Aehr Test Systems Reports Fiscal 2019 Fourth Quarter and Full Year Results and Provides Financial Guidance for Significant Gr...
July 18 2019 - 3:05PM
Aehr Test Systems (NASDAQ: AEHR), a worldwide
supplier of semiconductor test and reliability qualification
equipment, today announced financial results for its fiscal 2019
fourth quarter and full year ended May 31, 2019.
Fiscal Fourth Quarter Financial Results:
- Net sales were $7.2 million, compared to $7.3 million in the
fourth quarter of fiscal 2018.
- GAAP net income was $110,000, or $0.00 per diluted share, and
includes $118,000 in restructuring charges related to severance
payments as part of the Company’s reduction in workforce announced
in the third quarter. This compared to GAAP net income of $191,000,
or $0.01 per diluted share, in the fourth quarter of fiscal
2018.
- Non-GAAP net income was $428,000, or $0.02 per diluted share,
which excludes the impact of stock-based compensation expense and
restructuring charges, compared to non-GAAP net income of $365,000,
or $0.02 per diluted share, in the fourth quarter of fiscal
2018.
Fiscal Year Financial Results:
- Net sales were $21.1 million, compared to $29.6 million in
fiscal 2018.
- GAAP net loss was $5.2 million, or $0.23 per diluted share, and
includes approximately $1.5 million in one-time charges, or $0.07
per share, consisting of $725,000 in restructuring charges related
to severance payments as part of the Company’s reduction in
workforce announced in the third quarter, and a $795,000 adjustment
in the third quarter for excess and obsolete inventory. This
compared to GAAP net income of $528,000, or $0.02 per diluted
share, in fiscal 2018.
- Non-GAAP net loss was $2.8 million, or $0.13 per diluted share,
which excludes the impact of stock-based compensation expense,
restructuring charges and adjustment for excess and obsolete
inventory, compared to non-GAAP net income of $1.5 million, or
$0.07 per diluted share, in fiscal 2018.
- Backlog as of May 31, 2019 was $7.5 million, compared to $8.4
million as of May 31, 2018.
- Total cash and cash equivalents at fiscal year-end was $5.4
million.
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.
Fourth Quarter and Recent Business
Highlights:
- Began shipments in its fiscal fourth quarter of its recently
introduced FOX-CP™ and FOX-NP™ test and burn-in systems,
including an initial FOX-CP system to a major new customer and
several FOX-NP test and burn-in systems to two different
customers.
- Received order from new customer Skorpios Technologies for its
FOX-P™ Platform to perform 100% wafer level test and burn-in
for infant mortality and aging of silicon photonics devices as part
of a significant production ramp to meet demand for high speed
optical transceivers.
- Received initial order from a new customer for its FOX-CP
single-wafer test and burn-in system for 100% test and burn-in of
the customer’s new device for high-volume production over a
multi-year ramp of products in the enterprise and data center
market. The FOX-CP system is a new low-cost single-wafer compact
test and reliability verification solution for logic, memory and
photonic devices.
- Received $2.7 million follow-on order from one of its lead
FOX-XP™ Test and Burn-in System customers for a FOX-XP System
and FOX WaferPaks™ to provide additional test capacity for the
customer’s increasing silicon photonics device production
requirements.
- Shipped over $2.6 million in consumable business including
Aehr’s proprietary WaferPak full-wafer contactors and DiePak
singulated die and module carriers to eight different customers
during the fiscal fourth quarter.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“We had a good year for our FOX product family, including our
newest FOX-NP and FOX-CP solutions introduced earlier this year. We
announced three new customers that will use these solutions to
perform 100% test and burn-in production on their devices. We see
each of these new customers moving to production, as well as adding
new customers for these solutions, in the new fiscal year. Our
FOX-NP is a low-cost, small footprint, entry-level system providing
a configuration and price point for companies to do initial product
development, product qualification and production, enabling an
easier transition to our FOX-XP system for full production test.
Our FOX-CP is a low-cost single-wafer compact test and reliability
verification solution for logic, memory and photonic devices. These
new test and burn-in solutions complement the capabilities of our
FOX-XP system. We believe these new solutions will significantly
expand the market for our FOX-P products.
“We believe we have several new opportunities for growth. As we
announced in the fourth quarter, our initial FOX-CP customer will
be performing 100% test of devices that will be used in a very
high-volume application for the Enterprise and Data Center market,
with a build out of this production ramp over the next several
years. The data storage market, as well as multiple devices related
to the worldwide 5G build-out, are great new opportunities for our
test and burn-in systems, where these end markets and customers
require devices to have extremely high levels of quality and
long-term reliability. We believe we have new growth opportunities
in known good die for automotive modules, heterogeneous
semiconductor packaged devices, and the emerging Silicon Carbide
device market. We also remain very optimistic about the silicon
photonics and photonics sensors markets that generated significant
revenue for Aehr in fiscal 2019 and believe these markets will
continue to be significant growth drivers for Aehr over the next
several years.
“Aehr finished the fiscal year with strong revenue and a return
to profitability in the fourth quarter. Heading into fiscal 2020,
we remain very 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.”
Fiscal 2020 Financial Guidance:For the fiscal
year ending May 31, 2020, the Company expects full year total
revenue to be between $27 million and $31 million, which would
represent growth between 28% and 47% year over year, and to be
profitable for the fiscal year.
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
fiscal 2019 fourth quarter and full year operating results. To
access the call dial 888-254-3590 (+1 323-994-2093 outside the
United States) and give the participant pass code 7902515. 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 25, 2019. 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 over 2,500 systems installed 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 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 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’s expectations, beliefs, intentions or strategies
regarding its products and financial guidance, including statements
regarding future market opportunities and conditions, expected
product shipment dates, customer orders or commitments and future
operating results. These risks and uncertainties include, without
limitation, customer demand and acceptance of Aehr’s products, the
ability of new products to meet customer needs or perform as
described, as well as general market conditions, the deployment of
new technologies, such as 5G networks, and Aehr’s ability to
execute on its business strategy. See Aehr’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’s business. 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 |
|
|
|
Year Ended |
|
May 31, |
|
Feb 28, |
|
May 31, |
|
May 31, |
|
May 31, |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
7,242 |
|
|
$ |
3,163 |
|
|
$ |
7,269 |
|
|
$ |
21,056 |
|
|
$ |
29,555 |
|
Cost of sales |
|
3,863 |
|
|
|
2,891 |
|
|
|
4,108 |
|
|
|
13,454 |
|
|
|
17,169 |
|
Gross profit |
|
3,379 |
|
|
|
272 |
|
|
|
3,161 |
|
|
|
7,602 |
|
|
|
12,386 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
2,018 |
|
|
|
1,850 |
|
|
|
1,816 |
|
|
|
7,724 |
|
|
|
7,290 |
|
Research and development |
|
1,120 |
|
|
|
931 |
|
|
|
1,096 |
|
|
|
4,153 |
|
|
|
4,181 |
|
Restructuring |
|
118 |
|
|
|
607 |
|
|
|
- |
|
|
|
725 |
|
|
|
- |
|
Total operating expenses |
|
3,256 |
|
|
|
3,388 |
|
|
|
2,912 |
|
|
|
12,602 |
|
|
|
11,471 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
123 |
|
|
|
(3,116 |
) |
|
|
249 |
|
|
|
(5,000 |
) |
|
|
915 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(24 |
) |
|
|
(76 |
) |
|
|
(89 |
) |
|
|
(252 |
) |
|
|
(399 |
) |
Other income (expense), net |
|
17 |
|
|
|
(11 |
) |
|
|
39 |
|
|
|
44 |
|
|
|
(61 |
) |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax (expense) benefit |
|
116 |
|
|
|
(3,203 |
) |
|
|
199 |
|
|
|
(5,208 |
) |
|
|
455 |
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit |
|
(6 |
) |
|
|
2 |
|
|
|
(8 |
) |
|
|
(27 |
) |
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
110 |
|
|
|
(3,201 |
) |
|
|
191 |
|
|
|
(5,235 |
) |
|
|
528 |
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to the noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Aehr Test Systems common
shareholders |
$ |
110 |
|
|
$ |
(3,201 |
) |
|
$ |
191 |
|
|
$ |
(5,235 |
) |
|
$ |
528 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.00 |
|
|
$ |
(0.14 |
) |
|
$ |
0.01 |
|
|
$ |
(0.23 |
) |
|
$ |
0.02 |
|
Diluted |
$ |
0.00 |
|
|
$ |
(0.14 |
) |
|
$ |
0.01 |
|
|
$ |
(0.23 |
) |
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share
calculations: |
|
|
|
|
|
|
|
|
|
Basic |
|
22,605 |
|
|
|
22,459 |
|
|
|
22,033 |
|
|
|
22,387 |
|
|
|
21,732 |
|
Diluted |
|
22,717 |
|
|
|
22,459 |
|
|
|
22,614 |
|
|
|
22,387 |
|
|
|
22,782 |
|
|
|
|
|
|
|
|
|
|
|
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 28, |
|
May 31, |
|
May 31, |
|
May 31, |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
$ |
110 |
|
$ |
(3,201 |
) |
|
$ |
191 |
|
$ |
(5,235 |
) |
|
$ |
528 |
Stock-based compensation
expense |
|
|
200 |
|
|
224 |
|
|
|
174 |
|
|
905 |
|
|
|
996 |
Restructuring |
|
|
118 |
|
|
607 |
|
|
|
- |
|
|
725 |
|
|
|
- |
Excess and obsolescence
provision |
|
|
- |
|
|
795 |
|
|
|
- |
|
|
795 |
|
|
|
- |
Non-GAAP net income
(loss) |
|
$ |
428 |
|
$ |
(1,575 |
) |
|
$ |
365 |
|
$ |
(2,810 |
) |
|
$ |
1,524 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per
diluted share |
|
$ |
0.00 |
|
$ |
(0.14 |
) |
|
$ |
0.01 |
|
$ |
(0.23 |
) |
|
$ |
0.02 |
Non-GAAP net income (loss) per
diluted share |
|
$ |
0.02 |
|
$ |
(0.07 |
) |
|
$ |
0.02 |
|
$ |
(0.13 |
) |
|
$ |
0.07 |
Shares used in GAAP diluted
shares calculation |
|
|
22,717 |
|
|
22,459 |
|
|
|
22,614 |
|
|
22,387 |
|
|
|
22,782 |
Shares used in non-GAAP
diluted shares calculation |
|
|
22,717 |
|
|
22,459 |
|
|
|
22,614 |
|
|
22,387 |
|
|
|
22,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(loss). 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. |
|
AEHR TEST SYSTEMS AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
May 31, |
|
February 28, |
|
May 31, |
|
2019 |
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
5,428 |
|
|
$ |
12,300 |
|
|
$ |
16,848 |
|
Accounts receivable, net |
|
4,859 |
|
|
|
1,944 |
|
|
|
2,856 |
|
Inventories |
|
9,061 |
|
|
|
9,189 |
|
|
|
9,049 |
|
Prepaid expenses and other |
|
686 |
|
|
|
787 |
|
|
|
703 |
|
Total current assets |
|
20,034 |
|
|
|
24,220 |
|
|
|
29,456 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
1,045 |
|
|
|
975 |
|
|
|
1,203 |
|
Other assets |
|
228 |
|
|
|
256 |
|
|
|
296 |
|
Total assets |
$ |
21,307 |
|
|
$ |
25,451 |
|
|
$ |
30,955 |
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current portion of long-term debt |
$ |
- |
|
|
$ |
6,110 |
|
|
$ |
6,110 |
|
Accounts payable |
|
1,933 |
|
|
|
557 |
|
|
|
1,762 |
|
Accrued expenses |
|
2,034 |
|
|
|
2,085 |
|
|
|
1,646 |
|
Customer deposits and deferred revenue, short-term |
|
1,545 |
|
|
|
1,267 |
|
|
|
1,630 |
|
Total current liabilities |
|
5,512 |
|
|
|
10,019 |
|
|
|
11,148 |
|
|
|
|
|
|
|
Deferred rent |
|
153 |
|
|
|
151 |
|
|
|
63 |
|
Deferred revenue,
long-term |
|
189 |
|
|
|
240 |
|
|
|
459 |
|
Total liabilities |
|
5,854 |
|
|
|
10,410 |
|
|
|
11,670 |
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity |
|
15,472 |
|
|
|
15,060 |
|
|
|
19,305 |
|
Noncontrolling interest |
|
(19 |
) |
|
|
(19 |
) |
|
|
(20 |
) |
Total shareholders' equity |
|
15,453 |
|
|
|
15,041 |
|
|
|
19,285 |
|
Total liabilities and shareholders' equity |
$ |
21,307 |
|
|
$ |
25,451 |
|
|
$ |
30,955 |
|
|
|
|
|
|
|
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 |
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