Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
Aehr Test Systems Investor Relations Contact:
Ken Spink Todd Kehrli or Jim Byers
Chief Financial Officer MKR Group, Inc.
(510) 623-9400 x309 (323) 468-2300
aehr@mkr-group.com
Aehr Test Systems Reports First Quarter Fiscal 2017 Financial Results
Reports Bookings in the First Quarter of $10.4 Million
Fremont, CA (September 29, 2016) - 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 2017 ended
August 31, 2016.
Fiscal First Quarter Financial Results:
- Net sales were $5.3 million, compared to $6.6 million in the first
quarter of fiscal 2016.
- GAAP net loss was $755,000, or $0.06 loss per diluted share, compared
to GAAP net income of $294,000, or $0.02 income per diluted share,
in the same quarter a year ago.
- Non-GAAP net loss was $543,000, or $0.04 loss per diluted share,
compared to non-GAAP net income of $613,000, or $0.04 income per
diluted share, in the same quarter a year ago.
- Bookings in the first quarter of fiscal 2017 were $10.4 million.
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 this release.
Recent Business Highlights:
- Began production shipments to the company's initial lead customer
for its FOXTM-1P single wafer test system and shipped and received
acceptance on multiple production systems.
- Announced first FOX-XP multi-wafer production test cell order from
one of the top semiconductor manufacturers in the world totaling more
than $4.5 million that includes a FOX-XP System configured to test
18 wafers simultaneously, a FOX-XP WaferPak Aligner, and initial set
of FOX-XP WaferPak Contactors.
- Announced follow-on orders totaling over $4 million for multiple ABTSTM
packaged part burn-in and test systems from a leading multi-national
manufacturer of advanced logic integrated circuits (ICs) for
automotive, embedded processing, digital signal processing and analog
applications.
- Announced manufacturing and development partnership with semiconductor
test equipment provider Semics Inc. (Semics) for wafer handling and
alignment equipment for Aehr Test's FOX systems, including an investment
by Semics in 200,000 shares of Aehr Test common stock.
Aehr Test Systems Reports First Quarter Fiscal 2017 Financial Results
September 29, 2016
Page 2 of 6
- After the fiscal quarter, successfully completed private placement
of approximately $5.9 million in shares of the company's common stock
with certain institutional and accredited investors.
Gayn Erickson, President and CEO of Aehr Test Systems, commented:
"We believe we are off to a great start to our new fiscal year with
over $10 million in bookings in the first quarter, which includes our
first production order for our new FOX-XP multi-wafer test and burn-in
system and a large multi-system follow-on order for our ABTS packaged
part test and burn-in systems. We are encouraged to see the uptick in
business for our packaged part systems after experiencing softness in
this base business during the past fiscal year.
"We began initial shipments of our new FOX-1P engineering and production
systems during our fiscal first quarter and will continue shipments
from our backlog into our fiscal second quarter. The FOX-1P Wafer Level
Test and Burn-in System cost effectively addresses full wafer testing
of multiple device types including flash memories, microcontrollers,
and automotive devices. These shipments, along with the delivery and
acceptance of the first single wafer version of our FOX-XP multi-wafer
system in February 2016 were key milestones in the release of our new
FOX-P platform of both single and multi-wafer test and burn-in systems
that have been in development the last few years. We believe this new
family of products provides unique and highly valuable test and burn-in
solutions for our customers and more than doubles our total available
market to over $400 million annually beginning this fiscal year.
"These new products provide Aehr Test with a platform for growth that
we believe will help us accomplish our previously announced guidance
for significant year-over-year growth in our bookings, revenue and
bottom line during this fiscal year."
Management Conference Call
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 first quarter fiscal 2017
operating results. To access the call dial 888-708-5690 (+1 913-312-0982
outside the United States) and give the participant pass code 6896012.
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 October 6, 2016. 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 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 WaferPak contactors. The ABTS systems are
used in production and qualification testing of packaged parts for both
low-power and high-power logic as well as memory devices. The FOX family
of systems includes single and multi-wafer full wafer contact 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 and systems-on-a-chip. 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. For more information,
please visit Aehr Test's website at www.aehr.com.
Aehr Test Systems Reports First Quarter Fiscal 2017 Financial Results
September 29, 2016
Page 3 of 6
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 product shipment dates, 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 2017 Financial Results
September 29, 2016
Page 4 of 6
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,
2016 2016 2015
-------- -------- --------
Net sales $ 5,318 $ 1,571 $ 6,633
Cost of sales 3,112 1,669 3,250
-------- -------- --------
Gross profit 2,206 (98) 3,383
-------- -------- --------
Operating expenses:
Selling, general and administrative 1,716 1,722 1,845
Research and development 1,060 1,046 1,062
-------- -------- --------
Total operating expenses 2,776 2,768 2,907
-------- -------- --------
(Loss) income from operations (570) (2,866) 476
Interest expense (178) (168) (135)
Other expense, net (3) (23) (24)
-------- -------- --------
(Loss) income before income tax
(expense) benefit (751) (3,057) 317
Income tax (expense) benefit (4) 1 (23)
-------- -------- --------
Net (loss) income (755) (3,056) 294
Less: Net income attributable to the
Noncontrolling interest -- -- --
Net (loss) income attributable to Aehr -------- -------- --------
Test Systems common shareholders $ (755) $(3,056) $ 294
======== ======== ========
Net (loss) income per share
Basic $ (0.06) $ (0.23) $ 0.02
Diluted $ (0.06) $ (0.23) $ 0.02
Shares used in per share calculations:
Basic 13,317 13,190 12,963
Diluted 13,317 13,190 13,814
-more-
Aehr Test Systems Reports First Quarter Fiscal 2017 Financial Results
September 29, 2016
Page 5 of 6
AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended
--------------------------
Aug 31, May 31, Aug 31,
2016 2016 2015
-------- -------- ---------
GAAP net (loss) income $ (755) $(3,056) $ 294
Stock-based compensation expense 212 230 319
-------- -------- --------
Non-GAAP net (loss) income $ (543) $(2,826) $ 613
======== ======== ========
GAAP net (loss) income per diluted share $ (0.06) $ (0.23) $ 0.02
======== ======== ========
Non-GAAP net (loss) income per diluted share $ (0.04) $ (0.21) $ 0.04
======== ======== ========
Shares used in diluted shares calculation 13,317 13,190 13,814
======== ======== ========
Shares used in non-GAAP diluted shares calculation 13,317 13,190 13,814
======== ======== ========
______________________________________________________________________
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 (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.
-more-
Aehr Test Systems Reports First Quarter Fiscal 2017 Financial Results
September 29, 2016
Page 6 of 6
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
August 31, May 31,
2016 2016
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 2,342 $ 939
Accounts receivable, net 1,774 522
Inventories 6,031 7,033
Prepaid expenses and other 305 254
-------- --------
Total current assets 10,452 8,748
Property and equipment, net 789 1,204
Other assets 95 94
-------- --------
Total assets $11,336 $10,046
======== ========
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,906 $ 1,413
Accrued expenses 1,372 1,553
Customer deposits and deferred revenue, short-term 2,724 1,714
-------- --------
Total current liabilities 6,002 4,680
Long-term debt 6,006 5,962
Deferred revenue, long-term 63 127
-------- --------
Total liabilities 12,071 10,769
Aehr Test Systems Shareholders' deficit (714) (703)
Noncontrolling interest (21) (20)
-------- --------
Total shareholders' deficit (735) (723)
-------- --------
Total liabilities and shareholders' deficit $11,336 $10,046
======== ========
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