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 2021
ended February 28, 2021.
Fiscal Third Quarter Financial Results:
- Net sales were $5.3 million, compared to $6.1 million in the
third quarter of fiscal 2020.
- GAAP net loss was $735,000, or $0.03 per diluted share, and
includes a $299,000 charge related to a voluntary replacement of a
component to improve long term reliability of its systems. This
compared to GAAP net income of $245,000, or $0.01 per diluted
share, in the third quarter of fiscal 2020.
- Non-GAAP net loss was $464,000, or $0.02 per diluted share, and
includes the voluntary component replacement charge and excludes
the impact of stock-based compensation, compared to non-GAAP net
income of $452,000, or $0.02 per diluted share, in the third
quarter of fiscal 2020.
- Bookings were $8.0 million for the quarter, compared to $3.1
million in the third quarter of fiscal 2020.
- Backlog as of February 28, 2021 was $3.7 million. Effective
backlog, which includes backlog at the end of fiscal third quarter
plus orders since the end of the third quarter, is $5.3
million.
Fiscal First Nine Months Financial Results:
- Net sales were $9.0 million, compared to $18.5 million in the
first nine months of fiscal 2020.
- GAAP net loss was $2.6 million, or $0.11 per diluted share,
compared to GAAP net income of $83,000, or $0.00 per diluted share,
in the first nine months of fiscal 2020.
- Non-GAAP net loss was $4.2 million, or $0.18 per diluted share,
which excludes the impact of stock-based compensation and a
non-cash net gain of $2.2 million and tax benefit of
$215,000 related to the closure of Aehr’s Japan subsidiary
during the first quarter. This compared to non-GAAP net income of
$694,000, or $0.03 per diluted share, in the first nine months of
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 on the improving customer and market
conditions:
“Our bookings of $8.0 million during the third quarter is our
highest bookings quarter in over a year and includes two customer
orders for our FOX-XP™ test cells. One of these orders is from
an existing customer for a partially populated FOX-XP multi-wafer
test and burn-in system and multiple WaferPak™ Contactors to
begin volume production of their high-performance silicon photonics
devices. This customer is a major supplier of fiber optic
transceivers in the Data Center Interconnect (DCI) market and is
transitioning from Aehr’s FOX-NP™ system for initial production
burn-in and stabilization to using Aehr’s production FOX-XP system
to meet their high-volume production forecast. The other FOX-XP
test cell order from a new customer totaled $4.3 million and
included a single FOX-XP test system, a set of FOX DiePak
Carriers®, and a fully automated DiePak loader/unloader. This order
was for an initial test cell for test and burn-in of sensors to a
major mobile device manufacturer.
“During our fiscal third quarter we began to see signs of
recovery from several customer production ramp delays and push
outs of forecasted orders that we experienced related to
COVID-19. Our improved bookings and revenue in the quarter reflect
significant increased activity with both current and new customer
engagements as business conditions began to improve. This increased
business activity includes reengagement with existing customers as
they focus on increasing their production capacity, particularly as
the data center and 5G infrastructure-related silicon photonics
optical transceiver market is starting to recover. Multiple
customers have completed facility upgrades for expected FOX system
deliveries in the near future. In addition, we are seeing new
customer investigations and evaluations for wafer level burn-in
with multiple silicon carbide companies and over a dozen silicon
photonics and transceiver laser stabilization applications, and
also evaluations for both wafer level burn-in and package part
burn-in for automotive devices.
“We are also seeing increased orders for our proprietary
WaferPak consumables from existing customers in the silicon carbide
and silicon photonics segments for their installed base of FOX
multi-wafer test systems. Towards the end of our fiscal third
quarter and into our fourth quarter so far, we have received
multiple orders for new designs and added capacity for volume
production test of silicon carbide power semiconductors for
electric vehicles and electric vehicle chargers, as well as silicon
photonics devices for data center and 5G infrastructure fiber optic
transceivers. We are forecasting additional orders for our WaferPak
and DiePak consumables during the remainder of the current fiscal
year from our installed base of customers.
“With our increasing customer visibility, including facility
improvements that customers have made to install our tools on their
test floors, we continue to expect orders from the customers that
told us they would ramp in the first half of our fiscal year. We
expect to end our fiscal year with a strong year-over-year growth
in our bookings. Unfortunately, the timing of some orders was
delayed causing us to come in short of our revenue expectations for
this fiscal year. Most importantly, we expect this booking momentum
will continue, which will drive revenue growth in the next fiscal
year.
“Looking forward this quarter and into our fiscal 2022 that
begins June 1, we feel our outlook is very promising, with
forecasts from current customers to ramp in silicon carbide for
electric vehicles and electric vehicle chargers; silicon photonics
for data center and 5G infrastructure; 2D, 3D and other mobile
sensors; and flash memory devices. We also expect to announce new
customer bookings and shipments, particularly in silicon carbide
and other automotive devices, during this calendar year.”
Fiscal Q4 2021 Financial Guidance:For the
fiscal fourth quarter ending May 31, 2021, Aehr expects revenue to
be at least $7.0 million, a 33% sequential increase from the third
quarter, and to be profitable for the fiscal fourth quarter.
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 2021 operating results. To access the call
dial 800-367-2403 (+1 334-777-6978 outside the United States) and
give the participant pass code 1711315. 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 15, 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 fourth
quarter of fiscal 2021; 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 2021, 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 |
|
Nine Months Ended |
|
|
Feb 28, |
|
Nov 30, |
|
Feb 29, |
|
Feb 28, |
|
Feb 29, |
|
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
5,267 |
|
|
$ |
1,683 |
|
|
$ |
6,111 |
|
|
$ |
8,962 |
|
|
$ |
18,518 |
|
Cost of sales |
|
3,373 |
|
|
|
1,306 |
|
|
|
3,120 |
|
|
|
6,464 |
|
|
|
10,054 |
|
Gross profit |
|
1,894 |
|
|
|
377 |
|
|
|
2,991 |
|
|
|
2,498 |
|
|
|
8,464 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
1,643 |
|
|
|
1,501 |
|
|
|
1,891 |
|
|
|
4,658 |
|
|
|
5,856 |
|
Research and development |
|
903 |
|
|
|
820 |
|
|
|
845 |
|
|
|
2,623 |
|
|
|
2,532 |
|
Total operating expenses |
|
2,546 |
|
|
|
2,321 |
|
|
|
2,736 |
|
|
|
7,281 |
|
|
|
8,388 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations |
|
(652 |
) |
|
|
(1,944 |
) |
|
|
255 |
|
|
|
(4,783 |
) |
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) income, net |
|
(10 |
) |
|
|
(12 |
) |
|
|
13 |
|
|
|
(35 |
) |
|
|
27 |
|
Net gain from dissolution of Aehr Test Systems Japan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,186 |
|
|
|
- |
|
Other (expense) income, net |
|
(39 |
) |
|
|
(6 |
) |
|
|
(9 |
) |
|
|
(139 |
) |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income tax (expense) benefit |
|
|
(701 |
) |
|
|
(1,962 |
) |
|
|
259 |
|
|
|
(2,771 |
) |
|
|
109 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
(34 |
) |
|
|
(4 |
) |
|
|
(14 |
) |
|
|
177 |
|
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
(735 |
) |
|
|
(1,966 |
) |
|
|
245 |
|
|
|
(2,594 |
) |
|
|
83 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to the |
|
|
|
|
|
|
|
|
|
noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net (loss) income
attributable to Aehr Test |
|
|
|
|
|
|
|
|
|
Systems common
shareholders |
$ |
(735 |
) |
|
$ |
(1,966 |
) |
|
$ |
245 |
|
|
$ |
(2,594 |
) |
|
$ |
83 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.01 |
|
|
$ |
(0.11 |
) |
|
$ |
0.00 |
|
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.01 |
|
|
$ |
(0.11 |
) |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
|
|
|
|
|
|
|
Basic |
|
23,525 |
|
|
|
23,396 |
|
|
|
22,937 |
|
|
|
23,390 |
|
|
|
22,823 |
|
Diluted |
|
23,525 |
|
|
|
23,396 |
|
|
|
23,130 |
|
|
|
23,390 |
|
|
|
22,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-more- |
|
|
|
|
|
|
|
|
|
|
|
|
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 29, |
|
Feb 28, |
|
Feb 29, |
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income |
|
$ |
(735 |
) |
|
$ |
(1,966 |
) |
|
$ |
245 |
|
$ |
(2,594 |
) |
|
$ |
83 |
|
|
Stock-based compensation expense |
|
|
271 |
|
|
|
257 |
|
|
|
207 |
|
|
798 |
|
|
|
611 |
|
|
Income from dissolution of Aehr Test Systems Japan |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(2,401 |
) |
|
|
- |
|
|
Non-GAAP net (loss) income |
|
$ |
(464 |
) |
|
$ |
(1,709 |
) |
|
$ |
452 |
|
$ |
(4,197 |
) |
|
$ |
694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) income per diluted share |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.01 |
|
$ |
(0.11 |
) |
|
$ |
0.00 |
|
|
Non-GAAP net (loss) income per diluted share |
|
$ |
(0.02 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.02 |
|
$ |
(0.18 |
) |
|
$ |
0.03 |
|
|
Shares used in GAAP diluted shares calculation |
|
|
23,525 |
|
|
|
23,396 |
|
|
|
23,130 |
|
|
23,390 |
|
|
|
22,940 |
|
|
Shares used
in non-GAAP diluted shares calculation |
|
|
|
23,525 |
|
|
|
23,396 |
|
|
|
23,130 |
|
|
23,390 |
|
|
|
22,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) 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,
except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
February 28, |
|
November 30, |
|
May 31, |
|
|
|
|
2021 |
|
2020 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
4,738 |
|
$ |
3,449 |
|
$ |
5,433 |
|
|
Accounts receivable, net |
|
2,721 |
|
|
1,429 |
|
|
3,717 |
|
|
Inventories |
|
|
8,339 |
|
|
9,057 |
|
|
7,989 |
|
|
Prepaid expenses and other |
|
571 |
|
|
433 |
|
|
512 |
|
|
Total current assets |
|
16,369 |
|
|
14,368 |
|
|
17,651 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
617 |
|
|
683 |
|
|
663 |
|
|
Operating lease right-of-use assets |
|
1,763 |
|
|
1,918 |
|
|
2,107 |
|
|
Other assets |
|
|
142 |
|
|
142 |
|
|
153 |
|
|
Total assets |
$ |
18,891 |
|
$ |
17,111 |
|
$ |
20,574 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
1,086 |
|
$ |
1,155 |
|
$ |
945 |
|
|
Accrued expenses |
|
1,624 |
|
|
1,344 |
|
|
1,439 |
|
|
Operating lease liabilities, short-term |
|
722 |
|
|
705 |
|
|
658 |
|
|
Customer deposits and deferred revenue, short-term |
|
|
|
587 |
|
|
66 |
|
|
170 |
|
|
Line of credit |
|
1,400 |
|
|
- |
|
|
- |
|
|
Current portion of long-term debt |
|
1,492 |
|
|
1,213 |
|
|
653 |
|
|
Total current liabilities |
|
6,911 |
|
|
4,483 |
|
|
3,865 |
|
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, long-term |
|
1,185 |
|
|
1,361 |
|
|
1,605 |
|
|
Long-term debt, net of current portion |
|
187 |
|
|
466 |
|
|
1,026 |
|
|
Deferred revenue, long-term |
|
80 |
|
|
9 |
|
|
22 |
|
|
Other liabilities |
|
43 |
|
|
- |
|
|
- |
|
|
Total liabilities |
|
8,406 |
|
|
6,319 |
|
|
6,518 |
|
|
|
|
|
|
|
|
|
|
|
Aehr Test Systems shareholders' equity |
|
10,485 |
|
|
10,792 |
|
|
14,077 |
|
|
Noncontrolling interest |
|
- |
|
|
- |
|
|
(21 |
) |
|
Total shareholders' equity |
|
10,485 |
|
|
10,792 |
|
|
14,056 |
|
|
Total liabilities and
shareholders' equity |
$ |
18,891 |
|
$ |
17,111 |
|
$ |
20,574 |
|
|
|
|
|
|
|
|
|
|
|
Contacts:
Aehr Test Systems Ken
Spink Chief
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)
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Aehr Test Systems (NASDAQ:AEHR)
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