EX-99.1
2
q218-ex99.txt
EXHIBIT 99.1


                                                          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
Page 2 of 6


  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
Page 3 of 6

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
Page 4 of 6


                          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 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 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 Page 6 of 6 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 ======== ======== ========
# # #

The following information was filed by Aehr Test Systems (AEHR) on Thursday, January 4, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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