Fiscal First Quarter Financial Results:
- Net sales were
$5.6 million , up 181% from$2.0 million in the first quarter of fiscal 2021. - GAAP net income was
$696,000 , or$0.03 per diluted share, which includes the impact of forgiveness of$1.7 million in loans from the Paycheck Protection Program (“PPP”) it received in fiscal 2020. This compares to GAAP net income of$107,000 , or$0.00 per diluted share, in the first quarter of fiscal 2021, which includes the impact of a gain of$2.4 million related to the closure of Aehr’sJapan subsidiary during the quarter. - Non-GAAP net loss was
$414,000 , or$0.02 per diluted share, which excludes the impact of stock-based compensation and forgiveness of the PPP loan. This compares to non-GAAP net loss of$2.0 million , or$0.09 per diluted share, in the first quarter of fiscal 2021, which excludes the impact of stock-based compensation, and the non-cash net gain related to the closure of Aehr’sJapan subsidiary. - Backlog as of
August 31, 2021 was$16.6 million , up from$1.6 million as ofMay 31, 2021 . Effective backlog, which includes all orders announced since the end of the first quarter, is over$36 million .
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 are off to a strong start for fiscal 2022, finishing the first quarter with record bookings for a single quarter of
“Our strong bookings include several sizable orders received over the past few months from our lead silicon carbide test and burn-in customer for our FOX-XP™ systems and WaferPak™ Contactors to support testing of silicon carbide power devices for electric vehicles. Each of these silicon carbide-focused FOX-XP systems is configured to test eighteen silicon carbide wafers in parallel in the footprint of a typical single wafer test solution, while contacting and testing 100% of the devices in parallel on each wafer. This Fortune 500 customer is a major automotive semiconductor supplier, and we continue to work closely with them to achieve their test and burn-in requirements and capacity needs. They continue to forecast orders for additional
“In addition to this large opportunity with our lead silicon carbide customer, we are currently in detailed discussions with multiple other major silicon carbide suppliers regarding their wafer level test and burn-in needs. We believe we will add several new silicon carbide customers over the next 18 months that will ramp into production on our solutions.
“We are seeing very strong demand across the industry for wafer level burn-in of silicon carbide devices and continue to ramp our
“The silicon carbide power semiconductor device market is expected to increase over 500% between 2020 and 2026, growing at a compound average growth rate (“CAGR”) of 36% to
“In addition to the devices in the electric vehicles, the energy infrastructure market that includes charging stations, wind farms, and solar panels in both solar farms and for individual homes and businesses all are markets that are consuming more silicon carbide devices than electric vehicles today and are growing at a rapid rate over the next decade. We believe it is very clear that this infrastructure is going to need to grow to support the electric vehicle demand. Many countries including
“Our FOX family of products are cost-effective solutions for ensuring the critical quality and reliability of devices in these markets, and we anticipate that wafer level test and burn-in will become the industry standard for quality and reliability screening of silicon carbide devices. With the most cost-effective solution in the market to address this opportunity, we believe that Aehr has the chance to achieve a significant market share.
“In addition to our success in the silicon carbide applications, we continue to see signs of strengthening in the silicon photonics test and burn-in market. During this quarter we received and shipped our first order in
“Several other customers addressing the silicon photonics market have also forecast additional system and contactor capacity needs this fiscal year. These include needs to address incremental production capacity as well as capacity to address new customer and new product qualification and engineering. Silicon photonics devices address the 5G and data center infrastructure industry as well as several other key markets, and
“Our customers are using our
“We also continue with multiple programs using our
“As we discussed and anticipated last year during the beginning of the COVID-19 pandemic, we have emerged a stronger company, with more production customers, more markets and applications, and higher value products than we had before the start of the pandemic. With our record bookings and the strength of our semiconductor test and burn-in solutions as well as the positive response we are getting from multiple new potential customers in the silicon carbide space, we are confident in our growth and are raising our guidance for revenue for the year.”
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 WaferPakTM 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-PTM 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 | |||||||||||
2021 | 2021 | 2020 | |||||||||
Net sales | $ | 5,646 | $ | 7,638 | $ | 2,012 | |||||
Cost of sales | 3,365 | 4,104 | 1,785 | ||||||||
Gross profit | 2,281 | 3,534 | 227 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 1,953 | 1,904 | 1,514 | ||||||||
Research and development | 1,321 | 1,029 | 900 | ||||||||
Total operating expenses | 3,274 | 2,933 | 2,414 | ||||||||
(Loss) income from operations | (993 | ) | 601 | (2,187 | ) | ||||||
Interest expense, net | (9 | ) | (11 | ) | (13 | ) | |||||
Net gain from dissolution of Aehr Test Systems Japan | - | - | 2,186 | ||||||||
Income from forgiveness of PPP loan | 1,698 | - | - | ||||||||
Other income (expense), net | 23 | (23 | ) | (94 | ) | ||||||
Income (loss) before income tax (expense) benefit | 719 | 567 | (108 | ) | |||||||
Income tax (expense) benefit | (23 | ) | - | 215 | |||||||
Net income | $ | 696 | $ | 567 | $ | 107 | |||||
Net income per share | |||||||||||
Basic | $ | 0.03 | $ | 0.02 | $ | 0.00 | |||||
Diluted | $ | 0.03 | $ | 0.02 | $ | 0.00 | |||||
Shares used in per share calculations: | |||||||||||
Basic | 23,999 | 23,659 | 23,248 | ||||||||
Diluted | 25,356 | 23,916 | 23,455 | ||||||||
AEHR TEST SYSTEMS AND SUBSIDIARIES | |||||||||||
Reconciliation of GAAP to Non-GAAP Results | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
2021 | 2021 | 2020 | |||||||||
GAAP net income | $ | 696 | $ | 567 | $ | 107 | |||||
Stock-based compensation expense | 588 | 303 | 270 | ||||||||
Dissolution of Aehr Test Systems Japan | - | - | (2,401 | ) | |||||||
Income from forgiveness of PPP loan | (1,698 | ) | - | - | |||||||
Non-GAAP net (loss) income | $ | (414 | ) | $ | 870 | $ | (2,024 | ) | |||
GAAP net income per diluted share | $ | 0.03 | $ | 0.02 | $ | 0.00 | |||||
Non-GAAP net (loss) income per diluted share | $ | (0.02 | ) | $ | 0.04 | $ | (0.09 | ) | |||
Shares used in GAAP diluted shares calculation | 25,356 | 23,916 | 23,455 | ||||||||
Shares used in non-GAAP diluted shares calculation | 23,999 | 23,916 | 23,248 | ||||||||
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.
AEHR TEST SYSTEMS AND SUBSIDIARIES | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
2021 | 2021 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 6,530 | $ | 4,582 | |||
Accounts receivable, net | 4,264 | 5,202 | |||||
Inventories | 10,146 | 8,849 | |||||
Prepaid expenses and other | 759 | 551 | |||||
Total current assets | 21,699 | 19,184 | |||||
Property and equipment, net | 676 | 677 | |||||
Operating lease right-of-use assets | 1,437 | 1,606 | |||||
Other assets | 189 | 198 | |||||
Total assets | $ | 24,001 | $ | 21,665 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | 2,753 | 2,893 | |||||
Accrued expenses | 1,978 | 2,163 | |||||
Operating lease liabilities, short-term | 750 | 737 | |||||
Customer deposits and deferred revenue, short-term | 3,279 | 189 | |||||
Line of credit | - | 1,400 | |||||
Current portion of long-term debt | - | 1,679 | |||||
Total current liabilities | 8,760 | 9,061 | |||||
Operating lease liabilities, long-term | 813 | 1,007 | |||||
Deferred revenue, long-term | 150 | 99 | |||||
Other liabilities | 46 | 49 | |||||
Total liabilities | 9,769 | 10,216 | |||||
Total shareholders' equity | 14,232 | 11,449 | |||||
Total liabilities and shareholders' equity | $ | 24,001 | $ | 21,665 | |||
Contacts:
Chief Financial Officer (510) 623-9400 x309 | MKR Investor Relations Inc. Analyst/Investor Contact (323) 468-2300 aehr@mkr-group.com | |
Source:
2021 GlobeNewswire, Inc., source