AEHR - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Aehr Test Systems Second Quarter Fiscal 2022 Financial Results Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Jim Byers of MKR Investor Relations. Please go ahead, sir.

Jim Byers

operator. you, Thank welcome XX and Test second Systems' Good results to conference fiscal financial call. quarter afternoon, Aehr With me Financial on and today's call are Aehr Officer, Erickson Spink. Chief Test Gayn and Ken Chief Officer, Executive Systems President

said, to forward-looking obligation The like update of are to only the and this Gayn number uncertainties CEO. cause provided statements. statements, forward-looking valid I'd website statements being results. I SEC. broadcast results Erickson, on like release the in no to parties discussed a materially aehr.com. subject These current after company's are on page may announcing over during quarter the like that be the of those live that at to be over periodic the for market estimates its the Ken, today forward-looking and I'd with afternoon. now Test as the are those Aehr all current recent XXXX in items factors cover and information from over risks Systems turn Gayn most forward-looking forward-looking from second call few to relations Test in remind date Before guidance to including today's cause the is archived and That a that that that actual and interested internet turn call with to undertakes filed today's issued to are of investor website. materially available will and I'd close this statements President to on statements. company's quick will based call release the the company's and is and Right call differ call This a fiscal everyone the results reports And webcast the Aehr management could differ on making press

Gayn Erickson

that I everyone through I afternoon, Year lingering our 'XX great a do conference managing is COVID and for hope Also, New everyone, that second apologize you with dry off to for COVID-XX. myself recovering over and a and earnings want healthy Thanks, cough, call. after from in these Jim. fiscal advance quarter We historic holidays. to Good the times thank have are joining us

was one had breakthrough I symptoms say case of and recovered fully little I While what vaccinated that I'm happy the to and fine those I'm feeling from fully had.

solid quarter first million, bookings new where a with financials we revenue, a we'll And burn-in for semiconductor of start $XX.X the and take Revenue quarter up the quarter results for open of $XX.X XXX% $X.X Then and our we're sequential This of momentum million. a test million. our XX% wafer will balance our announce quarter single the record of finished In set summary a record quick the for in record with QX highlights then quarter detail. we the sheet, lines bottom second increase the to questions. and and line, was follows up market. over happy and in over the previous of experiencing year-over-year. we're quarter second level the over to consecutive Ken bookings Let's go quarter, in the your of

revenue, of total year to for times uptick fiscal May at full $XX we're revenue. previously full is team, the million XX, job was company. record the our our highest million, doing on is as at manufacturing our are last the incredible backlog backlog revenue year provided three as equates XXXX. revenues, guidance confident which reiterating for $XX.X of meet suppliers significant to and quarter-end which that and great and ending performance in fiscal well in 'XX Our ramping of backlog our least our for the are With year year's chain the This strong supply

fiscal and $XX Our silicon times X.X carbide first segments I'm the on the our photonics our of or market projected for into revenue for silicon the of business. to detail revenue half the Today, million this half year of of over is year. second more going fiscal go

burn-in on Let by discussion electric me driven the in start silicon vehicles. a carbide with has test which market, and growth anticipated been substantially

vehicle see and silicon in We solutions very carbide test continue use directly to particularly the requests an wafer strong burn-in on and inbound support increase in of information devices, of level for for our market. interest electric for in and

of not Now conversion followed describe and for carbide for solid devices silicon vehicles. state used Aehr, Silicon in let have the test market are me those burn-in. electric who power opportunities carbide

the an in charge used current although to batteries Silicon Some engine. in battery is DC power the DC to the back is electric Then power enabling to it's would pack electric back higher the engine. store DC to devices, to vehicles. converting power per or alternating onboard There's the AC current the DC the needed and the that are technology battery off-board traction to traction convert or to one same say, the charger direct conversion in to as and carbide The vehicles. AC are used MOSFETs AC current to inverter referred AC power inverter.

Ford XX A supplier Model for must called test so to likely get high uses perfect silicon two XXX these to two engines and inverter address Xs six-inch through extrinsic therefore about infant or these MOSFETs typical as go today failures the burn-in, carbide mortality quality silicon and stress yield automotive standards. typical current like needed. the to has wafer MOSFETs, carbide A not of number Every MOSFETs car silicon inverters. required traction get F-XXX traction today semiconductor Tesla current an yield a with about do that perfect and Lightning, there of wafer the Xs, phases to So remove carbide extended to as meet engines and most Ss, the XX and agrees per yield. well they are

are the modules This industry are parallel. can of to When is multi-die form modules and package more burn-in but packages, threshold final voltages assembled to where in stabilize The the to the gained integrate devices, these burn-in these many the in use burn-in step are in for use the that be looking mostly of companies the modules. addition, easier discrete ahead modules. into moving particularly In devices in in less inverter. individual require done the all are cooling contain die downside efficient, is customers The that the modules, have failure to of or The clearly are of part for die in great this combination die implication expensive, will die of industry Aehr, more and production. level to but a modules confluence at is include wafer to moving full package entire could fail, cost a test XX solution only dies where packaging other burn-in single we level or the burn-in Not up more the us differentiated module of and which the devices. reducing versus of the is cause a module discarded. for these per module the wafer modules

system the of Our to an scalable FOX-XP with a tested wafer time, cost devices step critical can burn-in a in volume manufacturing wafers and solution manufacturing XXX% effective for is parallel same being extremely the test at up high time. and of XX at in This level process. reliability the burned-in

so silicon devices seen the on We far. it by failure the has have and this qualified extrinsic carbide to vehicle validated multiple been eliminate manufacturers electric

order for WaferPak the WaferPaks that FOX-XP our actually is are quarter, device During received burn-in million This to order a populate contact order that enough then from the and silicon you was test system systems wafer order a FOX-XP makes specific carbide will, for the follow-on $XX.X lead customer. fully wafers. followed they $X.X level and we this by million last consumable, ordered. if between systems our not This

systems major expecting automotive over a used meet electric vehicle to off This devices customer WaferPaks next the in are systems. years as forecast the onboard market and test several significant growth. carbide to orders supplier, WaferPak are base WaferPak electric significant well market inverters motor these and system customer, follow-on we production controllers, and chargers. purchases burn-in additional being the board both automotive FOX-XP and traction So in for as with semiconductor additional vehicle and continues to semiconductor These MOSFET silicon a

and applications. of, electric more carbide silicon-based the XX% carbide vehicles over the This forecasters small the chargers well introduction of reliability several that large and both other or vehicles. of and annual devices and/or more vehicles, engaged silicon the are clear at vehicle for the to in solutions range conversion which we're actually growth wafer to Model off-board equipment X carbide next for the current vehicle industry of addition electronics. and the across the intend quite charging longer and the their the was suppliers It burn-in Tesla electric choice market and devices the analysts needs. forecast electric the of two critical test base the that greenfield silicon for criteria starting their the other powertrain carbide the silicon on a burn-in needs traction from power times, compound to as customer, carbide number looking includes Since demand and industry regarding strong conversion not onboard carbide most and the for the level new high carbide will promised move as buying to our voltage markets. discussions industry more several carbide as be large silicon all without companies market and and as carbide over of installed battery for suppliers, silicon of devices has currently market. since standard silicon for start Aehr adopted as best very historical important meet as carbide grow In us, test Tesla the interesting is and quality any vehicle of most advice silicon silicon translated of CAGR becoming solution are with carbide or as backlog to from to and electric entrants enter expect to the IGBT their for well in silicon from evaluations them the EVs. is inverters, lead silicon a are more than into for efficient, a in decade, the other all to Multiple rate driven to faster new silicon electric first The by if a

growth forecasters faster and are as with industry be An electric two appear that The that there'll vehicles customer to vehicle year a Ford changes traction is by or F-XXX just more announced its how times it will this Lightning enormous to few vehicles idea upcoming and critical forecasts production engines to if than in ago. its nearly two mid-XXXX more most market, capacity is vehicle world will be company on that being the recently While exact XXX,XXX the one to per are no new electric predict committed devices automobile saw and more the every the typical charging in production. months that one engine there completely rate and electric than companies the many vehicle of doubt volume of converging inverter, analysts means dedicated is also new the ranges no longer have forecasted only not with market. double can average in electric example of What fast the truck Aehr we carbide car a vehicle marketed of that electric EVs and pickup to demand. features silicon electric response

only devices. and silicon market into carbide market. carbide million the of onboard and a Why electric in the that the has entire this vehicle power going folks this to current photovoltaic detail inverters, vehicle demand, electric from that market wafer over are wafers put point yet require electrification for equivalent industrial in is Forecasts another entire estimates ship XX vehicles for growth infrastructure, This X,XXX,XXX then much to that so XXX,XXX I'm industry represents year market. is This and meet wafers it Genuity the devices X-inch such will traction when much making fewer only to just for meet capacity realize is -- plans than the and you that XXXX, devices, expected even as incredible has silicon demand the yet less wafers meet announced here the to in double capacity place. automotive and X just times Canaccord chargers at Canaccord for the that Genuity the

capacity the do total maybe is capacity they in are the that capacity versus So let think, enough place. this make announced me And forecasting even sure meet not I X.X They're somewhere X the that total million announced have near room wafers. message to yet capacity X market wafers And enough not to they're seeing entering forth over is a because there of out plenty capacity is there newcomers. and million Aehr that for of companies multiple simply the come approach demand. We're demand. there's meet with

of total the X% decade. top including "the today of the Now of bad out think end back Carbide the last systems not to all test the demand companies of. habits address current ones" remember total devices with having against big an the current packaged IGBT wafers that using comment about installed carbide we of just to needed market my than customers base a Again, the of your Stay are year, may X% companies. our silicon by demand. that new on companies progress them the the that only about we Silicon on or talk burn-in of broader or array tuned companies shipped have the or Again only needed

stay tuned new to market. out about the find the entering companies So

at players wafers. provide devices, or not their has silicon of of expensive feel as Aehr these the and we Aehr's have at We having do more internal and had which highlighted too for own announced the life them to detail, can timelines experiments work to of meet new on. failures we their their the We're being tests of at for move not Without early and and scared we're One multi-wafer we to have combination on electric the benchmarks evaluating to every supplier now be looking failures actual is demonstrated vehicle size excited with particularly getting say wafers. that for market, to ramp company their solution want do to in testing also talked our asked evaluation do much run validate carbide value companies moved and wafers, on by all we carbide more tool. predicted this screening happy Now and And the for wafer FOX-XP's that have is processes and large new of the are thing silicon that bringing the pace. have qualifying into system one ignored, and second benchmarking currently that I least of to the half all companies same in a sure, expected decade.

we capitalize to several customers we timelines, be sooner that Some year, than others. companies as will that do into are will different this they the meet independent our add rapidly expanding I carbide new production ramp driving of demand silicon to clear companies' carbide want look solution silicon expect on fiscal to that with by next market.

We expected our solution are we're of beyond more. we which sold testing capacity and as provide ability these the years the percentage our carbide full capitalize capacity next are We wafer, be silicon accounted for devices, market a the several ramp a confident growth WaferPak share carbide this effective by XXXX. expected and or many burning WaferPak total very year, carbide vehicles to of the for silicon in this last believe silicon decade multi-wafer for ramping the cost and in upcoming market test burn-in on over years significantly meet in electric to full next FOX that. only and over systems and will overall and the over XX% We small beginning opportunity, of are vehicles really market grow at -- very to

turn let to and me burning So stabilization market. Photonics the Silicon

single carbide and Today, this are their while stabilize step Yole early fabrication modular while stabilizing a photonic extrinsic output any this transceiver circuits, a research photonics power is using for a critical and also and market solution our silicon communications. centers, from step, for volume high silicon systems proven in integrated being including life into failures. to are the XXXX. in by removing center track the onto optical being burn-in transceivers keeping optics be scalable for while Silicon billion infrastructure to This MPUs very and the early address within used markets. critical power. in in lasers made applying create used Photonics companies silicon burn-in effective any and alone is the chip, with as wafer believe we cost and hybrid WaferPaks. there manufacturing is high XG market $X.X optical several of or as and components predicts is integrated first inner photonic been A continue the optical Silicon the removing photonics input will such that and before presentations as the and systems failures. quote multi-wafer burning scalable devices use fiber and processor the temperatures provide very their XXXX, interconnects few applications for FOX co-packaged system, the market have FOX years. success as optical the We also and critical expand or integrated with XX% our microchips. possible have optic addition in where solution be a about data stabilization photonics to such semiconductor silicon devices electric their which for and form, within will communications describes will that data able can well and well And end and next an WaferPaks using as of used test and and that between lasers transceiver production to key using reach intra for announcements extrinsic and Intel to do XXXX by multi-wafer silicon But means CAGR to Photonics medium, singulated life Aehr a chip power, products and many effective in as in in industry it Cisco in techniques. signs Moore's strengthening Nvidia provides or in Several companies the see cost electronic beyond So and to as microchip, step still data are a energy used being on output our silicon transfer public devices system telecom XG other the systems as existing technical both applications, Law infrastructure and GPUs fiber faster and in Intel used with only photonics as step a optical addition, provide datacom optic start and and between

these During orders the new we test last customer to photonics for based to wafer support expected types Photonics qualification customer current This and the from purchase contactors new few the received in level Silicon to used six burn-in months, additional of with systems product FOX-NP devices systems. characterization and is for sets form. be of wafer of wafer WaferPak

photonics-based engineering. expected customer on the growth qualification very a supplier market photonic we're Again, next confident and this As capacity as or needs well market forecast burn-in market include DiePak the capacity, commercially the expect and several to in address addressing the new future. the in address applications the as contactor devices our the incremental as silicon have wafer next for to silicon the production These to ability to and continue FOX form, years. and in effective silicon as Several the testing and photonics additional customer and increase devices customers as over for capitalize solution months. WaferPak other we only also in also to systems of cost photonics capacity silicon grow, continue needs well available the over new XX capacity to product

at the XD we and significant growth our where Before half. carbide for data is represents and of we're focused large for wearable a turning very record we're to for sensors the on times half, deliver devices electric solutions, ahead, ending least and revenue vehicles, for We X.X our and at. of photonics silicon and Ken, XD market test the reiterating and are of center serving which guidance in revenue our very test our that strength let opportunities see and and of opportunity $XX million includes devices. year over second in significant With XG for fiscal ability confident devices infrastructure, the bookings infrastructure, burn-in remain electrification summarize which May in mobile first semiconductor the it to silicon This me XX. environment revenue

discussed to proving Aehr have we levels. are now, revenue in and in the significantly and manufacturing infrastructure As has higher chain supply ramp past, the to place

lead momentum, for we ordering lead and We gaining that meet components we and silicon to carbide opportunity for reasonable able particularly have for is have to customer see been WaferPaks, the systems been enormous long requests. maintain times

These in that these the successfully has We're meet confident shipments, historical bookings to well cases, capacity ability are well. of ability forecasts all demand test up holding subcontract very is ramping to in and to robust higher And have the the forecasted and subsystems suppliers supply very significantly our to has to a manufacturers are seeing. we're chain increase Aehr's the in very demand. customer our upside. and world with plus sub of and as ramp supply Aehr Our systems, chain considerable years. Aehr aligners handlers. the of we suppliers all class supplied subsystems WaferPak our subcontractors excess mature DiePak meet customer In contactors for

the pandemic than Ken customers With our of beginning we the The shareholders. financials is the and bookings for as a paying and growth years pandemic. has new Test our potential more the about at start of excited the our our and turn put we're guidance past solutions, financial positive carbide in space Aehr confident and and work in over Systems. in line the the silicon them. stronger to strength to the for response we detail open test applications meet the results from to company it for that, production we're As in ability the more future as questions. getting and our market record ahead test our markets burn-in and customers, forecasts we off semiconductor we over we're well large With the of Aehr emerged had anticipated before hard me And and our opportunity several with more up before value of customers, review discussed COVID-XX and products higher multiple let

Ken Spink

good afternoon and Gayn, you everyone. Thank

with As of bookings, second quarter sequential highest we another and solid quarter Gayn consecutive noted record our in strong backlog QX, for at growth had end. record quarter revenue our on

our a at sales an sales and periods. previous revenue the and up half, results, DiePak Looking in of XX% in financial total $X.X preceding our This revenue sequential year. by revenues second million an increase system increase for includes The net revenues $X.X comprised were $X.X WaferPak, the quarter, QX over in in up revenues last was increase flat includes $XXX,XXX. from XX% quarter preceding of in net quarter in from DiePak of Customer first $X.X the in the DiePak the of $X.X second in first The sequentially or offset million, increase quarter. XXX% partially WaferPak from from $X.X million. both $X.X an service million WaferPak in of system the year and of were million increase revenues million revenues decrease second million. quarter

preceding million $X.X million in or preceding net of to forgiveness or ability of well diluted non-GAAP business, had Program first in quarter, $X.X loans $XXX,XXX exclude meet the share diluted in of in which in stock-based impact a $XXX,XXX from received non-GAAP share the exceeding 'XX employee Paycheck XXXX 'XX, quarter, fiscal loss of purchase increase compensation the to net increase This the DiePaks $XXX,XXX $X.XX costs in $X.XX in compensation as prior the and in we growth increased This quarter per key was periods all employee stock and reflect related compares significant customer fiscal of new and scale to exclude year income stock results of enrollments. during the the the awards $X.X second $X.XX based loss in of quarter year $XXX,XXX, primarily is stretch quarter. our as per for Stock over of to QX and due that to fiscal of also XXXX net second Non-GAAP piece also share. objectives accrued WaferPaks and expenses or XXXX. Protection related in our demand. the impact and The year number QX non-GAAP goals We contributions million reflecting $XXX,XXX record shipped to for in the a diluted the from a business due plan, $XXX,XXX quarter, consumables in per second reported.

overhead profit million Gross of or preceding XX% gross was profit The revenue increase for quarter, While it the $XXX,XXX gross On which due of $X.XX $X.XX unabsorbed year to first or diluted to compared is a being from previous in the $X of are or loss we the income GAAP have gross XX% good to year. goals share of year. previous a where up basis, first forgiveness, from higher quarter XX% impact per of up $XXX,XXX, PPP $X.X who share sales, the quarter, these and both $X.X helped our includes our second of quarter expenses sales stretch the non-cash of in GAAP sales million quarter, was work or million, and sold costs achieve of the in or decrease quarter second exceeded problems the per $X.XX in and of goods net the recognize such last $XXX,XXX, and the of preceding in of in per QX cost diluted plan, due primarily employees all share, to appreciate of is QX in of preceding 'XX. levels first the margin the to GAAP or goals. net net second and second diluted exceeded, the loan in profit hard income the of from quarter a these

paid in remains of calls, tariffs, prior impacting resolve to very manufacturing relatively overhead labor was costs by premiums overhead goods cost and in we related As revenues well unanticipated offset to as as noted shortages. scale broker-related term semiconductor partially fixed The and short benefit increase.

the particularly where to with U.S., freight charges example, addition, items, freight shortage over to ocean on freight ship chambers an by shipments the we our air. we costs in ocean Asia many items chamber by increased In per them for In were in we suppliers our into -- of the shipping increased by freight ship incurred $XX,XXX by in for to seeing one historically we air to charges from increase due one are capacity U.S. required

prior see this to this our preceding million in to temporary costs are reducing million includes increased expenses provided million, the costs due to $XXX,XXX meet quarter prior compensation prior related commissions increase from was it $XXX,XXX. included are costs. $X.X in an higher XX% or employment objectives quarter. an of employee the XX% raises to but anytime plan, included contribution of of of of and and second year year an increases, the were $X.X higher during we year. second $X.X key the quarter and quarter news and increase and SG&A our able from and not up million first and in increase While the the plan is to we quarter, second in participants The quarter appears employment costs the in incentive from $XXX,XXX payments $X.X fiscal increase certainly $X.X bookings of do XXXX, $XXX,XXX related from prior new stock quarter materially from $XXX,XXX. employee million related the $X.X to second $X suppliers shipping in the the previous The bonus million or increase increase Operating good purchase the feeling demand, stock-based The preceding quarter in the increases. first costs up in to The in million, employees from salary second quarter an soon. employment increase

of quarter, in from In unchanged addition and the increased $XX,XXX during second increase company the consulting in in a the or employees employment costs incentive plan preceding $XXX,XXX. second purchase stock-based point to salary to objectives, million, participants and increases. to related employee costs related higher from prior to from contributions R&D stock of quarter provided to during fiscal in the key payments the the $X.X the compensation The The to employment $XXX,XXX our recognized costs due was in prior increase R&D quarter. plan, an the including costs, and year. included increase first cost increases increase quarter year related up business XXXX, travel costs to the new employee raises in employment

in the R&D during the addition program increase new In cost, an to the in employment contractor initiatives materials fiscal and company increase cost related XXXX. to recognized

products enhance competitive our to continue our in products and R&D to new our We market advantages invest leading applications maintain markets. introduce and addressable expand to and existing

$X.X sheet Turning quarter, from at for second at million equivalents quarter. million the and to the balance XXXX, up $XX.X the $XX million our cash of November preceding XX, cash were the end

working capital capital raise we provide proceeds quarter completed the the in very issued large opportunities at successful that million of share. a serve per an through we These the netted total shares average During of additional to market offering were see $XX $XX.XX company. A X.X cash ahead. the to price million

their equipment QX consecutive of our in year XX, on debt. million outstanding in total deferred the addition, if impact the second $X.X end, on of quarter is from and from on is provide customers our the highest semiconductor our test million time fiscal end the $X.X million, the PPP over November components, an up since This lead to QX compared end. and preceding November quarter ordering XX to the of of end the XXXX preceding critical companies to third and and we to preceding related to of The were program inventory address. quarter times Accounts orders. and in prepare markets last bookings week reasonable our announced at advance due no support as existing generated semiconductor short increase has backlog compares are ordered on an the million of of A inventory the revenue, million, bookings in million This second from to million was we May where $X at quarter, quarter. $X.X from of at increase we 'XX. in from quarters. and quarter at orders environment year-to-date to most up preceding paycheck have million at the protection second $X.X record. the we quarter increase $XX.X million quarter from the from fiscal XX quoting not to deposits up we been backlog million XX at and year. expected best-in-class or Customer million higher increase revenue $XX million. were demand outstanding $X.X from to Property stocking increase long the is $XX.X 'XX, $XX.X future meet see have to bookings and million, $X.X in fiscal these the lead receivable backlog from where had to quarter long our equipment. beginning quarter been up in quarterly our portion to $XXX,XXX, on fulfill was were is the The $XX.X first which an was million due term million, of record. on the our the $XXX,XXX term, from anticipated able significant for is as due end is This the continue $X.X credit and year-to-date prior loan. is operations $XX preceding up $XX record end In million, to highest preceding company cash up and the This of line end, levels. Inventories of from XXXX. we the flow our quarter $XX.X Bookings and fiscal $X.X Backlog million Including

our our several outlook which ability to semiconductor growth XXXX our our XX, opportunities on significant with the for years. next deliver May revenue year growth confident bookings of Now our to are the in for strength the burn-in turning and XXXX, ends year we over record fiscal test and solutions, and

reiterating of of we XX, revenue for previously that represent least guidance million, ending For fiscal year. XXXX three our of May are which at provided last times XXXX $XX fiscal full would revenue year total

related margins, incentive our $X.X million in being exceeding -- benefit gross the freight or stock-based the equity the Still XX% well full expect this forgiveness compensation be partially $XX.X we from fixed revenues expense noted of year from and benefit While GAAP a stretch included to plans loan our increase manufacturing in goals. net and revenues. as would which million above offset, PPP increase with the the profit, is costs, on overhead based will as tariff non-cash additional increase relatively non-cash temporarily gross

XX. looking to presenting Lastly, next with prepared investor week, be our the meeting January of Needham some XXth virtually at Annual relations remarks. see the the at calendar, on Virtual concludes conference. investors will you Wednesday, we a hope We Conference at virtually This Growth

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

Operator

Schwab will [Operator And Group. Instructions] you. Thank we Craig-Hallum first Capital of go to Christian

Christian Schwab

a Congratulations bookings. on quarter great continuation strong and of

Gayn Erickson

Thanks, Christian.

Christian Schwab

just talked who's give production. we evaluation wondering a carbide Gayn, supplier, little customers or I'm a with We about new you large help of silicon little ramp and the us a in bit talked if carbide. that me then into could silicon clarity -- about of carbide just bit will several silicon on

talk close could So that you hand? minimum to It a referring me. customers is carbide wasn't are supplier, about large car clear be of Or is several you silicon the to that -- at when three customers?

Gayn Erickson

talking when of is, the all where statements of made always is, trying to and information some. me like they're of and there's of balance talking not player we've let at, with about to dealing giving that And players, right, competitive The one folks, suppliers, All subtlety here the maintain too this other. challenges try. and then one much you're information we're and the the versus now to right all

that, related listen place. just pretty well. And key thing as this I things my we obviously, indirection sometimes have guess, And my, customers non-disclosures on so because in and and all to in clear is

you're So discreteness it, know difficult. muddy of have deals when But and to I as deals the we best these gets try always and we large it can. and the some talking, of that really

let as try a So color of well. bit me now little

to of one Infineon now and position, the traditionally So in have market clarity, just FT out forecasters others. that then largest for generally there, space suppliers and the been are refer number Cree, talk the industry, had Wolfspeed this And in then know ON came the thought by of nowhere, larger the is of generally Semiconductor players XX% most On Semiconductor of and current top space. customers, people people are one that our out as that kind

Mitsubishi and that, that the of you to filled have ROHM were addition out six. historically In kind top

them, capacity, if engagement biggest and be deep are for more we our how in One to has can't there, displace them. the wafers, okay? all the is to to them potential commitment not with that, we the changes, that nor one level, base et big displace if of is demonstrate someone. of certainly business, may all level we the of to clarification, lead to all including the consistent with top is were associated what usually that lot I've be clearly its been one And they true, of all to, of It's good have their customers testing you not being just the and different some a with big new much been we expect. quite them, some four And another - we offer how a one silicon all of in tried of in That's them data what guys doing the cetera., or and it isn't cetera. above, that least asked got of is historically in of giving a life enough. and suppliers And for will We levels can't conversations to have generally them. pretty refer are, there, What we displace us convinced it's engagements management and expectation carbide aggressive is in on we're all I for all And benchmark, to to would shipping quality compelling, that customer. doing using general, customer installed different of those I advantages. the new say at them, before show between interesting companies. our being companies et definition, I necessarily pace ours. we a wafer discussions, we've we it results, thing done to there's But difference with out test happy have just involved there lot is were of different actually measurements it as in, fact hard pretty in but ways, by told said quite and and And we're our my tool. additional they're and and And wafer that allude that It's about all they've happy the oblige. have the to is see this on

imagine companies space Also And a market if many is now, ON entering into also about - little have very is upon customer, go but prove. quality talk that customers I've the the right only a with this, are to is in easier we to And of okay? the new from has base, is the entering solution. is package do our they their their they are who market level. switching to like have not Companies it's because away dynamic to and wafer have they shifting public intention current in space, them the share, installed very are stated and the convince cases, thing one reliability wafer entering nothing level tool company are you stated ship were necessarily based into our else. out to have customers differentiated we the that don't They're little do as moving that, okay, something to talked very every that getting they that reason brand-new that or they're them, because work to to better. customer, And burn-in. of we from single modules, So effectively have their to have

reason that we're switch. are to companies level silicon the carbide are talking in no that not to with starting wafer burn-in. they're There's Now saying

that, have, which just And is of for that important. at to clear large one the kind to tried is the will I pretty And I'm I of their what the and challenges pace best make identify there of really thing as move them. one well to yes, times, evaluations is all intention last companies frustrated all in forecasted our are in So go of and many, said we're of they're if cover them. those at very six as -- going the the win XXXX. we're of of that, But the combined -- year important, of X% still capacity all having them, to And not in possible. is all to need if only it's customers

only is them X% of of the - of end largest share the market So at decade. the the of

by business or you're market your you're leader you're not not, XXx, if anticipating if XX% So the not market to growing going have share.

real carbide is the business are we so them. with the growing most, companies which And silicon their and that key align making sure

also companies. are forward six new in. are have and mentioned maybe this going silicon companies through I've apologize, that capacity five fabs think, talking come There's dozen that I a carbide and So Vernon four, been about right half so more so and going another now, far, about

do lot -- do So activity a going the bet horses how challenge there's you is you on which of Part of on. bet that's on.

current is betting them. on all we're Our strategy of

us that even companies restrictions, would very The plural, the been not restrictions calls. We tried I'll in or restrictions Taiwan, Japan, COVID, from in go -- able one I sales in in still have companies that real. we going pure and you to tell making I and complain China, Southeast promise to travel whine frustrating, to, have real. capacity not either but in very have it in is Asia, thing Korea, and sales. about is we are because extreme of that preclude to mean, and in

over Zoom Vernon not we and we to happy, And It's that came and around this kind So got thought, that. of travel And we're as too. a stuff pretty in earlier easy. were the I things and in U.S. fall. Europe, like all then this do having -- to to stop,

that the It's But pick trying little leaders I something to is But overuse shovels this, we're is making hard we're it are. to and So a do who the the know think everyone. I people bets like but to down. we're bit really sell slowing our share. when even I market us are that year, significant And of opportunity that have believe be companies in and going an 'XX. 'XX, say be to and going way, next irrelevant, will let's we're to companies that number win by to a more -- fair than XXXX, they're

we the Hope part -- play the market new up not helps. may sure that four long years game, So players but keep of track of that trying lose smaller three, don't significant some is the this end that necessarily the fact leaders, of entrants make to two, out. being or

Christian Schwab

just several does fiscal the pace release of will And In That ramp into of adding silicon that up new by follow about evaluation carbide Gayn. you press year. customers. talked customers a help the the on next production then

end customers assume Am that XXXX, sentence that I a ramping. So of means couple there'll be that other correctly? reading by May the of I

Gayn Erickson

that's imply be intended how if it. intent I all production May. to was say fiscal by it But no, the way May. I wouldn't I to wouldn't know. ramping next so next apologize wrote push next through I out. the not into companies we expect or year, And several by by this I to

'XX which year, which as to customers. fiscal our adding thinking. we May we would we're little trying that May, several that were to not what kind not call customer the believe be couldn't by tighten of I to That's months, as that's think, describe of that, we into get before, But -- shipments referring said do we in up that next expect suggest before, by ramping anyhow. that the of Now over a wouldn't to I intent. XX or end we the we fiscal 'XX, But just were probably even to ends next production new we at May. a make I'm But

Christian Schwab

you of Right, first production that and it from "kind in then customers orders lead other real Would here would potential like, into the from would more is this year, [ph]?" of initial. seeing calendar capacity different half anticipate

Gayn Erickson

We're I months of going to out. like, would say will getting not of that I too that does if ordering gosh, going there so the move three was will mean, -- customers. this to We're mean, it's in miss to certainly could to, in we were like of just that But ago, sampling I begin little it XXXX. I longer I didn't, to and about It guess it don't, one, start But be that I hedge is we timing. XXXX. surprise bit in away new out bet to my will that is six we terms oh, well, perhaps. to thing they now kind there bought talking sense, expansion, -- us want we're break is the faster. customers? that possible ramping in definitely some be And in carried fiscal from to guess mean, They that are not by we surprised going me. to I would customer yet, any want going order with. case. there they're likely One before fabs a there's before going these -- Is it of might also was specific a this -- were our I would than That's the it hurry, get I saying, feel with the January that key months orders the I end hurry, I have fair, production hurry. my bit got I be It's miss customer a lost And companies most ramp. multiple. is six sort those first of now in little that of companies between don't XXXX. were that year. be me same case. new

of barely the they end by So even need a tool production XXXX.

on talking and of customer, to we're really specific trying on for just sure installed be part were going example. a anything, this don't we what's not etc. that still them, missing And this not there not We're is for missing. out So understand solution for that looking they're feel They we're example, quarter, make a to timeline. to

important, So that's And are I bad. you're to when before the because people bit guess obviously the are of obviously, of if announced, stock ordering. out those this little exactly good. there's you that's I timing think if a going And to of in pretty are that that, when end that is be try an trying orders of on. production my not people but Again, expect, going get only orders, give bought be going we'll by start would window see first I that at and you best to the into of orders their to May. least have next estimate tried to be ramping the will what's challenge I'll

Christian Schwab

kind my a inter it as chance talked changes, guess and silicon packaging, of technology chip question, I TAM over large I time, two about silicon if was the y, to you carbide Have in be then XXXX. photonics a sold kind and work company And guys Great, -- you last million just had behind say, three there thought you do the you year? outcomes in could and any to range some everybody, guys XX to been by potential how customer. to Have relates a previously etc., x guys potential know photonics, of able silicon scenes of the could technologies. to was, the cars to revenue be

Gayn Erickson

anyone really actually there's numbers forecasting that that doing Candidly, yet I publicly. we'll we good be have best on yet. think and working with don't not can the we -- that And

Also, be to such that stuff call to makes level. an we boat, for doing to fast about makes obviously, be to It customers wait see know we it very physics So publicly. about that as at anything To that. now, area, right rising we sense in thinking it would general, wafer have this you great, it have want you a to sense are to tide, that if talk and just have us a through about with in non-disclosures the somebody stabilization. it

basically can them. the anticipate look be that of would for an people years, major make see But for exist. make calls where one a made us we've have of to market folks this. going bets be tough are opportunities why that This many that would this bets waves. those and example number for of we It's don't towards to you these So followed

I these physics. or nearing or term packaging has chip end the long SerDes, publicly, about prepared inter that, communications sense Intel details communications deserialize my that word. multi it serial these but folks in chip chip is mention really didn't get in the silicon I one for that just the to high channels technology are or their of die was, why speed know, You makes that these is in I But things the photonics modules, remarks, the don't related know, to guess, surprised shocked gigabit talked into technical right of I the at to

basically, you channel that a So get today, XXX, go that, XXX that's something I or you of like out XXX gigabit there think can is that's SerDes something the or or sort like standard that And run down are Xylem, channels, SerDes right to copper running buy interconnects tools digital can serial chip actually channels, chip. our on that okay. speed now. from High FPGAs our

you can two is argument an The only will not electrical those light that might faster period. And of end nearing generations as it a that is at medium. photonics, one able in is whole wave that. really is gigabit travel copper Now it photons an meter something mass such concept debate electron that whole faster, what a can't has or apparently were a an go they has or a photon, In don't to run very limitations But someone fast, only the have of us run XXX of so particle, travel far. go can And radiation the now, and light, means They make the like strut. its which or as that remember physical about the not they're electrical signal a soon is as electromagnetic It's reasons or a electromagnetic that whereas part from it can of like that said a signal or for be the particle like any a travel. particle the beam, mass that does or and than mass have mass. remember, physics, of you a wave. radiation if can light, in an whole

devices that are that gigabit up we're all today's, XXX, shows silicon a photonics XXX, burning okay. XXX testing that sudden, that devices, what So is in we're them of

started to speeds get at just able gigabit, XXX transmission you're at that gigabit. get So are XXX

XX -- what or people Intel about look five XX, out. talking exciting on Nvidia and years as a in integrated is couple processors are just of of this with electrical as me we from So years, even out now, three engineer chips like photonics and kind having that, space, silicon and what's even years, or their years their GPUs,

we'll clarity still, it's of around our know big that investments what that Hope are will that sharing be companies in we to like. a of play exciting trying it it. making that We've testing the in little we're it. more as that And other do So I But get pretty making see been to helps. arms burn-in get with you bit it. hope and the folks. And out, we looks just investments

Christian Schwab

helps, thanks. That No other questions. Thank Gayn you.

Gayn Erickson

Thank you.

Operator

And next Gruber Investors. Gruber, we'll go Jon McBaine & to

Jon Gruber

imagination? spending Hey, the gone -- plant I is the that months, good through plus why it? $XXX,XXX [indiscernible] what has of factories quick afternoon. to from why plant the property, on XX your nothing putting given $XXX,XXX, confused -- why stretch property, or of you're amount by which two -- has down which have gone in any throughput is financial equipment So you're was One, I'm questions.

Ken Spink

me November out, to compared we compare Gayn, let at or even address excuse last out if in talked the -- me like XX, me about, to that. Yeah, we $XXX,XXX. so quarter the $XXX,XXX, Yeah, of closed let $XXX,XXX year year you the

in So in it's flat. relatively depreciation remained call Keep depreciate $XXX,XXX, it mind, per we we'll quarter.

we're offset amendment allows scale So say getting to manufacturers. of we is contract equipment recognized. that the that's adds use to a and that us to just with key adding the like happened we we Also actually depreciation

grow capacity XX,XXX the having have allows it here having we facility, capital. and test our add and in square assembly without that final foot us doing So really to to

that's have So a a have. great we we benefit and great opportunity that

Jon Gruber

from QX X.X gone X.X to you've Now in QX. in

add XX.X any and that XX. will go Even have You're you to to not with going to see your your plant need XX to equipment to to facility? property

Gayn Erickson

Very little.

Ken Spink

little. Very

Jon Gruber

question, next say Gayn, want to My you something?

Gayn Erickson

are have still this but I of to Oh, asking now going it to some equipment fancy that really right number. engineers me buy test listening, tap say, are I that a was won't couple

Jon Gruber

right. All

XX% went XX%, QX Now gross to margin QX. from roughly to

we're Now your kind $XX numbers further QX, I then get up What side? going gross talking goal numbers and QX in in as do revenue we margins is realize gone we up such big going huge over to in increased your some, to here six relative QX these QX. to like shipping explode but of in in what margin been. QX. even costs we've to and million? points What's We gross have have happen

Ken Spink

end margins our to $XX as million to expect up year last what had we get Gross margins, XX%. call, reiterate I in mentioned to just number gross grow to our we

we're So temporary, quarter, for them impact there some unanticipated way we still at We've though potentially we year about now. end. costs, see costs. next the even for fiscal least impacting us the XX% And at call our being still talked next, through those all

say in quarter, to gross wouldn't each I However, still show of XX% going expect QX. next we approaching those margins but it's I probably believe be quarters that XX%. to

Jon Gruber

answered. Okay, my questions you. Thank got you. thank I

Gayn Erickson

Jon. Thanks

Ken Spink

Thanks, Jon.

Operator

go next Patel we'll to Dylan And of SemiAnalysis.

Gayn Erickson

Hey Dylan.

Dylan Patel

Hey, I questions. two thank you. have

seven, investing is about The two firms device And and greenfield. the to silicon million first materials carbide and $X seven basically it's China has one hovering over manufacturing. close billion in SemiAnalysis $XXX all tracked over in that

You the wins in and doing given have U.S. penetrate the the just market the lot is about potentially Europe. going a traction Japan But talked to carbide to burn-in large you China test and fantastic what Aehr U.S., silicon be Europe? as or as it's

Gayn Erickson

take a us, of China I'll there actually I greenfield a a specifically well, I Yeah, guess, carbide okay. one talking are comments plural as to high think in that which, number prepared of I fairly reached that about And silicon customers companies in is in level. at mentioned fabs China. notable, it's with out actually Okay,

kind messaging there. is of getting and and our marketing reputation So our out our

maybe them they're what But of before too. us even called least and not not if I had contacting -- for of scary at us that's two it's about us we and and talking So capacity, to one, their heard significant. know them, pretty that

burn-in quarter large base system infrastructure because do it's be in and to first systems. burn-in have and into We last to right customer level systems packaged that we China we of our in Now there and to China. China going burn-in people of was addition we wafer box And systems, now. in have out announced first have travel actually a [ph], have our being fab fairly installed or we do Kevin particularly difficult

have talking the that support have ability to have company our where we folks to well. perspective been applications from which are ability we China sales and So from support helps as perspective, in actually and actually us are, a people the near

on it, working we're So Dylan.

Dylan Patel

on the regarding DoD pervasive is liners question use the if other These reality. devices you've will believer virtual for My for for incredibly us pervasive be? update market past big optics. the illuminators, and given updated about device those these go PCSEL can the in how a sensor co-package the which hear. can test metaverse market and could and and burn-in to test applications awesome told artificial potential XXXG on lasers you've test burn-in you're But burn-in native That's reality, for metaverse us in us on XXXG, you lasers

Gayn Erickson

on LiDAR, things. like heads or illuminators, The things, consumer electronics DoD what's of I kind when iPhones of of or up or certainly AV/VR think and I so LiDAR, of type displays on, that, automotive the think of Okay, things of think side right. actually, kind

others, We've interesting got people - and do that of is Whereas were I some pixel, a thing in most an going necessarily aging So customer And It's with number optimistic the both are tool that now kind But us. illuminators burn-in with This we've XD I one one on was time, the a deal to a of but got customer. of DoD we're toes the into they little customer our see bit doing XXX% you'll pretty with the in using actually parlayed communication right them. DoD for And is with mean, they an think lead It's arrays, time the related in LiDAR. early are a them. do out been They guy. we've mobile always say of I'd XD, illuminators, sensing not of lead the customer, not I'll people on now, the those. pixel our and the talking our of which number on, -- system in they're and are actually burn-in. we call sampling. Apple. very of first over, in -- able that we understand applications, cloud we've XX% XXX% and that FOX-P what that area application I'm activities

of for burn-in and XXX% take then age if not But as So hours. only not if and that actually percent, market the not it only several a sampling, might you're to do hours, you're it, a trying and big. sudden sampling few XX or But age all you're is certainly XX to might size XX you hours.

the today, illuminator phone of most that if actually and day, times is only of for that at recognition points, very you of out that is I small it's amount type So milliseconds. time on security for look even amount if so only Because played and far, facial the a has way. of access milliseconds, with mean, particularly very, it's your time. on a hundreds XXX on,

only entire be the seconds life, something. might XXX or in it for So on

pixel problem. that's that to for isn't So a even the in reality actually but that is like, notice enough big array communications, thing decaying in a

the you applications automotive or other use. about and problem, decay go into LiDAR, when it's be would thing one is that continuous of the So people that and talked certainly gaming a because in

in And fingers so we continue to keep that. our

if believe Hope that are deals got and margin. and be will capacity, we're that to them of But that involved Some certainly of needs. capacity to the great some a need have already the volume meet those fantastic. to They had still proved the those manufacturing in qualified, vendor their helps. great They've yet. just haven't applications

Dylan Patel

you so much. Thank

Gayn Erickson

we have do others? Operator,

Operator

Creek And move Otter we Brown will next Investments. [ph], to Willard

Unidentified Analyst

Hi, and quarter. a great

did said You what you you do. would exactly

Gayn Erickson

you. Thank

Unidentified Analyst

quarter, had customers question. in have? did revenues of in $X.X a how million you the many Out the I

Gayn Erickson

get by but fair dominating made that things quite our although or that. carbide I a dominated revenue more announcements silicon made, it down fair carbide be giving right and like was the would we of it lead customer that that's so I probably was you in it think to say services aren't is our just typically But mean, to But one say in now. to lead dozen have certainly customer customers. We by silicon total, to that up

Unidentified Analyst

quarter could I I you forward, don't go kind of into we of ideas the do fourth of market in that ideas kind and fiscal But you as think the problems of So do understand into what what a have? third explode. 'XX this concentration. quarter? But you and as because given your problem the will have technology. something think then big number of serve customers the is that's here One about. it's here I

So if a you go base? dispersed forward several customer quarters, looking more we are at of

Gayn Erickson

$XXX doing XX% high three the it's Yeah, that. was company, of bought very previous But $XXX to million, for fair or me get unconcentrated revenue. get to dollars is Advantest were by year. million by semiconductor two XX%, typical matter year, I me We $X absolutely we're XXXX. a which in In concentration. single every let was about a billion accounted My I'll $XXX I you, how no it million, to concentrated world, it the have let we methods. tell customers mean, point most still Verigy, think for fairly a that out

the there's more career. doing than you've semiconductor XX get in If when I The reality in XX%, need you're you good. started were, pretty companies is got customers to -- certainly my if there concentration

might have the business be would we around a build XX that that's XX% of to fact customers So I but industries, high have concentration. revenue, able model But our up aspire make a most we to because to will XX% over that customers, have continuously surprised next ten customer, the more ramping have be even not decade, if a if very XX%, be than it's typical we we even one the others.

And I a said little where a having as the what is ramp you so betting different and that actually clear is we're that. is discontinuity have a seen bit market that, the Now, uniform, from manufacturing so perspective, than seldom or planning this. do and what on see,

experiences where we in company not my single is memory supply could As every enough. company saw, one was growing, every of flash

and that to ramp you're you to the customer up to like able it's next to are to win mean the with year to so is, everybody, the one single keep decade -- everybody. customer mean one have most That every but I demand. going be And then we next. the not customers what supply ramp see have have over Most to of by doesn't the going year, next

Unidentified Analyst

also. conclusion that to come had I Yeah,

Gayn Erickson

we critical Don't within a that that because we I'm people companies supply something if the reasonable And So bandwidth the can ensure done they but have, all bet will But We counting be have lead get activating times. point we're every in us, mad to we've have compete to -- the customers, done because every to the for right? going will is industry compete that are we're being suppliers, case, want to the least we things able and sure point are it's the But can And to in we're some also short capacity, suppliers they buffers be we already pretty be us, spectacular now, think not [ph] based suppliers, have have deep going that our on to list standard. are second have like, ones also companies subsystem. dives experts, like industry times, so but there. someone, that for do, And single some second to upon that at almost ramping concentration. to and have reality we've not with only we the -- against short with as at where that. both we suppliers primary react to have just in we it. to our to total able right it's two

Unidentified Analyst

many tough the of of products addressable throw number gone appears do of this. wafers second the the supply. mind And my market. going here's that don't and tried what how question to in it's the total boggling there? tough that math, we to do a last I've through the systems one. how is. So And problem my what to needed. Aehr basically is are okay, I because be question, know it's then do I've but a you that be And really really to expansion

And do that? how so look at I

Gayn Erickson

several do Well, filling let the math the And ways. numbers. briefly, different me without bit it a in through we've little walked

Let been me to just how show you I'll a calculate. then you working And for thumb that's give us. of rule

XX the end built, about, figure are every in be, engines actually devices car and decade. cars A XX those year the engine Okay, saying devices. And wafer of right. for how ago, least there'll were many that engine. it be most it'll so least people car about I out going for cars it, XXX XX a at there's going to a year one by had types million and to about were And half people and stuff. how Every assuming built be have needs XX of many guarantee plus a on devices engine It's today contest one some engines. be at onboard

right for is test can think if is mind people And to or of that XX of in you math the if in thumb, and at XX looking somebody to times or it. XX XX and XX keep ended hours are it's XX you get have our have times can just these you're there about, of least and doing [Multiple you done there from been or hope ranges give a I estimates. hours one shipped, XX to then some the we you per and cars very us couple okay, we've engine and million are still had from And burn-in you systems. up million then on that every What wafer hours those conservative was Speakers]. now. hours either that cars, start give rule else, there's this, cars that a that need through eight going world, go people systems okay, of need and at So talked, talked say, wafer it and or and, six hours people would wafer,

Gayn Erickson

that's pressure. million you conservative, holds need but with and about And looking to big and way maybe million the $X WaferPaks Yeah something up And being still everything number. on a system okay, that's it's $XX the of still order under say worth else it. a at easy it it's a all of apiece,

Unidentified Analyst

I appreciate. Very good job, gentlemen.

Gayn Erickson

or Okay, one there Operator, quicker. other thank two Is you. maybe folks? maybe

Operator

[indiscernible]. a And question we from Mark have

Unidentified Analyst

Okay. Hey, Gayn, thanks for taking the call.

at qualification great point. and on nature. talked looking potential They us the looks process Do been about pipeline the You've process getting with we that new us should they go going the have your if sample. as the be the typical You wrangling, into that Is What's could the the path? that you to down sampling to about to how customer. for, is, giving the that of what walk line? visibility internal and, negotiation finish Thanks. things leads just What you you? briefly through process do publicly,

Gayn Erickson

of Generally test typically in equipment, should history. our our speaking, systems burn-in be and that

actually with were silicon sample the were benchmarks we doing with summer. and fair, often were think days I to rare. to them wafers in wafer installed the do us very this November. them at in them, building from used anymore, is or played months. before that it that a fair We -- the pretty for they to I talk another they we we year, be think, first a out. the to And it still we how it to shipped process time for one, where pretty order until we And a data. was carbide that not carbide mean, to. first But be to nevertheless, the I Our somebody nine couple one over customer, and minimum that's they order moving example in had on of they're going all advertise you would That's customer we on or to place talked quick. discussion February, now And say him their shipped They a with gave taking that, probably in put we shipping might silicon -- system November customers. now

with customers. system, a they'll they will whenever day This XX And and -- So they it doing internally And then both ramp. this qualifications start is bring what kind start, of of depend. their to can in process. do will with not historically, people typically they'll and a then isn't it

minimum it's imagine first often next or to and think a also I time So the times the system system, quarter as a of that is the between reasonable well. two

this. be to to drop guess frustrating, I So to And can also know you want don't a there ball that nor is you sometimes. But me length is do to it wrong. want the that

conversations in prepared -- what -- these know, with do they're in literally with they've it. I've three than like, You mind just it forecasts what about I it. done. They aghast They're are now. this? they're XX heck mean, saying or had these the spent said I customers, management I And X years they both how building in that years like they're frightened we silicon so XXXX. customers much their built. to remarks. And ridiculous also executive are this customers numbers, the there's years but going from And my interesting, excited, carbide and mean So for is bigger their it's in telling them are

so of less when like, when my around get how companies are Very the it. gun. lot get, you're and to about they And It's they conversations get with interesting first many jumping they can a conversation. tool listen, the could

first You verify one to the first. need

able pretty listen, buying -- It's fun to of no have it's So meet system if place not would I you, you to from fun. be That be. needs. the a capacity a said intention

Unidentified Analyst

Right, of course.

Now you're processes systems. they test which looking at those have they in by incumbents. Obviously, place

what sunk all money replace systems at existing yours into be to are that indicates would obviously would prohibitive present. of research using those not they that. to But if superior them Our most be because

for assume would be capacity? an existing would -- I So do safe anything future is it would that assume to with that you vendor

Gayn Erickson

it's easiest. a in. for free. compete going technical I there's put mean, into if -- usually to module, like put to hard sort kind it's things to There with these of of devices them you're are That's no package reasons,

you do good. for package burn-in any your doesn't So

not discrete choose increasing something of the device. like be shift devices, of excess modules might to as capacity, may So incremental modules that. capacity as for be part package a their well it move but their devices, need other part capacity type package and But might or towards that company be only capacity more then might -- the

you're going it's pretty what just speaking, seen to generally but done. think bold they to have, I've but it So displace

Unidentified Analyst

and Okay. feel any And roadblocks the that of in multiple you to existing parallel, have They there's an potential pushback right. do set running idea provenance. processes or machines of

Gayn Erickson

Very if you intend I one crazy. that my can me. And on component point with my actually mean, a find usually out, the do have way, them it hand. package, DigiKey, I'll a go think specifically, in can people is -- discrete that. for There's to I it wouldn't you market would a by hold still At we But it's than one we've cheaper discrete cheaper. agreed of packet, by package and it's it's a and that free. level, have Actually, a customers wafer like not it. again it put those. to systems, not it's shown burning on it's

continue literally package thousands ability just of there's burn-in that's not, this packages burn-in systems. to perspective or market part, fine. stayed going So by package people if would they're why at to -- need But

So those the supplying times. grow are guys XX XXXX that they of market, X% need to

systems, have and So way they go to wafer as if to or package by going need another too. That's of level, burn-in times, thinking systems to didn't burn-in they many about packages buy XX they're it.

like, them machine, by to this write where like, check it's And package you to in you so with wafer put call million, And systems, somebody and to a buy do into we burn-in $XX disconnect, it, commercial you scalable. you for have yield going because way, can you're well, -- more advantage, a also the etc. that get advantage, level. it's wow, it's get for modules, the my million, and it's if And it's $XX go

sales displace. So and proposition simply a value there's a pitch there to

to moving has shifted Our customer just has lead from It's away only package wafer. cart. They're everything cheaper.

Unidentified Analyst

I appreciate insight. Hey, the

through guiding this. in us fantastic been all You've

You're easy lot. a behind. guy to get Thanks

Gayn Erickson

Mark. Thanks,

Operator

we'll And [ph]. Sabina Sabina our Capital last Larry of question take from

Gayn Erickson

Hey, Larry.

Unidentified Analyst

COVID. I'm sound from safe glad you're and

Gayn Erickson

Thank you. Me too.

Unidentified Analyst

stack if announcing the multitudes is if versus there? an of could. the customer, actually with they enough the XPs effective NP going buying NPs where a silicon area, cost have lead applications? three large been for have Or instead of that you in I they and them on flexibility, are its the more up, that questions, quick makes sense photonics, you recently because it What's I XP? use NP them customer The have sales

Gayn Erickson

I'm going at early characterization buying just I'll to least and But be say no. here. a little them for engineering They're vague qualification.

and Now at two companies could NP time. a wafers test member, an NP use can

because applications I used certain guess engineering of a these no, wafers, So But being in lot or are they're qualification easy. devices. in characterization,

do changeovers. could quick You

of be different it. of at And can sort than different positions You the they can you a They're cheaper as It's don't the them -- the run just at well. they're have temperatures. for -- bite production sized. configurations. of each be system. But NPs different to the Each can flexibility work

Unidentified Analyst

up. scale to Easier

that am application same for the I different to think that's So or the applications.

Gayn Erickson

different about And or intentions And what we that doing this, they All want what and but know is like not exactly or really anything of don't now. -- I'm that don't I've I very they're look applications. else, not be I'm [indiscernible]. may what yet may would production and way, to by said excited the forecasting right are

So…

Unidentified Analyst

Right.

the an works? That's the or CP have data in You anything on for business soon? update

Gayn Erickson

Larry, we don't.

wafer We that So announced it. it they in a an to folks a We that volume high in announced we customer. are as system. system a extremely referred that one on single are CP joining to and with application familiar bought

months, period I customer So on basis, to that things, three continued six continues to what us high can delayed. it can't long volume. ramp that build. everything That every be has that other communicate to they given it was fairly COVID the a And heard listen, product they and be was sold to line of

heard for I was and I a think sold one said in of this one think of they more. even year May, calls, the or everything out I updates those last have would I

think understanding fully and really our we characterization, And it's we're they something. are vague first and things Vernon going this XX be believed or be still to So during are, think and this those just all what pre-production It's the to supposed clearly they're a -- if not tool new tool quarter an very it. yet. hours like that, still whatever again, it's the doing record, have out are using about to they update But early time. the team single in over just but runs, and ramped day, be, and that and every which day, they to I getting know of products I the are committed

Unidentified Analyst

you do XP-H? plan date on automated target your the a I'm introducing when have calling you Okay, what XP,

Gayn Erickson

you're say his will mostly off are this as Larry what it. reminder, But investing shipping, you told But I name be we'll conversations, got here. investing of certainly people in as automation. just for competitive of had So And this something some level own calls reasons. some I've year. of I a to we -- that in because it, have be he's to want It'll think if got that Aehr, and calendar introducing

me that. just Let leave it at

Unidentified Analyst

Did you here? calendar say this it'll be shipping

Gayn Erickson

Yes.

Unidentified Analyst

recent? that Is

Gayn Erickson

Yes.

Unidentified Analyst

to going automation? existing you upgrade wants that it's to are that somebody their is so make it to Are XPs adaptable you And system?

Gayn Erickson

Yes.

Unidentified Analyst

do memory, the it on the providing memory immediately? be one that then launched, thought? anticipate lastly, tool basis to adaptable? that you customer So potential or evaluation And will once the a idea an set is Is

Gayn Erickson

Yeah, be any for predictions there making to memory a yet. introduce bit. it that a you little emphasized not I'm We to I'd to immediately. customer. had love on

silicon it of be non-fiber optic things memory, to would business. do one it's areas. transceiver, that I the that But we is to also By non-silicon, other it, way, the -- the photonics that Okay. it's think tool But the that aspect to guys. important would the a important think we important critical for think is

guys that carbide be about on I would talking some of operations. volume silicon think to the it are high lights important

are more be for when levels around, things moved of wafers automation how in, there's carbide of kicks think silicon millimeter and I important that. it'll the like XXX kind because more the

you a to get always So know And hit that too on And I'm with and vague, sort fit would okay. applications up of number I there's of that. yet, towards, stay of about talking away but I want sort carried me that don't tuned. always

Unidentified Analyst

had. job. right. right. all All Good That's I All

Gayn Erickson

as as I up calls we kind afterwards with set do set you we've up. And know some do end it stuff Hey, folks follow that the have up. with help and on MKR folks, if we think operator, us I on that usually setting calls, follow And can to week there. up better fill want got with always, people of it. those

we do And that kind everybody guys do for to is thank So One with have joining us. industry publishing, then folks. that including is do direct content, things really things or to add products, as Aehr and three to towards activity do already stuff I of photonics. primary carbide, about those safe. pertinent a want -- been but be Test a LinkedIn. primary we you articles Got of maybe I silicon lot this, using thing and we happy space. market, announcements talk that Please in two and if silicon our we our blog, to up do use healthy not week, set stay to our also want think and are

things some as see other You'll well.

well. talking with to forward you as to for care. on ahead pretty are us see would time go you that look next quarter. go way aggressively a at go on connect with Davidson And to Take now. just folks I encourage And scroll D.A. knew content and those and and months go be great going the to that, And LinkedIn. those several With been putting appreciate connection So Bye-bye. back aways we'll week you it's keep your for in back we've us. next we'll if because to

Operator

you your participation. This concludes for today's call. Thank

disconnect. now may You

Aehr Test Systems (AEHR) 7 Jan 222022 Q2 Earnings call transcript