8-K
AEHR TEST SYSTEMS (AEHR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
January 9, 2020
AEHR TEST SYSTEMS
(Exact name of registrant as specified in its charter)
| California | 000-22893 | 94-2424084 |
|---|---|---|
| (State<br>or other jurisdiction of incorporation) | (Commission<br>File Number) | (IRS<br>Employer Identification No.) |
| 400 KATO TERRACE, FREMONT, CA 94539 | ||
| (Address<br>of principal executive offices, including zip code) | ||
| 510-623-9400 | ||
| (Registrant’s<br>telephone number, including area code) | ||
| N/A | ||
| (Former<br>name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title<br>of each class | Trading | Name of<br>each exchange on which registered |
|---|---|---|
| Symbol(s) | ||
| Common<br>Stock | AEHR | The<br>NASDAQ Capital Market |
Item 2.02. Results of Operations and Financial Condition.
On January 9, 2020, Aehr Test Systems, or the Company, issued a press release announcing the Company’s financial results for its second quarter of fiscal year 2020 ended November 30, 2019. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Form 8-K, including the exhibit attached hereto, are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press<br>Release of Aehr Test Systems dated January 9, 2020 entitled<br>“Aehr Test Systems Reports 24% Sequential Revenue Growth in<br>Second Quarter and Reiterates Guidance for Significant Growth for<br>Fiscal 2020.” |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Aehr<br>Test Systems | ||
|---|---|---|
| (Registrant) | ||
| Date:<br>January 9, 2020 | By: | /s/ <br>Kenneth B. Spink |
| Kenneth<br>B. Spink | ||
| Vice<br>President of Finance and Chief Financial Officer |
Blueprint
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contacts:
| Aehr Test Systems | MKR<br>Investor Relations Inc. |
|---|---|
| Ken<br>Spink | Todd<br>Kehrli or Jim Byers |
| Chief<br>Financial Officer | Analyst/Investor<br>Contact |
| (510)<br>623-9400 x309 | (323)<br>468-2300 |
| aehr@mkr-group.com |
Aehr Test Systems Reports 24% Sequential Revenue Growth in Second Quarter and Reiterates Guidance for Significant Growth for Fiscal 2020
Fremont, CA (January 9, 2020) – Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of semiconductor test and reliability qualification equipment, today announced financial results for its second quarter of fiscal 2020 ended November 30, 2019.
Fiscal Second Quarter Financial Results:
●
Net sales were $6.9 million, up 16% from $5.9 million in the second quarter of fiscal 2019, and up 24% compared to the first quarter of fiscal 2020.
●
GAAP net income was $251,000, or $0.01 per diluted share, compared to a GAAP net loss of $629,000, or $0.03 per diluted share, in the second quarter of fiscal 2019.
●
Non-GAAP net income was $456,000, or $0.02 per diluted share, which excludes the impact of stock-based compensation expense, compared to a non-GAAP net loss of $405,000, or $0.02 per diluted share, in the second quarter of fiscal 2019.
●
Backlog as of November 30, 2019 was $6.5 million.
Fiscal First Six Months Financial Results:
●
Net sales were $12.4 million, up 16% from $10.7 million in the first six months of fiscal 2019.
●
GAAP net loss was $162,000, or $0.01 per diluted share, compared to a GAAP net loss of $2.1 million, or $0.10 per diluted share, in the first six months of fiscal 2019.
●
Non-GAAP net income was $242,000, or $0.01 per diluted share, compared to a non-GAAP net loss of $1.7 million, or $0.07 per diluted share, in the first six months of fiscal 2019.
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 Second Quarter and Recent Business Highlights:
●
Received and shipped its first order from a new customer for a production application for wafer level test and burn-in of silicon carbide (SiC) devices during the quarter. The order of more than $3 million included a FOX-XP™ multi-wafer system, WaferPak™ Aligner, and a set of WaferPak contactors.
Aehr Test Systems Reports Second Quarter Fiscal 2020 Financial Results
January 9, 2020
Page 2 of 6
●
Received follow-on orders of over $6 million for a FOX-XP multi-wafer test and burn-in system and multiple WaferPak contactors to provide additional high-volume test capacity to meet the customer’s increasing silicon photonics device production requirements.
●
Continued to see a significant silicon photonics market growth opportunity and reported that three of the company’s silicon photonics customers have moved from sample testing to volume production during the second quarter using its FOX-P™ family of test solutions.
●
Increased revenue contribution from its proprietary WaferPaks and DiePak® Carriers consumable business to 44% of total revenue in the second quarter of fiscal 2020, up from 30% in the preceding first quarter and up from 16% in the second quarter of fiscal 2019.
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
“We are pleased to report a solid second quarter that includes total revenue of $6.9 million, up 24% sequentially from the first quarter, improved gross margins, a return to profitability on both a GAAP and non-GAAP basis, and strong bookings in the quarter of nearly $10 million.
“During the quarter, we successfully completed a new and unique production application for test and burn-in of silicon carbide devices and shipped our first production system to a leading supplier of automotive semiconductor devices. We are also engaged with multiple companies in this exciting new silicon carbide market.
“Silicon carbide is a new emerging market for our FOX-P family of products as our wafer level test and burn-in systems are cost effective solutions for improving the reliability of silicon carbide-based power devices used in electronic vehicles and other power conversion applications. The silicon carbide power device market and the need for reliability test solutions are expected to grow significantly over the next decade.
“We also continue to be very optimistic about the silicon photonics market with three of our silicon photonics customers transitioning to high volume production test and burn-in during the quarter on our FOX-P systems. We are also currently engaged with several additional potential customers in the silicon photonics market to utilize our wafer level burn-in solutions for their engineering and production needs. Aehr is benefiting from the broad adoption of photonics devices in the data, telecom, and sensing markets as our existing customers expand their product portfolios and ramp manufacturing and new customers enter this high demand rapidly growing segment.
“We feel good about our progress midway through our fiscal year and remain very optimistic about growth in sales of systems and consumables to our installed base of customers, as well as the expansion of sales to new customers with our family of FOX-P solutions. Looking ahead, we expect to see continued positive momentum, to generate significant year-over-year revenue growth in fiscal 2020 and to be profitable for the fiscal year.”
Aehr Test Systems Reports Second Quarter Fiscal 2020 Financial Results
January 9, 2020
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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.
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 2020 operating results. To access the call dial 800-458-4121 (+1 323-794-2093 outside the United States) and give the participant pass code 3970795. 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 January 16, 2020. 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 –
Aehr Test Systems Reports Second Quarter Fiscal 2020 Financial Results
January 9, 2020
Page 4 of 6
| AEHR<br>TEST SYSTEMS AND SUBSIDIARIES | |||||
|---|---|---|---|---|---|
| Condensed<br>Consolidated Statements of Operations | |||||
| (in thousands,<br>except per share data) | |||||
| (unaudited) | |||||
| Three<br>Months Ended | Six<br>Months Ended | ||||
| --- | --- | --- | --- | --- | --- |
| Nov<br>30, | Aug<br>31, | Nov<br>30, | Nov<br>30, | Nov<br>30, | |
| 2019 | 2019 | 2018 | 2019 | 2018 | |
| Net<br>sales | $6,874 | $5,533 | $5,911 | $12,407 | $10,651 |
| Cost of<br>sales | 3,672 | 3,262 | 3,513 | 6,934 | 6,700 |
| Gross<br>profit | 3,202 | 2,271 | 2,398 | 5,473 | 3,951 |
| Operating<br>expenses: | |||||
| Selling,<br>general and administrative | 2,157 | 1,808 | 1,977 | 3,965 | 3,856 |
| Research<br>and development | 795 | 892 | 986 | 1,687 | 2,102 |
| Total<br>operating expenses | 2,952 | 2,700 | 2,963 | 5,652 | 5,958 |
| Income<br>(loss) from operations | 250 | (429) | (565) | (179) | (2,007) |
| Interest income<br>(expense), net | 2 | 12 | (74) | 14 | (152) |
| Other income,<br>net | 5 | 10 | 29 | 15 | 38 |
| Income<br>(loss) before income tax expense | 257 | (407) | (610) | (150) | (2,121) |
| Income tax<br>expense | (6) | (6) | (19) | (12) | (23) |
| Net<br>income (loss) | 251 | (413) | (629) | (162) | (2,144) |
| Less: Net income<br>attributable to the noncontrolling<br>interest | - | - | - | - | - |
| Net income (loss)<br>attributable to Aehr Test Systems common<br>shareholders | $251 | $(413) | $(629) | $(162) | $(2,144) |
| Net income (loss) per<br>share | |||||
| Basic | $0.01 | $(0.02) | $(0.03) | $(0.01) | $(0.10) |
| Diluted | $0.01 | $(0.02) | $(0.03) | $(0.01) | $(0.10) |
| Shares used in per<br>share calculations: | |||||
| Basic | 22,823 | 22,708 | 22,294 | 22,765 | 22,242 |
| Diluted | 22,912 | 22,708 | 22,294 | 22,765 | 22,242 |
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Aehr Test Systems Reports Second Quarter Fiscal 2020 Financial Results
January 9, 2020
Page 5 of 6
| AEHR TEST SYSTEMS AND SUBSIDIARIES | |||||
|---|---|---|---|---|---|
| Reconciliation of GAAP and Non-GAAP Results | |||||
| (in<br>thousands, except per share data) | |||||
| (unaudited) | |||||
| Three Months Ended | Six Months Ended | ||||
| Nov 30, | Aug 31, | Nov 30, | Nov 30, | Nov 30, | |
| 2019 | 2019 | 2018 | 2019 | 2018 | |
| GAAP net<br>income (loss) | $251 | $(413) | $(629) | $(162) | $(2,144) |
| Stock-based<br>compensation expense | 205 | 199 | 224 | 404 | 480 |
| Non-GAAP net<br>income (loss) | $456 | $(214) | $(405) | $242 | $(1,664) |
| GAAP net<br>income (loss) per diluted share | $0.01 | $(0.02) | $(0.03) | $(0.01) | $(0.10) |
| Non-GAAP net<br>income (loss) per diluted share | $0.02 | $(0.01) | $(0.02) | $0.01 | $(0.07) |
| Shares used in<br>GAAP diluted shares calculation | 22,912 | 22,708 | 22,294 | 22,765 | 22,242 |
| Shares used in<br>non-GAAP diluted shares calculation | 22,912 | 22,708 | 22,294 | 22,846 | 22,242 |
| Non-GAAP net income (loss) is a non-GAAP measure and should not be<br>considered a replacement for GAAP results. Non-GAAP net income<br>(loss) is a financial measure the Company uses to evaluate the<br>underlying results and operating performance of the business. The<br>limitation of this measure is that it excludes items that impact<br>the Company's current period net income. This limitation is best<br>addressed by using this measure in combination with net income<br>(loss) (the most directly comparable GAAP financial measure). These<br>measures are not in accordance with GAAP and may differ from<br>non-GAAP methods of accounting and reporting used by other<br>companies.<br><br><br><br><br><br>We believe these measures enhance investors’ ability to<br>review the company’s business from the same perspective as<br>the company’s management and facilitate comparisons of this<br>period’s results with prior periods. | |||||
| --- |
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Aehr Test Systems Reports Second Quarter Fiscal 2020 Financial Results
January 9, 2020
Page 6 of 6
| AEHR TEST SYSTEMS AND SUBSIDIARIES | |||
|---|---|---|---|
| Condensed Consolidated Balance Sheets | |||
| (in<br>thousands, except per share data) | |||
| (unaudited) | |||
| November 30, | August 31, | May 31, | |
| --- | --- | --- | --- |
| 2019 | 2019 | 2019 | |
| ASSETS | |||
| Current<br>assets: | |||
| Cash<br>and cash equivalents | $5,302 | $5,266 | $5,428 |
| Accounts<br>receivable, net | 5,231 | 3,287 | 4,859 |
| Inventories | 9,800 | 9,217 | 9,061 |
| Prepaid<br>expenses and other | 534 | 523 | 686 |
| Total<br>current assets | 20,867 | 18,293 | 20,034 |
| Property<br>and equipment, net | 860 | 1,000 | 1,045 |
| Operating<br>lease right-of-use assets | 2,387 | 2,533 | - |
| Other<br>assets | 186 | 199 | 228 |
| Total<br>assets | $24,300 | $22,025 | $21,307 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current<br>liabilities: | |||
| Accounts<br>payable | $2,320 | $1,742 | $1,933 |
| Accrued<br>expenses | 1,596 | 1,577 | 2,034 |
| Operating<br>lease liabilities, short-term | 619 | 606 | - |
| Customer<br>deposits and deferred revenue, short-term | 1,809 | 615 | 1,545 |
| Total<br>current liabilities | 6,344 | 4,540 | 5,512 |
| Deferred<br>rent | - | - | 153 |
| Operating<br>lease liabilities, long-term | 1,924 | 2,086 | - |
| Deferred<br>revenue, long-term | 64 | 113 | 189 |
| Total<br>liabilities | 8,332 | 6,739 | 5,854 |
| Aehr<br>Test Systems shareholders' equity | 15,988 | 15,306 | 15,472 |
| Noncontrolling<br>interest | (20) | (20) | (19) |
| Total<br>shareholders' equity | 15,968 | 15,286 | 15,453 |
| Total<br>liabilities and shareholders' equity | $24,300 | $22,025 | $21,307 |
| # #<br># | |||
| --- |