Fiscal Third Quarter Financial Results:
- Net sales were
$15.3 million , up 190% from$5.3 million in the third quarter of fiscal 2021. - GAAP net income was
$2.2 million , or$0.08 per diluted share compared to a GAAP net loss of$735,000 , or$0.03 per diluted share, in the third quarter of fiscal 2021. - Non-GAAP net income was
$4.1 million , or$0.14 per diluted share, which excludes the impact of$880,000 stock-based compensation and a$1.0 million adjustment for excess and obsolete inventory related to legacy products. This compares to a non-GAAP net loss of$360,000 , or$0.02 per diluted share, which excludes the impact of$271,000 stock-based compensation in the third quarter of fiscal 2021. - Bookings were
$6.0 million for the quarter endedFebruary 28, 2022 . - Backlog as of
February 28, 2022 was$26.9 million . Effective backlog, which includes all orders announced since the end of the third quarter, is over$30 million .
Fiscal First Nine Months Financial Results:
- Net sales were
$30.5 million , up 241% from$9.0 million in the first nine months of fiscal 2021. - GAAP net income was
$3.7 million , or$0.13 per diluted share. This compares to a GAAP net loss of$2.6 million , or$0.11 per diluted share, in the first nine months of fiscal 2021. - Non-GAAP net income was
$5.2 million , or$0.19 per diluted share, which excludes the impact of stock-based compensation, the adjustment for excess and obsolete inventory and forgiveness of the PPP loan. This compares to a non-GAAP net loss of$4.1 million , or$0.17 per diluted share, in the first nine months of fiscal 2021, which excludes the impact of stock-based compensation and the net gain related to the closure of Aehr’sJapan subsidiary during the first quarter of fiscal 2021.
An explanation of the use of non-GAAP financial measures and a reconciliation of Aehr’s non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying tables.
“We finished the quarter with revenue of
“We continue to see very strong interest and demand for wafer level test and burn-in of silicon carbide devices and see enormous growth potential for silicon carbide semiconductor test and burn-in to support the world-wide electrification movement in electric vehicles, power conversion, and power generation and storage infrastructure.
“During the quarter, four additional companies provided detailed wafer layouts to Aehr for their silicon carbide wafers, as part of their evaluation of using Aehr’s FOX-XP™ systems and WaferPak™ contactors for wafer level burn-in of their devices to meet the electric vehicle market and electrification infrastructure markets. We have provided those customers with the data confirming that we believe we can test their wafers and provide proposals and lead times to meet their needs. This includes another major supplier of silicon carbide devices who has now committed to an on-wafer benchmark and asked us to put a system on their test floor to demonstrate our capabilities. This is now the second of the top silicon carbide customers (beyond our current lead silicon carbide customer) to engage with us in what we call on-wafer benchmarking of their actual wafers.
“We have now made several proposals to customers to place orders to lock in lead times of our FOX™ systems and WaferPaks, and Aehr will provide on-wafer evaluations and validations for them within the lead time of the systems. In just the last few weeks, we met with multiple companies in both the US and
“We continue to work closely with our lead silicon carbide test and burn-in customer, and earlier this month we announced follow-on orders from them for additional WaferPak™ Contactors that reflect multiple new silicon carbide device designs they are building to be qualified by their customers, along with several silicon carbide devices now qualified and ramping into production to meet demand for electric vehicles. This customer forecasts the need for additional systems to meet their goal of achieving a major share of the silicon carbide market. We continue to expect significant additional system and WaferPak purchases from them over the next several years and through the end of the decade.
“Forecasts from Canaccord Genuity estimate that the silicon carbide market for devices in electric vehicles, such as traction inverters and on-board chargers, as well as off-board charging stations used for electric vehicle charging, is expected to grow from fewer than 150,000 6-inch equivalent wafers of capacity in 2022 to more than four million wafers in 2030 to meet the more than 30 million electric vehicles anticipated to be built per year by then. This projected demand for just the electric vehicle silicon carbide wafers represents at least a
“We are also seeing continued recovery and strengthening in the silicon photonics test and burn-in market, reflecting the post-Covid recovery that is driving devices to meet 5G and data center infrastructure build out. Several customers addressing the silicon photonics market have forecast additional FOX™ system and WaferPak or DiePak® contactor capacity needs over the next 12 months.
“In addition to the silicon carbide and silicon photonics markets that are strong drivers of our business, during the quarter we received an initial order from a current FOX-XP customer for our proprietary DiePak Carriers for a new optical sensor device, representing a new application for our FOX-XP system. This customer is a supplier of sensors to a major mobile device, personal computer, and consumer electronics manufacturer. This is the first order of DiePaks for this device, which is expected to move to production and will require additional DiePak Carriers and may also require additional FOX-XP system production capacity.
“We are excited about the unprecedented inbound interest and expanding growth opportunities we are seeing with a significant number of new potential customers that are evaluating the unique capabilities and cost effectiveness of our FOX-XP multi-wafer test and burn in system for their test and burn-in needs. We remain very focused on serving several large market opportunities we see ahead.”
Fiscal 2022 Financial Guidance:
For the fiscal year ending
Management Conference Call and Webcast
About
Headquartered in
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Aehr’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," “sees,” or "continue," or the negative of these words or other similar terms or expressions that concern Aehr’s expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, Aehr’s ability to generate bookings and revenue increases in the future, including the first quarter of fiscal 2022; future requirements and orders of Aehr’s new and existing customers; bookings forecasted for proprietary WaferPak™ and DiePak consumables across multiple market segments; the temporary nature of customer pushouts; shipping timelines for products and follow-on capacity orders; the growth of Aehr’s systems and consumables, including as a percentage of total sales; financial guidance for fiscal 2022, including related to revenue and profitability, and expectations regarding fiscal 2022; Aehr’s ability to expand its number of customers using its FOX-P™ solutions; the ability to secure potential customer engagements; expectations related to long-term demand for Aehr’s productions and the attractiveness of key markets; the belief that Aehr will be stronger after the current worldwide COVID-19 pandemic, including expectations related to greater production, more customers, more applications, and higher value products. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Aehr’s recent 10-K, 10-Q and other reports filed from time to time with the
– Financial Tables to Follow –
AEHR TEST SYSTEMS AND SUBSIDIARIES | ||||||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||
Net sales | $ | 15,283 | $ | 9,611 | $ | 5,267 | $ | 30,540 | $ | 8,962 | ||||||||||
Cost of sales | 8,886 | 5,092 | 3,373 | 17,343 | 6,464 | |||||||||||||||
Gross profit | 6,397 | 4,519 | 1,894 | 13,197 | 2,498 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | 2,612 | 2,489 | 1,643 | 7,054 | 4,658 | |||||||||||||||
Research and development | 1,529 | 1,313 | 903 | 4,163 | 2,623 | |||||||||||||||
Total operating expenses | 4,141 | 3,802 | 2,546 | 11,217 | 7,281 | |||||||||||||||
Income (loss) from operations | 2,256 | 717 | (652 | ) | 1,980 | (4,783 | ) | |||||||||||||
Interest income (expense), net | 1 | (1 | ) | (10 | ) | (9 | ) | (35 | ) | |||||||||||
Income from forgiveness of PPP loan | - | - | - | 1,698 | - | |||||||||||||||
Net gain from dissolution of Aehr Test Systems Japan | - | - | - | - | 2,186 | |||||||||||||||
Other income (expense), net | 10 | 35 | (39 | ) | 68 | (139 | ) | |||||||||||||
Income (loss) before income tax (expense) benefit | 2,267 | 751 | (701 | ) | 3,737 | (2,771 | ) | |||||||||||||
Income tax (expense) benefit | (24 | ) | (34 | ) | (34 | ) | (81 | ) | 177 | |||||||||||
Net income (loss) | $ | 2,243 | $ | 717 | $ | (735 | ) | $ | 3,656 | $ | (2,594 | ) | ||||||||
Net income (loss) per share | ||||||||||||||||||||
Basic | $ | 0.08 | $ | 0.03 | $ | (0.03 | ) | $ | 0.14 | $ | (0.11 | ) | ||||||||
Diluted | $ | 0.08 | $ | 0.03 | $ | (0.03 | ) | $ | 0.13 | $ | (0.11 | ) | ||||||||
Shares used in per share calculations: | ||||||||||||||||||||
Basic | 26,871 | 26,205 | 23,525 | 25,684 | 23,390 | |||||||||||||||
Diluted | 28,854 | 28,342 | 23,525 | 27,510 | 23,390 | |||||||||||||||
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 | |||||||||||||||||||
2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||
GAAP net income (loss) | $ | 2,243 | $ | 717 | $ | (735 | ) | $ | 3,656 | $ | (2,594 | ) | ||||||||
Stock-based compensation expense | 880 | 718 | 271 | 2,186 | 798 | |||||||||||||||
Excess and obsolesence provision | 1,026 | 34 | 104 | 1,046 | 117 | |||||||||||||||
Income from forgiveness of PPP loan | - | - | - | (1,698 | ) | - | ||||||||||||||
Income from disolution of Aehr Test Systesm Japan | - | - | - | - | (2,401 | ) | ||||||||||||||
Non-GAAP net income (loss) | $ | 4,149 | $ | 1,469 | $ | (360 | ) | $ | 5,190 | $ | (4,080 | ) | ||||||||
GAAP net income (loss) per diluted share | $ | 0.08 | $ | 0.03 | $ | (0.03 | ) | $ | 0.13 | $ | (0.11 | ) | ||||||||
Non-GAAP net income (loss) per diluted share | $ | 0.14 | $ | 0.05 | $ | (0.02 | ) | $ | 0.19 | $ | (0.17 | ) | ||||||||
Shares used in GAAP diluted shares calculation | 28,854 | 28,342 | 23,525 | 27,510 | 23,390 | |||||||||||||||
Shares used in non-GAAP diluted shares calculation | 28,854 | 28,342 | 23,525 | 27,510 | 23,390 | |||||||||||||||
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. |
AEHR TEST SYSTEMS AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
2022 | 2021 | 2022 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 32,020 | $ | 35,031 | $ | 4,582 | |||||
Accounts receivable, net | 8,543 | 7,391 | 5,202 | ||||||||
Inventories | 14,152 | 13,033 | 8,849 | ||||||||
Prepaid expenses and other | 559 | 622 | 551 | ||||||||
Total current assets | 55,274 | 56,077 | 19,184 | ||||||||
Property and equipment, net | 776 | 661 | 677 | ||||||||
Operating lease right-of-use assets | 1,091 | 1,265 | 1,606 | ||||||||
Other assets | 214 | 182 | 198 | ||||||||
Total assets | $ | 57,355 | $ | 58,185 | $ | 21,665 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 3,307 | $ | 3,386 | $ | 2,893 | |||||
Accrued expenses | 2,535 | 2,254 | 2,163 | ||||||||
Operating lease liabilities, short-term | 778 | 763 | 737 | ||||||||
Customer deposits and deferred revenue, short-term | 6,197 | 10,142 | 189 | ||||||||
Line of credit | - | - | 1,400 | ||||||||
Current portion of long-term debt | - | - | 1,679 | ||||||||
Total current liabilities | 12,817 | 16,545 | 9,061 | ||||||||
Operating lease liabilities, long-term | 415 | 616 | 1,007 | ||||||||
Long-term debt, net of current portion | - | - | - | ||||||||
Deferred revenue, long-term | 90 | 116 | 99 | ||||||||
Other liabilities | 45 | 46 | 49 | ||||||||
Total liabilities | 13,367 | 17,323 | 10,216 | ||||||||
Total shareholders' equity | 43,988 | 40,862 | 11,449 | ||||||||
Total liabilities and shareholders' equity | $ | 57,355 | $ | 58,185 | $ | 21,665 | |||||
Source:
2022 GlobeNewswire, Inc., source