AEHR - Earnings call transcript Q3 2018

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Operator

Good day and welcome to the Aehr Test Systems’ Third Quarter Fiscal 2018 Financial Results Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Mr. Jim Byers of MKR Group. Please go ahead, sir.

Jim Byers

operator. you, Thank thank Aehr and results. joining today us Good Systems’ you third discuss Test financial quarter to afternoon for fiscal XXXX By received release. now, have of you press today’s a copy should of If may Aehr at you a code not, area right get Investor and will out call office Test we you XXX-XXX-XXXX copy Relations MKR the away. for Group to Chief With Executive Officer; Chief Erickson, President us and today from Ken Aehr Financial Spink, Test Systems are Gayn Officer. and before for Management call opening will quarter the fiscal review the performance your the operating questions. to third company’s

Factors Before to actual of turning and information be are about and most risks to The call would the that are results over to could reports materially Aehr update from that number statements. forward-looking statements, differ current undertakes will make forward-looking to as discussed the Systems results These call SEC. provided are in the including estimates uncertainties this I date that management, those materially of and to company periodic valid making Test in like today no on in comments those forward-looking guidance recent the during differ forward-looking are from may statements a subject obligation with the cause today’s forward-looking the cause few based a only forward-looking and statements. company’s statements statements. and filed current to

I said, that would like Executive to with Officer. Erickson, Now Gayn introduce Chief

Gayn Erickson

minutes nine business I'll increase call for go period highlights, solid level wafer in joining those later results few XX% Module quarter including XXX% last with and year. Revenue conference over but more had financial continued FOX-XP Singulated to and quarter the $X.X a Ken call, was listening third year half platform in progress with the We the afternoon of up good revenue the our a of products. our today's discussing $XX.X a and fiscal third our of same and Jim, months new first the in XXXX also quarter financial ago. net Thanks, online. Die product for million, will first our million, of spend Test fiscal over an next-generation Burn-in same and from detail

GAAP compared $X.X in net last of $XXX,XXX year. generated to in also net a QX quarter loss million third the We GAAP income of

Our for was which expenses. non-GAAP our compensation Aehr note top related based We're exceed these expectations on income net both results pleased also for the to the quarter. of ahead $XXX,XXX quarter Test excludes are forecast in bottom lines stock and analyst and our noncash

our applications concern and which strength and numerous new devices and a to extended existing dye continue burn singulated is the a market at let's an behind of and mobile market testing on tide Aehr in very human business focused This and package positioned both see is reliability Test engaged new There's to capacity interest look opportunity. rising customers level current automotive in test expansion address. new and semiconductor safety well of include solutions. burn we We're from wafer driver with that for multiple the part opportunities in and devices. testing and of expanding markets Now in new key photonics the particularly of our

singulated start and contactors dye burn which off carriers. WaferPak our level DiePak me wafer with business includes consumable and Let our testing in and

for their order meet capacity on During the additional lead to increasing of production quarter we from received customers silicon requirements. photonics device FOX-XP one our a follow

very the our Aehr and capacity solutions and they're for and needs capabilities begin later meet FOX-XP from work capacity forecasting to needs to lead to later with Test fiscal this their test our also in their this additional those customer continue additional year and capacity, enhance will level Test new Aehr upgrade addresses to XXXX. They're plan increase wafer production to closely to before technical silicon We It's burn needs burn i ramp in commercial several burn-in year installed critical, to in those doing product. photonics ramp their at into and them understanding needs the test meet devices product. XXX% and for they're need the of product and end for to new our committed that this

time a and the single reducing single handling to devices on this customer DiePak system. the very and something contactors to and individual a using is and the aligner and for to types valuable application. it is precisely customers dialectical its alignment the these mark suited precise forms. where has FOX-XP's customer's our simplify received this and lasers a of using our devices our ideally announced module communications VCSELs cavity devices. wafer during the such test DiePak only lasers with solution use FOX-XP today wafer is solution test A has testing singulated for to key industry power enable emitting package pads instead Aehr very a this several photonics, cost the for leader able transceivers weed This their LEDs market We and mass to with This process We With test insertion burn custom photonics in key dye on a same also of while other management effective dye into of already differentiation customer density WaferPak the small size level before and applications. unique system package. functional customer dye then integrated and FOX-XP devices made silicon of electrical the market carrier is the as new carrier. out the very set will burn-in of is their quarter devices carriers and the their and wafer FOX-XP test Test system the with surface burn-in and a and as for space the more the created new contact Aehr addition not ability unique application same much the silicon a system to module rather very mortality customer for additional as that optical circuitry convection for that cell insert but production the allows on a to of the at By and contact sensors or one damage align and tile into that in cost of a infant aging conductive well system to thermal better package but we're in very the make other pads defects it of has contact of vertical for FOX-XP DiePak customer photonics data test configuration. to test and/or to limiting packaging our ability one device to the cooling. proprietary the dye an special to new than proprietary only functional the The advantage time carriers in and it and unique of at only ability singulated test can also the the provide with devices DiePak this their multi-dye have devices tiles the The representing and heating singulated application manufacturing customer FOX-XP this feedback after tests like believe transmitters to very burn-in it to cooling step solution fourth optical our due solution their in the test DiePak from in our valuable potential devices

convection to cooling know object As the cooling effective transferred than as an conduction thermal of more or to contact direct transfer you heat may heat is surrounding faster, which air. the which is efficient and for by

see consumables DiePak pleased emerge continues our business to As systems on strengthening WaferPak business continue of build FOX grow. the installed to we base and our as we're to

provide are We a a nine XXXXs proprietary mobile sensors, and Our transceivers DiePak's [ph] other or Applications products full packs traditional Aehr even FOX our or electrical and a contacting devices, Test of and VCSEL, testing parallel WaferPak's differentiated panel which Aehr blast devices devices making DiePak. a Test for provides load wafer a devices DiePak data-centers for and singulated to systems burn-in single and cost today XX dye XXXXs optical contact in test upto of used products massive memory FOX-XP into include such photonics then as utilize up server solution automotive or and with optical that WaferPak's XXs system and these consumer each highly for using XXXs can wafer in effective at that of contactors time. silicon worldwide.

of our FOX-X WaferPak currently part good over model systems time FOX-XX a our devices with had designs business fiscal and installed the customers needs contactors $X.X wafer and such capacity systems new base as install and carriers As nearly that FOX but our purchase shipping change million We when new and of devices with shipped were WaferPak, sales in these for which QX to for includes a contractors past. in systems. quarter DiePak

multiple We quarter. during DiePak our shipped FOX and loader, related upgrades the system unloaders sales also to

we of our absolute with both increase a base contactor DiePak as installed in our new continue WaferPak expect percentage we current ahead our revenue and and to Looking systems. grow business of FOX to terms customers as and

then base Turning momentum we strength package business. see system this and to test part to business in good and our burn continue

chamber power is revenue and to and to performance Test our for allows outside per thermal supply XX OEM base. shipments very the our airflow chambers to ABTS uniformity continues software and our to ABTS we week. selected our During significant incremental high temperature and customers This custom us traditional including They high of customer application. of handling, chambers electronics proprietary performance volume for over high partnership our our build with use and thermal capacity using test its a because our leverage customer of for proprietary that good generate program thermal their quarter This the quarter. powered chambers number applications for continued also of capabilities ability our chambers thermal significant chambers shipping be to own superior and Aehr a

this this parts there and burn-in from In may totaling project for as interesting a required customer features we automotive the major for revenue new will products announced $X.X customers opportunities fiscal significant drive services added advanced test Aehr applications be and the to believe including such of than to continue couple more and systems. automotive model over million driver to mid-February implement for this business semiconductor for beyond We new latest Test. capabilities required years and assistance orders additional next then

and auto-motive test reliability line customer's expanding systems products. this of key part they're Our burn-in program where of are quality and

including before used growing on sensor autonomous driver advanced follow in at for the communication device Asia advanced installed be a production burn-in laser, chipset for using China rapidly assembly and $X.X key in to systems demand for of ABTS automotive radar both applications. for announced current test is order ABTS used GPS noted of other to Vietnam burn-in fabless manufacture communication we've and LIDAR, other our systems the we applications sensing rapid test Things systems critical cloud reliability and manufacturing Internet technologies driver customer which as test. technologies. devices technologies and Today such locations platform reliability and a the for for in test systems. using automotive from market wireless is more assure and burn-in This will avoidance and platforms include These sites automotive a are of cars, Aehr As semiconductor expanding in of growth systems and increasing The multiple production Test. than also million devices for collision

an systems have production this of since integral process Our been customer's part XXXX.

rather doing will strategies Mesa, parts of quality, test in and tests and and dye test our and for I to of for related at devices new device concern tools is used a presentation level was reliability automotive a proper package coverage mobile valid suppliers today. burn-in of workshop theme criticality the earlier new requirements assurance Arizona. burn-in of semiconductor attendees engaged applications rising with key believe in of of month the advocate is whether assurance these upgrade industry the to The for to rates expressed real to in and for at applications. companies did these capabilities. for keynote test XXX% [indiscernible] high solutions an attended As also Aehr used industry in of question test that we the workshop. equipment presentation and Last burn-in the devices test burn-in companies devices wafer I included tide month We burn these using those a and safety met an the we process the around that a group the applications burn-in the for enough simulated maturity of especially burn-in typical that wide coverage at new of space. the industry and automotive in than their the Last industry are showcased sampling of needs towards there's noted XXX% Test and and automotive continue concern workshop have drive visibility with the that and of this are our having dependent that reliability and that and the real strong and widely number test and

fair burn-in differentiated for share asked can that customers and test and move of market solutions suited opportunities. get valid solutions of Aehr are provide well to As assurance our a more very and toward XXX% these than coverage, Test

a a devices received more for military for testing integrated aerospace reliability where applications types than government for new order This the XXX and by involves U.S. critical. contractor. production burn-in designed quarter we system During and prominent customer an their of absolutely is built from application ABTS contractor the circuits

think in industry particularly adopts trucks driving and it and required. It is everyday matter and for autonomous a same strategy sensors vehicles. see applications vehicles a freight industry the transportation would of XXX% ride-hailing burn-in and companies personal until more and understands the I time for seem aerospace and more the features industrial only applications automotive as we military

exciting needs tide of as to industrial requirements of mobile several in actively customer driven automotive, The the devices. continue this with opportunities are and be by additional We engagements we burn-in production engaged provide rising customers our integrated very on us strengthen customers. a focus and to made are busy. this we've ability keeping solutions have change help to opportunities unbelievably With us our recent and to those

will department ending we're the $XX.X to of this revenue for confident to Hendricks, that promoted with led total a of Officer has profitable of ABTS our Both promoted a of that revenue served least with provided report and May will VP full that our year. our previously months and With have Ken. product and has to to also positioned guidance lines and more this Also businesses Aehr let FOX XXXX fiscal VP and part we're for engineering well the it forward With million strength and to opportunities our than XX, quarter company Engineering for XX% role. our make directly and at heading expect continued singulated with lead turn architect Engineering for growth in of partner Richmond look $XX focus Chief We nine into to the who year me and Dave customers, Don our the I fiscal and and starts backlog as in bandwidth additional we're for the to million Technology for our Test growth engagements. our move level June. package electrical revenue and our in first XXXX XXXX fiscal year over continue over we be for wafer me seeing dye

Kenneth Spink

bookings The of through Thank million bookings totalled million, recognized quarter backlog company the in On 'XX year compared XX.X prior recorded in year date this of the in the of date you, to XX.X X Quarterly of third the to million fiscal fiscal quarter and bookings Gayn. bookings quarter. to compares XXXX. a third X.X to basis FY XXXX company million. strong

from up backlog. year million a the QX X.X On total XXX% is burn-in system the wafer February FOX-XP million Our prior revenue in Net parts compared million chamber basis million QX. in a increase to quarter from of preceding the quarter. in revenues. year million XXXX sales at and an includes XX.X prior in of $XXX,XXX The third X.X million a quarter from X.X OEM over revenue includes and increase over backlog ABTS packed increase X.X were in XX, increase X.X reflects million year level revenue the and X.X family in

first the was On in preceding X.X XXXX the in of expenses net the the of $X.XX GAAP GAAP sold million a percentage a the quarter third Non-GAAP was gross expenses third in same XXXX. months primarily benefit other previously fiscal loss income cost X.X X.X year. sold compared up million preceding are a of product previous a in operating quarter. this overhead of margin an from basis or of of net aligner net profit the in $XXX,XXX prior period increase year. expense. non-GAAP were to per a compares QX slightly charge For due nine profit diluted XX% quarter to year or prior income share QX and The other the year X.X in to sales net net from per sales third or to months last for gross increase revenue X.X to third impact in the for the compensation the of $XXX,XXX loss of XX% million lower in On or the share related XX% nine were the related $X.XX share of last a costs quarter from a is preceding or exclude the of in date the flat basis share compared quarter the third share XXX,XXX the sold diluted $XXX,XXX X to X.X million in income profit down goods of the in was the from per diluted GAAP wafer non-GAAP of share, of per of compared per a of the quarter impact due exchange cost quarter net million The of mix the in in and incremental $X.XX $X.XX net or year year. results per quarter up the million sales cost third were based quarter diluted or $X.XX sales fiscal of and quarter $X.XX non-GAAP Operating income X.X quarter stock to to the of the unabsorbed previous million XX.X from $XX,XXX preceding diluted third to quarter million to in in higher diluted additional X.X third gross or the or is Gross $XXX,XXX related packed quarter ago to goods year. first to gross also to flat and The quarter. in margin sequential and of levels XX% million million the year.

As this in highlights the are R&D the million revenues. increased third million and quarter with X.X scaling flat the well while expenses X in year quarter. previous million operating compared we expenses to were preceding maintaining relatively X.X operations for quarter

products. stated third to SG&A R&D As in our of and upon quarter provisions of 'XX X.X previously which X.X year company million eliminated QX fluctuate act benefit The prior the that quarter was the spending the AMT which new million XX,XXX tax impact can previously preceding of quarter AMT and million the recognized the tax reform to the in depending X.X been paid. income development compared included quarter. an had in

cash, customer the million preceding X.X Property X.X February Inventories million of quarter collections revenue changes future up the quarter were million term preceding cash the of flat quarter end compared in end support X.X X.X to receivable the to at equipment of reflects $XXX,XXX XX.X the XX.X deferred from the inventory quarter. sheet at was to million and from and preceding quarter a in X.X at compared million million end. X.X balance deposits. at and purchase of timing X.X XX, of preceding decrease X.X The receivable our equivalents the to million of were XXXX, deposits end end. the and short was investments at February Turning to million decrease and and third million quarter. million the accounts customer compared were quarter, of impact Accounts shipments XX the at at preceding

our reiterating for growth our fiscal full of Turning profitable the noted at provided ending to are XX% year. to and total revenue be May as year Gayn guidance outlook least XXXX we previously of for for XX XXXX year the fiscal

We in Hallum you place will investor the front Aehr Institutional prepared hope XX Test some on Craig of our Lastly remarks. there. participating Investor May Minneapolis. in be the Conference to This taking relations see concludes

are go to your please ready We Operator questions. now take ahead.

Operator

Instructions]. [Operator

Christian comes Group. with Capital question first Our from Craig-Hallum Schwab the

Christian Schwab

-- can how you Gayn shipping you interests you customers by different customers if just in we customers shipped and by Can we as you many on how us remind of and 'XX know remember to plan expanded we about that applications. offhand many and talk 'XX? end the different

Gayn Erickson

the out broken of not numbers. and so actually think and example Well we haven't and number for we those plus bad plus ABTS facilities those something keep sometimes of for at exactly as the XX install or won't are I or out We FOX probably before at really feel our in and I of different customers base. track those and of runrate customers them FOX-XP locations numbers for we Christian XX total FOX say XX ABTS new remembering haven’t do feeding try broken customers

Christian. that about Sorry

Christian Schwab

Yes. That’s no worry.

automotive of years you of how that? three have could is big now that expand target customers do you from and early market, could too an five or into you your be As to different have idea you to that determine how many you think it an conversations idea opportunity target

Gayn Erickson

the automotive. number systems you the that's Motorola/free and think of that would as it and semiconductors control made the you if you because were number look people and say small let you [indiscernible] me microcontrollers pick know traditional the segment a the you in customers up at leaders were you of about and or types try at five automotive go if half kind ago scales walled just at Well data market the a by know of to stab would primarily some dozen eight you interesting what kind four NXP it sensors led [indiscernible] the know of it's automotive take years and find a customers of look a and primarily some

change the have electronics does a think the ago I big this with kind consumer now all differentiation of on car dashboards you it going know the years of couple these automotive the talked have capabilities. a one first Bluetooth, the gone when hitting key that's right of we it by about where is and does

them Now all you that everything so have you you XX space traditional now addition sensors, that talk have state historically screen sensors their to or XX the know automotive themselves of and websites customers very the you of looking and business. we add LIDAR visual large radar in companies categorized forward the page automotive that their of the they're is about on front number else in splash of will wouldn’t know their now

know high that growth of of the the to I [indiscernible] but with billion a in and industry requesting what's think that large of or companies you per are into part burn-in is semiconductor and or part getting side pretty per being it have interesting burn-in swath automotive sub-one with are maybe of the whether introduced are So it world be play to niche know processes that players it's to you opportunities. requirement begin million lot there didn't to what traditionally the are space a have trying so they I this a the know think a you means there's

and and products to does the customer in mean the and feels talk how of go opportunities it's almost things side reliability to it So burn-in. automotive I I it some to can what concern the like hope helps. that every has related

Christian Schwab

very very, helpful. that’s No,

the that do two On think customer, it one that side looking the it use the customer capacity that at in or other customer? photonic people added by believe you expand do one to to specific you one by will

Gayn Erickson

it believe to expand distinctly can that customers. other I

think that in helped. I of we're interested our space you publicly was that machine particularly know customer space hearing the in that in and second the capabilities

a that Now instead singulated have that testing. in wafer of dye unique they level change been

anything we've in other got it I customers to we've So that [ph] although but keep think really and a so it's I and requirements silicon platform just in on seem I photonics in VCSEL go based we've we the have carriers have able year be these as something gone TLCan burn-in the packages photonics, again technology aging after -- was and and is wafer based these to FOX-XP like Show than and to the which our more burning a keenly show talked XXXX SPI since that's traditional years of that, transceivers an aware and which of are number we're we DiePak's is we XX another think there really talked just been are production with transceivers our that the in there applicable up or do think VCSEL do devices VCSEL fact to into of no some trends is the almost the silicon in would of the never for a their photonics this level before wafer communications photonic pack of silicon that system. implementation customers but solution there in why type interested same to this to bringing

Operator

Thank you.

Capital. from with Chlebina Our Larry next question Chlebina comes

Larry Chlebina

stack the of have to on were dye an application by updates May. You the end shooting Any application?

Gayn Erickson

acute about kind talked and dye flash where stock Well sense. level originally had the and we I think an make flash products just that manufacturers area in singulated of really past the reiterating with we have potentially wafer been seemed like the where some could what dye is talking of products

and ago years our ago space. relative some and a focus opportunities energy that well about and applications and With of to in the mobile were photonics year silicon lot half a arose the we that of as two spent a

that reliability a a of they the memory so the the been take as drive this spin or and extreme server if certain and the products as that single in required single test you in new hopes stack stack to think potentially Larry could package in space is at or be to them our aren't two whether for other folks level. flash like away those a in of into burn is individual at with solid package used the aware customers do in put talking them the problem I again form state Googles because case. being that package and challenge where both such that imagine with When for tell level and end What the chip I will have looking implication would completed at said to world flash we get for customers wafer one we this. start let's the can with they opportunities will or there's quarter ago dye be a a the at There or an and thing has styles fact memory our a been application, eight those package. a related devices application [ph] the we've those that's companies industry as say throwing it's some in them more and a they different respect addition users wafer not of by types package fail cannot that's have as acute entire that have the for a dye will in and online I which used

that the either level machine is requirements don't to or those tools, challenge out or they of of been there capability the one package inside dye on maybe test do are it of their breaking can a at if package it. the do is address have electronics individual thermal that that of because Larry the the only they two that the it's such other simply The devices we've power tools focusing

that So the of about some or devices. we've requirements some to to those conversations the two high in a addition level talked with customer we've opportunities power of wafer had related

going lot the on that pretty on think of well in a know So as and a notable there's breakup for also opportunities change that we would pose between as that you the as mergers hope are some Test. space going Aehr I potential industry in those

think all at you that's can Larry. about point I give So I this

Larry Chlebina

that you XP a the like is reliability reduction that Can try dye cost mean percentage quote singulated you On XX%... approach, lot level. more a to bringing singulated the some it dye there traditional or of costs in versus penetrate traditionally burn-in is is obtain wafer reliability get the the I approaches? -- applications to as to either

Gayn Erickson

softball applications of would bit but than may You you that actually what to it's to wafer and our We we of hit system me harder dye hear coming package a surprise with that’s easy out may the park an ABTS mouth. the my think advance device test you burn-in little or our where singulated FOX see the out part machine. can or often level

part because In do is one need where offering level we're today. it question or it devices okay? the wafer is solutions the doing So doing -- a they singulated dye the they're no fact if they're all not package it, burn-in, typically

scale can the doing If say we better, customer let dye instead like would because something. maybe a in come points FOX know So be that. you it applications be our a we know system costs up and package many the or being its to or is ours part penny or a of sounds it same other let's $X.XX it stuff. think versus something burn-in with me at package the something cost a maybe our is, it change The and in dye on level. dye with the the you do actually parallel entire very a test or the a to $X.XX it it test package In more we're savings ABTS cases Interestingly the per and cases them key we wafer $X.XX $X.XX price -- might wait board what exceeds package and significant point actually wafer across the thought the the with having a that provides cost basis some a not wafer a associated of does consistently it may acknowledge level to at in but minute particularly cheaper. moving be it savings is dye from cheaper is devices some them that’s cost a customers it I level versus other second good $X.XX

to necessarily a not optimize or it advantages put being known able expensive step process yield dye comes the value the from the from and but cheaper being system a than their good device. a more So of into of ABTS the advantages

Larry Chlebina

did WaferPak, X.X DiePak there hear consumable, hear Ken did that I was QX, right, right? that the sales On that I million in

Kenneth Spink

Correct.

Larry Chlebina

machine think getting I'm an on need so those where deployed that and way XPs on is that on sales of like or of or of were I total, as and would new a know Which is the out what forward XX% -- ongoing a wrong about the new based consumable is, of is application that going kind your steady thinking? is there state that you

Kenneth Spink

of So something DiePak of want our as out year-to-date so for four I about only we to to but in to as year that the consumable three as first our want kind we product those is legacy doing were comparison 'XX WaferPak an didn't but spoke some product bring FY [ph] here last and had this actually the for talk quarters. increase well Gayn already existing going sold I products. We FOX-HXX had FOX-X

far year-to-date sold. and we 'XX have FY XX DiePak So WaferPak

more out can our business. you Gayn see part is So and a significant as much that pointed of becoming

Larry Chlebina

wear is because design And these replace it the coming just or you've to changed they the them, they for out the reason? typical is DiePak, about need simply it WaferPak what's and now

Gayn Erickson

example an quarter we're increased designs on this previous Just were that this then due three agreed as in them and the and of quarters capacity designs. quarter

Kenneth Spink

might heard in whisper You the back. have a

Gayn Erickson

out. challenges will, people are out sounds the don't you have not really they wafer and it's course like wear XXXXs insertions. they ones, well but of [indiscernible] our overstated the our to we of of this if say wear rated and contractors Well might contractors One XXXs power

burn-in days. and hour it's a of XX hundreds have you If thousands

percentage at install might industry the reliability evolving fast whereas it the short when were something go and twist I you getting a X shorter forever been that or it would two shorter still WaferPaks really as in we and look for are like and margin that So years. on it's circuit had dashboard so and like also interesting last refurbished out you in know done are we The expect that happy look devices -- lasted and some My versus would but and this that's I [indiscernible]. then at this is the or printed we cards you really be automotive old its they continuously certain a will and talking really board and has a parts using as that have increases increase but history year last came a be and of automotive they When new time it's up production maybe half XX automotive the we automotive while wear them -- you to the automotive I ago old and long the got was sold three systems so know requirements they you upgrades lifespan. example you effectively that we to longer. they happen automotive which is since and had believe that interesting like safety was that's year the hearing require systems that an the archaic. all of I'm mean so do long FOX know maybe XX base industry to contactors consumer literally customer of per car XXXX or there is probe delaminate it that those parts in year your automotive for years lot we of tended our to ever starting of and know parts that finally last year had one this year new do last

Larry Chlebina

would years thumb, thumb, a new new design a On you like average pick be DiePak? rule So not of as member now. WaferPak see requiring of a might every rule two a a

Gayn Erickson

That a reasonable rule. be might

had FOX-XP year. contractors old to have expect half are a still is same that and year using next for the We the

of people on change our years how I wafer the standard over have one for so thing tends wafer be changes, for legs a will changes to think would again faster last whereas in but the is to may So to if our know so but many that X.X than even longer be few that how longer shrinks would and or because see the years. a have next it'll dye that’s maybe you side we works interesting so, the certain style watch package WaferPak applications it DiePak that may

Operator

Instructions]. [Operator

Our Management. Asset next question Scott comes from Scott with Geoffrey

Geoffrey Scott

X.X is revenue X.X Ken, for the level wafer maybe million, said million you question that was right? First was

Kenneth Spink

Correct.

Geoffrey Scott

of X.X wafer Does million that the DiePak include the pack?

Kenneth Spink

correct. That’s

So two the that the were as quarter for we [indiscernible] well. included had revenue in

Geoffrey Scott

sorry what? had two I'm you

Kenneth Spink

DiePak and [indiscernible].

Geoffrey Scott

part the revenue? What Okay. was ABTS package

Kenneth Spink

and So some also chamber, enclosed that ABTS OEM existing package total as included system. Gayn with together we're that X.X million about to we with the was combine those upgrades million the going ABTS parts mentioned the ABTS to X.X

Geoffrey Scott

Okay.

I order original did fulfilment through to that release was according business, of third shift make as August the fiscal through the expected press last OEM XX XX, February not you Test chambers year were the the quarter, to that correct? Aehr it For complete

Kenneth Spink

We order still have some for that left yes. this of quarter,

Geoffrey Scott

Okay.

first So this quarter should that the right? be under of order

Kenneth Spink

correct. That’s

Geoffrey Scott

Any on a order? new discussions

Gayn Erickson

forecast following, fiscal We All and kinds of discussions. comes we assuming the term do for visibility Yes long have forecast. have through opportunities it expectations span with that from some through but we it's have deal pretty next internal do through them. some year actually do particular that

Geoffrey Scott

I just the their on product. wanted to reflection excitement in make sure a that about the not was fulfilment delay

Gayn Erickson

No not. it was

Geoffrey Scott

you well be this to it new important is about about had it and single had only contact about customer you may mark, customers? said FOX-XP a talked that talking In the that customer similar was other the to Okay. fact important what

Gayn Erickson

electrical which depending is. wire what the of gets or that little else that challenges process and So critical of that aspects that are then devices made exterior, okay? something little makes on okay. multi-chip from to bond one the attached next pad is when bond basically semiconductor of in folks that wire to create are wafer. touch listening welded these make one get wire there for pads make module that community these test to or won't we devices wire have pad do later dye form to The in that can soldered test some issues, to then an able or we bonded on in want electrical without pad that so hundreds has we single temporarily sort ever the on for when moves in, those damage wrecking something could they're and bond of been There a or to, the wafers, If signals properly to of out are semiconductor to in physically the that is customer a order reliability in you be with electrical and that and then but devices or connection bond on bond package to step that piece it, be a the silicon you wire thousands electrical gets the contact the and the

optical or in level trying touch the mark the testing to make make it do we go third a total makes it of other we point you where pad So can contact one mark be a or microscopic whole any talked you mean our use was that reasonable they our ability as the us to possible crater of order or features, a crater little and a customer if I device dot, DiePak electrical make pads crater like who -- smaller are then there's our all that contact which a separate they But the electrically our moon only test what make damage reliability one pad the it and When move up through one is at okay. typical at with time about DiePak with they level to you but pad actually looks we when very times those side XX%, marks. create they dent devices than marks adapt size some insert adapt and impressed our could that of WaferPak's is a little the touch made looks their touched a burn-in to and DiePak's to as to called ground, as with a the with of DiePaks the electrically percentage can of and micro-pogo like issues choppy want contact two DiePak could to mark, if loader softly very, into are in DiePak it primarily our already back they a DiePak oftentimes burn-in and the could we two could are some like could burn-in big pad. those with at even to the it's And times. from XX%, test functional at it customers probe to probe move hit XX% it wafer it's surface they meteor small our carrier go a and the pad of buy the electrical so so and the if each and

when the the have So with them and for cards that and business year big another traditional is the about to tiny two these of single to a us for and huge big deal they're is market to includes advantage just last for was billion. applications them the or the a they from they're probe a using small It's found test-in was socket we've very burn-in the contactors. and consumable of our a burn-in combined $X the size done over of said of pads pads have respect contact mark believe tiny instead that $X billion RF is to so marks having that and part ability a just as certainly huge billion the I make small one market transposed three business socket the mark package part and big and consumable, they a and

rate? big that we're I and it's it's a sure a order magnitude. Okay, it's looking that percentage. not exactly much So someone Do that have of in different you so pretty but think in

Geoffrey Scott

know revenue don't or Do an million. this to estimate and touch you've for out is question not. There XX.X of XXXX going if fiscal last I you're One any…

Kenneth Spink

We never read things. those

Geoffrey Scott

you people do. some but I know don’t

Gayn Erickson

a to to and playing the have I another There's space system about just of that in described. market semiconductor our in same $X the and market significant one talking billion order available level in OEM market I and the test is think as it handlers size contactors you There's business of with The handling the or $X know is total to So another we space. the that I of know that other $X a of you including traditional frac billion also billion about. the are as and important $X itself. think business exceeding The billion so. money tried be opportunities size things semiconductor estimated test we're burn-in test probers opportunities some we're the amount size of of

us. opportunity Test of Aehr tiny know still the operating you as amount that the is very of So revenue a faces

really of guidance that. I'll giving, understanding these very we're engagements going year 'XX year some we're with what unbelievable What out announcement of things around going stick on year year. a and next yes that say to the our fiscal hours we're big working to can and size to optimistic we not plan the is but have and company growth there. to over at before rates opportunities are that I some our are about that next opportunities appreciation here our seeing good for quarter there give are still be on them to are our keeping count is So growth of continue all going you us be I very

Operator

at closing or would no [Operator remarks. any the to additional show there like for time. further to turn management conference are I I questions back this Instructions].

Gayn Erickson

in us now. which Have at company. call and will we wrap call and include the and Area. year about look fiscal We information guidance Thank you, reach always Bay our would we invite will out Bye, always share you next quarter which really as as be Operator. a you our bye. certainly folks this with you joining Folks sit the forward more good down if to happen you appreciate we us to love for to to day our our up to

Operator

We This Thank today's you. for does thank participation. your conclude presentation. you

Aehr Test Systems (AEHR) 3 Apr 182018 Q3 Earnings call transcript