Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - AEHR TEST SYSTEMS | aehr_8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
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
|
(323)
468-2300
|
|
|
aehr@mkr-group.com
|
Aehr Test Systems Reports Fiscal 2020 Fourth Quarter and Full
Year
Results and Provides Financial Guidance for Growth and
Profitability in Fiscal 2021
Fremont, CA (July 16, 2020) – Aehr Test Systems (NASDAQ: AEHR),
a worldwide supplier of semiconductor
test and reliability qualification equipment, today announced financial results for its
fiscal 2020 fourth quarter and full year ended May 31,
2020.
Fiscal Fourth Quarter Financial Results:
●
Net
sales were $3.8 million, compared to $7.2 million in the fourth
quarter of fiscal 2019.
●
GAAP net loss was $2.9 million, or $0.13 per
diluted share, and includes approximately $1.9 million in charges,
or $0.08 per share, consisting of a $1.6 million adjustment for
excess and obsolete inventory and a $220,000 adjustment related to
workforce reductions in the Company’s German and Japan
subsidiaries as part of the Company’s cost reduction initiatives announced during its
third quarter conference call. This compares to GAAP net income of
$110,000, or $0.00 per diluted share, that included $118,000 in
restructuring charges, or $0.01 per share, in the fourth quarter of
2019.
●
Non-GAAP
net loss was $720,000, or $0.03 per diluted share, which excludes
the impact of stock-based compensation, restructuring charges and
adjustment for excess and obsolete inventory, compared to non-GAAP
net income of $428,000, or $0.02 per diluted share, in the fourth
quarter of fiscal 2019.
Fiscal Year Financial Results:
●
Net
sales were $22.3 million, compared to $21.1 million in fiscal
2019.
●
GAAP net loss was $2.8 million, or $0.12 per
diluted share, and includes approximately $1.9 million in
inventory reserve and restructuring
charges, or $0.08 per share, compared to a GAAP net loss of $5.2
million, or $0.23 per diluted share, and includes approximately
$1.5 million in inventory reserve and restructuring charges, or
$0.07 per share, in fiscal 2019.
●
Non-GAAP
net loss was $27,000, or $0.00 per diluted share, which excludes
the impact of stock-based compensation expense, restructuring
charges and adjustment for excess and obsolete inventory, compared
to a non-GAAP net loss of $2.8 million, or $0.13 per diluted share,
in fiscal 2019.
●
Backlog as of May
31, 2020 was $2.5 million, compared to $7.5 million as of May 31,
2019.
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.
Aehr Test Systems Reports Fiscal 2020 Fourth Quarter and Full Year
Fiscal 2020 Financial Results
July 16, 2020
Page 2 of 6
Fourth Quarter and Fiscal Year 2020 Business
Highlights:
●
Closed New Order withMajor New
Customer in Silicon Photonics – During the quarter, closed initial order with a
major global leader of communication transceivers for data centers,
telecom, and 5G infrastructure for a FOXTM full wafer level test and burn-in system for
production stabilization and test of their Silicon Photonics
devices.
●
Closed Initial Orderwith
World’s Largest OSAT – During the quarter, closed initial order with the
world’s largest Outsourced Semiconductor Assembly and Test
(OSAT) supplier to use the FOX-PTM family of products including Aehr WaferPaks
TM
and DiePaks® for production test, burn-in, and reliability
screening of devices at full wafer, singulated die, and module
level.
●
Added Key New Market with
Silicon Carbide Devices in FY20 - Added significant new customer and market
opportunity with initial orders from leading semiconductor device
supplier for a FOX multi-wafer system and proprietary WaferPaks for
high volume production burn-in and infant mortality screening of
Silicon Carbide devices at wafer level for Electric Vehicle power
modules.
●
Industry Adopted Production
Wafer Level Burn-in (WLBI) in FY20 – Made significant progress with its new FOX
products for Wafer and Singulated Die Test and Burn-in during the
fiscal year with three key Tier 1 customers added and five
customers transitioning to production with 100% stabilization
and/or infant mortality reliability screening with its FOX
products.
●
FY20 Second Half Saw Pushouts
in Silicon Photonics Ramps – Company experienced push outs of customer
forecasted orders in its second fiscal half of FY20 for its FOX-P
Systems and consumables in data center and some 5G end use
applications for Silicon Photonics transceivers. These customers
have indicated the push outs are temporary and that they will
require the additional system capacity and consumables in the
current fiscal 2021 year.
●
Shipments of Consumables were
Significant Percentage of Revenue – Shipments of WaferPak Contactors and DiePak
Carrier consumables for Aehr’s FOX wafer and singulated
die/module test and burn in systems accounted for 48% of total
revenue in fiscal 2020.
●
Aehr Engaged with Over a Dozen
New Potential Customers – Company is engaged with over one dozen additional
Tier 1 and Tier 2 customers that are considering using the
company’s products for high market growth applications
including Silicon Photonics and Silicon Carbide production
burn-in. Several of these companies are expected to place
their initial orders this fiscal 2021 year with ramps into
production later in this fiscal year and/or the following fiscal
year.
●
Completed Planned Restructuring
and Shift to Higher Margin Products in FY20 –
The company completed its previously announced restructuring
and also moved to much higher margin FOX systems and consumables
during the fiscal year. As a result, the company is profitable at
much lower revenue numbers and has greater leverage to achieve
higher profitability moving forward.
Gayn Erickson, President and CEO of Aehr Test Systems,
commented:
“We
made substantial progress with our new
FOX products for wafer and singulated die test and burn-in during
the year that strengthened our customer base, expanded our markets,
and enhanced our operations and sales capabilities to capitalize on
the significant market opportunities we see
ahead.
“We added three key Tier 1 customers this past fiscal year.
We now have six significantly large Tier 1 customers with
applications and market sizes that are each capable of driving
sales of $6 million to $10 million or more per year of our FOX
wafer level and singulated die test systems and consumables. We
also have another seven Tier 2 customers that are each capable of
FOX product sales typically within $1 million to $3 million per
year. In addition, five of our customers moved to production during
the fiscal year using our FOX products for 100% stabilization or
infant mortality burn-in of devices.
“This past fiscal year we successfully installed our first
production capacity for silicon carbide devices, adding it to the
list of markets such as silicon photonics, 2D & 3D sensors,
automotive, and lasers used in photonics devices that have shown
the value and feasibility of using our FOX solutions to address
these market needs. We see an increasing awareness and adoption
rate that we believe could drive the majority of the market for
silicon carbide as well as silicon photonics to move to wafer level
or singulated die burn-in within the next few years.
“This new silicon carbide application with a Fortune
500 market leader in silicon carbide
and power modules adds a significant new Tier 1 customer of our
FOX-XP TM
system and WaferPaks for whole wafer
burn-in and infant mortality screening of silicon carbide (SIC)
devices. Since our initial installation in January, we have
received multiple follow on orders for additional WaferPaks
including multiple new designs and now have a significant number of
different devices that have been put into production. This customer
is forecasting additional capacity needs for our FOX-XP Wafer Level
Test & Burn-in systems during this fiscal year and for years
into the future.
“We saw our silicon photonics customers move to production
for the first time in fiscal 2020. During the fiscal year, we saw
our lead customer for silicon photonics move to full volume
production for the first time. We expect them to purchase
additional systems this fiscal year and into the future as they
continue to maintain or grow their market share and add additional
silicon photonics devices to the mix. We also moved three
additional silicon photonics customers to production with our FOX
systems in fiscal 2020. All three of these customers are expected
to ramp production during this fiscal 2021, adding capacity in both
systems and consumables. Near fiscal year end, we announced another
new silicon photonics customer that will deploy our FOX-NP
TM
system for initial production burn-in
and stabilization of their high performance silicon photonic
devices, and has forecasted to then transition to our FOX-XP
wafer-level test and burn-in systems during this fiscal year to
meet their volume production forecast.
“We see the total available opportunity for silicon carbide
and silicon photonics wafer level and singulated die test markets
to be approximately $250 million of needed capacity including
consumables. We are currently engaged with over a dozen potential
Tier 1 and Tier 2 customers for both silicon photonics and silicon
carbide applications, and we expect several of these potential
customers to place initial orders this fiscal year, with ramps into
production later in the current fiscal year or in fiscal 2022. We
are also seeing renewed activity and interest for our FOX systems
and consumables for several new applications in the 2D and 3D
sensor markets particularly for mobile devices and believe this
could add to our currently forecasted revenue for this fiscal year
and next.
Aehr Test Systems Reports Fiscal 2020 Fourth Quarter and Full Year
Fiscal 2020 Financial Results
July 16, 2020
Page 3 of 6
“Although COVID-19 has created challenges such as
international travel, some small impacts on our supply chain, and
caution and/or delays with some customer production ramps, we
believe there will be no long-term impact to Aehr, the demand for
our products, or for the attractiveness of the key markets that we
serve. We absolutely believe that we will come out of this
worldwide pandemic stronger than we went in with more production
customers, more applications, and higher value products. Our key
customers’ products are being used to build out new data
centers, improve data rates and increase storage in data centers,
build out of the 5G infrastructure, enable the newest sensors and
technology in smartphones and tablets, enable the wide spread
adoption of electric and hybrid electrics vehicles and charging
stations, and address the unstoppable demand for memory and data
storage in computing, data centers, mobile devices and hundreds of
applications that are keeping the world connected.
“As we move into fiscal 2021, we remain optimistic about
growth in systems and consumables within our installed base of
customers as well as expanding the number of customers with our
family of FOX-P solutions. We expect significant growth in both our
top and bottom lines moving forward, with much lower fixed
operating expenses and significantly higher margin products and
services.”
Fiscal 2021 Financial Guidance:
For the
fiscal year ending May 31, 2021, the Company expects full year total revenue to be between $25
million and $28 million, which would represent growth between 12%
and 26% year over year, and to be profitable for the fiscal
year.
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 2020 fourth
quarter and full year operating results. To access the call dial
800-367-2403 (+1 334-777-6978 outside the United States) and
give the participant pass code 7836578. 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 July 23,
2020. 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,"
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,
statements regarding the temporary nature of customer pushouts and
customer needs for additional system capacity and consumables in
fiscal year 2021; the impact of Aehr’s restructuring on its
ability to achieve higher future profitability; the ability of
current awareness and adoption rates to drive the markets for
silicon carbide and silicon photonics to move to wafer level or
singulated die burn-in; customer capacity needs forecasts related
to Aehr’s FOX-XP Wafer Level Test & Burn-in systems; our
expectations related to the timing and volume of our lead
customer’s future purchases; the total available opportunity for silicon carbide
and silicon photonics wafer level and singulated die test markets;
expectations regarding the timing and occurrence of initial and
subsequent orders of potential customers and the related impact on
Aehr’s forecasted revenues; increases in Aehr’s
customers, applications and product value after the COVID-19
pandemic; growth in systems and consumables within Aehr’s
installed base of customers and expansion of the number of
customer’s in Aehr’s FOX-P solutions; Aehr’s top
and bottom line growth, lower fixed operating expenses and higher
margin products and services in 2021; and Aehr’s revenue in
fiscal 2021. 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 from time to time filed 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 Reports Fiscal 2020 Fourth Quarter and Full Year
Fiscal 2020 Financial Results
July 16, 2020
Page 4 of 6
AEHR
TEST SYSTEMS AND SUBSIDIARIES
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data)
(unaudited)
|
|
Three Months
Ended
|
Year
Ended
|
|||
|
|
May
31,
|
Feb
29,
|
May
31,
|
May
31,
|
May
31,
|
|
|
2020
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
|
Net
sales
|
$3,773
|
$6,111
|
$7,242
|
$22,291
|
$21,056
|
|
Cost of
sales
|
3,866
|
3,120
|
3,863
|
13,920
|
13,454
|
|
Gross (loss)
profit
|
(93)
|
2,991
|
3,379
|
8,371
|
7,602
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling,
general and administrative
|
1,674
|
1,891
|
2,018
|
7,530
|
7,724
|
|
Research
and development
|
854
|
845
|
1,120
|
3,386
|
4,153
|
|
Restructuring
|
220
|
-
|
118
|
220
|
725
|
|
Total
operating expenses
|
2,748
|
2,736
|
3,256
|
11,136
|
12,602
|
|
|
|
|
|
|
|
|
(Loss)
income from operations
|
(2,841)
|
255
|
123
|
(2,765)
|
(5,000)
|
|
|
|
|
|
|
|
|
Interest (expense)
income, net
|
(17)
|
13
|
(24)
|
10
|
(252)
|
|
Other (expense)
income, net
|
(17)
|
(9)
|
17
|
(11)
|
44
|
|
|
|
|
|
|
|
|
(Loss)
income before income tax expense
|
(2,875)
|
259
|
116
|
(2,766)
|
(5,208)
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(10)
|
(14)
|
(6)
|
(36)
|
(27)
|
|
|
|
|
|
|
|
|
Net
(loss) income
|
(2,885)
|
245
|
110
|
(2,802)
|
(5,235)
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to the
|
|
|
|
|
|
|
noncontrolling
interest
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to Aehr Test
|
|
|
|
|
|
|
Systems
common shareholders
|
$(2,885)
|
$245
|
$110
|
$(2,802)
|
$(5,235)
|
|
|
|
|
|
|
|
|
Net (loss) income
per share
|
|
|
|
|
|
|
Basic
|
$(0.13)
|
$0.01
|
$0.00
|
$(0.12)
|
$(0.23)
|
|
Diluted
|
$(0.13)
|
$0.01
|
$0.00
|
$(0.12)
|
$(0.23)
|
|
|
|
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
|
|
|
Basic
|
23,060
|
22,937
|
22,605
|
22,882
|
22,387
|
|
Diluted
|
23,060
|
23,130
|
22,717
|
22,882
|
22,387
|
-more-
Aehr Test Systems Reports Fiscal 2020 Fourth Quarter and Full Year
Fiscal 2020 Financial Results
July 16, 2020
Page 5 of 6
AEHR
TEST SYSTEMS AND SUBSIDIARIES
Reconciliation
of GAAP and Non-GAAP Results
(in thousands,
except per share data)
(unaudited)
|
|
Three Months
Ended
|
Year
Ended
|
|||
|
|
May
31,
|
Feb
29,
|
May
31,
|
May
31,
|
May
31,
|
|
|
2020
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss)
income
|
$(2,885)
|
$245
|
$110
|
$(2,802)
|
$(5,235)
|
|
Stock-based
compensation expense
|
300
|
207
|
200
|
910
|
905
|
|
Restructuring
|
220
|
-
|
118
|
220
|
725
|
|
Excess and
obsolescence provision
|
1,645
|
-
|
-
|
1,645
|
795
|
|
Non-GAAP net (loss)
income
|
$(720)
|
$452
|
$428
|
$(27)
|
$(2,810)
|
|
|
|
|
|
|
|
|
GAAP net (loss)
income per diluted share
|
$(0.13)
|
$0.01
|
$0.00
|
$(0.12)
|
$(0.23)
|
|
Non-GAAP net (loss)
income per diluted share
|
$(0.03)
|
$0.02
|
$0.02
|
$(0.00)
|
$(0.13)
|
|
Shares used in GAAP
diluted shares calculation
|
23,060
|
23,130
|
22,717
|
22,882
|
22,387
|
|
Shares used in
non-GAAP diluted shares calculation
|
23,060
|
23,130
|
22,717
|
22,882
|
22,387
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|||||||||||
-more-
Aehr Test Systems Reports Fiscal 2020 Fourth Quarter and Full Year
Fiscal 2020 Financial Results
July 16, 2020
Page 6 of 6
AEHR
TEST SYSTEMS AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(in thousands,
except per share data)
(unaudited)
|
|
May
31,
|
February
29,
|
May
31,
|
|
|
2020
|
2020
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
and cash equivalents
|
$5,433
|
$5,058
|
$5,428
|
|
Accounts
receivable, net
|
3,717
|
3,511
|
4,859
|
|
Inventories
|
7,989
|
9,330
|
9,061
|
|
Prepaid
expenses and other
|
512
|
586
|
686
|
|
Total
current assets
|
17,651
|
18,485
|
20,034
|
|
|
|
|
|
|
Property and
equipment, net
|
663
|
783
|
1,045
|
|
Operating lease
right-of-use assets
|
2,107
|
2,260
|
-
|
|
Other
assets
|
153
|
160
|
228
|
|
Total
assets
|
$20,574
|
$21,688
|
$21,307
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current
portion of long-term debt
|
$653
|
$-
|
$-
|
|
Accounts
payable
|
945
|
925
|
1,933
|
|
Accrued
expenses
|
1,439
|
1,373
|
2,034
|
|
Operating
lease liabilities, short-term
|
658
|
644
|
-
|
|
Customer
deposits and deferred revenue, short-term
|
170
|
385
|
1,545
|
|
Total
current liabilities
|
3,865
|
3,327
|
5,512
|
|
|
|
|
|
|
Long-term debt, net
of current portion
|
1,026
|
-
|
-
|
|
Deferred
rent
|
-
|
-
|
153
|
|
Operating lease
liabilities, long-term
|
1,605
|
1,772
|
-
|
|
Deferred revenue,
long-term
|
22
|
34
|
189
|
|
Total
liabilities
|
6,518
|
5,133
|
5,854
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity
|
14,077
|
16,575
|
15,472
|
|
Noncontrolling
interest
|
(21)
|
(20)
|
(19)
|
|
Total
shareholders' equity
|
14,056
|
16,555
|
15,453
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$20,574
|
$21,688
|
$21,307
|
###