Aehr Test Systems Reports 24% Sequential Revenue Growth in Second Quarter and Reiterates Guidance for Significant Growth for Fiscal 2020
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Aehr Test Systems Reports 24% Sequential Revenue Growth in Second Quarter and Reiterates Guidance for Significant Growth for Fiscal 2020

FREMONT, Calif., Jan. 09, 2020 (GLOBE NEWSWIRE) -- Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of semiconductor test and reliability qualification equipment, today announced financial results for its second quarter of fiscal 2020 ended November 30, 2019.

Fiscal Second Quarter Financial Results:

Fiscal First Six Months Financial Results:

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.

Aehr Second Quarter and Recent Business Highlights:

Gayn Erickson, President and CEO of Aehr Test Systems, commented:

“We are pleased to report a solid second quarter that includes total revenue of $6.9 million, up 24% sequentially from the first quarter, improved gross margins, a return to profitability on both a GAAP and non-GAAP basis, and strong bookings in the quarter of nearly $10 million.

“During the quarter, we successfully completed a new and unique production application for test and burn-in of silicon carbide devices and shipped our first production system to a leading supplier of automotive semiconductor devices. We are also engaged with multiple companies in this exciting new silicon carbide market. 

“Silicon carbide is a new emerging market for our FOX-P family of products as our wafer level test and burn-in systems are cost effective solutions for improving the reliability of silicon carbide-based power devices used in electronic vehicles and other power conversion applications. The silicon carbide power device market and the need for reliability test solutions are expected to grow significantly over the next decade.

“We also continue to be very optimistic about the silicon photonics market with three of our silicon photonics customers transitioning to high volume production test and burn-in during the quarter on our FOX-P systems. We are also currently engaged with several additional potential customers in the silicon photonics market to utilize our wafer level burn-in solutions for their engineering and production needs. Aehr is benefiting from the broad adoption of photonics devices in the data, telecom, and sensing markets as our existing customers expand their product portfolios and ramp manufacturing and new customers enter this high demand rapidly growing segment. 

“We feel good about our progress midway through our fiscal year and remain very optimistic about growth in sales of systems and consumables to our installed base of customers, as well as the expansion of sales to new customers with our family of FOX-P solutions. Looking ahead, we expect to see continued positive momentum, to generate significant year-over-year revenue growth in fiscal 2020 and to be profitable for the fiscal year.”

Fiscal 2020 Financial Guidance:
For the fiscal year ending May 31, 2020, the company reiterates its previously provided guidance for 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 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 2020 operating results. To access the call dial 800-458-4121 (+1 323-794-2093 outside the United States) and give the participant pass code 3970795. 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 16, 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 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.

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
Email Contact  



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,
   2019   2019   2018   2019   2018 
           
Net sales$6,874  $5,533  $5,911  $12,407  $10,651 
Cost of sales 3,672   3,262   3,513   6,934   6,700 
Gross profit 3,202   2,271   2,398   5,473   3,951 
           
Operating expenses:         
  Selling, general and administrative 2,157   1,808   1,977   3,965   3,856 
  Research and development 795   892   986   1,687   2,102 
  Total operating expenses 2,952   2,700   2,963   5,652   5,958 
           
  Income (loss) from operations 250   (429)  (565)  (179)  (2,007)
           
Interest income (expense), net 2   12   (74)  14   (152)
Other income, net 5   10   29   15   38 
           
  Income (loss) before income tax expense 257   (407)  (610)  (150)  (2,121)
           
Income tax expense (6)  (6)  (19)  (12)  (23)
           
  Net income (loss) 251   (413)  (629)  (162)  (2,144)
           
Less: Net income attributable to the         
   noncontrolling interest -   -   -   -   - 
           
  Net income (loss) attributable to Aehr Test         
   Systems common shareholders$251  $(413) $(629) $(162) $(2,144)
           
Net income (loss) per share         
  Basic$0.01  $(0.02) $(0.03) $(0.01) $(0.10)
  Diluted$0.01  $(0.02) $(0.03) $(0.01) $(0.10)
           
Shares used in per share calculations:         
  Basic 22,823   22,708   22,294   22,765   22,242 
  Diluted 22,912   22,708   22,294   22,765   22,242 
           



 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,
     2019  2019   2018   2019   2018 
             
             
 GAAP net income (loss) $251 $(413) $(629) $(162) $(2,144)
 Stock-based compensation expense  205  199   224   404   480 
 Non-GAAP net income (loss) $456 $(214) $(405) $242  $(1,664)
             
 GAAP net income (loss) per diluted share $0.01 $(0.02) $(0.03) $(0.01) $(0.10)
 Non-GAAP net income (loss) per diluted share $0.02 $(0.01) $(0.02) $0.01  $(0.07)
 Shares used in GAAP diluted shares calculation  22,912  22,708   22,294   22,765   22,242 
 Shares used in non-GAAP diluted shares calculation   22,912  22,708   22,294   22,846   22,242 
   
             
 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.
  


AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
        
   November 30,August 31, May 31,
    2019   2019   2019 
ASSETS      
        
Current assets:     
  Cash and cash equivalents$5,302  $5,266  $5,428 
  Accounts receivable, net 5,231   3,287   4,859 
  Inventories  9,800   9,217   9,061 
  Prepaid expenses and other 534   523   686 
  Total current assets 20,867   18,293   20,034 
        
Property and equipment, net 860   1,000   1,045 
Operating lease right-of-use assets 2,387   2,533   - 
Other assets  186   199   228 
  Total assets$24,300  $22,025  $21,307 
        
LIABILITIES AND SHAREHOLDERS' EQUITY    
        
Current liabilities:     
  Accounts payable$2,320  $1,742  $1,933 
  Accrued expenses 1,596   1,577   2,034 
  Operating lease liabilities, short-term 619   606   - 
  Customer deposits and deferred revenue, short-term   1,809   615   1,545 
  Total current liabilities 6,344   4,540   5,512 
        
Deferred rent  -   -   153 
Operating lease liabilities, long-term 1,924   2,086   - 
Deferred revenue, long-term 64   113   189 
  Total liabilities 8,332   6,739   5,854 
        
Aehr Test Systems shareholders' equity 15,988   15,306   15,472 
Noncontrolling interest (20)  (20)  (19)
  Total shareholders' equity 15,968   15,286   15,453 
        
  Total liabilities and shareholders' equity$24,300  $22,025  $21,307 
        

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