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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 First Quarter Fiscal 2021 Financial
Results and
Maintains Financial Guidance for Growth and Profitability in Fiscal
2021
Fremont, CA (September 24, 2020) – 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 2021 ended August 31, 2020.
Fiscal First Quarter Financial Results:
●
Net
sales were $2.0 million, compared to $5.5 million in the first
quarter of fiscal 2020.
●
GAAP
net income was $107,000, or $0.00 per diluted share, compared to a
GAAP net loss of $413,000, or $0.02 per diluted share, in the first
quarter of fiscal 2020.
●
Non-GAAP net loss was $2.0 million, or $0.09 per
diluted share, which excludes the impact of stock-based compensation and
non-cash net gain of $2.2 million and a tax benefit of
$215,000 related to the closure of Aehr’s Japan
subsidiary during the quarter. This compared to a non-GAAP net loss
of $214,000, or $0.01 per diluted share, in the first quarter of
fiscal 2020, which excludes the impact of stock-based
compensation.
●
Backlog
as of August 31, 2020 was $1.2 million.
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.
Fiscal First Quarter COVID-19 Related Business
Impacts:
●
Bookings and Revenue Negatively
Impacted by COVID-19 – Fiscal first quarter bookings and revenues were
negatively impacted by pushouts of forecasted customer orders and
production ramp delays for FOX-P systems and consumables for
silicon photonics transceivers used in data centers and 5G
infrastructure, devices used in automotive applications, and
sensors used in mobile devices. These customers have indicated the
pushouts are temporary and that they will require the additional
system capacity and consumables later in the current fiscal 2021
year.
●
New Customer Evaluations and
Orders Experienced Delays – Travel related restrictions due to COVID-19 and
overall caution in a significant number of new potential customers
worldwide has delayed evaluations and initial orders for
Aehr’s systems and consumable products in the first
quarter.
●
Temporary Cost Reductions
Implemented in Response to Delays in Expected Orders and Revenue
– During the
quarter, Aehr implemented temporary expense reductions
across the company including pay reductions of its executive staff
due to customer order pushouts and delays in production ramps.
These changes are expected to result in a total cost savings of
over $550,000 per quarter.
Aehr Test Systems Reports First Quarter Fiscal 2021 Financial
Results
September 24, 2020
Page 2 of 7
Fiscal First Quarter and Recent Business Highlights:
●
Shipped and Successfully
Installed Initial System for a Major New Customer in Silicon
Photonics – During the
quarter, Aehr shipped and successfully installed a FOX-NP
TM
system for initial production burn-in
and stabilization for a new customer who is a global leader of
communication transceivers for data centers, telecom, and 5G
infrastructure.
This customer is forecasting to
transition to Aehr’s FOX-XP wafer-level test and burn-in
systems during this fiscal year to meet their volume production
forecast.
●
Began Marketing and Sales
Campaign with the World’s Largest OSAT Supplier
– During the quarter,
Aehr began an initial marketing and sales campaign with the
world’s largest Outsourced Semiconductor Assembly and Test
(OSAT) supplier for 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. The initial marketing and sales campaign has already
resulted in multiple new customer engagements.
●
Broadened Deployment of the
FOX-XP for Silicon Carbide Devices – During the quarter, Aehr added multiple new device
design wins and completed the initial production release of several
new silicon carbide devices on its FOX-XP full wafer level test and
burn-in system with its lead customer that is using the FOX-XP
system for high volume production burn-in and infant mortality
screening of silicon carbide devices at wafer level for electric
vehicle power modules.
●
Silicon Photonics Ramps
Forecast Remains Strong – Although Aehr experienced pushouts of customer
forecasted orders in the first quarter 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 later in the current fiscal 2021
year.
●
Potential upside in Mobile
Sensor Segment – Aehr has
seen incremental applications and devices that provide upside in
this segment late in fiscal 2021 and into 2022.
●
Aehr Remains Engaged with Over
a Dozen New Potential Customers – Aehr’s list of Tier 1 and Tier 2 customers
that are considering using Aehr’s products for high market
growth applications including silicon photonics and silicon carbide
production burn-in continued to grow in the first
quarter.
Gayn Erickson, President and CEO of Aehr Test Systems,
commented:
“While COVID-19 has created real challenges due to travel
restrictions and overall caution that resulted in delays of some
customer production ramps, we believe these delays are temporary
and do not impact the demand for our products or the attractiveness
of the key markets that we serve. We maintain our belief 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 are serving some of the highest growth
markets including data centers, 5G infrastructure, sensors and
technology for smartphones and tablets, electric and hybrid
electric vehicles, and memory and data storage in computing, data
centers, mobile devices and hundreds of applications that are
keeping the world connected. As a result, we believe our products
will be in high demand this year and for years to
come.
“We saw our silicon photonics customers move to production
with our FOX systems for the first time this past fiscal 2020,
which includes our lead customer and three additional silicon
photonics customers who have each told us that they expect to ramp
production during Aehr’s fiscal 2021, adding capacity in both
systems and consumables. During the quarter we shipped and
installed a FOX-NP TM
system for initial production burn-in
and stabilization for a new customer in the silicon photonics space
who is also forecasting to transition to our FOX-XP wafer-level
test and burn-in systems during this fiscal year to meet their
volume production forecast.
Aehr Test Systems Reports First Quarter Fiscal 2021 Financial
Results
September 24, 2020
Page 3 of 7
“We continue to 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 this 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.
“Last quarter, we completed organizational changes to move to
more effective third party sales representatives in Europe and
Japan, and this quarter put in place temporary expense reductions
across the company in response to COVID-19 related delays in orders
and impacts on revenue. Together these changes will result in total
cost savings of almost $700,000 per quarter, lowering Aehr’s
revenue break even by approximately $4.5 million per
year.
“As we continue into fiscal 2021, we remain optimistic about
the growth opportunities for our systems and consumables within our
installed base of customers, as well as our ability to expand the
number of customers using 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, Aehr maintains its expected
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 first quarter fiscal
2021 operating results. To access the call dial
800-353-6461 (+1
334-323-0501 outside the
United States) and give the participant pass code
9822939. 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 October
1, 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 testof 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.
Aehr Test Systems Reports First Quarter Fiscal 2021 Financial
Results
September 24, 2020
Page 4 of 7
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; Aehr’s total cost savings related to
temporary expense reductions and the impact of Aehr’s
restructuring on its ability to achieve higher future
profitability; customer transitions to new product offerings based
on volume production forecasts; potential upside in the mobile
sensor segment due incremental applications and devices; 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 products; 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 orders of potential and existing customers and the related
impact on Aehr’s forecasted revenues; cost savings related to
organizational changes to third party sales representation in
Europe and Japan; the impact of the COVID-19 pandemic on
Aehr’s production, customers, applications, product value,
and demand for Aehr’s products this year and in future years;
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 First Quarter Fiscal 2021 Financial
Results
September 24, 2020
Page 5 of 7
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,
|
|
2020
|
2020
|
2019
|
|
|
|
|
Net
sales
|
$2,012
|
$3,773
|
$5,533
|
Cost of
sales
|
1,785
|
3,866
|
3,262
|
Gross profit
(loss)
|
227
|
(93)
|
2,271
|
|
|
|
|
Operating
expenses:
|
|
|
|
Selling,
general and administrative
|
1,514
|
1,674
|
1,808
|
Research
and development
|
900
|
854
|
892
|
Restructuring
|
-
|
220
|
-
|
Total
operating expenses
|
2,414
|
2,748
|
2,700
|
|
|
|
|
Loss
from operations
|
(2,187)
|
(2,841)
|
(429)
|
|
|
|
|
Interest (expense)
income, net
|
(13)
|
(17)
|
12
|
Net gain from
dissolution of Aehr Test Systems Japan
|
2,186
|
-
|
-
|
Other (expense)
income, net
|
(94)
|
(17)
|
10
|
|
|
|
|
|
|
|
|
Loss
before income tax benefit (expense)
|
(108)
|
(2,875)
|
(407)
|
|
|
|
|
Income tax benefit
(expense)
|
215
|
(10)
|
(6)
|
|
|
|
|
Net
income (loss)
|
107
|
(2,885)
|
(413)
|
|
|
|
|
Less: Net income
attributable to the noncontrolling
interest
|
-
|
-
|
-
|
|
|
|
|
Net
income (loss) attributable to Aehr Test Systems common
shareholders
|
$107
|
$(2,885)
|
$(413)
|
|
|
|
|
Net income (loss)
per share
|
|
|
|
Basic
|
$0.00
|
$(0.13)
|
$(0.02)
|
Diluted
|
$0.00
|
$(0.13)
|
$(0.02)
|
|
|
|
|
Shares used in per
share calculations:
|
|
|
|
Basic
|
23,248
|
23,060
|
22,708
|
Diluted
|
23,455
|
23,060
|
22,708
|
- more
-
Aehr Test Systems Reports First Quarter Fiscal 2021 Financial
Results
September 24, 2020
Page 6 of 7
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,
|
|
2020
|
2020
|
2019
|
|
|
|
|
GAAP net income
(loss)
|
$107
|
$(2,885)
|
$(413)
|
Stock-based
compensation expense
|
270
|
300
|
199
|
Restructuring
|
-
|
220
|
-
|
Dissolution of Aehr
Test Systems Japan
|
(2,401)
|
-
|
-
|
Excess and
obsolescence provision
|
-
|
1,645
|
-
|
Non-GAAP net
loss
|
$(2,024)
|
$(720)
|
$(214)
|
|
|
|
|
GAAP net income
(loss) per diluted share
|
$0.00
|
$(0.13)
|
$(0.02)
|
Non-GAAP net loss
per diluted share
|
$(0.09)
|
$(0.03)
|
$(0.01)
|
Shares used in GAAP
diluted shares calculation
|
23,455
|
23,060
|
22,708
|
Shares used in
non-GAAP diluted shares calculation
|
23,248
|
23,060
|
22,708
|
Non-GAAP net loss
is a non-GAAP measure and should not be considered a replacement
for GAAP results. Non-GAAP net 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 First Quarter Fiscal 2021 Financial
Results
September 24, 2020
Page 7 of 7
AEHR
TEST SYSTEMS AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(in
thousands)
(unaudited)
|
August
31,
|
May
31,
|
|
2020
|
2020
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
Cash
and cash equivalents
|
$6,313
|
$5,433
|
Accounts
receivable, net
|
1,116
|
3,717
|
Inventories
|
8,102
|
7,989
|
Prepaid
expenses and other
|
439
|
512
|
Total
current assets
|
15,970
|
17,651
|
|
|
|
Property and
equipment, net
|
622
|
663
|
Operating lease
right-of-use assets
|
1,952
|
2,107
|
Other
assets
|
147
|
153
|
Total
assets
|
$18,691
|
$20,574
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
Current
portion of long-term debt
|
$933
|
$653
|
Accounts
payable
|
809
|
945
|
Accrued
expenses
|
1,373
|
1,439
|
Operating
lease liabilities, short-term
|
671
|
658
|
Customer
deposits and deferred revenue, short-term
|
387
|
170
|
Total
current liabilities
|
4,173
|
3,865
|
|
|
|
Long-term debt, net
of current portion
|
746
|
1,026
|
Lease liability
long-term portion
|
1,432
|
1,605
|
Deferred revenue,
long-term
|
19
|
22
|
Total
liabilities
|
6,370
|
6,518
|
|
|
|
Aehr Test Systems
shareholders' equity
|
12,321
|
14,077
|
Noncontrolling
interest
|
-
|
(21)
|
Total
shareholders' equity
|
12,321
|
14,056
|
|
|
|
Total
liabilities and shareholders' equity
|
$18,691
|
$20,574
|
# #
#