Aehr Test Systems Reports Second Quarter Fiscal 2016 Financial Results

Net Sales for the First Six Months of $11.3 Million up 82% Year Over Year

Fremont, California, UNITED STATES


FREMONT, Calif., Jan. 12, 2016 (GLOBE NEWSWIRE) -- Aehr Test Systems (NASDAQ:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced financial results for its second quarter of fiscal 2016 ended November 30, 2015.

Fiscal Second Quarter Financial Results:

  • Net sales were $4.6 million, up 77% from $2.6 million in the second quarter of fiscal 2015.
  • Non-GAAP net loss was $794,000, or $0.06 per diluted share, compared to non-GAAP net loss of $1.8 million, or $0.16 per diluted share, in the same quarter a year ago.
  • GAAP net loss was $1.0 million, or $0.08 per diluted share, compared to GAAP net loss of $2.1 million, or $0.18 per diluted share, in the same quarter a year ago.

Fiscal First Six Months Financial Results:

  • Net sales were $11.3 million, up 82% from $6.2 million in the first six months of fiscal 2015.
  • Non-GAAP net loss was $181,000, or $0.01 per diluted share, compared to a non-GAAP net loss of $2.5 million, or $0.22 per diluted share, in the same period a year ago.
  • GAAP net loss was $754,000, or $0.06 per diluted share, compared to a GAAP net loss of $3.0 million, or $0.26 per diluted share, in the same period a year ago.

Recent Business Highlights:

  • Received first order for new FOX-XPTM Wafer Level Test and Burn-in System.
  • Expect final customer milestone and shipment of FOX-1P next generation Single Wafer Test System this quarter.

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

“We made significant progress during the quarter on the rollout of our next generation FOX-P platform of wafer level test and burn-in products. We expect to complete the final customer payment milestone with our lead customer for our new FOX-1P single wafer test and burn-in system and ship this initial system to their facility this quarter for final acceptance and production release. Both the initial FOX-1P system and multiple additional FOX-1P systems already in backlog are undergoing final manufacturing and systems level tests and diagnostics at the factory.

“During the quarter, we announced receiving the first order for our new FOX-XP Wafer Level Test and Burn-in System. The order includes multiple FOX-XP WaferPakTM Contactors and application development services. The system will be used for reliability and qualification test of devices intended for a very high volume application. We completed and received customer approval for multiple FOX-XP WaferPak Contactor designs that are now being manufactured and we expect to be processing wafers with these WaferPak Contactors on the FOX-XP system for the customer within the next two months. We are very excited about this application and believe this evaluation will lead to production FOX-XP system orders for shipments by the end of calendar year 2016 and volume shipments in calendar 2017.

“In addition, we expect an initial order within the next couple of months from our second lead customer for our FOX-XP Multi-Wafer Test and Burn-in System for a production burn-in application. This initial order is expected to be for two systems, along with our new FOX WaferPak Aligner and a complement of FOX-XP WaferPak contactors. We believe the FOX-XP system is an ideal fit for this application. The customer is forecasting device capacity growth that will drive the need for additional production burn-in capacity for multiple years into the future. 

“Although our short-fall of burn-in system orders coupled with the delay in FOX-1P system shipments are negatively impacting our short-term financials, we are pleased with the investments and the progress on the development of our new FOX-P test system family. FOX-P family members include our FOX-1P single-wafer and new FOX-XP multi-wafer test and burn-in systems as well as our new FOX WaferPak Aligner and FOX WaferPak Handler designed to be used with our new FOX-XP system. We believe that shipments of the FOX-1P systems over the next several months, as well as the engagements with the first two lead customers for the FOX-XP system, will strongly position Aehr Test in the second half of this calendar year and into calendar 2017.”

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 2016 operating results. To access the call dial 888-437-9445  (+1 719-325-2495 outside the United States) and give the participant pass code 6806024. 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 by dialing 888-203-1112 (+1 719-457-0820 outside the United States) and entering pass code 6806024, beginning approximately two hours after conclusion of the call through 8:00 p.m. ET on January 19, 2016.

About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a worldwide provider of test systems for burning-in and testing logic and memory integrated circuits and has an installed base of more than 2,500 systems worldwide. Increased quality and reliability needs of the Automotive and Mobility integrated circuit markets are driving additional test requirements, capacity needs and opportunities for Aehr Test products in package and wafer level test. Aehr Test has developed and introduced several innovative products, including the ABTSTM and FOX families of test and burn-in systems and WaferPak contactors. The ABTS systems are used in production and qualification testing of packaged parts for both low-power and high-power logic as well as memory devices. The FOX family of systems includes single and multi-wafer full wafer contact 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 and systems-on-a-chip. 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. For more information, please visit Aehr Test’s 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 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,
   2015   2015   2014   2015   2014 
           
Net sales$  4,620  $  6,633  $  2,615  $  11,253  $  6,173 
Cost of sales  2,929   3,250   1,921   6,179   3,869 
Gross profit 1,691   3,383   694   5,074   2,304 
           
Operating expenses:         
Selling, general and administrative 1,713   1,845   1,736   3,558   3,360 
Research and development 923   1,062   1,105   1,985   2,064 
Total operating expenses 2,636   2,907   2,841   5,543   5,424 
           
(Loss) income from operations (945)  476   (2,147)  (469)  (3,120)
           
Interest expense   (137)    (135)    (8)    (272)    (22)
Other income (expense), net 55   (24)  60   31   91 
           
(Loss) income before income tax          
(expense) benefit  (1,027)  317   (2,095)  (710)  (3,051)
           
Income tax (expense) benefit (21)  (23)  (19)  (44)  30 
           
Net (loss) income (1,048)  294   (2,114)  (754)  (3,021)
           
Less:  Net income attributable to the      
 noncontrolling interest   -      -      -      -      -  
           
Net (loss) income attributable to Aehr Test     
 Systems common shareholders$  (1,048) $  294  $  (2,114) $  (754) $  (3,021)
           
Net (loss) income per share         
Basic$  (0.08) $  0.02  $  (0.18) $  (0.06) $  (0.26)
Diluted$  (0.08) $  0.02  $  (0.18) $  (0.06) $  (0.26)
           
Shares used in per share calculations:         
Basic 13,048   12,963   11,724   13,005   11,557 
Diluted 13,048   13,814   11,724   13,005   11,557 
           

 

 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, 
     2015   2015   2014   2015   2014  
              
              
 GAAP net (loss) income   $  (1,048) $  294  $  (2,114) $  (754) $  (3,021) 
 Stock-based compensation expense   254   319   277   573   474  
 Non-GAAP net (loss) income  $  (794) $  613  $  (1,837) $  (181) $  (2,547) 
              
 GAAP net (loss) income per diluted share  $  (0.08) $  0.02  $  (0.18) $  (0.06) $  (0.26) 
 Non-GAAP net (loss) income per diluted share  $  (0.06) $  0.04  $  (0.16) $  (0.01) $  (0.22) 
 Shares used in diluted shares calculation   13,048   13,814   11,724   13,005   11,557  
 Shares used in non-GAAP diluted shares calculation   13,048   13,814   11,724   13,005   11,557  
    
              
 Non-GAAP net income is a non-GAAP measure and should not be considered a replacement for GAAP results.  Non-GAAP net 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 income (the most comparable GAAP measure). 
              

 

AEHR TEST SYSTEMS AND SUBSIDIARIES 
Condensed Consolidated Balance Sheets 
(in thousands, except per share data) 
(unaudited) 
          
    November 30, August 31, May 31, 
     2015   2015   2015  
 ASSETS       
          
 Current assets:       
 Cash and cash equivalents$  1,955  $  3,653  $  5,527  
 Accounts receivable, net 2,503   2,628   1,383  
 Inventories  7,419   7,258   7,123  
 Prepaid expenses and other 402   465   262  
 Total current assets 12,279   14,004   14,295  
          
 Property and equipment, net 576   465   478  
 Other assets    93     94     95  
 Total assets $  12,948  $  14,563  $  14,868  
          
 LIABILITIES AND SHAREHOLDERS' EQUITY      
          
 Current liabilities:       
 Accounts payable$  1,390  $  1,848  $  724  
 Accrued expenses 1,496   1,557   1,045  
 Customer deposits and deferred revenue, short-term 1,295   1,819   4,750  
 Total current liabilities 4,181   5,224   6,519  
          
 Long-term debt  3,873   3,828   3,791  
 Income taxes payable   -      -    8  
 Deferred revenue, long-term 127   127     -   
 Total liabilities 8,181   9,179   10,318  
          
 Aehr Test Systems shareholders' equity 4,785   5,402   4,568  
 Noncontrolling interest (18)  (18)  (18) 
 Total shareholders' equity 4,767   5,384   4,550  
 Total liabilities and shareholders' equity$  12,948  $  14,563  $  14,868  
          

 

 


        

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