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
|
|
|
|
|
|
|
# #
#
|
|||