AEHR 8-K
Aehr Test Systems (AEHR)
8-K
2020-04-02
For: 2020-04-02
View Original
Added on
April 04, 2026
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)
April 2, 2020
AEHR TEST SYSTEMS
(Exact
name of registrant as specified in its charter)
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California
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000-22893
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94-2424084
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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400 KATO TERRACE, FREMONT, CA 94539
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(Address
of principal executive offices, including zip code)
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510-623-9400
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(Registrant’s
telephone number, including area code)
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N/A
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(Former
name or former address, if changed since last report)
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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:
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Title
of each class
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Trading
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Name of
each exchange on which registered
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Symbol(s)
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Common
Stock
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AEHR
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The
NASDAQ Capital Market
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Item 2.02. Results of Operations and Financial
Condition.
On
April 2, 2020, Aehr Test Systems, or the Company, issued a press
release announcing the Company’s financial results for its
third quarter of fiscal year 2020 ended February 29, 2020. 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.
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Exhibit
No.
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Description
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Press Release of
Aehr Test Systems dated April 2, 2020 entitled “Aehr Test
Systems Reports 93% Revenue Growth Year over Year in Third Quarter.
Withdraws Previously Provided Fiscal 2020 Financial Guideance Due
to COVID-19 Uncertainty.”
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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.
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Aehr Test
Systems
(Registrant)
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Date:
April 2, 2020
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By:
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/s/ Kenneth
B. Spink
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Kenneth B.
Spink
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Vice President of
Finance and Chief Financial Officer
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Exhibit
99.1
FOR IMMEDIATE RELEASE
Contacts:
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Aehr
Test Systems
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MKR
Investor Relations Inc.
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Ken
Spink
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Todd Kehrli or Jim
Byers
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Chief Financial
Officer
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Analyst/Investor
Contact
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(510) 623-9400
x309
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(323)
468-2300
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Aehr Test Systems Reports 93% Revenue Growth Year over Year in
Third Quarter
Withdraws Previously Provided Fiscal 2020 Financial Guidance Due to
COVID-19 Uncertainty
Fremont, CA (April 2, 2020) – Aehr Test Systems (NASDAQ: AEHR),
a worldwide supplier of semiconductor
test and reliability qualification equipment, today announced financial results for its third
quarter of fiscal 2020 ended February 29, 2020.
Fiscal Third Quarter Financial Results:
●
Net
sales were $6.1 million, up 93% from $3.2 million in the third
quarter of fiscal 2019.
●
GAAP
net income was $245,000, or $0.01 per diluted share, compared to a
GAAP net loss of $3.2 million, or $0.14 per diluted share, in the
third quarter of fiscal 2019.
●
Non-GAAP
net income was $452,000, or $0.02 per diluted share, which excludes
the impact of stock-based compensation expense, compared to a
non-GAAP net loss of $1.6 million, or $0.07 per diluted share, in
the third quarter of fiscal 2019, which excluded stocked based
compensation expense, a $795,000 provision for excess and
obsolescence inventory, and $607,000 for restructuring charges
related to a reduction in work force.
●
Backlog as of
February 29, 2020 was $3.6 million.
Fiscal First Nine Months Financial Results:
●
Net sales were
$18.5 million, up 34% from $13.8 million in the first nine months
of fiscal 2019.
●
GAAP net income was
$83,000, or $0.00 per diluted share, compared to a GAAP net loss of
$5.3 million, or $0.24 per diluted share, in the first nine months
of fiscal 2019.
●
Non-GAAP net income
was $694,000, or $0.03 per diluted share, compared to a non-GAAP
net loss of $3.2 million, or $0.15 per diluted share, in the first
nine 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.
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Aehr Test Systems Reports Third Quarter Fiscal 2020 Financial
Results
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April 2, 2020
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Page 2 of 6
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Aehr Third Quarter and Recent Business Highlights:
●
Shipments for WaferPakTM Contactors and DiePakTM Carriers, consumables for Aehr’s
FOXTM
wafer and singulated die/module test
and burn in systems, accounted for 51% of total revenue for the
third quarter.
●
Shipped
and reported revenue for an additional FOX-XP multi-wafer test and
burn-in system to meet the production ramp of a leading supplier of
silicon photonics devices.
●
Received
orders totaling more than $2.9 million from its installed base of
FOX test and burn-in system customers for its proprietary WaferPaks
and DiePaks, including orders for test of mobile sensors and other
device applications that include production test of silicon carbide
devices, flash memories, and silicon photonics devices reflecting
additional capacity needs.
●
Engaged
with more than a dozen potential new customers for production level
test and burn-in of devices that include power silicon carbide
devices for automotive, silicon photonics devices for 5G and data
storage server farms, automotive and mobile sensors, and memory
devices.
●
As a global supplier to Critical Infrastructure as
outlined at https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19,
Aehr is taking extraordinary measures to safely operate with our
full capacity available in manufacturing and across the company to
continue to support the vital needs of these Critical
Infrastructure customers while complying with the local and state
mandated “Shelter in Place”
directives.
Gayn Erickson, President and CEO of Aehr Test Systems,
commented:
“We
are pleased with our results for the fiscal third quarter, which
include continued profitability and strong gross margins. Despite
the current challenging global environment, we continue to engage
with a large number of customers who are evaluating the use of our
products to meet their production needs in test and burn-in on a
variety of applications. We are currently working with over a dozen
new potential customers, and our sales, marketing, and applications
teams remain busy supporting these sales efforts using online
conferences, videos, and other collaboration tools.
“Currently,
all of our customers have their wafer fabrication facilities open
to support the critical infrastructure around the globe in
information technology, communications, and critical manufacturing
sectors and Aehr is able to ship orders for systems, WaferPaks,
DiePaks, and parts needed to support these customers with little to
no limitations or delays. However, due to the uncertainty of the
full impact of the COVID-19 pandemic on our customers, we simply
cannot predict how this will impact our business in the near term
and are taking the conservative stance to withdraw our previously
provided guidance for the fiscal 2020 year ending May 31,
2020.
“As
the rapidly evolving COVID-19 pandemic unfolds, our foremost
concern is to ensure the health and safety of our employees, their
families, and our worldwide community. On March 19, 2020, the Executive Department of the
State of California issued Executive Order N-33-20 ordering
individuals in the State of California to stay home or at their
place of residence except as needed to maintain continuity of
operations of the federal Critical Infrastructure sectors.
As a global supplier to Critical Infrastructure, we are taking
extraordinary measures to maintain continuity of operations and to
continue to safely operate with our full capacity available in
manufacturing and across the company to support the vital needs of
our Critical Infrastructure customers while complying with the
local and state mandated “Shelter in Place” directives.
Through direct and indirect representatives, Aehr also has
engineers and infrastructure around the world to support our
customers and meet our contracts, response times, and critical
parts lead times for their installed base of Aehr Test
products.
“The
fundamentals for Aehr Test remain strong long term, and we believe
that we will emerge from this difficult period even stronger than
we went in, with an even larger number of customers committed to
using our FOX systems to meet their production test and burn-in
needs.”
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Aehr Test Systems Reports Third Quarter Fiscal 2020 Financial
Results
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April 2, 2020
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Page 3 of 6
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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 third quarter fiscal
2020 operating results. To access the call dial 800-367-2403 (+1 334-777-6978 outside the United States) and
give the participant pass code 2336638. 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 April 9,
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 probecard 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,
the impact of COVID-19 and related
shelter in place orders and economic effects on production and
demand for Aehr’s products, 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 –
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Aehr Test Systems Reports Third Quarter Fiscal 2020 Financial
Results
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April 2, 2020
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Page 4 of 6
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AEHR
TEST SYSTEMS AND SUBSIDIARIES
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Condensed
Consolidated Statements of Operations
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(in
thousands, except per share data)
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(unaudited)
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Three Months Ended
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Nine Months Ended
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Feb 29,
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Nov 30,
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Feb 28,
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Feb 29,
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Feb 28,
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2020
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2019
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2019
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2020
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2019
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Net
sales
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$6,111
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$6,874
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$3,163
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$18,518
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$13,814
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Cost of
sales
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3,120
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3,672
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2,891
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10,054
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9,591
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Gross
profit
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2,991
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3,202
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272
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8,464
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4,223
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Operating
expenses:
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Selling,
general and administrative
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1,891
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2,157
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1,850
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5,856
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5,706
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Research
and development
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845
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795
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931
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2,532
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3,033
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Restructuring
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-
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-
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607
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-
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607
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Total
operating expenses
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2,736
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2,952
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3,388
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8,388
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9,346
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Income
(loss) from operations
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255
|
250
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(3,116)
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76
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(5,123)
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Interest income
(expense), net
|
13
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2
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(76)
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27
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(228)
|
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Other (expense)
income, net
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(9)
|
5
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(11)
|
6
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27
|
|
|
|
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Income
(loss) before income tax (expense) benefit
|
259
|
257
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(3,203)
|
109
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(5,324)
|
|
|
|
|
|
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Income tax
(expense) benefit
|
(14)
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(6)
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2
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(26)
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(21)
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|
|
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Net
income (loss)
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245
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251
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(3,201)
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83
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(5,345)
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Less: Net income
attributable to the
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noncontrolling
interest
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-
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-
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-
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-
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-
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Net
income (loss) attributable to Aehr Test
|
|
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Systems
common shareholders
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$245
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$251
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$(3,201)
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$83
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$(5,345)
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Net income (loss)
per share
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Basic
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$0.01
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$0.01
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$(0.14)
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$0.00
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$(0.24)
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Diluted
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$0.01
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$0.01
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$(0.14)
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$0.00
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$(0.24)
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Shares used in per
share calculations:
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Basic
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22,937
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22,823
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22,459
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22,823
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22,314
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Diluted
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23,130
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22,912
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22,459
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22,940
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22,314
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-more-
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Aehr Test Systems Reports Third Quarter Fiscal 2020 Financial
Results
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April 2, 2020
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Page 5 of 6
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AEHR
TEST SYSTEMS AND SUBSIDIARIES
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Reconciliation
of GAAP and Non-GAAP Results
|
|||||
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(in
thousands, except per share data)
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(unaudited)
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Three Months Ended
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Nine Months Ended
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Feb 29,
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Nov 30,
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Feb 28,
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Feb 29,
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Feb 28,
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2020
|
2019
|
2019
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2020
|
2019
|
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GAAP net income
(loss)
|
$245
|
$251
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$(3,201)
|
$83
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$(5,345)
|
|
Stock-based
compensation expense
|
207
|
205
|
225
|
611
|
705
|
|
Restructuring
|
-
|
-
|
607
|
-
|
607
|
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Excess and
obsolescence provision
|
-
|
-
|
795
|
-
|
795
|
|
Non-GAAP net income
(loss)
|
$452
|
$456
|
$(1,574)
|
$694
|
$(3,238)
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) per diluted share
|
$0.01
|
$0.01
|
$(0.14)
|
$0.00
|
$(0.24)
|
|
Non-GAAP net income
(loss) per diluted share
|
$0.02
|
$0.02
|
$(0.07)
|
$0.03
|
$(0.15)
|
|
Shares used in GAAP
diluted shares calculation
|
23,130
|
22,912
|
22,459
|
22,940
|
22,314
|
|
Shares used in
non-GAAP diluted shares calculation
|
23,130
|
22,912
|
22,459
|
22,940
|
22,314
|
|
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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.
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Aehr Test Systems Reports Third Quarter Fiscal 2020 Financial
Results
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April 2, 2020
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Page 6 of 6
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AEHR
TEST SYSTEMS AND SUBSIDIARIES
|
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Condensed
Consolidated Balance Sheets
|
|||
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(in
thousands, except per share data)
|
|||
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(unaudited)
|
|||
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|
|
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February 29,
|
November 30,
|
May 31,
|
|
|
2020
|
2019
|
2019
|
|
ASSETS
|
|
|
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|
|
Current
assets:
|
|
|
|
|
Cash
and cash equivalents
|
$5,058
|
$5,302
|
$5,428
|
|
Accounts
receivable, net
|
3,511
|
5,231
|
4,859
|
|
Inventories
|
9,330
|
9,800
|
9,061
|
|
Prepaid
expenses and other
|
586
|
534
|
686
|
|
Total
current assets
|
18,485
|
20,867
|
20,034
|
|
|
|
|
|
|
Property and
equipment, net
|
783
|
860
|
1,045
|
|
Operating lease
right-of-use assets
|
2,260
|
2,387
|
-
|
|
Other
assets
|
160
|
186
|
228
|
|
Total
assets
|
$21,688
|
$24,300
|
$21,307
|
|
|
|
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LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$925
|
$2,320
|
$1,933
|
|
Accrued
expenses
|
1,373
|
1,596
|
2,034
|
|
Operating
lease liabilities, short-term
|
644
|
619
|
-
|
|
Customer
deposits and deferred revenue, short-term
|
385
|
1,809
|
1,545
|
|
Total
current liabilities
|
3,327
|
6,344
|
5,512
|
|
|
|
|
|
|
Deferred
rent
|
-
|
-
|
153
|
|
Operating lease
liabilities, long-term
|
1,772
|
1,924
|
-
|
|
Deferred revenue,
long-term
|
34
|
64
|
189
|
|
Total
liabilities
|
5,133
|
8,332
|
5,854
|
|
|
|
|
|
|
Aehr Test Systems
shareholders' equity
|
16,575
|
15,988
|
15,472
|
|
Noncontrolling
interest
|
(20)
|
(20)
|
(19)
|
|
Total
shareholders' equity
|
16,555
|
15,968
|
15,453
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$21,688
|
$24,300
|
$21,307
|
|
# # #
|