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 2022
ended November 30, 2021.
Fiscal Second Quarter Financial Results:
- Net sales were $9.6 million, up 471% from $1.7 million in the
second quarter of fiscal 2021.
- GAAP net income was $717,000, or $0.03 per diluted share,
compared to a GAAP net loss of $2.0 million, or $0.08 per diluted
share, in the second quarter of fiscal 2021.
- Non-GAAP net income was $1.4 million, or $0.05 per diluted
share, which excludes the impact of stock-based compensation,
compared to a non-GAAP net loss of $1.7 million, or $0.07 per
diluted share, in the second quarter of fiscal 2021.
- Bookings were $29.1 million for the quarter ended November 30,
2021, the Company’s quarterly highest bookings on record, compared
to $1.6 million in the second quarter of fiscal 2021.
- Backlog as of November 30, 2021 was $36.1 million, the
Company’s highest backlog on record.
Fiscal First Six Months Financial Results:
- Net sales were $15.3 million, up 313% from $3.7 million in the
first six months of fiscal 2021.
- GAAP net income was $1.4 million, or $0.05 per diluted share,
which includes the impact of forgiveness of $1.7 million in loans
from the Paycheck Protection Program (“PPP”) received in fiscal
2020. This compares to a GAAP net loss of $1.9 million, or $0.08
per diluted share, in the first six months of fiscal 2021, which
includes the impact of stock-based compensation and a non-cash net
gain of $2.2 million and tax benefit of $215,000 related to the
closure of Aehr’s Japan subsidiary during the first quarter of
fiscal 2021.
- Non-GAAP net income was $1.0 million, or $0.04 per diluted
share, which excludes the impact of stock-based compensation and
forgiveness of the PPP loan. This compares to a non-GAAP net loss
of $3.7 million, or $0.16 per diluted share, in the first six
months of fiscal 2021, which excludes the impact of stock-based
compensation and the net gain related to the closure of Aehr’s
Japan subsidiary during the first quarter of fiscal 2021.
An explanation of the use of non-GAAP financial measures and a
reconciliation of Aehr’s non-GAAP financial measures to the most
directly comparable GAAP financial measures can be found in the
accompanying tables.
Gayn Erickson, President and CEO of Aehr Test
Systems, commented:
“We finished the second quarter with record bookings for a
single quarter of $29.1 million and our highest backlog on record
of $36.1 million. Including the announced orders since the
beginning of the fiscal third quarter, our total bookings for the
fiscal year to date is over $52 million.
“We continue to see very strong interest and demand for wafer
level test and burn-in of silicon carbide devices, particularly for
use directly in, and in support of, the electric vehicle market. We
are ramping our FOX™ multi-wafer test and burn-in systems and
full wafer WaferPak™ capacity to meet this upcoming silicon
carbide market opportunity, which we believe will grow
significantly over the next decade or more. We are only at the very
beginning of this ramp as electric vehicles accounted for a very
small percentage share of the overall market last year and are
expected to be over 30% of total vehicles sold by 2030.
“During the quarter we received a $19.4 million order for our
FOX-XP™ wafer level test and burn-in systems from our lead
silicon carbide customer. This order was then followed by a $7.6
million order for WaferPaks that do not fully populate the systems,
so we are expecting additional follow on WaferPak orders for these
production FOX-XP systems. These systems and WaferPaks are being
used to test and burn-in MOSFET devices in traction inverters in
electric vehicle motor controllers, as well as both on-board and
off-board electric vehicle chargers. This customer, a major
automotive semiconductor supplier with a significant customer base
in the automotive semiconductor market, continues to forecast
significant additional system and WaferPak purchases over the next
several years. Multiple industry forecasters and analysts expect
the market for silicon carbide devices to grow at a compound annual
growth rate (CAGR) of more than 30% over the next decade driven by
demand from the electric vehicle market and other applications.
“In addition to a very strong backlog and forecast from our lead
silicon carbide customer, we are currently engaged in discussions
and/or evaluations with several other silicon carbide suppliers
regarding their wafer level test and burn-in needs. This includes
at least one large silicon carbide supplier that has moved to
on-wafer evaluation and benchmarking of Aehr’s FOX-XP multi-wafer
system for testing and burning in their silicon carbide wafers. We
believe we will add several new silicon carbide customers that will
ramp into production by next fiscal year on our solutions.
“Another positive is that we continue to see signs of
strengthening in the silicon photonics test and burn-in market as
our FOX multi-wafer systems and WaferPaks provide a very cost
effective and scalable solution for “burning in” the optical lasers
and stabilizing their output power while also removing any
extrinsic or early life failures. In addition to the silicon
photonics devices that are now ramping into production for
fiberoptic transceivers for datacom and telecom applications such
as data center and 5G infrastructure, several companies have made
public announcements of their intent to integrate silicon photonics
devices and co-packaged optics in high end processor applications
and intra-chip as well as inter-chip communications within the next
few years.
“During the last few months, we received orders from a current
silicon photonics customer for six additional FOX-NP™ systems to
support the characterization and product qualification of new types
of photonics-based devices. This customer is expected to purchase
new sets of WaferPaks to be used with these systems. As the
applications and market for silicon photonics-based devices
continue to grow, we expect this customer to continue to increase
their capacity in the future.
“Several other customers addressing the silicon photonics market
have also forecast additional FOX system and WaferPak or DiePak®
contactor capacity needs over the next 12 months. These include
needs to address incremental production capacity as well as
capacity to address new customer and new product qualification and
engineering. Silicon photonics devices address the 5G and data
center infrastructure industry as well as several other key markets
today, and Yole Research predicts that the silicon photonics
transceiver market alone will reach $4.6 billion in 2026, with a
CAGR of 25% between 2021 and 2026.
“We remain very focused on serving the very large market
opportunities we see ahead, which include the significant
opportunity for test and burn-in of silicon carbide devices for
electric vehicles and electrification infrastructure, silicon
photonics devices for data center and 5G infrastructure, and 2D/3D
sensors for mobile and wearable devices. With our record bookings
and the strength of our semiconductor test and burn-in solutions,
we are confident in our ability to deliver significant revenue
growth and are reiterating our guidance for revenue for the
year.”
Fiscal 2022 Financial Guidance:
For the fiscal year ending May 31, 2022, Aehr is reiterating its
previously provided guidance for full year total revenue of at
least $50 million, and to be profitable for the fiscal year at
these revenue levels based upon its operating model.
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 fiscal 2022
second quarter operating results. To access the live call, dial
800-437-2398 (US and Canada) or +1 929-477-0577 (International) and
give the participant passcode 5907605. 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 and at
the following
link https://edge.media-server.com/mmc/p/ewc7mhgg. 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 13, 2022. 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
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 StatementThis press release
contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements
generally relate to future events or Aehr’s future financial or
operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
"may," "will," "should," "expects," "plans," "anticipates,” “going
to,” "could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," “sees,” or
"continue," or the negative of these words or other similar terms
or expressions that concern Aehr’s expectations, strategy,
priorities, plans, or intentions. Forward-looking statements in
this press release include, but are not limited to, Aehr’s ability
to generate bookings and revenue increases in the future, including
the first quarter of fiscal 2022; future requirements and orders of
Aehr’s new and existing customers; bookings forecasted for
proprietary WaferPak™ and DiePak consumables across multiple
market segments; the temporary nature of customer pushouts;
shipping timelines for products and follow-on capacity orders; the
growth of Aehr’s systems and consumables, including as a percentage
of total sales; financial guidance for fiscal 2022, including
related to revenue and profitability, and expectations regarding
fiscal 2022; Aehr’s ability to expand its number of customers using
its FOX-P™ solutions; the ability to secure potential customer
engagements; expectations related to long-term demand for Aehr’s
productions and the attractiveness of key markets; the belief that
Aehr will be stronger after the current worldwide COVID-19
pandemic, including expectations related to greater production,
more customers, more applications, and higher value products. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more
fully described in Aehr’s recent 10-K, 10-Q and other reports filed
from time to time with the Securities and Exchange Commission. 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
–
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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, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
9,611 |
|
|
$ |
5,646 |
|
|
$ |
1,683 |
|
|
$ |
15,257 |
|
|
$ |
3,695 |
|
Cost of sales |
|
5,092 |
|
|
|
3,365 |
|
|
|
1,306 |
|
|
|
8,457 |
|
|
|
3,091 |
|
Gross profit |
|
4,519 |
|
|
|
2,281 |
|
|
|
377 |
|
|
|
6,800 |
|
|
|
604 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
2,489 |
|
|
|
1,953 |
|
|
|
1,501 |
|
|
|
4,442 |
|
|
|
3,015 |
|
Research and development |
|
1,313 |
|
|
|
1,321 |
|
|
|
820 |
|
|
|
2,634 |
|
|
|
1,720 |
|
Total operating expenses |
|
3,802 |
|
|
|
3,274 |
|
|
|
2,321 |
|
|
|
7,076 |
|
|
|
4,735 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
717 |
|
|
|
(993 |
) |
|
|
(1,944 |
) |
|
|
(276 |
) |
|
|
(4,131 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(1 |
) |
|
|
(9 |
) |
|
|
(12 |
) |
|
|
(10 |
) |
|
|
(25 |
) |
Income from forgiveness of PPP loan |
|
- |
|
|
|
1,698 |
|
|
|
- |
|
|
|
1,698 |
|
|
|
- |
|
Net gain from dissolution of Aehr Test Systems Japan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,186 |
|
Other income
(expense), net |
|
35 |
|
|
|
23 |
|
|
|
(6 |
) |
|
|
58 |
|
|
|
(100 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax (expense) benefit |
|
|
751 |
|
|
|
719 |
|
|
|
(1,962 |
) |
|
|
1,470 |
|
|
|
(2,070 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit |
|
(34 |
) |
|
|
(23 |
) |
|
|
(4 |
) |
|
|
(57 |
) |
|
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
717 |
|
|
$ |
696 |
|
|
$ |
(1,966 |
) |
|
$ |
1,413 |
|
|
$ |
(1,859 |
) |
|
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|
|
|
|
|
|
|
|
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
(0.08 |
) |
|
$ |
0.06 |
|
|
$ |
(0.08 |
) |
Diluted |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
(0.08 |
) |
|
$ |
0.05 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculations: |
|
|
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|
|
|
|
Basic |
|
26,205 |
|
|
|
23,999 |
|
|
|
23,396 |
|
|
|
25,102 |
|
|
|
23,322 |
|
Diluted |
|
28,342 |
|
|
|
25,356 |
|
|
|
23,396 |
|
|
|
26,849 |
|
|
|
23,322 |
|
|
|
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|
|
|
|
|
|
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|
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|
|
|
|
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|
AEHR TEST SYSTEMS AND SUBSIDIARIES |
Reconciliation of GAAP and Non-GAAP Results |
(in thousands, except per share data) |
(unaudited) |
|
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|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
Nov 30, |
|
Aug 31, |
|
Nov 30, |
|
Nov 30, |
|
Nov 30, |
|
|
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|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
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|
|
|
|
|
GAAP net income (loss) |
|
$ |
717 |
|
|
$ |
696 |
|
|
$ |
(1,966 |
) |
|
$ |
1,413 |
|
|
$ |
(1,859 |
) |
Stock-based compensation expense |
|
|
718 |
|
|
|
588 |
|
|
|
257 |
|
|
|
1,306 |
|
|
|
527 |
|
Income from forgiveness of PPP loan |
|
|
- |
|
|
|
(1,698 |
) |
|
|
- |
|
|
|
(1,698 |
) |
|
|
- |
|
Income from disolution of Aehr Test Systesm Japan |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,401 |
) |
Non-GAAP net income (loss) |
|
$ |
1,435 |
|
|
$ |
(414 |
) |
|
$ |
(1,709 |
) |
|
$ |
1,021 |
|
|
$ |
(3,733 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per diluted share |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
(0.08 |
) |
|
$ |
0.05 |
|
|
$ |
(0.08 |
) |
Non-GAAP net income (loss) per diluted share |
|
$ |
0.05 |
|
|
$ |
(0.02 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.04 |
|
|
$ |
(0.16 |
) |
Shares used in GAAP diluted shares calculation |
|
|
28,342 |
|
|
|
25,356 |
|
|
|
23,396 |
|
|
|
26,849 |
|
|
|
23,322 |
|
Shares used in non-GAAP diluted shares calculation |
|
|
|
28,342 |
|
|
|
23,999 |
|
|
|
23,396 |
|
|
|
26,849 |
|
|
|
23,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
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|
|
AEHR TEST SYSTEMS AND SUBSIDIARIES |
|
Condensed Consolidated Balance Sheets |
|
(in thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
November 30, |
August 31, |
|
May 31, |
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
35,031 |
|
|
$ |
6,530 |
|
|
$ |
4,582 |
|
|
Accounts receivable, net |
|
7,391 |
|
|
|
4,264 |
|
|
|
5,202 |
|
|
Inventories |
|
|
13,033 |
|
|
|
10,146 |
|
|
|
8,849 |
|
|
Prepaid expenses and other |
|
622 |
|
|
|
759 |
|
|
|
551 |
|
|
Total current assets |
|
56,077 |
|
|
|
21,699 |
|
|
|
19,184 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
661 |
|
|
|
676 |
|
|
|
677 |
|
|
Operating lease right-of-use assets |
|
1,265 |
|
|
|
1,437 |
|
|
|
1,606 |
|
|
Other assets |
|
|
182 |
|
|
|
189 |
|
|
|
198 |
|
|
Total assets |
$ |
58,185 |
|
|
$ |
24,001 |
|
|
$ |
21,665 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
3,386 |
|
|
$ |
2,753 |
|
|
$ |
2,893 |
|
|
Accrued expenses |
|
2,254 |
|
|
|
1,978 |
|
|
|
2,163 |
|
|
Operating lease liabilities, short-term |
|
763 |
|
|
|
750 |
|
|
|
737 |
|
|
Customer deposits and deferred revenue, short-term |
|
|
|
10,142 |
|
|
|
3,279 |
|
|
|
189 |
|
|
Line of credit |
|
- |
|
|
|
- |
|
|
|
1,400 |
|
|
Current portion of long-term debt |
|
- |
|
|
|
- |
|
|
|
1,679 |
|
|
Total current liabilities |
|
16,545 |
|
|
|
8,760 |
|
|
|
9,061 |
|
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, long-term |
|
616 |
|
|
|
813 |
|
|
|
1,007 |
|
|
Long-term debt, net of current portion |
|
- |
|
|
|
- |
|
|
|
- |
|
|
Deferred revenue, long-term |
|
116 |
|
|
|
150 |
|
|
|
99 |
|
|
Other liabilities |
|
46 |
|
|
|
46 |
|
|
|
49 |
|
|
Total liabilities |
|
17,323 |
|
|
|
9,769 |
|
|
|
10,216 |
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
40,862 |
|
|
|
14,232 |
|
|
|
11,449 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
58,185 |
|
|
$ |
24,001 |
|
|
$ |
21,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Aehr Test Systems (NASDAQ:AEHR)
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Aehr Test Systems (NASDAQ:AEHR)
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