Exhibit 99.1
FOR IMMEDIATE 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
|
|
|
aehr@mkr-group.com
|
Aehr Test Systems Reports Fiscal 2019 Fourth Quarter and Full
Year
Results and Provides Financial Guidance for Significant Growth in
Fiscal 2020
Fremont, CA (July 18, 2019) – Aehr Test Systems (NASDAQ:
AEHR), a worldwide supplier of semiconductor test and
reliability qualification equipment, today announced financial results for its
fiscal 2019 fourth quarter and full year ended May 31,
2019.
Fiscal Fourth Quarter Financial Results:
●
Net
sales were $7.2 million, compared to $7.3 million in the fourth
quarter of fiscal 2018.
●
GAAP net income was $110,000, or $0.00 per diluted
share, and includes $118,000 in restructuring charges related to severance
payments as part of the Company’s reduction in workforce
announced in the third quarter. This compared to GAAP net income of
$191,000, or $0.01 per diluted share, in the fourth quarter of
fiscal 2018.
●
Non-GAAP
net income was $428,000, or $0.02 per diluted share, which excludes
the impact of stock-based compensation expense and restructuring
charges, compared to non-GAAP net income of $365,000, or $0.02 per
diluted share, in the fourth quarter of fiscal 2018.
Fiscal Year Financial Results:
●
Net
sales were $21.1 million, compared to $29.6 million in fiscal
2018.
●
GAAP net loss was $5.2 million, or $0.23 per
diluted share, and includes approximately $1.5 million in
one-time charges, or $0.07 per share, consisting of $725,000 in
restructuring charges related to
severance payments as part of the Company’s reduction in
workforce announced in the third quarter, and a $795,000
adjustment in the third quarter for excess and obsolete inventory.
This compared to GAAP net income of
$528,000, or $0.02 per diluted share, in fiscal
2018.
●
Non-GAAP
net loss was $2.8 million, or $0.13 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 $1.5 million, or
$0.07 per diluted share, in fiscal 2018.
●
Backlog as of May
31, 2019 was $7.5 million, compared to $8.4 million as of May 31,
2018.
●
Total cash and cash
equivalents at fiscal year-end was $5.4 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.
Fourth Quarter and Recent Business Highlights:
●
Began shipments in its fiscal fourth quarter of
its recently introduced FOX-CPTM and FOX-NPTM test and burn-in systems, including an initial
FOX-CP system to a major new customer and several FOX-NP test and
burn-in systems to two different customers.
●
Received order from new customer Skorpios
Technologies for its FOX-PTM Platform to perform 100% wafer level test and
burn-in for infant mortality and aging of silicon photonics devices
as part of a significant production ramp to meet demand for high
speed optical transceivers.
●
Received
initial order from a new customer for its FOX-CP single-wafer test
and burn-in system for 100% test and burn-in of the
customer’s new device for high-volume production over a
multi-year ramp of products in the enterprise and data center
market. The FOX-CP system is a new low-cost single-wafer compact
test and reliability verification solution for logic, memory and
photonic devices.
●
Received $2.7 million follow-on order from one of
its lead FOX-XPTM Test and Burn-in System customers for a FOX-XP
System and FOX WaferPaksTM to provide additional test capacity for the
customer’s increasing silicon photonics device production
requirements.
●
Shipped
over $2.6 million in consumable business including Aehr’s
proprietary WaferPak full-wafer contactors and DiePak singulated
die and module carriers to eight different customers during the
fiscal fourth quarter.
|
Aehr Test Systems Reports Fiscal 2019 Fourth Quarter and Full Year
Financial Results
|
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July 18, 2019
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Page 2 of 5
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Gayn Erickson, President and CEO of Aehr Test Systems,
commented:
“We had a good year for our FOX product family, including our
newest FOX-NP and FOX-CP solutions introduced earlier this year. We
announced three new customers that will use these solutions to
perform 100% test and burn-in production on their devices. We see
each of these new customers moving to production, as well as adding
new customers for these solutions, in the new fiscal year. Our
FOX-NP is a low-cost, small footprint, entry-level system providing
a configuration and price point for companies to do initial product
development, product qualification and production, enabling an
easier transition to our FOX-XP system for full production test.
Our FOX-CP is a low-cost single-wafer compact test and reliability
verification solution for logic, memory and photonic devices. These
new test and burn-in solutions complement the capabilities of our
FOX-XP system. We believe these new solutions will significantly
expand the market for our FOX-P products.
“We believe we have several new opportunities for growth. As
we announced in the fourth quarter, our initial FOX-CP customer
will be performing 100% test of devices that will be used in a very
high-volume application for the Enterprise and Data Center market,
with a build out of this production ramp over the next several
years. The data storage market, as well as multiple devices related
to the worldwide 5G build-out, are great new opportunities for our
test and burn-in systems, where these end markets and customers
require devices to have extremely high levels of quality and
long-term reliability. We believe we have new growth opportunities
in known good die for automotive modules, heterogeneous
semiconductor packaged devices, and the emerging Silicon Carbide
device market. We also remain very optimistic about the silicon
photonics and photonics sensors markets that generated significant
revenue for Aehr in fiscal 2019 and believe these markets will
continue to be significant growth drivers for Aehr over the next
several years.
“Aehr finished the fiscal year with strong revenue and a
return to profitability in the fourth quarter. Heading into fiscal
2020, we remain very optimistic about growth in systems and
consumables within our installed base of customers as well as
expanding the number of customers with our family of FOX-P
solutions.”
Fiscal 2020 Financial Guidance:
For the
fiscal year ending May 31, 2020, the Company expects 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 fiscal 2019 fourth
quarter and full year operating results. To access the call dial
888-254-3590 (+1 323-994-2093 outside the United States) and
give the participant pass code 7902515. 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 July 25,
2019. 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
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.
– Financial Tables to Follow –
|
Aehr Test Systems Reports Fiscal 2019 Fourth Quarter and Full Year
Financial Results
|
|
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|
July 18, 2019
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Page 3 of 5
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AEHR TEST SYSTEMS
AND SUBSIDIARIES
|
|||||
|
Condensed
Consolidated Statements of Operations
|
|||||
|
(in thousands, except per share
data)
|
|||||
|
(unaudited)
|
|||||
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|||
|
|
May
31,
|
Feb
28,
|
May
31,
|
May
31,
|
May
31,
|
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
Net sales
|
$7,242
|
$3,163
|
$7,269
|
$21,056
|
$29,555
|
|
Cost of sales
|
3,863
|
2,891
|
4,108
|
13,454
|
17,169
|
|
Gross profit
|
3,379
|
272
|
3,161
|
7,602
|
12,386
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling, general and
administrative
|
2,018
|
1,850
|
1,816
|
7,724
|
7,290
|
|
Research and
development
|
1,120
|
931
|
1,096
|
4,153
|
4,181
|
|
Restructuring
|
118
|
607
|
-
|
725
|
-
|
|
Total
operating expenses
|
3,256
|
3,388
|
2,912
|
12,602
|
11,471
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
123
|
(3,116)
|
249
|
(5,000)
|
915
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(24)
|
(76)
|
(89)
|
(252)
|
(399)
|
|
Other income (expense),
net
|
17
|
(11)
|
39
|
44
|
(61)
|
|
|
|
|
|
|
|
|
Income
(loss) before income tax (expense) benefit
|
116
|
(3,203)
|
199
|
(5,208)
|
455
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
(6)
|
2
|
(8)
|
(27)
|
73
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
110
|
(3,201)
|
191
|
(5,235)
|
528
|
|
|
|
|
|
|
|
|
Less: Net income attributable to the
noncontrolling interest
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Aehr Test Systems common
shareholders
|
$110
|
$(3,201)
|
$191
|
$(5,235)
|
$528
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
Basic
|
$0.00
|
$(0.14)
|
$0.01
|
$(0.23)
|
$0.02
|
|
Diluted
|
$0.00
|
$(0.14)
|
$0.01
|
$(0.23)
|
$0.02
|
|
|
|
|
|
|
|
|
Shares used in per share
calculations:
|
|
|
|
|
|
|
Basic
|
22,605
|
22,459
|
22,033
|
22,387
|
21,732
|
|
Diluted
|
22,717
|
22,459
|
22,614
|
22,387
|
22,782
|
-more-
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Aehr Test Systems Reports Fiscal 2019 Fourth Quarter and Full Year
Financial Results
|
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July 18, 2019
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Page 4 of 5
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AEHR TEST SYSTEMS AND SUBSIDIARIES
|
|||||||||||
|
Reconciliation of GAAP and Non-GAAP Results
|
|||||||||||
|
(in
thousands, except per share data)
|
|||||||||||
|
(unaudited)
|
|
|
Three Months
Ended
|
Year
Ended
|
|||
|
|
May
31,
|
Feb
28,
|
May
31,
|
May
31,
|
May
31,
|
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$110
|
$(3,201)
|
$191
|
$(5,235)
|
$528
|
|
Stock-based compensation
expense
|
200
|
224
|
174
|
905
|
996
|
|
Restructuring
|
118
|
607
|
-
|
725
|
-
|
|
Excess and obsolescence
provision
|
-
|
795
|
-
|
795
|
-
|
|
Non-GAAP net income
(loss)
|
$428
|
$(1,575)
|
$365
|
$(2,810)
|
$1,524
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per diluted
share
|
$0.00
|
$(0.14)
|
$0.01
|
$(0.23)
|
$0.02
|
|
Non-GAAP net income (loss) per
diluted share
|
$0.02
|
$(0.07)
|
$0.02
|
$(0.13)
|
$0.07
|
|
Shares used in GAAP diluted shares
calculation
|
22,717
|
22,459
|
22,614
|
22,387
|
22,782
|
|
Shares used in non-GAAP diluted
shares calculation
|
22,717
|
22,459
|
22,614
|
22,387
|
22,782
|
|
|
|||||||||||
|
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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|
|
|
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|
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|
|
|
|
|
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-more-
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Aehr Test Systems Reports Fiscal 2019 Fourth Quarter and Full Year
Financial Results
|
|
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July 18, 2019
|
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Page 5 of 5
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|
AEHR TEST SYSTEMS AND SUBSIDIARIES
|
||||||||
|
Condensed Consolidated Balance Sheets
|
||||||||
|
(in
thousands, except per share data)
|
||||||||
|
(unaudited)
|
|
|
May
31,
|
February
28,
|
May
31,
|
|
|
2019
|
2019
|
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
and cash equivalents
|
$5,428
|
$12,300
|
$16,848
|
|
Accounts
receivable, net
|
4,859
|
1,944
|
2,856
|
|
Inventories
|
9,061
|
9,189
|
9,049
|
|
Prepaid
expenses and other
|
686
|
787
|
703
|
|
Total
current assets
|
20,034
|
24,220
|
29,456
|
|
|
|
|
|
|
Property and
equipment, net
|
1,045
|
975
|
1,203
|
|
Other
assets
|
228
|
256
|
296
|
|
Total
assets
|
$21,307
|
$25,451
|
$30,955
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current
portion of long-term debt
|
$-
|
$6,110
|
$6,110
|
|
Accounts
payable
|
1,933
|
557
|
1,762
|
|
Accrued
expenses
|
2,034
|
2,085
|
1,646
|
|
Customer
deposits and deferred revenue, short-term
|
1,545
|
1,267
|
1,630
|
|
Total
current liabilities
|
5,512
|
10,019
|
11,148
|
|
|
|
|
|
|
Deferred
rent
|
153
|
151
|
63
|
|
Deferred revenue,
long-term
|
189
|
240
|
459
|
|
Total
liabilities
|
5,854
|
10,410
|
11,670
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity
|
15,472
|
15,060
|
19,305
|
|
Noncontrolling
interest
|
(19)
|
(19)
|
(20)
|
|
Total
shareholders' equity
|
15,453
|
15,041
|
19,285
|
|
Total
liabilities and shareholders' equity
|
$21,307
|
$25,451
|
$30,955
|
|
# #
#
|