FREMONT, Calif., July 19, 2018 (GLOBE NEWSWIRE) -- Aehr Test Systems (NASDAQ:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced financial results for its 2018 fourth quarter and fiscal year ended May 31, 2018.

Fiscal Fourth Quarter Financial Results:

• Net sales were $7.3 million, up 9% from $6.7 million in the fourth quarter of fiscal 2017.
• GAAP net income was $191,000, or $0.01 per diluted share, compared to a GAAP net loss of $795,000, or $0.04 per diluted share, in the fourth quarter of fiscal 2017.
• Non-GAAP net income, which excludes the impact of stock-based compensation expense, was $365,000, or $0.02 per diluted share, compared to a non-GAAP net loss of $587,000, or $0.03 per diluted share, in the fourth quarter of fiscal 2017.

Fiscal Year Financial Results:

• Net sales were $29.6 million, up 56% from $18.9 million in fiscal 2017.
• GAAP net income was $528,000, or $0.02 per diluted share, compared to a GAAP net loss of $5.7 million, or $0.35 per diluted share, in fiscal 2017.
• Non-GAAP net income was $1.5 million, or $0.07 per diluted share, compared to a non-GAAP net loss of $4.7 million, or $0.29 per diluted share, in fiscal 2017.
• Backlog as of May 31, 2018 was $8.4 million, compared to $12.7 million as of May 31, 2017.
• Total cash and cash equivalents at fiscal year-end was $16.8 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:

• Completed customer acceptance, manufacturing release and first production shipment to lead customer of new high-voltage channel module-based FOX-XP™ test and burn-in system for wafer-level burn-in of silicon photonics wafers in a single touchdown.
• Shipped initial production FOX-XP system to new customer for test and burn-in of integrated silicon photonics devices for data communications applications using Aehr’s proprietary DiePak^® carriers, which allow single socketing for both functional test and burn-in of their singulated bare die.
• Received initial order for new DiePak carrier design from Aehr’s FOX-XP lead customer for a next-generation device to be used on their installed base of FOX-XP test and burn-in systems. 
• Received follow-on orders of $2.5 million for WaferPak^TM full-wafer contactors and services for Aehr’s installed base of FOX wafer-level test and burn-in systems.
• Successfully completed shipments of the initial production order for ABTS™ thermal chambers to Aehr’s OEM customer for a very high-volume test and burn-in application.

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

“Fiscal 2018 was a key year for Aehr Test, as we continued shipments and installations of our new FOX-XP multi-wafer and singulated die production test and burn-in system to our three lead customers. These systems are for production test applications that include 2D and 3D mobile sensors as well as silicon photonics wafer level and singulated die devices. We continue to have a very good business relationship with these lead customers, and are encouraged that each of them has communicated their commitment to use our products in production of their initial devices as well as follow-on devices on their roadmaps including this year. We are engaged not only in new device test opportunities with these lead customers, but also with several new potential customers for similar applications, as well as several new devices in the mobile and automotive space where safety, security and 100% certainty of reliability testing are critical.

“During this fiscal year, we will be making significant investments in our sales and marketing as well as improvements in our manufacturing infrastructure to meet the anticipated growth in our target markets and to be able to provide the increased capacity for our FOX wafer and singulated die level test and burn-in products.

“For the full fiscal 2018 year, we finished with total annual revenue of $29.6 million, a 56% increase over the prior year, and were profitable on both a GAAP and non-GAAP basis, exceeding analyst expectations each quarter and for the full year. As we head into fiscal 2019, we are expecting continued growth in revenue and profits during the year as we expect to see increased customer deployment of our FOX Wafer Level and Singulated Die / Module Test and Burn-in systems and our proprietary WaferPak and DiePak contactors.” 

Fiscal 2019 Financial Guidance:

For the fiscal year ending May 31, 2019, the company expects full year total revenue of at least $35 million and significant growth in profit for the 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 2018 fourth quarter and full year operating results. To access the call dial 877-260-1479 (+1 334-323-0522 outside the United States) and give the participant pass code 6422870. 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 26, 2018. 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 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, 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 system is a full wafer contact and singulated die/module test and burn-in system 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 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.

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

– Financial Tables to Follow –

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,
		2018				2018				2017				2018				2017
Net sales		$	7,269			$	7,393			$	6,683			$	29,555			$	18,898
Cost of sales			4,108				4,217				4,075				17,169				12,118
Gross profit			3,161				3,176				2,608				12,386				6,780
Operating expenses:
Selling, general and administrative			1,816				1,829				1,905				7,290				7,052
Research and development			1,096				1,040				1,309				4,181				4,657
Total operating expenses			2,912				2,869				3,214				11,471				11,709
Income (loss) from operations			249				307				(606	)			915				(4,929	)
Interest expense			(89	)			(98	)			(141	)			(399	)			(678	)
Other income (expense), net			39				(33	)			(59	)			(61	)			(21	)
Income (loss) before income tax
(expense) benefit			199				176				(806	)			455				(5,628	)
Income tax (expense) benefit			(8	)			91				11				73				(25	)
Net income (loss)			191				267				(795	)			528				(5,653	)
Less:  Net income attributable to the
	noncontrolling interest		-				-				-				-				-
Net income (loss) attributable to Aehr Test
	Systems common shareholders	$	191			$	267			$	(795	)		$	528			$	(5,653	)
Net income (loss) per share
Basic		$	0.01			$	0.01			$	(0.04	)		$	0.02			$	(0.35	)
Diluted		$	0.01			$	0.01			$	(0.04	)		$	0.02			$	(0.35	)
Shares used in per share calculations:
Basic			22,033				21,832				19,050				21,732				16,267
Diluted			22,614				22,641				19,050				22,782				16,267

 

	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,
				2018			2018			2017				2018			2017
	GAAP net income (loss)			$	191		$	267		$	(795	)		$	528		$	(5,653	)
	Stock-based compensation expense				174			242			208				996			999
	Non-GAAP net income (loss)			$	365		$	509		$	(587	)		$	1,524		$	(4,654	)
	GAAP net income (loss) per diluted share			$	0.01		$	0.01		$	(0.04	)		$	0.02		$	(0.35	)
	Non-GAAP net income (loss) per diluted share			$	0.02		$	0.02		$	(0.03	)		$	0.07		$	(0.29	)
	Shares used in diluted shares calculation				22,614			22,641			19,050				22,782			16,267
	Shares used in non-GAAP diluted shares calculation				22,614			22,641			19,050				22,782			16,267
	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 (loss).  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.

 

AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
				May 31,				February 28,				May 31,
				2018				2018				2017
	ASSETS
	Current assets:
	Cash and cash equivalents			$	16,848			$	9,077			$	17,803
	Short-term investments				-				5,986				-
	Accounts receivable, net				2,856				4,673				4,010
	Inventories				9,049				9,368				6,604
	Prepaid expenses and other				703				1,339				961
	Total current assets				29,456				30,443				29,378
	Property and equipment, net				1,203				1,205				1,419
	Other assets				296				324				95
	Total assets			$	30,955			$	31,972			$	30,892
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current liabilities:
	Current portion of long-term debt			$	6,110			$	-			$	-
	Accounts payable				1,762				2,638				2,808
	Accrued expenses				1,646				1,643				1,609
	Customer deposits and deferred revenue, short-term				1,630				2,310				3,467
	Total current liabilities				11,148				6,591				7,884
	Long-term debt				-				6,110				6,110
	Deferred rent				63				-				-
	Deferred revenue, long-term				459				497				104
	Total liabilities				11,670				13,198				14,098
	Aehr Test Systems shareholders' equity				19,305				18,794				16,813
	Noncontrolling interest				(20	)			(20	)			(19	)
	Total shareholders' equity				19,285				18,774				16,794
	Total liabilities and shareholders' equity			$	30,955			$	31,972			$	30,892