled to ship over the
next six to seven months to meet their increased capacity needs for
producing silicon carbide devices for electric vehicles, chargers,
and electrification infrastructure. Earlier this month, we also
announced a $6.7 million follow-on order for WaferPaks from the
same customer, representing about half of the total WaferPak full
wafer Contactors needed for these FOX-XP systems that each have the
capacity to test and burn-in 18 full wafers of devices at a
time.
“We also continue to make great progress with our previously
announced benchmarks and engagements with prospective new
customers. We continue to work closely with one of the largest
silicon carbide players in the world on a large wafer level
benchmark and qualification. We are excited that this large wafer
level benchmark and qualification continues toward success as the
silicon carbide supplier finishes their internal
processes to complete the qualification. As with our other
large silicon carbide customers, we expect this silicon carbide
supplier to require significant capacity of wafer level test and
burn-in systems to meet the fast-growing demand for silicon carbide
devices and electric vehicles over the next decade.
“We also had a very productive quarter in terms of new customer
engagements, which has continued into this quarter. With
essentially all Covid-related restrictions behind us throughout the
world, our customer-facing meetings and our progress on new
customer opportunities have grown substantially. Since last
quarter’s conference call, we have added commitments from three
additional companies currently making silicon carbide to move
forward with full wafer level evaluations and/or directly to
purchase our systems.
“In addition to our momentum in silicon carbide, we are also now
engaged with several gallium nitride semiconductor suppliers
ranging from Radio Frequency (RF) to power devices. Since our last
call, we also received a commitment from a very large multinational
semiconductor supplier to move forward with a full wafer level
evaluation of gallium nitride devices. This evaluation includes our
new high voltage option for doing the critical High Temperature
Reverse Bias stress test needed for gallium nitride MOSFETs and
amplifiers. We believe gallium nitride will be a significant
market, driven by some very high-volume applications such as RF
amplifiers, consumer electronic power converters and chargers,
solar power inverters, and charger and converter applications in
standard and electric vehicles. Feedback from companies has been
that several of these applications will require production burn-in
to meet the applications’ critical quality and reliability needs.
With our proven FOX-XP wafer level burn-in solution and its
cost-effective ability to test thousands of devices in parallel and
up to nine wafers at a time with high voltage capability, we
believe we are well positioned to capitalize on this opportunity
and believe gallium nitride can expand our total addressable market
in a meaningful way.
“We also continue to be enthusiastic about the silicon photonics
market, especially as it looks to expand its use beyond fiber optic
transceivers to become an embedded application that integrates
fiber optic technology into the chipsets. Multiple market leaders
have publicly discussed their investments to integrate silicon
photonics transceivers into their microprocessors, graphics
processors, and chipsets. While we believe this transition is still
several years out, we also believe the silicon photonics test and
burn-in market can become significant and could grow to be as large
or larger than the silicon carbide market later in this decade.
“We are very encouraged by the continued positive momentum and
expanding growth opportunities we see with our current and
prospective customers. We remain confident that our bookings will
grow faster than revenue this fiscal year as the ramp in demand for
silicon carbide and electric vehicles increases, setting us up with
strong momentum heading into our fiscal 2024 that begins in
June.”
Update on ATM OfferingAehr Test Systems is also
providing an update today on its previously announced offer to sell
up to $25 million of the Company’s common stock on the open market
via an At-The-Market (ATM) offering. During the quarter, the
Company received gross proceeds totaling $7.3 million on the sale
of 208,917 shares at an average price of $34.78 per share, and
$17.7 million remains available under this ATM. Under the terms of
the ATM equity distribution agreement, the company may not sell
shares during the Company’s closed trading windows when it is
deemed the company may be in possession of material non-public
information. The Company only plans on selling shares against the
ATM during open trading windows and when it believes it would
provide the best source of capital with minimal dilution to
existing shareholders.
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, representing growth of at least 18% to 38%
year over year 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 third 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 2107882.
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 ABTS™ and FOX-P™ families of test and
burn-in systems and FOX WaferPak™ 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; 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 2023, including related to revenue and profitability, and
expectations regarding fiscal 2023; Aehr’s ability to expand its
number of customers using its FOX-P™ solutions; the ability to
secure potential customer engagements; and expectations related to
long-term demand for Aehr’s productions and the attractiveness of
key markets. 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 |
|
Nine Months Ended |
|
Feb 28, |
|
Nov 30, |
|
Feb 28, |
|
Feb 28, |
|
Feb 28, |
|
2023 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
17,206 |
|
|
$ |
14,815 |
|
|
$ |
15,283 |
|
|
$ |
42,692 |
|
|
$ |
30,540 |
|
Cost of sales |
|
8,331 |
|
|
|
6,904 |
|
|
|
8,886 |
|
|
|
21,425 |
|
|
|
17,343 |
|
Gross profit |
|
8,875 |
|
|
|
7,911 |
|
|
|
6,397 |
|
|
|
21,267 |
|
|
|
13,197 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
3,250 |
|
|
|
2,875 |
|
|
|
2,612 |
|
|
|
8,650 |
|
|
|
7,054 |
|
Research and development |
|
1,832 |
|
|
|
1,551 |
|
|
|
1,529 |
|
|
|
4,881 |
|
|
|
4,163 |
|
Total operating expenses |
|
5,082 |
|
|
|
4,426 |
|
|
|
4,141 |
|
|
|
13,531 |
|
|
|
11,217 |
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
3,793 |
|
|
|
3,485 |
|
|
|
2,256 |
|
|
|
7,736 |
|
|
|
1,980 |
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense),
net |
|
374 |
|
|
|
263 |
|
|
|
1 |
|
|
|
758 |
|
|
|
(9 |
) |
Gain from forgiveness of PPP
loan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,698 |
|
Other (expense) income,
net |
|
(18 |
) |
|
|
(5 |
) |
|
|
10 |
|
|
|
1 |
|
|
|
68 |
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
4,149 |
|
|
|
3,743 |
|
|
|
2,267 |
|
|
|
8,495 |
|
|
|
3,737 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(17 |
) |
|
|
(18 |
) |
|
|
(24 |
) |
|
|
(49 |
) |
|
|
(81 |
) |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
4,132 |
|
|
$ |
3,725 |
|
|
$ |
2,243 |
|
|
$ |
8,446 |
|
|
$ |
3,656 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.15 |
|
|
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.31 |
|
|
$ |
0.14 |
|
Diluted |
$ |
0.14 |
|
|
$ |
0.13 |
|
|
$ |
0.08 |
|
|
$ |
0.29 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
|
27,893 |
|
|
|
27,579 |
|
|
|
26,871 |
|
|
|
27,571 |
|
|
|
25,684 |
|
Diluted |
|
29,373 |
|
|
|
29,080 |
|
|
|
28,854 |
|
|
|
29,080 |
|
|
|
27,510 |
|
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 28, |
|
Nov 30, |
|
Feb 28, |
|
Feb 28, |
|
Feb 28, |
|
2023 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
$ |
4,132 |
|
$ |
3,725 |
|
$ |
2,243 |
|
$ |
8,446 |
|
$ |
3,656 |
|
Stock-based compensation expense |
|
592 |
|
|
793 |
|
|
880 |
|
|
2,095 |
|
|
2,186 |
|
Gain from forgiveness of PPP loan |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,698 |
) |
Non-GAAP net income |
$ |
4,724 |
|
$ |
4,518 |
|
$ |
3,123 |
|
$ |
10,541 |
|
$ |
4,144 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per diluted share |
$ |
0.14 |
|
$ |
0.13 |
|
$ |
0.08 |
|
$ |
0.29 |
|
$ |
0.13 |
|
Non-GAAP net income per diluted share |
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.11 |
|
$ |
0.36 |
|
$ |
0.15 |
|
Shares used in GAAP diluted shares calculation |
|
29,373 |
|
|
29,080 |
|
|
28,854 |
|
|
29,080 |
|
|
27,510 |
|
Shares used in non-GAAP diluted shares calculation |
|
29,373 |
|
|
29,080 |
|
|
28,854 |
|
|
29,080 |
|
|
27,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income is a non-GAAP measure and should not be
considered a replacement for GAAP results. Non-GAAP net 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 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,
except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
February 28, |
|
November 30, |
May 31, |
|
|
2023 |
|
2022 |
|
2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
17,188 |
|
$ |
18,874 |
|
$ |
31,484 |
|
Short-term investments |
|
25,577 |
|
|
17,710 |
|
|
- |
|
Trade and other accounts receivable, net |
|
11,389 |
|
|
10,156 |
|
|
12,859 |
|
Inventories |
|
21,619 |
|
|
17,972 |
|
|
15,051 |
|
Prepaid expenses and other |
|
808 |
|
|
823 |
|
|
613 |
|
Total current assets |
|
76,581 |
|
|
65,535 |
|
|
60,007 |
|
|
|
|
|
|
|
|
Property and
equipment, net |
|
1,281 |
|
|
1,263 |
|
|
1,203 |
|
Operating
lease right-of-use assets |
|
6,293 |
|
|
561 |
|
|
917 |
|
Other
assets |
|
241 |
|
|
184 |
|
|
201 |
|
Total assets |
$ |
84,396 |
|
$ |
67,543 |
|
$ |
62,328 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
4,988 |
|
$ |
3,949 |
|
$ |
4,195 |
|
Accrued expenses |
|
3,489 |
|
|
2,566 |
|
|
3,610 |
|
Operating lease liabilities, short-term |
|
68 |
|
|
551 |
|
|
794 |
|
Customer deposits and deferred revenue, short-term |
|
843 |
|
|
3,680 |
|
|
2,415 |
|
Total current liabilities |
|
9,388 |
|
|
10,746 |
|
|
11,014 |
|
|
|
|
|
|
|
|
Operating
lease liabilities, long-term |
|
6,324 |
|
|
65 |
|
|
212 |
|
Deferred
revenue, long-term |
|
8 |
|
|
25 |
|
|
69 |
|
Other
liabilities |
|
42 |
|
|
40 |
|
|
44 |
|
Total liabilities |
|
15,762 |
|
|
10,876 |
|
|
11,339 |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
68,634 |
|
|
56,667 |
|
|
50,989 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
84,396 |
|
$ |
67,543 |
|
$ |
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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