Last10K.com

Aehr Test Systems (AEHR) SEC Filing 10-Q Quarterly report for the period ending Thursday, February 28, 2019

Aehr Test Systems

CIK: 1040470 Ticker: AEHR

  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 Third Quarter Fiscal 2019 Financial Results
 
Fremont, CA (April 4, 2019) – Aehr Test Systems (NASDAQ: AEHR),
a worldwide supplier of semiconductor test and burn-in equipment, today announced financial results for its third quarter of fiscal 2019 ended February 28, 2019.
 
Fiscal Third Quarter Financial Results:
Net sales were $3.2 million, compared to $7.4 million in the third quarter of fiscal 2018.
GAAP net loss was $3.2 million, or $0.14 per diluted share, and includes approximately $1.4 million in one-time charges, or $0.06 per share, consisting of $607,000 in restructuring charges related to staff reduction severance payments and a $795,000 adjustment for excess and obsolete inventory. This compared to GAAP net income of $267,000, or $0.01 per diluted share, in the third quarter of fiscal 2018.
Non-GAAP net loss was $1.6 million, or $0.07 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 $509,000, or $0.02 per diluted share, in the third quarter of fiscal 2018.
Backlog as of February 28, 2019 was $6.9 million, up sequentially from $4.3 million as of November 30, 2018. Backlog to date, which includes all orders announced since the end of the third quarter, is greater than $10 million.
 
Fiscal First Nine Months Financial Results:
Net sales were $13.8 million, compared to $22.3 million in the first nine months of fiscal 2018.
GAAP net loss was $5.3 million, or $0.24 per diluted share, compared to GAAP net income of $337,000, or $0.01 per diluted share, in the first nine months of fiscal 2018.
Non-GAAP net loss was $3.2 million, or $0.15 per diluted share, compared to non-GAAP net income of $1.2 million, or $0.05 per diluted share, in the first nine months of fiscal 2018.
 
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.
 
Third Quarter and Recent Business Highlights:
Aehr announced its new FOX-NPTM Test and Burn-in System for wafers, panels, singulated die and modules. The FOX-NP system is a new low cost, small footprint entry-level system configuration within the Company’s FOX-PTM product family that is providing a configuration and price point for companies to do initial product development, product qualification and production.
 
 
 
Aehr Test Systems Reports Third Quarter Fiscal 2019 Financial Results
April 4, 2019
Page 2 of 7
 
 
Aehr received an order from a new customer for a FOX-NP Test and Burn-in System and DiePak® Carrier as the first step in the customer’s commitment to utilize Aehr’s FOX-P Platform for qualification and production burn-in of their new family of integrated silicon photonic chips.
Aehr received a $2.4 million order from a leading semiconductor manufacturer for the Company’s new FOX-NP Test and Burn-in Systems. The FOX-NP systems compliment the customer’s existing fleet of FOX-XPTM Test and Burn-in Systems to provide additional test and qualification capacity as a result of increasing variety of silicon photonics devices.
Aehr introduced its new FOX-CPTM system at the 2019 SPIE Photonics West conference. 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.
Aehr booked orders exceeding $2.1 million from its installed base of FOXTM test and burn-in system customers for its proprietary FOX WaferPak™ Contactors and DiePak Carriers and related services.
Aehr announced today a $2.1 million follow-on order from its lead customer for a FOX-XP Wafer Level Test and Burn-in System for high volume production of silicon photonics devices to meet additional capacity forecast for this customer within the next six months.
Aehr’s new FOX-CP single wafer test and burn-in system was selected by a new major customer for a very high-volume multi-year ramp for devices used in the enterprise and data center market. An initial order for this new 100% test and burn-in application is expected this fiscal quarter for shipments this summer.
 
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
 
“While our revenue in the third quarter was significantly lower on a year-over-year basis, it was in line with Street estimates and our expectations discussed in last quarter’s call for a weak third quarter. This is due to many of our customers’ capacity ramps pushed into our fiscal fourth quarter and into next fiscal year that begins June 1, 2019. Our significant increase in bookings in the third quarter and subsequent orders after the close of the quarter are evidence of the beginning of this ramp. With the $6.9 million backlog at the beginning of the current fourth quarter plus the orders announced since then, we effectively have over $10 million in backlog for the quarter so far. We are feeling very good about the strong bookings momentum we see with existing and multiple potential new customers for our new FOX products.
 
 
 
Aehr Test Systems Reports Third Quarter Fiscal 2019 Financial Results
April 4, 2019
Page 3 of 7
 
 
“We have seen business shift considerably toward our new wafer level and singulated die level FOX test and burn-in products, particularly in silicon photonics, 5G infrastructure, 2D and 3D sensors used in mobile, and enterprise / data center storage applications. With this shift in our business, we foresaw a need to make some structural staffing changes that position us for success in addressing our new market opportunities. As a consequence of these changes, our third quarter results include a one-time restructuring charge of $607,000 related to severance packages. Going forward, we expect these changes will lower our operating costs by over $1.2 million per year beginning in the first quarter of fiscal 2020. Also, there was an additional one-time charge of approximately $795,000 related to slow moving and obsolete package part burn-in product inventory as well as inventory related charges with the completion of our new family of FOX-P products.
 
“As we complete our fiscal fourth quarter and head into our fiscal 2020, we are very optimistic about the market acceptance and the new opportunities we see for our full family of FOX-P wafer level and singulated die test and burn in solutions. With the recent introduction and customer commitments for our new FOX-NP low cost, small footprint entry-level system and our FOX-CP single-wafer compact test and reliability verification solution for logic, memory, photonic, 5G infrastructure, and data storage devices, we expect to increase our installed base of FOX systems substantially. As a result, we expect our consumables business to continue to grow with current and new customers, both in absolute terms and as a percentage of revenue. Longer term, we believe we can reach a point where our WaferPak and DiePak contactors comprise over half of our annual revenue.
 
“We expect to see a significant increase in bookings in the current fiscal fourth quarter, with an increase in backlog heading into fiscal 2020, and we believe that our revenue will significantly improve to enable us to return to profitability in the current fiscal fourth quarter.
 
“The fundamental growth drivers for Aehr Test Systems remain intact, as the continued rapid growth of semiconductor content in nearly every part of life and the increasing requirements on semiconductors to meet substantially higher safety, security, and long-term reliability needs continues to drive the need to ensure 100% validation and assurance of burn-in and test results.”
 
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 third quarter fiscal 2019 operating results. To access the call dial 800-263-0877 (+1 323-994-2132 outside the United States) and give the participant pass code 6357648. 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 April 11, 2019. To access the replay dial-in information, please click here.
 
 
Aehr Test Systems Reports Third Quarter Fiscal 2019 Financial Results
April 4, 2019
Page 4 of 7
 
 
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 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 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 Third Quarter Fiscal 2019 Financial Results
April 4, 2019
Page 5 of 7
 
 
 
 
AEHR TEST SYSTEMS AND SUBSIDIARIES
 
 
Condensed Consolidated Statements of Operations
 
 
(in thousands, except per share data)
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
Feb 28,
 
 
Nov 30,
 
 
Feb 28,
 
 
Feb 28,
 
 
Feb 28,
 
 
 
2019
 
 
2018
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 $3,163 
 $5,911 
 $7,393 
 $13,814 
 $22,286 
Cost of sales
  2,891 
  3,513 
  4,217 
  9,591 
  13,061 
Gross profit
  272 
  2,398 
  3,176 
  4,223 
  9,225 
 
    
    
    
    
    
Operating expenses:
    
    
    
    
    
  Selling, general and administrative
  1,850 
  1,977 
  1,829 
  5,706 
  5,474 
  Research and development
  931 
  986 
  1,040 
  3,033 
  3,085 
  Restructuring
  607 
  - 
  - 
  607 
  - 
      Total operating expenses
  3,388 
  2,963 
  2,869 
  9,346 
  8,559 
 
    
    
    
    
    
      (Loss) income from operations
  (3,116)
  (565)
  307 
  (5,123)
  666 
 
    
    
    
    
    
Interest expense, net
  (76)
  (74)
  (98)
  (228)
  (310)
Other (expense) income, net
  (11)
  29 
  (33)
  27 
  (100)
 
    
    
    
    
    
       (Loss) income before income tax benefit (expense)
  (3,203)
  (610)
  176 
  (5,324)
  256 
 
    
    
    
    
    
Income tax benefit (expense)
  2 
  (19)
  91 
  (21)
  81 
 
    
    
    
    
    
       Net (loss) income
  (3,201)
  (629)
  267 
  (5,345)
  337 
 
    
    
    
    
    
Less: Net income attributable to the noncontrolling interest
  - 
  - 
  - 
  - 
  - 
 
    
    
    
    
    
       Net (loss) income attributable to Aehr Test Systems common shareholders
 $(3,201)
 $(629)
 $267 
 $(5,345)
 $337 
 
    
    
    
    
    
Net (loss) income per share
    
    
    
    
    
        Basic
 $(0.14)
 $(0.03)
 $0.01 
 $(0.24)
 $0.02 
        Diluted
 $(0.14)
 $(0.03)
 $0.01 
 $(0.24)
 $0.01 
 
    
    
    
    
    
Shares used in per share calculations:
    
    
    
    
    
        Basic
  22,459 
  22,294 
  21,832 
  22,314 
  21,631 
        Diluted
  22,459 
  22,294 
  22,641 
  22,314 
  22,838 
 
    
    
    
    
    
-more-
 
 
Aehr Test Systems Reports Third Quarter Fiscal 2019 Financial Results
April 4, 2019
Page 6 of 7
 
 
 
AEHR TEST SYSTEMS AND SUBSIDIARIES
 
 
Reconciliation of GAAP and Non-GAAP Results
 
 
(in thousands, except per share data)
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
Feb 28,
 
 
Nov 30,
 
 
Feb 28,
 
 
Feb 28,
 
 
Feb 28,
 
 
 
2019
 
 
2018
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP net (loss) income
 $(3,201)
 $(629)
 $267 
 $(5,345)
 $337 
Stock-based compensation expense
  225 
  224 
  242 
  705 
  822 
Restructuring
  607 
  - 
  - 
  607 
  - 
Excess and obsolescence provision
  795 
  - 
  - 
  795 
  - 
Non-GAAP net (loss) income
 $(1,574)
 $(405)
 $509 
 $(3,238)
 $1,159 
 
    
    
    
    
    
GAAP net (loss) income per diluted share
 $(0.14)
 $(0.03)
 $0.01 
 $(0.24)
 $0.01 
Non-GAAP net (loss) income per diluted share
 $(0.07)
 $(0.02)
 $0.02 
 $(0.15)
 $0.05 
Shares used in GAAP diluted shares calculation
  22,459 
  22,294 
  22,641 
  22,314 
  22,838 
Shares used in non-GAAP diluted shares calculation
  22,459 
  22,294 
  22,641 
  22,314 
  22,838 
 
    
    
    
    
    
 
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 Third Quarter Fiscal 2019 Financial Results
April 4, 2019
Page 7 of 7
 
 
 
AEHR TEST SYSTEMS AND SUBSIDIARIES
 
 
Condensed Consolidated Balance Sheets
 
 
(in thousands, except per share data)
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
February 28,
 
 
November 30,
 
 
May 31,
 
 
 
2019
 
 
2018
 
 
2018
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
  Cash and cash equivalents
 $12,300 
 $14,002 
 $16,848 
  Accounts receivable, net
  1,944 
  3,868 
  2,856 
  Inventories
  9,189 
  9,983 
  9,049 
  Prepaid expenses and other
  787 
  688 
  703 
      Total current assets
  24,220 
  28,541 
  29,456 
 
    
    
    
Property and equipment, net
  975 
  1,074 
  1,203 
Other assets
  256 
  286 
  296 
      Total assets
 $25,451 
 $29,901 
 $30,955 
 
    
    
    
LIABILITIES AND SHAREHOLDERS' EQUITY
    
    
    
 
    
    
    
Current liabilities:
    
    
    
  Current portion of long-term debt
 $6,110 
 $6,110 
 $6,110 
  Accounts payable
  557 
  1,953 
  1,762 
  Accrued expenses
  2,085 
  1,487 
  1,646 
  Customer deposits and deferred revenue, short-term
  1,267 
  2,068 
  1,630 
      Total current liabilities
  10,019 
  11,618 
  11,148 
 
    
    
    
Deferred rent
  151 
  147 
  63 
Deferred revenue, long-term
  240 
  252 
  459 
      Total liabilities
  10,410 
  12,017 
  11,670 
 
    
    
    
Aehr Test Systems shareholders' equity
  15,060 
  17,902 
  19,305 
Noncontrolling interest
  (19)
  (18)
  (20)
      Total shareholders' equity
  15,041 
  17,884 
  19,285 
      Total liabilities and shareholders' equity
 $25,451 
 $29,901 
 $30,955 
 
    
    
    
    # # # 
 
 

The following information was filed by Aehr Test Systems (AEHR) on Thursday, April 4, 2019 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.

View differences made from one quarter to another to evaluate Aehr Test Systems's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Aehr Test Systems.

Continue

Assess how Aehr Test Systems's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Aehr Test Systems's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Rating

Learn More
Bullish Bearish Neutral
Filter Sentiment:
All
Positive
Negative
Filter Category:
All
Financial
Revenue
Other
Filter Subcategory:
All
Income
Earnings
Expense
Product
Geography
Debt
Other
Inside Aehr Test Systems's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical)
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Condensed Consolidated Statements Of Comprehensive (Loss) Income (Unaudited)
Condensed Consolidated Statements Of Operations (Unaudited)
Condensed Consolidated Statements Of Shareholders' Equity (Unaudited)
1. Basis Of Presentation And Summary Of Significant Accounting Policies
1. Basis Of Presentation And Summary Of Significant Accounting Policies (Policies)
10. Income Taxes
10. Income Taxes (Details Narrative)
11. Long-Term Debt
11. Long-Term Debt (Details Narrative)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details 1)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details 2)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details 3)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details 4)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details 5)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details Narrative)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Details)
12. Stockholders' Equity, Comprehensive Income And Stock-Based Compensation (Tables)
13. Segment Information
13. Segment Information (Details Narrative)
13. Segment Information (Details)
13. Segment Information (Tables)
14. Restructuring
14. Restructuring (Details Narrative)
15. Subsequent Event
15. Subsequent Event (Details Narrative)
2. Recent Accounting Pronouncements
2. Recent Accounting Pronouncements (Policies)
3. Revenue
3. Revenue (Details 1)
3. Revenue (Details 2)
3. Revenue (Details Narrative)
3. Revenue (Details)
3. Revenue (Tables)
4. Earnings Per Share
4. Earnings Per Share (Details Narrative)
4. Earnings Per Share (Details)
4. Earnings Per Share (Tables)
5. Fair Value Of Financial Instruments
5. Fair Value Of Financial Instruments (Details Narrative)
5. Fair Value Of Financial Instruments (Details)
5. Fair Value Of Financial Instruments (Tables)
6. Accounts Receivable, Net
6. Accounts Receivable, Net (Details Narrative)
7. Inventories
7. Inventories (Details Narrative)
7. Inventories (Details)
7. Inventories (Tables)
8. Product Warranties
8. Product Warranties (Details Narrative)
8. Product Warranties (Details)
8. Product Warranties (Tables)
9. Customer Deposits And Deferred Revenue, Short-Term
9. Customer Deposits And Deferred Revenue, Short-Term (Details)
9. Customer Deposits And Deferred Revenue, Short-Term (Tables)
Ticker: AEHR
CIK: 1040470
Form Type: 10-Q Quarterly Report
Accession Number: 0001654954-19-004343
Submitted to the SEC: Fri Apr 12 2019 12:02:42 PM EST
Accepted by the SEC: Fri Apr 12 2019
Period: Thursday, February 28, 2019
Industry: Instruments For Meas And Testing Of Electricity And Elec Signals

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/aehr/0001654954-19-004343.htm