Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
Contacts:
Aehr Test Systems MKR Group Inc.
Gary Larson Todd Kehrli or Jim Byers
Chief Financial Officer Analyst/Investor Contact
(510) 623-9400 x321 (323) 468-2300
aehr@mkr-group.com
Aehr Test Systems Reports First Quarter Fiscal 2015 Financial Results
Fremont, CA (September 30, 2014) - Aehr Test Systems (Nasdaq: AEHR),
a worldwide supplier of semiconductor test and burn-in equipment, today
announced financial results for its first quarter of fiscal 2015 ended
August 31, 2014.
Net sales in the first quarter of fiscal 2015 were $3.6 million, compared
to $3.8 million in the first quarter of fiscal 2014. The Company reported
a non-GAAP net loss of $710,000, or $0.06 per diluted share, and a GAAP
net loss of $907,000, or $0.08 per diluted share, in the first quarter
of fiscal 2015. This compares to a non-GAAP net loss of $23,000, or
$0.00 per diluted share, and a GAAP net loss of $166,000, or $0.02 per
diluted share, in the first quarter of fiscal 2014.
Gayn Erickson, President and CEO of Aehr Test Systems, commented, "As
we discussed in our last earnings call, the first quarter was soft as
anticipated, with revenue seasonally down similar to the year ago quarter.
Our bottom line was impacted by our operating expenses, which were higher
than a year ago in support of the activities associated with our new
FOXTM wafer level test systems in development. Additionally, our gross
margins were lower than last year as this quarter we did not ship any
systems with a significant amount of previously written down material.
"We continue to build momentum for our two key new products under
development that are focused on wafer level test, cycling, and burn-in,"
Erickson continued. "These include the FOX-1P, our next generation
single wafer test system that is a follow-on product to our FOX-1 test
system, and the FOX-XP, our next generation multiple wafer test and
burn-in solution that is the follow-on product to our FOX-15 multi-wafer
test system. We have validated substantial emerging test market
opportunities for these products that we believe will significantly
expand our served available market in calendar 2015 and beyond."
Erickson commented, "Aehr Test has already received orders for both
engineering and production versions of our new FOX-1P system and we
will formally introduce the FOX-1P system at the International Test
Conference in Seattle next month. We see significant new market
opportunities with this system, including the emerging market created
by automotive microcontroller suppliers that want to move burn-in and
stress tests from back-end packaged part test to front-end wafer level
test.
"We are very excited about the increased levels of interest in our FOX-XP
multi-wafer test system, particularly for test, cycling and burn-in
applications for memory devices," Erickson added. "We are actively
engaged with multiple customers for production test and cycling/burn-in
of flash devices. We currently believe that we will receive an
order/commitment from one or more of these customers within the next
few months. We are expecting the first shipments and revenue for the
FOX-XP in the second half of calendar 2015."
Aehr Test Systems Reports First Quarter Fiscal 2015 Financial Results
September 30, 2014
Page 2 of 5
Erickson concluded, "We anticipate that we could see as many as one
or two additional soft quarters as we roll out these new FOX products.
However, we do see our installed base for both our current ABTSTM packaged
part and FOX wafer level test systems at or near maximum capacity. This
is a positive sign as increased capacity needs could drive upgrades
and new system orders and revenue. We believe having material and systems
available with short lead times is prudent to be able to meet short-term
demand from our customers and to allow us to ship systems quickly against
purchase orders received in the same quarter."
Management Conference Call
Aehr Test Systems will host a conference call and webcast today, Tuesday,
September 30, 2014 at 5:00 p.m. Eastern (2:00 p.m. PT) to discuss the
Company's first quarter fiscal 2015 operating results. To access the
call dial 888-455-2296 (+1 719-325-2144 outside the United States) and
give the participant pass code 5777388. 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 by dialing
888-203-1112 (+1 719-457-0820 outside the United States) and entering
pass code 5777388#, beginning approximately two hours after conclusion
of the call through 8:00 p.m. ET on October 7, 2014.
About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a worldwide
provider of test systems for burning-in and testing logic 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, capacity needs and opportunities for Aehr Test products
in package and wafer level test. Aehr Test has developed and introduced
several innovative products, including the ABTS and FOX families of
test and burn-in systems and the DiePak(R) carrier. The ABTS system
is used in production and qualification testing of packaged parts for
both lower-power and higher-power logic as well as all common types
of memory devices. The FOX system is a full wafer contact 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 and systems-on-a-chip. The DiePak
carrier is a reusable, temporary package that enables IC manufacturers
to perform cost-effective final test and burn-in of bare die. For more
information, please visit the Company's 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 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.
-Financial Tables to Follow-
Aehr Test Systems Reports First Quarter Fiscal 2015 Financial Results
September 30, 2014
Page 3 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
----------------------------
Aug 31, May 31, Aug 31,
2014 2014 2013
-------- -------- --------
Net sales $ 3,558 $ 5,370 $ 3,752
Cost of sales 1,948 2,456 1,808
-------- -------- --------
Gross profit 1,610 2,914 1,944
-------- -------- --------
Operating expenses:
Selling, general and administrative 1,624 1,685 1,420
Research and development 959 1,016 681
-------- -------- --------
Total operating expenses 2,583 2,701 2,101
-------- -------- --------
(Loss) income from operations (973) 213 (157)
Interest expense (14) (5) (4)
Other income (expense), net 31 21 (34)
-------- -------- --------
(Loss) income before income tax
benefit (956) 229 (195)
Income tax benefit 49 10 29
-------- -------- --------
Net (loss) income (907) 239 (166)
Less: Net income attributable to the
Noncontrolling interest -- -- --
Net (loss) income attributable to Aehr Test -------- -------- --------
Systems common shareholders $ (907) $ 239 $ (166)
======== ======== ========
Net (loss) income per share
Basic $ (0.08) $ 0.02 $ (0.02)
Diluted $ (0.08) $ 0.02 $ (0.02)
Shares used in per share calculations:
Basic 11,391 11,088 10,635
Diluted 11,391 12,255 10,635
-more-
Aehr Test Systems Reports First Quarter Fiscal 2015 Financial Results
September 30, 2014
Page 4 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended
--------------------------
Aug 31, May 31, Aug 31,
2014 2014 2013
-------- -------- ---------
GAAP net (loss) income $ (907) $ 239 $ (166)
Stock-based compensation expense 197 204 143
-------- -------- --------
Non-GAAP net (loss) income $ (710) $ 443 $ (23)
======== ======== ========
GAAP net (loss) income per diluted share $ (0.08) $ 0.02 $(0.02)
======== ======== ========
Non-GAAP net (loss) income per diluted share $ (0.06) $ 0.04 $(0.00)
======== ======== ========
Shares used in diluted shares calculation 11,391 12,255 10,635
======== ======== ========
Shares used in non-GAAP diluted shares calculation 11,391 12,255 10,635
======== ======== ========
______________________________________________________________________
Non-GAAP net income is a non-GAAP measure and should not be considered a
replacement for GAAP results. Non-GAAP net 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 income (the most
comparable GAAP measure).
-more-
Aehr Test Systems Reports First Quarter Fiscal 2015 Financial Results
September 30, 2014
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
August 31, May 31,
2014 2014
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 2,075 $ 1,809
Accounts receivable, net 2,098 3,390
Inventories 6,304 6,148
Prepaid expenses and other 351 326
-------- --------
Total current assets 10,828 11,673
Property and equipment, net 492 474
Other assets 95 78
-------- --------
Total assets $11,415 $12,225
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Line of credit $ 1,000 $ 777
Accounts payable 1,586 1,892
Accrued expenses 1,435 1,390
Customer deposits and deferred revenue, short-term 761 1,058
-------- --------
Total current liabilities 4,782 5,117
Income tax payable 8 71
Deferred rent, net of current portion -- 8
-------- --------
Total liabilities 4,790 5,196
Aehr Test Systems Shareholders' equity 6,645 7,050
Noncontrolling interest (20) (21)
-------- --------
Total shareholders' equity 6,625 7,029
-------- --------
Total liabilities and shareholders' equity $11,415 $12,225
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