Exhibit 99 .1
FOR IMMEDIATE RELEASE
Contacts:
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Aehr Test Systems
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MKR Investor Relations Inc.
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Ken
Spink
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Todd
Kehrli or Jim Byers
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Chief
Financial Officer
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Analyst/Investor
Contact
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(510)
623-9400 x309
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(323) 468-2300
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aehr@mkr-group.com
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Aehr Test Systems Reports First Quarter Fiscal 2020 Financial
Results and
Reiterates Financial Guidance for Significant Growth in Fiscal
2020
Fremont, CA (October 3, 2019) – Aehr Test Systems (NASDAQ: AEHR),
a worldwide supplier of semiconductor
test and reliability qualification equipment, today announced financial results for its first
quarter of fiscal 2020 ended August 31, 2019.
Fiscal First Quarter Financial Results:
●
Net
sales were $5.5 million, compared to $4.7 million in the first
quarter of fiscal 2019.
●
GAAP
net loss was $413,000, or $0.02 per diluted share, compared to a
GAAP net loss of $1.5 million, or $0.07 per diluted share, in the
first quarter of fiscal 2019.
●
Non-GAAP
net loss was $214,000, or $0.01 per diluted share, which excludes
the impact of stock-based compensation expense, compared to a
non-GAAP net loss of $1.3 million, or $0.06 per diluted share, in
the first quarter of fiscal 2019.
●
Backlog as of
August 31, 2019 was $3.6 million. Backlog to date, which includes
orders announced since the end of the first quarter, is $7.5
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.
Aehr First Quarter and Recent Business Highlights:
●
Received an
initial order totaling more than $3 million from a new customer for
its FOX-XP™ Wafer Level Test and Burn-in system and WaferPak
Contactors for production test and burn-in of the customer’s
line of silicon carbide (SiC) devices.
●
Completed customer
acceptance and manufacturing release to a new customer of its FOX-CP™ single-wafer
test and burn-in system for 100% test and burn-in of the
customer’s new device for forecasted high-volume production
over a multi-year ramp of products in the enterprise and data
center market.
●
Continued
shipments of both its FOX-XP and FOX-NP™ systems to a key
customer for wafer level test and burn-in ahead of a forecasted
ramp of silicon photonics device production.
●
Received
factory acceptance from two new silicon photonics customers
announced during fiscal 2019 on their FOX systems, including
WaferPak Contactors, for wafer level test during burn-in and DiePak
Carriers for module level test and burn-in.
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Aehr Test Systems Reports First Quarter Fiscal 2020 Financial
Results
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October 3, 2019
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Page 2 of 6
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Gayn Erickson, President and CEO of Aehr Test Systems,
commented:
“We are seeing continued growth in customer engagements
worldwide, particularly for high growth applications that include
photonics, silicon carbide, automotive, and memory, and remain 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. This includes several new customer
opportunities in our existing markets as well as customer
engagement opportunities to penetrate new markets.
“Last week, we announced a new customer who will
utilize the unique high-voltage
and high-power capabilities of our FOX-XP system to enable wafer level production
test and burn-in of its line of
silicon carbide devices. This new customer is a leading
Fortune 500 supplier of semiconductor
devices with a significant customer base in the automotive
semiconductor market. This is a new and very exciting market
opportunity for Aehr as our FOX-P family of products are cost
effective solutions for ensuring the reliability of
wafers and bare die in
the emerging silicon carbide device
market that is driven by the growing demand for electrical
vehicles.
“We also have multiple customers utilizing our FOX-P
solutions for test and reliability verification of silicon
photonics devices that have forecasted the need for additional
production test and burn-in capacity this year and into the future.
We continue to work closely with these customers to support their
production ramps and plans to transition to high volume production
test and burn-in using our systems. With our full family of FOX-P
products, we are able to provide a seamless transition from initial
product qualification to very high-volume production.
“As our customers move to high-volume production test, we see
their ramps driving significant incremental capacity of both
systems and also our proprietary WaferPak contactors and
DiePak™ carriers.
“We believe the data storage market, the network
infrastructure market, multiple devices related to the worldwide 5G
build-out, the electric vehicles market, and the increased use
of heterogeneous packaging that enables new solutions with mixed
technologies are substantial 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 saw a significant reduction in our operating expenses
during the quarter, reflecting the structural changes we made this
past year to improve efficiencies in key areas of our Company, and
we continue to streamline our sales organization and processes to
address the customer opportunities we see ahead for our
FOX-P platform.
“Looking ahead, 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. We continue to expect to see a pickup in 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.
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Aehr Test Systems Reports First Quarter Fiscal 2020 Financial
Results
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October 3, 2019
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Page 3 of 6
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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 first quarter fiscal
2020 operating results. To access the call dial
888-254-3590 (+1
323-794-2551 outside the United States) and give the participant
pass code 9820003. 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 October
10, 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 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.
— Financial
Tables to Follow —
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Aehr Test Systems Reports First Quarter Fiscal 2020 Financial
Results
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October 3, 2019
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Page 4 of 6
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AEHR TEST
SYSTEMS AND SUBSIDIARIES
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Condensed
Consolidated Statements of Operations
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(in thousands, except per share
data)
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(unaudited)
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Three Months
Ended
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Aug
31,
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May
31,
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Aug
31,
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2019
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2019
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2018
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Net sales
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$5,533
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$7,242
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$4,740
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Cost of sales
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3,262
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3,863
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3,187
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Gross profit
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2,271
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3,379
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1,553
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Operating
expenses:
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Selling, general and
administrative
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1,808
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2,018
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1,879
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Research and
development
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892
|
1,120
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1,116
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Restructuring
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-
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118
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-
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Total
operating expenses
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2,700
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3,256
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2,995
|
|
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(Loss)
income from operations
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(429)
|
123
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(1,442)
|
|
|
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Interest income (expense),
net
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12
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(24)
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(78)
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Other income,
net
|
10
|
17
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9
|
|
|
|
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(Loss) income before income
tax expense
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(407)
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116
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(1,511)
|
|
|
|
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Income tax
expense
|
(6)
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(6)
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(4)
|
|
|
|
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Net
(loss) income
|
(413)
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110
|
(1,515)
|
|
|
|
|
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Less:
Net income attributable to the noncontrolling
interest
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-
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-
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-
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Net
(loss) income attributable to Aehr Test Systems
common shareholders
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$(413)
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$110
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$(1,515)
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Net (loss) income per
share
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Basic
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$(0.02)
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$0.00
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$(0.07)
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Diluted
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$(0.02)
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$0.00
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$(0.07)
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Shares used in per share
calculations:
|
|
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Basic
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22,708
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22,605
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22,190
|
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Diluted
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22,708
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22,717
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22,190
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|
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Aehr Test Systems Reports First Quarter Fiscal 2020 Financial
Results
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October 3, 2019
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Page 5 of 6
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AEHR TEST SYSTEMS AND SUBSIDIARIES
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Reconciliation of GAAP to Non-GAAP Results
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(in
thousands, except per share data)
|
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(unaudited)
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Three Months
Ended
|
||
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Aug
31,
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May
31,
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Aug
31,
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2019
|
2019
|
2018
|
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GAAP net (loss)
income
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$(413)
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$110
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$(1,515)
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Stock-based compensation
expense
|
199
|
200
|
256
|
|
Restructuring
|
-
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118
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-
|
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Non-GAAP net (loss)
income
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$(214)
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$428
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$(1,259)
|
|
|
|
|
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GAAP net (loss) income per diluted
share
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$(0.02)
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$0.00
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$(0.07)
|
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Non-GAAP net (loss) income per
diluted share
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$(0.01)
|
$0.02
|
$(0.06)
|
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Shares used in GAAP diluted shares
calculation
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22,708
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22,717
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22,190
|
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Shares used in non-GAAP diluted
shares calculation
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22,708
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22,717
|
22,190
|
|
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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.
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Aehr Test Systems Reports First Quarter Fiscal 2020 Financial
Results
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October 3, 2019
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Page 6 of 6
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AEHR TEST SYSTEMS AND SUBSIDIARIES
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Condensed Consolidated Balance Sheets
|
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(in
thousands)
|
|
(unaudited)
|
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August
31,
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May
31,
|
|
|
2019
|
2019
|
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ASSETS
|
|
|
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Current
assets:
|
|
|
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Cash
and cash equivalents
|
$5,266
|
$5,428
|
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Accounts
receivable, net
|
3,287
|
4,859
|
|
Inventories
|
9,217
|
9,061
|
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Prepaid
expenses and other
|
523
|
686
|
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Total
current assets
|
18,293
|
20,034
|
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|
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Property and
equipment, net
|
1,000
|
1,045
|
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Operating lease
right-of-use assets
|
2,533
|
-
|
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Other
assets
|
199
|
228
|
|
Total
assets
|
$22,025
|
$21,307
|
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|
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LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
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Current
liabilities:
|
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|
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Accounts
payable
|
$1,742
|
$1,933
|
|
Accrued
expenses
|
2,183
|
2,034
|
|
Customer
deposits and deferred revenue, short-term
|
615
|
1,545
|
|
Total
current liabilities
|
4,540
|
5,512
|
|
|
|
|
|
Lease liability
long-term portion
|
2,086
|
-
|
|
Deferred
rent
|
-
|
153
|
|
Deferred revenue,
long-term
|
113
|
189
|
|
Total
liabilities
|
6,739
|
5,854
|
|
|
|
|
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Aehr Test Systems
shareholders' equity
|
15,306
|
15,472
|
|
Noncontrolling
interest
|
(20)
|
(19)
|
|
Total
shareholders' equity
|
15,286
|
15,453
|
|
|
|
|
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Total
liabilities and shareholders' equity
|
$22,025
|
$21,307
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# #
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