Exhibit 99.1

 
 
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 First Quarter Fiscal 2019 Financial Results
 
Fremont, CA (September 27, 2018) – Aehr Test Systems (NASDAQ: AEHR),
a worldwide supplier of semiconductor test and burn-in equipment, today announced financial results for its first quarter of fiscal 2019 ended August 31, 2018.
 
Fiscal First Quarter Financial Results:
 
 
Net sales were $4.7 million, compared to $7.0 million in the first quarter of fiscal 2018.
 
GAAP net loss was $1.5 million, or $0.07 per diluted share, compared to GAAP net income of $10,000, or $0.00 per diluted share, in the first quarter of fiscal 2018.
● 
Non-GAAP net loss, which excludes the impact of stock-based compensation expense, was $1.3 million, or $0.06 per diluted share, compared to non-GAAP net income of $226,000, or $0.01 per diluted share, in the first quarter of fiscal 2018.
 
Backlog as of August 31, 2018 was $6.1 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.
 
First Quarter and Recent Business Highlights:
 
● 
Successfully installed initial production FOX-XP system to new customer for test and burn-in of integrated silicon photonics devices for data communications applications using Aehr’s proprietary DiePak® carriers, which allow single socketing for both functional test and burn-in of their singulated bare die.
● 
Completed shipment and acceptance on initial order for new DiePak carrier design from Aehr’s FOX-XP lead customer for a next-generation sensor device expected to ramp later this fiscal year using their installed base of FOX-XP test and burn-in systems.
● 
Booked $1.8 million during the quarter for WaferPakTM and DiePak full-wafer and singulated die / module contactors for use on Aehr’s installed base of FOX test and burn-in systems.
● 
Delivered ABTSTM Test and Burn-in System to a new customer for use in military and aerospace packaged part qualification and production burn-in.
● 
Delivered follow-on ABTS Test and Burn-in System to a wireless communications chipset company for use in production burn-in of automotive devices.
 
Announced today a $2.7 million follow-on order from one of the company’s lead FOX-XP Test and Burn-in System customers for a FOX- XP Multi-Wafer Test and Burn-in System and WaferPak Aligner to provide additional test capacity for the customer’s increasing silicon photonics device production requirements.
 
 
 
 
 
Aehr Test Systems Reports First Quarter 2019 Financial Results
September 27, 2018
Page 2 of 6
 
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
 
“Our revenue in the first quarter was lower on a year-over-year basis with many of our customers’ capacity ramps expected later in our fiscal year. Our first quarter revenue and bottom line reflect the impact of two key shipments anticipated near quarter end that pushed into the second quarter. The revenue from these two shipments will now show up in our second quarter, which ends November 30. We continue to see our customers forecasting the need for additional volume capacity by the end of our current fiscal year that ends in May 2019, with a heavy concentration of shipments in the second half of our fiscal year.
 
“Today we are pleased to announce another production order from our lead customer for our FOX-XP system for production wafer level burn-in of silicon photonics devices. This customer continues to increase their capacity and is also forecasting orders for delivery of a significant number of WaferPak Contactors by the end of this fiscal year to meet this capacity. They are also forecasting additional capacity for FOX-XP systems and WaferPak Contactors throughout calendar year 2019 and beyond. We now have two lead customers ramping their production capacity for Silicon Photonics devices using our FOX-XP system, and we see this market as a significant and growing opportunity for our solutions over at least the next several years.
 
“Our program with our lead customer using the FOX-XP system for testing singulated die/modules for mobile device sensors with our DiePak Carriers continues to move forward. We completed the initial qualification and acceptance of the new DiePak and production test program for a new device and we are expecting them to add capacity for our DiePak Carriers during this fiscal year as this new product ramps into production. We continue to work with this customer on other applications and believe we are well positioned to win additional applications for wafer level and singulated die/module test and burn-in of sensors they produce.
 
“While we are pleased with the strong forecast for increased capacity that we are seeing from multiple customers and programs in calendar year 2019, one of the new programs at our lead FOX-XP customer that we anticipated to begin volume shipments in our fiscal second half has pushed out a few months. The impact of this shift is that we now expect our fiscal 2019 revenue to be in the range of $30 million to $35 million. Our GAAP profit range is expected to be between break-even and $2.5 million, including the investments we are making in manufacturing operations, sales, and marketing. Even with the push out of this customer program, we expect to have a significant increase in bookings and backlog year over year in fiscal 2019.
 
“We remain very optimistic about our market opportunities and our unique capabilities to serve our customers’ test needs.”
 
 
 
 
Aehr Test Systems Reports First Quarter 2019 Financial Results
September 27, 2018
Page 3 of 6
 
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 2019 operating results. To access the call dial 800-458-4121 (+1 323-794-2093 outside the United States) and give the participant pass code 6249614. 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 4, 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, 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 system is a full wafer contact and singulated die/module test and burn-in system 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 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 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 First Quarter 2019 Financial Results
September 27, 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
 
 
 
Aug 31,
 
 
May 31,
 
 
Aug 31,
 
 
 
2018
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
Net sales
 $4,740 
 $7,269 
 $6,970 
Cost of sales
  3,187 
  4,108 
  4,052 
Gross profit
  1,553 
  3,161 
  2,918 
 
    
    
    
Operating expenses:
    
    
    
  Selling, general and administrative
  1,879 
  1,816 
  1,791 
  Research and development
  1,116 
  1,096 
  955 
      Total operating expenses
  2,995 
  2,912 
  2,746 
 
    
    
    
       (Loss) income from operations
  (1,442)
  249 
  172 
 
    
    
    
Interest expense, net
  (78)
  (89)
  (107)
Other income (expense), net
  9 
  39 
  (60)
 
    
    
    
(Loss) income before income tax (expense) benefit
  (1,511)
  199 
  5 
 
    
    
    
Income tax (expense) benefit
  (4)
  (8)
  5 
 
    
    
    
       Net (loss) income
  (1,515)
  191 
  10 
 
    
    
    
Less: Net income attributable to the noncontrolling interest
  - 
  - 
  - 
 
    
    
    
Net (loss) income attributable to Aehr Test Systems common shareholders
 $(1,515)
 $191 
 $10 
 
    
    
    
Net (loss) income per share
    
    
    
        Basic
 $(0.07)
 $0.01 
 $0.00 
        Diluted
 $(0.07)
 $0.01 
 $0.00 
 
    
    
    
Shares used in per share calculations:
    
    
    
        Basic
  22,190 
  22,033 
  21,417 
        Diluted
  22,190 
  22,614 
  22,991 
 
 
 
  -more-
 
 
 
Aehr Test Systems Reports First Quarter 2019 Financial Results
September 27, 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
 
 
 
Aug 31,
 
 
May 31,
 
 
Aug 31,
 
 
 
2018
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
GAAP net (loss) income
 $(1,515)
 $191 
 $10 
Stock-based compensation expense
  256 
  174 
  216 
Non-GAAP net (loss) income
 $(1,259)
 $365 
 $226 
 
    
    
    
GAAP net (loss) income per diluted share
 $(0.07)
 $0.01 
 $0.00 
Non-GAAP net (loss) income per diluted share
 $(0.06)
 $0.02 
 $0.01 
Shares used in GAAP diluted shares calculation
  22,190 
  22,614 
  22,991 
Shares used in non-GAAP diluted shares calculation
  22,190 
  22,614 
  22,991 
 
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 First Quarter 2019 Financial Results
September 27, 2018
Page 6 of 6
 
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
.
 
 
August 31,
 
 
May 31,
 
 
 
2018
 
 
2018
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
  Cash and cash equivalents
 $15,864 
 $16,848 
  Accounts receivable, net
  2,272 
  2,856 
  Inventories
  9,585 
  9,049 
  Prepaid expenses and other
  727 
  703 
      Total current assets
  28,448 
  29,456 
 
    
    
Property and equipment, net
  1,174 
  1,203 
Other assets
  266 
  296 
      Total assets
 $29,888 
 $30,955 
 
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY
    
    
 
    
    
Current liabilities:
    
    
  Current portion of long-term debt
 $6,110 
 $6,110 
  Accounts payable
  1,317 
  1,762 
  Accrued expenses
  1,498 
  1,646 
  Customer deposits and deferred revenue, short-term
  2,339 
  1,630 
      Total current liabilities
  11,264 
  11,148 
 
    
    
Deferred rent
  145 
  63 
Deferred revenue, long-term
  359 
  459 
      Total liabilities
  11,768 
  11,670 
 
    
    
Aehr Test Systems shareholders' equity
  18,139 
  19,305 
Noncontrolling interest
  (19)
  (20)
      Total shareholders' equity
  18,120 
  19,285 
      Total liabilities and shareholders' equity
 $29,888 
 $30,955 
 

  # # #
 

The following information was filed by Aehr Test Systems (AEHR) on Thursday, September 27, 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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