Attached files
Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
Aehr Test Systems Investor Relations Contact:
Ken Spink Todd Kehrli or Jim Byers
Chief Financial Officer MKR Group Inc.
(510) 623-9400 x309 (323) 468-2300
aehr@mkr-group.com
Aehr Test Systems Reports 88% Revenue Growth in Second Quarter
of Fiscal 2018 and Reiterates Full Year Guidance
Fremont, CA (January 4, 2018) - Aehr Test Systems (NASDAQ: AEHR), a
worldwide supplier of semiconductor test and burn-in equipment, today
announced financial results for its second quarter of fiscal 2018 ended
November 30, 2017.
Fiscal Second Quarter Financial Results:
- Net sales were $7.9 million, up 88% from $4.2 million in the second
quarter of fiscal 2017.
- GAAP net income was $60,000, or $0.00 per diluted share, compared
to a GAAP net loss of $1.5 million, or $0.09 per diluted share, in
the second quarter of fiscal 2017.
- Non-GAAP net income was $424,000, or $0.02 per diluted share,
compared to a non-GAAP net loss of $1.2 million, or $0.08 per diluted
share, in the second quarter of fiscal 2017.
- Backlog as of November 30, 2017 was $12.2 million.
Fiscal First Six Months Financial Results:
- Net sales were $14.9 million, up 56% from $9.5 million in the first
six months of fiscal 2017.
- GAAP net income was $70,000, or $0.00 per diluted share, compared
to a GAAP net loss of $2.2 million, or $0.15 per diluted share, in
the first six months of fiscal 2017.
- Non-GAAP net income was $650,000, or $0.03 per diluted share, compared
to a non-GAAP net loss of $1.7 million, or $0.11 per diluted share,
in the first six months of fiscal 2017.
An explanation of the use of non-GAAP financial information and a
reconciliation of the non-GAAP financial measures to the most directly
comparable GAAP financial measures can be found in the accompanying
tables.
Second Quarter and Recent Business Highlights:
- Announced today an initial order of over $2 million from a new customer
for the FOX-XPTM test and burn-in system for singulated bare die testing
and burn-in of silicon photonics devices for data
Aehr Test Systems Reports Second Quarter Fiscal 2018 Financial Results
January 4, 2018
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communications applications. This order is from a leader in the
photonics market, representing Aehr Test's fourth customer for its
FOX-XP system and an additional application for its FOX-XP singulated
die / module test configuration.
- Announced last month a follow-on order from one of its lead FOX-XP
Test and Burn-in System customers for an additional multi-wafer test
and burn-in system to provide additional test capacity to meet the
customer's increasing silicon photonics device production
requirements.
- Announced during the quarter a follow-on order from the subcontractor
of one of its lead customers for a partially populated FOX-XP system,
multiple DiePak(R) Carriers for their next generation devices, and
multiple FOX DiePak Loader / Unloaders to increase their current
production capacity.
- Announced during the quarter an order for an Advanced Burn-in and
Test System (ABTSTM) from a new customer in China, representing Aehr
Test's 10th ABTS customer in China and continued expansion and success
in the growing China market.
- Finished the quarter with a strong pick up in shipments and revenue
for ABTS products including initial shipments to the company's ABTS
Chamber OEM customer.
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
"We continue to see good momentum in the first year of availability of
our new FOX-P platform, and are generating increased interest and new
opportunities both within our initial lead customers as well as with
multiple potential new customers.
"Today we are excited to announce a new customer for the FOX-XP test and
burn-in system. This initial production order is from an industry leader
in the photonics market space, and not only further expands our FOX-XP
customer base, but also represents an additional application for our FOX-XP
test cell with a singulated bare die test configuration. This first
application at this customer is for integrated silicon photonics devices
where the customer will now be able to do both production burn-in and
final test of their bare die with our DiePak carriers, thereby reducing
costs and improving quality. This expanded applicability of our DiePak
carriers could significantly expand our market for highly parallel bare
die test and burn-in of devices where safety, security, or consumer
confidence is critical.
"So far this fiscal year, we have received additional orders from our
two lead customers for FOX-XP systems for additional capacity and
capability to address new devices. We continue to be very happy with our
relationship and partnership with both of these customers and their
subcontractors / suppliers. We are also actively engaged with several
additional opportunities related to our FOX-XP and FOX-1P wafer level
and singulated die / module test and burn in systems, and we are seeing
good traction with these potential new customers. This added visibility
adds to our confidence that we can continue to add new customers and
applications to our FOX-P family of products going forward.
"We continue to maintain our confidence in our revenue growth forecast
for this fiscal year, and reiterate our previously provided financial
guidance for the fiscal year ending May 31, 2018 of full year total revenue
growth of at least 50% over fiscal 2017 and to be profitable for the year.
With nearly $15 million
Aehr Test Systems Reports Second Quarter Fiscal 2018 Financial Results
January 4, 2018
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in revenue on the books for the first half of the fiscal year, a healthy
backlog of $12.2 million at the end our fiscal first half, and the
additional orders announced since the start of our second half, we believe
we are well positioned to achieve this expectation."
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 second quarter fiscal 2018
operating results. To access the call dial 877-723-9521 (+1 719-325-
4901 outside the United States) and give the participant pass code 5514558.
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 January 11, 2018. 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 and memory
integrated circuits and has an installed base of more than 2,500 systems
worldwide. Increased quality and reliability needs of the Automotive
and Mobility integrated circuit markets are driving additional test
requirements, capacity needs and opportunities for Aehr Test products
in package and wafer level test. Aehr Test has developed and introduced
several innovative products, including the ABTS and FOX families of
test and burn-in systems, WaferPak contactors, and DiePak carriers.
The ABTS systems are used in production and qualification testing of
packaged parts for both low-power and high-power logic as well as memory
devices. The FOX family of systems includes single and multi-wafer full
wafer contact 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 and systems-on-a-chip.
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's website at
www.aehr.com.
Safe Harbor Statement
This press release contains certain forward-looking statements based
on current expectations, forecasts and assumptions that involve risks
and uncertainties. These statements are based on information available
to Aehr Test as of the date hereof and actual results could differ
materially from those stated or implied due to risks and uncertainties.
Forward-looking statements include statements regarding Aehr Test's
expectations, beliefs, intentions or strategies regarding the future
including statements regarding future market opportunities and
conditions, expected product shipment dates, customer orders or
commitments and future operating results. The risks and uncertainties
that could cause Aehr Test's results to differ materially from those
expressed or implied by such forward-looking statements include, without
limitation, general market conditions, customer demand and acceptance
of Aehr Test's products and Aehr Test's ability to execute on its business
strategy. See Aehr Test's recent 10-K, 10-Q and other reports from time
to time filed with the Securities and Exchange Commission for a more
detailed description of the risks facing Aehr Test's business. Aehr
Test 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 Reports Second Quarter Fiscal 2018 Financial Results
January 4, 2018
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
---------------------------- -------------------
Nov 30, Aug 31, Nov 30, Nov 30, Nov 30,
2017 2017 2016 2017 2016
-------- --------- -------- --------- ---------
Net sales $ 7,923 $ 6,970 $ 4,216 $ 14,893 $ 9,534
Cost of sales 4,792 4,052 2,753 8,844 5,865
-------- -------- -------- -------- --------
Gross profit 3,131 2,918 1,463 6,049 3,669
-------- -------- -------- -------- --------
Operating expenses:
Selling, general and administrative 1,854 1,791 1,707 3,645 3,423
Research and development 1,090 955 1,040 2,045 2,100
-------- -------- -------- -------- --------
Total operating expenses 2,944 2,746 2,747 5,690 5,523
-------- -------- -------- -------- --------
Income (loss) from operations 187 172 (1,284) 359 (1,854)
Interest expense, net (105) (107) (181) (212) (359)
Other (expense) income, net (7) (60) 43 (67) 40
-------- -------- -------- -------- --------
Income (loss) before income 75 5 (1,422) 80 (2,173)
tax (expense) benefit
Income tax (expense) benefit (15) 5 (30) (10) (34)
-------- -------- -------- -------- --------
Net income (loss) 60 10 (1,452) 70 (2,207)
Less: Net income attributable to the
noncontrolling interest -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) attributable to
Aehr Test Systems common shareholders $ 60 $ 10 $(1,452) $ 70 $ (2,207)
======== ======== ======= ======== ========
Net income (loss) per share
Basic $ 0.00 $ 0.00 $ (0.09) $ 0.00 $ (0.15)
Diluted $ 0.00 $ 0.00 $ (0.09) $ 0.00 $ (0.15)
Shares used in per share calculations:
Basic 21,645 21,417 16,029 21,531 14,673
Diluted 22,883 22,991 16,029 22,937 14,673
-more-
Aehr Test Systems Reports Second Quarter Fiscal 2018 Financial Results
January 4, 2018
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
-------------------------- -----------------
Nov 30, Aug 31, Nov 30, Nov 30, Nov 30,
2017 2017 2016 2017 2016
-------- -------- --------- -------- --------
GAAP net icome (loss) $ 60 $ 10 $(1,452) $ 70 $(2,207)
Stock-based compensation expense 364 216 215 580 534
-------- -------- -------- -------- --------
Non-GAAP net income (loss) $ 424 $ 226 $(1,237) $ 650 $(1,673)
======== ======== ======== ======== ========
GAAP net income (loss) per diluted share $ 0.00 $ 0.00 $ (0.09) $ 0.00 $ (0.15)
======== ======== ======== ======== ========
Non-GAAP net income (loss) per diluted share $ 0.02 $ 0.01 $ (0.08) $ 0.03 $ (0.11)
======== ======== ======== ======== ========
Shares used in GAAP diluted shares
calculation 22,883 22,991 16,029 22,937 14,673
======== ======== ======== ======== ========
Shares used in non-GAAP diluted shares
calculation 22,883 22,991 16,029 22,937 14,673
======== ======== ======== ======== ========
______________________________________________________________________
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.
-more-
Aehr Test Systems Reports Second Quarter Fiscal 2018 Financial Results
January 4, 2018
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
November 30, August 31, May 31,
2017 2017 2017
----------- ----------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 9,959 $13,993 $17,803
Short-term investments 5,969 -- --
Accounts receivable, net 3,490 5,301 4,010
Inventories 8,225 9,020 6,604
Prepaid expenses and other 2,098 2,050 961
-------- -------- --------
Total current assets 29,741 30,364 29,378
Property and equipment, net 1,166 1,140 1,419
Other assets 94 95 95
-------- -------- --------
Total assets $31,001 $31,599 $30,892
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,789 $ 3,473 $ 2,808
Accrued expenses 1,607 1,572 1,609
Customer deposits and deferred revenue, short-term 3,142 3,034 3,467
-------- -------- --------
Total current liabilities 6,538 8,079 7,884
Long-term debt 6,110 6,110 6,110
Deferred revenue, long-term 251 97 104
-------- -------- --------
Total liabilities 12,899 14,286 14,098
Aehr Test Systems Shareholders' equity 18,121 17,332 16,813
Noncontrolling interest (19) (19) (19)
-------- -------- --------
Total shareholders' equity 18,102 17,313 16,794
-------- -------- --------
Total liabilities and shareholders' equity $31,001 $31,599 $30,892
======== ======== ========
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