Earnings call transcript Q2 2023

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Operator

Good evening, and welcome to the Aehr Test Systems' Fiscal 2023 Second Quarter Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Jim Byers of MKR Investor Relations. ahead. go Please

Jim Byers

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

quarter Aehr to announcing Before release quick right afternoon items. over Ken, XXXX Test a like release Gayn fiscal closed, press issued turn second I call to That I'd its This after and the cover few results. market on a is of and page on available all the the is archived aehr.com. company's Relations parties This being Internet the website company's call the interested over be Investor at webcast website. will broadcast live the for

everyone making from differ on will uncertainties risks based that Management that are estimates are that of cause remind forward-looking to the today current to actual call, be materially information on and and those statements. could subject in and today's like forward-looking I'd number statements a to results

that statements, today's cause valid and filed in statements. in discussed of differ forward-looking to the recent the provided may guidance Test These Aehr results materially only undertakes this are forward-looking those company's SEC. forward-looking and to the Systems from current update statements with most periodic call, reports are obligation including during the date factors as These no

Gayn Erickson, Chief with like conference and And over to President I'd that, to Officer. the now Gayn? turn Executive call

Gayn Erickson

conference Thanks, today. Thanks us Jim. quarter for our second of fiscal Good everyone, call. XXXX earnings to afternoon, and welcome joining

take we're that, go the questions. then, seeing burn-in of over the level market will to financials momentum After and your the we'll a in the in the test start quick wafer with up lines Let's of and and highlights open summary the Ken detail. semiconductor quarter

an $XX.X million, of profit. a for year-over-year, generated our quarter sequentially and of quarter XX% estimates. was increase and XX% and very net in Revenue consensus solid reflecting and the both $X.X revenue income growth slightly had income, of second million, XX% sequential over year-over-year strong net we ahead We non-GAAP net

in companies Our and to silicon semiconductors wafer significant forecasted as momentum we next years are test vehicle incredible burn-in to continues momentum address electric and in vehicle continuing markets. adding electric particularly silicon charger for see several carbide demand, capacity for the grow carbide the this and level the

and from wafers to Blair the expected market carbide William alone for from vehicles Forecasts electric X-inch than times represents than silicon XX.X%. inverters wafers devices for electric estimate a onboard carbide to silicon is grow in million that in such as equivalent annual and XXXX equates XXX,XXX almost chargers growth XXXX. equivalent larger more X.X in X-inch This in XXXX. XXXX of to vehicles a XX compound This rate traction

such infrastructure other wafers by This industrial electrification other expected In markets as another more. and expands silicon to for carbide addition, silicon are equivalent and even carbide burn-in million grow XXXX. test our market wafers to X-inch solar, X

We during new carbide quarter. to the added are customers silicon have for burn-in test excited two and

wafer industrial as dual company multi-wafer silicon first for silicon suppliers their system we (ph) is The during order supplier for their and qualification the and since test markets that used of orders closed after devices quarter device production largest and our two vehicle and electric FOX-NP announced is well several significant placed quarter, purchased a major engineering of of including of just volume as other and semiconductor the world's test our for the first including FOX-XP wafers, industry, carbide carbide the silicon applications. has burn-in carbide serve one This burn-in today. the systems

volume significant carbide other the vehicles have they indicated production systems to with They high expanding to silicon us order electric our of forecasted of two Integrated now a for This demand their and We devices devices Automated new to four Aligner plan world at participants facilities industrial fully carbide selected the that around of customers. multi-wafer hands-free have market configured silicon top as rapidly carbide FOX-XP the WaferPak silicon for for market meet new volume operation. markets. for and system FOX-XP customer test and number burn-in our

integrated markets have automated with and as and wafer to in that their cost their to is assembly needs scalability of scalability, meeting to our us told their the of They serve. test reliability the WaferPak are and FOX-XP goals key how our critical across automation important quality effectiveness as to and and that them is alignment automation addition they fabrication well system, and customers handling fully the

up solution single The system depending enables with a and equipment to turnkey burn-in wafers requirements. vendor nine requirements. customer's It on specific the can that technology and to contactor FOX-XP test devices on contact and stress to to multi-wafer or the electronics XX and level the test provides configured needed device the be test and total meet wafer XXX% critical single the provide a handling test alignment

the systems be wafers be the low tested very fully-loaded with new systems can our cost is new Aligner exchange to both XP FOX for standalone automatically in available offline test will WaferPak number and Aligner. extremely the integrated support and wafers times. FOX application or wafers align more untested WaferPak can using their WaferPaks to wafer-level Aligner five from test used valuable standalone WaferPak the In customers burn-in to Aligner and load long with of Automated a Our version, versions. adds burn-in with up or features FOX-XP and the to docked an WaferPaks cards The that process. This can

that customers Aligner also at XXX our burn-in The and wafers to silicon millimeter be the can of millimeter test other to carbide millimeter where wants docks up the or of new preferable XX silicon can integrated the operation. of burn-in a work runners time. times version can for used test customer including FOX-XP directly XXX and wafers. This test types XXX Aligner and volume or new The near hands-free for sizes, all can with and a lower carbide wafer chamber case in to high

millimeter much and It XXX desired ability silicon memories is The more also photonics We different can type parallel. memory typically and unattended automation Automated XXX to as Aligner in more devices test from where run devices, typical. wafers logic also and reverse wafers next typical type allows the millimeter devices. silicon photonics of in for fabs product multiple product see one millimeter automation and or change XXX the such to

our high markets even new integrated Aligner and through devices DRAM and opens memories such as burn-in high offering well test burn-in microcontrollers value, and volume and XXX% and processors Aehr also with automation transceivers, as greater Adding and flash as up requiring as our reliability gives photonics such chipsets large incremental automotive mix extremely to wafer-level ultimately higher sensors. several

annual of The has the multi-billion devices semiconductors value markets, multiple of level. that global wafer has quickly understood industry. new proposition experience semiconductors XXX% second test automotive to manufacturer burn-in and to in being is customer at devices serves including This of added dollar their revenue a already power the this quarter supplying and customer new able

vehicles. our anticipate silicon systems FOX-XP they and customer burn-in carbide short selected fairly their test electric We to this our for their after high qualifications. dual that will markets wafer including a of customer system devices qualification time, production period for using move multiple FOX-NP In of volume

to significant burn-in wafer customers devices. share customers test the new our market provides now two our more optimism for about gain market These of burn-in lead ability customer. expand beyond our level carbide silicon Adding initial and carbide penetration silicon

WaferPaks ramp which their by continue test they to that silicon our limited particularly capacity customer, demand for, being Regarding is but not lead driven multi-wafer FOX-XP use systems of vehicles. burn-in increased electric and for and to carbide, and

WaferPak wafer to systems the match and forecast their several from expect years to WaferPak numbers contactors over next meet continue demand. the of orders necessary new them for We they previously FOX-XP contactors significant systems growing for FOX-XP significant to orders for purchased and

In existing quarter. made customers with These and market level silicon Aehr well and wafer addition burn-in prospects placed leaders systems, coming suppliers. with smaller and in up as significant to orders carbide have silicon multiple ongoing carbide, several great that for progress and our include evaluations test as benchmarks during the the now initial

place before end XXXX. May this these initial the of fiscal ending of several to XX, us their expect We orders with year companies

next several We power also types devices while to traction with from charges offboard high generally industrial positive have discussions quarter, this and power discussions for and the vehicles, believed into carbide forecasted begun superior a be silicon a to in have applications, inverters XXXX gallium in applications, around advantages customers nitride over as responses watts. carbide with for from our other key see and semiconductor for detailed continue grow significantly particularly the under world. potential are onboard device well suppliers to as is number lower very and modules Silicon future. nitride Both years electric of also new gallium the

Both semiconductors wafer-level power silicon wafer carbide systems contactors. significant markets our address and and gallium the WaferPak high FOX nitride that test and are for for opportunities semiconductor burn-in voltage

to to burn-in we markets, systems. test add look penetrate we our further wafer-level these to As capabilities continue new and

semiconductor silicon bipolar new their and the nitride high stress qualification burn-in variety wider manufacturers very for gallium engineering voltage more to channel include production options that module and of flexibility These a channel address and needs. carbide enable voltage module conditions and

such easy with stability higher vehicle electric markets. as capabilities -- traction industrial -- onboard and advanced parametric applications ship These to to chargers product enable several manufacturers conversion by power say and reliability other necessitated and inverters, necessitated

at test loss features, reliability. and wafer-level ensures of improved new control better burn-in product these yield and With even

new as this chargers leading our take customers space announced Silicon mean. is ramp up lead on carbide's worldwide half of until vehicles, currently to pandemic massive two a one the have of started. market. carbide questions silicon not supplier the come to three does ago, the Many carbide years in infrastructure the of a the Both We start of silicon devices about really electric really began and addition these right have what pandemic off. did customer electrification automotive latter and before history

lead until place their second for did middle an order Our not the XXXX. of system customer

contactors announced plans and choice WaferPak the aggregate the of business expand. million Aehr orders, to you Aehr we've If And for of meant they publicly $XX their orders has them said their support have they've to roughly already. from

success. are So, can new significant. be their The customers equally enjoying we

have for Since their additional us then, our two systems. they of Aehr at then significant on machines first FOX-NP production facility. months wafers For order the their customer, the for already qualifications purchased a their silicon major burn-in of today, wafers and FOX-XPs they'll of told test at since number and purchased supplier engineering announced tested they have ago and have including multi-wafer and a they we carbide their our three need devices, tested

the This to get happened time fraction this to a point in customer. took it our with of that initial

end their to is and that customers We multiple with screening customer at solution lead our effective wafer-level believe out our solution customers, automotive as defects our as validated now can has be qualities. customer. new Aehr As very large this

we only that in right give the production purchase of fact So, come volumes customer in, the its Aehr investors confidence is orders Aehr as they vehicles that for announce electric depending is while forward should tsunami. middle this on going this

different. customer automotive. yet Interestingly, this is today and on systems very revenue second no characterizing quarter potential our silicon FOX level that they're FOX semiconductors The source and in most We of their already this and a systems. and believe significant wafer company player our for burn-in to has a discrete be announce test Aehr customers power for new is to carbide level last MOSFETs customer that already burn-in the this large is have qualified wafer

past systems wafer we FOX proprietary burn-in our of that and any cost haven't manufacturing footprint in competition test real compared for terms contactors. capacity the seen in and wafer and said level WaferPak to We've effectiveness,

carbide We new well suppliers engage of other entrants both current into market. continue to with as this silicon devices, as

decade, close vehicle suggests rest XX% electric and develop. markets charging this The industry the infrastructure data to over CAGRs the of of as

wind be of this will and Solar growing also part market.

wildly, of naturally will entrants, may So, some expect you'd lots make some new inroads. succeed niche

all their Aehr requirements. of for test them want to to come We

no or one compelling. companies zero their not Since XXX,XXX, one as such but in case use failures. in is XX,XXX failures, automotive the customers Our require

through. very customers our to And test defects out So level the becomes prospects. interest we're and seeing, getting very, from believe of we important is our screening early and message

out silicon for including semiconductors production of set seen be for applications, wafer the target process piece their level as burn-in, silicon photonics. and and critical We standard industry a several carbide the to and test

to chance the that have we're With we gain be market good seeing, we momentum very feel industry significant and to as worldwide. recognized a share standard

saw and Now year's first lead burn-in is to across year, over photonics over photonics. is through during let on half qualifications in and me weakness photonics. of the a $X customers test new this silicon upgrades and silicon We're of systems seeing will business and revenue fiscal already move million last strong the in that's to pandemic. WaferPaks photonics for also of also revenue we jump it XXX% silicon fiscal product customers level after our wafer recovery spread we've shipped silicon production designs to much that feel volumes. in for This year's we multiple Halfway

a several silicon for announcing very systems testing years. leaders into photonics transceivers excited over market have half wafer data introduced we plans to processors a a test burn-in chipsets, photonics will significant dozen their yet and level and and multiple graphics next used in installed and at applications over telecommunications customers market believe integrate We devices microprocessors, the photonics become XG to transceivers silicon With about. we're that infrastructure, few be

ahead, customers has the companies continued -- regions. as Japan lifting semiconductors, we U.S. Coast into Asia are getting gallium very customer making power we're are of is in into restrictions that our with opportunities game. And to companies be silicon encouraged seeing in travel power new investments those companies continue really potential and the or carbide, has COVID-related in are of photonics. semiconductor silicon large The well customers with number and and both Looking to number for in Europe seeing. as getting in and see East that by helping Taiwan already engagements the discussions we carbide also momentum silicon prospect a starting nitride, and including of current a

in teams sales across products and we our increase activities, for globe. demand With our in been and investing the significant we're the market building seeing our sales have up support in

our During of addition with States. expanded will Europe Coast the significant senior executives quarter, in Asia, their in additions from efforts. and leadership East our sales and of these We're with test the several manage activities semiconductor we expertise happy our relationships direct experienced proven These customers. a seen the are capital the that equipment with impact United already have veterans sales very with target and sales positive

that additional begin companies end XXXX. continue beyond ends that to will fiscal and carbide orders May receive current conclusion, we In we year production to by systems the of production silicon our XX, meet shipping from current capacity believe their customers our

revenues are strong We XX, million year-over-year and fiscal fiscal second expect $XX growth of XX% half our our year. $XX half of of the million also this May at maintaining revenue and between least first least second represents at of XX% the a current for to of this year and year in ends half to fiscal guidance to XX% the XX% for of compared that growth year, representing

going vehicles fiscal Additionally, the we momentum into fiscal in faster in silicon bookings build expect as ramp continue grow to demand than to XXXX. revenues for and carbide electric and XXXX we increases

questions. the that, we With to up before over for line me let it Ken open turn

Ken Spink

and you, afternoon, good Thank Gayn, everyone.

another revenue growth net As QX strong and in our with year-over-year Gayn in quarter noted, solid sequential we and income. had

improvement top margin lines. and saw analyst also in bottom the estimates We in beat and gross both

million. includes quarter an at net the Looking sales results million, last up financial The $XX.X quarter in the XX% quarter $XX.X QX sales revenues XX% increase sequential $X.X in net second our in million in from from the WaferPak/DiePak were sequentially $X.X increase detail, in more year. of from in first up million second and

increase silicon quarters' quarter, related of million quarter. For is primarily carbide total system for in our only compared these in due QX shipments. customer first revenue XX% of to the or the second shipments preceding for X% to WaferPaks lead prior $X.X in revenues to accounted our revenue, of consumable revenues The

their As WaferPaks previously, and buy often designs. have later systems after then completed they customers WaferPak noted

previous second or had profit was improvement the change in of to in Gross quarter product or gross year. gross a on quarter The in from profit million XX% up $X.X of margin. the margin. million profit the factors XX% contributed impact first of of sales favorable Several in up quarter in second gross or million and mix of from the of sales, sales the $X.X XX% preceding gross $X.X

Consumables resulting the for revenues prior in gross from gross of X% of revenues accounted point total to compared in improvement quarter, margins higher in which a QX. X.X margin XX% only deliver percentage revenues

goods an to prior unabsorbed We of in over quarter. due to improvement percentage levels also gross saw in in cost accounting sold margin cost improvement for higher overhead the revenue a second quarter, X.X the point

ability margin. to our also fixed tariffs in improvement benefited warranty manufacturers, a lower duties and to gross With we costs point contributes margin. from relatively contract the have while our margin and gross costs grow, lower of revenues percentage providing Gross keep which freight, X.X use

definitely chain environment we improvement the from seeing fiscal year saw are the an We -- year. over challenging last supply

Freight costs substantially. come have down

due prior chambers calls, to to freight case This ship shipments. the over capacity in we on no shipments $XX,XXX ocean U.S., ocean with noted shortage are the per we As in required is the saving into consolidating and longer chamber by air. were

suppliers use tariffs We total minimize these continue is lower cost to of suppliers our their when than other China only suppliers. and including in use

Warranty our well in associated both repair to costs lowered using reversing is as our significantly warranty our also center continues the improved with reserves which repair improve, some costs Philippines. as has as actually quality

share. million or income $X.XX or for preceding fiscal of net income second quarter the XXXX. quarter, compensation. in $X.X of the share excludes diluted of of million income Non-GAAP Non-GAAP was second the diluted to diluted impact per income net This the first per million non-GAAP share net non-GAAP $X.XX quarter $X.X net $X.XX or and compares per in $X.X stock-based

$X of corresponding in in to shows increase in fees, in salaries The significant previous increase an of XX% second first million, to $XXX,XXX our increase quarter of or due quarter an in the up $X.X in $X.X the and year. preceding commissions, to increases million the the Operating primarily related second is including SG&A in from XX% were increase recruiting $XXX,XXX the outside related from $XXX,XXX activities. preceding company-wide first quarter increases of increases and from expenses growing cost the entertainment in headcount selling trade million quarter and travel, business, and or

last our additions human staff and marketing our and to in manufacturing support and expand with key staff revenue cost and the increased development programs. quarter growing capital and sales to invested on engagement $XXX,XXX staff the $XXX,XXX The of for of growth SG&A support to business, R&D customer We've related our the second marketing increase related from of in reach, include programs. year development spending increases customer to engineering to

wafer During the and test module quarter, bipolar module and silicon burn-in for and our test capabilities very for gallium we the channel of include two announced high systems. burn-in which family level semiconductors new Aehr's FOX-P voltage enable FOX-P systems. enhancements wafer channel voltage burn-in level on power carbide nitride test advanced These new and and options,

R&D WaferPak either a our Our also can FOX-XP systems. automated integrated configuration Aligner be new program a with include initiatives which in standalone configured or

for a of for silicon handling new loading. taken auto configurations, system, FOX-XP from carbide orders hands-free customer have an recent operation the our wafer the of We order both which integrated configuration including announcement which includes provides and

and products competitive in and devices, including introduce products and addressable applications continue memory existing photonics R&D semiconductors. programs silicon to other and advantages and mobile power our storage enhancements photonics our enhance market and XD new carbide markets. semiconductors, to leading our sensing data our nitride We gallium invest expand silicon to R&D in and semiconductors, key These markets, all maintain and include to XD

quarter a We for second sheet balance sheet. with the to balance quarter. strong Turning the finished the

rates. take from the the now million short-term at cash investing $X.X the XXXX. $XXX,XXX and at $XX.X equivalents fiscal cash quarter we investments in preceding up short-term first in interest were from the end at of and of cash, the quarter, million end of of up second $XX XX, to $XX.X million investments million recent increases excess Also, Our November are advantage

$XXX,XXX quarter million This of increase the of November Inventories up at an year. the from an year. from Working million, were from $XX of of $X.X increase prior from and end $XX.X million QX $XX.X was the preceding XX capital second second represents QX million. last and $X.X quarter at quarter the the million

current We fiscal market expected the in are demand. increasing we half of to customer purchase adequate and to inventory XXXX, to second continue meet supply ensure inventory growth to customer and support future our

us second as our differentiated and $XX.X Backlog which orders purchase of customers includes to the of across quarter, the of the highly were ability November we market Effective $XX.X order the many the confidence quarter million. million. material the leveraged compared was Our XX $XX.X at to second the all of November FOX is is backlog in million, end $XX.X and that quarter, including provides $XX.X first the family Bookings opportunity. systems us markets, of significant to allows which meet million at and end last preceding the year. as XX end million announced backlog, today, quarter of second in since

and our for are XX, the Now customer fiscal to trajectory capabilities our we offerings year product on turning which meet unique growth demands. XXXX, May outlook confident to company's ends and XXXX in

are we to to of margins of million year full previously reiterating revenue million, provided year-over-year growth $XX such, guidance year. XX% least for last representing at profit As with total to similar strong least XX% at $XX our

ramp demand increases, revenues fiscal built expect XXXX. in electric faster the We than and going to into momentum in fiscal vehicles continue for XXXX as bookings and grow to we've carbide silicon

January Lastly, meeting Needham We of Thursday, virtually looking conference. be week virtually the at Conference investors some hope Investor Relations to next XX. with Growth calendar, Annual on XXth we'll see the at the you at

This concludes remarks. our prepared

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

Operator

you. Thank

will Instructions] question from Capital ahead. session. Christian The the go Craig-Hallum Please question-and-answer comes [Operator We first Group. Schwab with now begin

Christian Schwab

in by customer the clarify like end fiscal end momentum. customers the fiscal many you Can number updating expect to the the the of it that new of year? you're shipping by selling customers be on just to you business anticipate Hey, Gayn, strong congrats guys continued of and how year. sounds you total to would

Gayn Erickson

where from right we're Additional at now?

Christian Schwab

Right.

Gayn Erickson

to believe can try customers too intend from -- as requesting too taking deliveries but few us you a but end able trouble, couple to and yourself year of don't get bought getting in yet, we that could the be even orders be that not to do also as capacity systems that. accurate and we to soon there's production of before the have we mean have I giving be us Yes, vague,

So, enough we to market against prebuild allow and end May. forecast us inventory the ship specific well have as forecast customer as before systems actually to of

Christian Schwab

know I of like way is just this great. what That's to highlighted break capacity a could whichever us on you've quickly your it remind but you would before, type yearly or level down? quarterly you

Gayn Erickson

Okay, what as just combination that current as actually, that's good capacity shipping just somewhere or it I we now, what we terms of point. now, probably month. we're of mean the It's blades seems are a capacity wafers and of a sort and doing of in -- and are XX reality right right our

what So, doing. we're XX or think in that's of a two blades little FOX-XP about those currently something, of with a it, in

or little that, but to capacity have than That's and current a build actually We higher customer that's than our are. demands requests our bit more plan. equal what

to be that. ship a is five We able of perhaps and our systems feasible or currently ship times month to forecast have a material or XXX this capacity be summer is, That another that year. we're of candidly, but could upwards X and month of what in the believing to maybe even it's not by pipeline wafers systems a XX actually

an And interesting scenario. so, it's

to and competitive believed chain our supply our advantages. We're be of short lead our as one in capacity using actually our times

week We have not our companies that XX in Aehr lead times, Test. space that's have

that's deliberately this capacity we to have taken yes and material to position we to available putting place and infrastructure and are customers go capacity possibly say as we've So, be many in the we able as that can why us. to

Now, or of those to in We've said and now right in upgrades to to one would in able we have past, numbers high infrastructure electrical just be over terms year. That actually plans able the and us that going be water that we extend our got to were month so. the next end more the some the works lease with more some last thing end that's in think facility finalized all, to we do do and here to be of by help hit parallel. needed did

a be million over year do think a we've are and might investments depreciate that But we'll $X the or making million investment the so being without So, disruptive. those then Street the lease. $X the or and it half told We'll some be rest to next gradually over so. that I of

Christian Schwab

Okay. a It's that's some the customers, new to technology, then wafer be for seems an materially than come And with handling that new of does on any changer fabulous. different game your product? the ASP generation which really prior

Gayn Erickson

No, it's manual automated our before handlers the of type similar. XXXK significantly that about had whereas pretty said range liners cheaper We are thing, in are than that.

XP again, chambers. you use So, if that one probably feed five And could buy you could that kind of fair. number, that's

you those to bolt an of might has some cards it and them and XP years, or two WaferPaks how WaferPak the the floor, and you you around similar moving that and could use that's need front XX of chambers model, Aligner companies Packaged prefer that Burn-in are on each had XX onto If take of systems. Part operated for there

expensive. the where happy that's next, at more fiscal right passionate pandemic now. are entire by the end the for companies a Turns out and just deal. I it's We've pretty been year down thing really look super shipping to If Aligner. completely say am new at of some think, And me, course. this to COVID on be on this at over you the through You'd still lot customers. it working wow, heads stayed know negligible people plans and it's that the that's our a XX multiple steady We've if that big over wafers, here about

Christian Schwab

and mentioned last uptick frame. million of my Could same any then COVID question frame, a you know in it's congrats it but greater give carbide period that customer recent at in us revenue, XX your modest the there? I be the kind at the time success modestly relatively in recent materially customers photonics, we've as But could on the better And materially time during Great. it as silicon and most is look been product than you the those or size less? or multiyear lead silicon as color has

Gayn Erickson

Yes.

So several we've have chest thing and this years our to on to been cards talk holding started of kind our recently about it. just for

So these port integration, world, world, chips fabs suppliers, main major a even in and companies two GlobalFoundries some package with fancy in multiple which have suppliers fiber consortiums the word the the a for is the optic include some microprocessor created it. largest the processors to of TSMC announcements in large heterogeneous on that one graphics transceiver about like by talk the

And are with the we investment are processors hub will going ports companies chipsets been Because what fiber that directly. about through is for in so the that's okay? now storage up start still having doing they're and itself has many drives in servers data huge That fiber and a saying what really been that so much burn-in are there. years. stabilization all have It's require the optic communication is and why been there and deal, disk optic to first the in transceiver

customer. probably be say, those in be our but be next, said big of there'll think than even one along those could silicon any going players or can over be players fewer there of players that, to the years silicon carbide certainly larger smaller biggest big having than Now lots I But carbide, something three lines. there's

it is total and So and embedded servers start available GPUs, when carbide processors and market the chipsets business. photonics being bigger in for the think about talking you silicon than the I silicon

we opportunity, when second huge in, particular, in we so on are will to decade, half all kick the And as look that's the a really that. start that and at in of

of directed directly making we told haven't you So that that some are a investments we're about number already at space.

Christian Schwab

That’s Thanks No other fantastic. questions. guys.

Gayn Erickson

Christian, Thanks,

Operator

next from The Dorsheimer Blair. Jed question comes go William ahead. Please with

Jed Dorsheimer

Yeah. Thanks.

off, First a congratulations spectacular on quarter.

nice So work.

Gayn Erickson

Thanks, Jed.

Jed Dorsheimer

automated be available first the automated purchased of I the time the customer, the handler. new handler first my shipment at at question same the the these automated with on ship that as -- tools? two XPs guess to have the carbide time handler will to March So that's one you Is both two shipping your silicon with frame? going

Gayn Erickson

That's specific question. a pretty good

to first aligner and so that a shipped Let upgrade with XP the -- the going system the -- what we are with requested That's it the doing. one the integrated one, with the first out say, and shift the me yeah, second go actually well, leave aligner. then one customers I'm just bit we

And so of bit timing, frame. about there's a little same they're but the all time

a sort doing it's but of reduction -- So thing for that. on like a risk everybody there's

Jed Dorsheimer

it… perspective, do will Got this it. or fall from expect these or revenue is rev into recognition is a And rec year's fiscal that you --

Gayn Erickson

questions, no, Another we advanced good see, not question, So -- the dead that's Jed, Jed, Jed. with okay? Folks, question. these that's on. did Yes, no,

entirely. it pay we But policy, is if product So seldom company, that into understand, customer is says, we have things. revenue, for a which it, we they hardware extremely I've us even as if rec rev ever customer our for if get do you to conservative accepted new not new a a until going score that

both for So the weird forecast or of $XX systems interesting $XX our of those one embedded kind would here range get timing thing of includes to rec. million in million the rev of when the and

finally So well we -- ship that very for it they're QX. QX them we though even but when recognition until get happen in those systems revenue could accepted don't

Jed Dorsheimer

That's a if carbide the chip Speakers]. I it. multiple terms resistance, shrink WaferPak Thank just a trigger have of new enables I design, have the shrinks. Got if will from down time or shrink And [Multiple consumables it coming would material of silicon quality you could a wondering outline for a milliohm would material, helpful. Every customer guess, in was in it's your (ph) you. you that

Gayn Erickson

full contactors is unique WaferPak the are which That's unique the design, wafer design. device Yeah, wafer -- to to right.

referred shrink to So new very as that the that would what the is of nature to would a square area as card. Y -- it would is the the And X change and very word to probe means add pads smaller. it's require such, going This by get WaferPak. test business similar to the

they the cards And they simply if need capacity, WaferPaks And our so even if case. the probe wafer patterns, their buy more change they would only all become in cards or consumables. don't probe

Jed Dorsheimer

it. Got

on silicon a similar wafer start from have look to hesitate gets recurring a shrink third different and of about -- for carbide I capacity industry if perspective, you So talk needs a associated this presumably when a simply at there's additional the that to XX% you for sort as over stream but to that, machines scale, say a of a revenue it would mention with well, not more movement you diameters.

Gayn Erickson

Yeah.

better me that. put let So numbers around

the so WaferPaks ASPs then a $X.X million for in be a in purchase upfront somewhere and tool million we've our or there. in $X a might $X.X million, like for typical set of about tool, talked or these So

rule. this one-third of there's So sort two-third,

if So and consumable So buy or rule use they XX% call one-third that okay? you, WaferPaks. you XX% with tester I'm what XX%, and upfront, would the

would some new But valuable us. because no -- sell longer would be would point those longer they in then WaferPaks no wafers. WaferPaks in all They useful buy or those time, they from then

cycle with be. longer. to the So us to around On thing our get is is still automotive arms last that's to devices trying going one on that tend going what hand, one

that years, might something okay? So two on life, have device meaning they probe or X.X- other memory fab, replaced ones be last the consumer cards might the only of all a a a might multiple year, like or year are every whereas

of silicon about millimeter, X Gen multiple are XXX with a XXX each carbide, case, transitions from our X, They're those talking In actually that though, of the would obsolescence going previous going Everyone X, to on. talking the things accelerate talking dynamic about They're millimeter Gen that trench. shrinks. versus device. there's about create is generation planar Gen

revenue already it. to that still WaferPaks our photonics significant we're So years seeing we've out a doubt But yet four, And when now, no base. you see to been and example. amount maybe using look of with going five from coming they're is the be silicon of years, installed there's for right our every customers, four that

as well. grows, So would an number absolute base as that and as value our -- grow installed

Jed Dorsheimer

question talked silicon correctly you in you it. products just wondering did when -- Got I me, that. I hear not the carbide? they for customer, jump did in Last The I'll you queue. back helpful. have help if That's could about was clarify your announced new second

Gayn Erickson

have have last night just not MOSFETs, website specifically. silicon still said carbide Yeah. their double again -- they I'm at my to and introduced it. I have still They not words check. choosing very looked They

come program I at So they have know devices a multiple have because out we this, stealthily to figured they have wafers. their

pretty realize And asked to can't customers? I -- why mention I never so I being someone about elusive. think someone you -- guys we're

trying mention very at to customers we’re me be even context if I mention want not biggest that right. they outside careful. I you telling them, to of bad around. don't secret anymore the I'm mentioned. It's because get name And customer always the be the do the of will

guys. have it's difficult We've thing, big realize. of a So two we said I the

all, say them. to big them I'm is. I our I'm just will going Right I -- we I in XX-K on of XX% and we them play guy think and who going a now, mean, very -- bold out. to to people all clear. that of understood being Semiconductor trying is all was be because Everybody I how was customers. customer not And of win our -- is next think exactly we're guess biggest sure one the that's XXKs, burden have can then

better you who as the -- insight meantime, apologize have don't that are. I to but So in guys they

Jed Dorsheimer

for No security apologies us. is job

real We some do have to research.

So I Thank it. like you.

Gayn Erickson

Jed. you, Thank

Operator

question Patel Please comes next SemiAnalysis. from Dylan with The go ahead.

Dylan Patel

carbide on wanted be various burn-in in test be it to think just to fab I it Because is that in was or fab? either. can be think perspective, the my both to about the Hey, and from in Gayn. I it WaferPaks, silicon side and trying photonics equipment could side, the wafer going ask the I a

Gayn Erickson

Yeah.

refer to where step test the You the die good as happens the analogy a would versus end packages okay? burn-in -- is like wafer sell this die, In be to the often community known the closest know sales, case, what case, in we what, operation of people front back-end the where People final okay, are, level can step. is known where test In either. die process that it die the absolutely good an wafers the what's in are. feels referred

said that, their So be in for front Having it, to -- in reasonable end. today, most next equipment all fab. of it end. back the in naturally fits not right to is wafer the of I would put fab the It our somebody it if

go Our systems clean into clean intended rated room They're for rooms. the specifications. are to

both. I've And But so we'll see both for heard sure.

we'll think have systems both places. I

Dylan Patel

the middle? is next, burn-in It's stimulation and then right else or in there anything

Gayn Erickson

your test on wafer after always. burn-in No, there's

need it. recommended take test to our So is wafer, process no raw a

it ones and things correlate that can die did. we it time process final functional which and the would die we'll with in good tell want singulated it you know that test which to do. then are get test let will and burn bad will We you you and might what And during some tighter that the of die, exactly because accuracies you a and other you

three, a But one, little piece. Teradyne, a oftentimes companies singulate, to that of do with the on there they the handful that then XXX like system wafer out insertion single a then likes sec the about good X,XXX four a insertions and a test XXX of that then you will there's two, test would test pick are one matching separate devices with And And of a so parametrics. test a singulated time. would good die, they might die devices, with -- die they choose a in and die at

turns is of spent paper time a out today the a which people over voltage One papers hours of carbide devices in past white then a and presentation the carbide. there. process silicon I on stabilizes. of things threshold There's in this in I've -- that changes on, in also of Silicon more at the time And silicon Munich parametric actually the part and threshold, white device the age photonics and technical multiple in it. did of their bunch

module on. but Lucid any like from a Tesla, that into do in, goes even of into would a or you the that are Ford's you If or automotive say, put going module modules that

pick do -- You you say, put, at turning and devices times, devices there. all different cherry would eight not The on if in them. be you

use, of XX threshold them varies. hours during you them first put let's So and the voltage the in, pick say, cherry

on one out the wear fastest a So can will the become that problem. then and reliability the fastest turns

the stabilizing on of with suppliers they're to Dan and RDS not cherry or on life the world die threshold good early of or that are them we RDS known infant when can a or being threshold or So specified resistances people impedances just of purchasing the voltages the period voltage, the actually out going weeding be time VWs who all they all BorgWarner, from or tools, catch which likes from voltages that. to what them Foss or then to bad our and pick we're use good of takes call sell failures, mortality such

Dylan Patel

Thank so one ton if the you and to so But China's have here. was I'll been all TankeBlue, quick forth there are on the last question you've companies reopening. and that of there's color. there -- because a are like any about ton it reread scheduling for curious [indiscernible] investing that I'm a yeah. travel

Gayn Erickson

the of suppliers. we've multiple with So China several had conversations

support the Chinese local entire are Most the relative to around suppliers includes than both sales that other or our of people. restrictions people So team throughout this and travel, has in have period, intercountry folks. travel We country, behind able the okay? to move with customers other been and on

those in China with to ship we're today are what we're suppliers. of carbide automotive working is, doing silicon companies outside many cases, to China And who building devices

the time, U.S., So we real in also see of the Chinese has opportunity and from the say industry where bulk to-date. of that's us. a outside right opportunity for that I'd China Over pose energy us. Europe Asia may primary the our now, been

Dylan Patel

you. Thank Good.

Gayn Erickson

Thank you.

Operator

go ahead. comes (ph) Ferguson The Bradford Ferguson question with Please Financial. from next Halter

Bradford Ferguson

next costs the be Hi, to time. time with system the XX,XXX? Gayn. $X.X way wafers the heard same XX of at out competition system look The the a one for FOX-XP In I've WaferPaks system understand burn-in what's I million, commodity all like? -- at this way is closest allows the is burned

Gayn Erickson

Yeah.

for wafer $X per million equivalent So the to $XXX cost. million

there's So it please would go -- ahead. be equivalent an --

Bradford Ferguson

like at off So potentially. you're essentially, XX%

Gayn Erickson

We well, we might our are $X one know carbide people silicon we're with And in of usually wafer are in pretty why that customers. kind people example. don't for cost, and Well, we're -- what significantly open with million we $XXX,XXX our of margins the go, lower are than per some doing. the folks. feel away? There be other them away. of have cases, They giving them We're you giving the

to them goal a guy. have us that not with good And same we continue than cheaper at relationship to allows our other be was just the to invest. time, think I the

were we to fact, some ignoring them. In extent,

wafer in wafer XX shocked the to of same cost at like cost. is burn-in, What supplier see. be at to level us the is to for as X,XXX we're cheap as as industry to are up trying our if die go people test, our also XX which an look it's half would do per years. of And package back-end charger, you a level, have been you onboard almost test with production plus years, at the if we which And you cost

now was being we're initial We everybody product need world successfully we've get yield the they get its advantage, way. to we the is to. position not if think done ship they chosen in that so we've and the only this to of And which able more than other on focusing enough would intent. any to it And also they test, it, cheaper cost than

Bradford Ferguson

plans on Aehr. Dorsheimer's announced there's silicon and tagging that no last -- And with second to Jed is question, carbide kicking also a customer there's with the tires

Gayn Erickson

Yes.

Okay.

selling -- NP system, publicly also talking that customer that announced third want announced to yet. they if they not specifically, they're -- they We the carbide you So it, silicon to MOSFETs call bought haven't actually know have customers. they're an

strategy very the a big serious, a They're but and on okay. customer are they they're really big player, be to qualified that, ours. don't well that's we So understand of

year benchmarks. well calls. one We of call. ongoing in would we other We've gone very our well the to extensive give a now. you some over talked previous on has had at that our it for about updates that benchmark next large an during before We've guys also and -- the automotive a benchmark next the very suppliers have hope quarter, with over That's

Bradford Ferguson

test testing, LabCorp Quest about Systems which and/or the Test and where they Aehr this This moonshot question, does practices Test would practices? run I Systems good customers. is a And it's Okay. for running think have Aehr then where a a -- burn-in best been the for What Diagnostics in actually customer -- having in there's medical but burn-in Aehr an known the like a is best wave? good die, has certification only certified not known the

Gayn Erickson

customer labs we multiple in here. actually There's I do okay? that. of first wafers our inside So one to all, you're do secure we things everything saying, of -- like

XXX% no and show labs their that them cetera, et multiple with with That demonstration And that can with successful multiple cross-politization cameras customers done proven lockouts, has We secured have so wafers we so IP. their failures equipment. that of on a there's give to there, we've the that risk-free far. of ensure are

do we that. So

focused services in us capital to We're services, in consumables business. them silicon them they allow able different the than photonics-based to someone of engineering on of And have still to Second, with subcons themselves. them we which or do -- to and equipment support us to actually our But announced direct wanted thing half, the et But announcements as addition our we they're tools have to towards we if next both name some in during yet, one tuned in during already Stay to. we well has an year. -- working are in odd a cetera., today. burn-in do kind would carbide-based for be trying this with world photonics qualify actually but their the doing as that on is engineering the kind haven't to services production. be of front-end we the silicon largest partnership that the silicon who that

difference. thing, what conditions as referred very to an endorsement will I of many should working that. should strong -- cross-section kind I be -- the related for what be. the burn-in those times the see to specific want a an what if can of burn-in we end there's drive time started of the test be, about we've opinions is, some to level industry nothing try with and those have whole some tell is quality? the good bad there candidly, the And OEMs, which to prefer to people the lines, what's on of customers that you cut order a along they the there and machine. And if it to see get the in I'd what world the and else achieve overall do industry corners would should of and wafers Related to, is for And or because be a of good I my to something around wafer -- all don't We in industry the hope standard something by Aehr,

that's Brad. for there, you thoughts it, So the thank

Bradford Ferguson

subcontractors die then wafer the to the from shipping those get Speakers]. where it And maker, wafer whatever Asia and the [Multiple on whole goes burned or to are out makers in

Gayn Erickson

that. confuse Yeah. I mean didn't to

we've to actually identified generic with companies buy We for okay? will a thing. are who will is, available use working brother the and there it's kind I was and it anybody would them, that dedicated of for subcon own their and referring make subcons they and their tool put just to What services themselves

that And deliberately. kept so candidly, of we've kind to ourselves

potential they that subcon, to So have an a using the be enable I clients your customers test the proprietary secure in are contact and we'll that ability interested Any to -- investors wafers arrangement mostly in at we to subcon. call. that way the a potentially or happy know us make can on

Bradford Ferguson

you. Okay. Thank

Gayn Erickson

Thank problem. you. No

Operator

The Please comes go ahead. D.A. next with Diffely question from Davidson. Tom

Thomas Diffely

couple and Gayn follow-ups a afternoon, I Ken. guess Good Yeah. of here.

more XX, carbide can year. more you that now, about capacity look the them? to a right a have when when I do Gayn, talk So you end have at you silicon capacity by the ramping of couple -- appreciate But serve you even and to are XX, maybe majority clients that players the do of

Gayn Erickson

be them anywhere think be the yes all not of one. so, I of because near them think big will as first not I as -- don't most will

right? be some So have buy Because But will extent, you to have total at guess XX over only some capacity it's thinking enough everybody people to sure inefficiencies, market. they'll more -- do we point what, all the they're for need. because we the don't times to total and need look then need at share. the actually market And

we that of doesn't you on were wins it, matter kind to of So all will, us. if who are really and focusing --

Thomas Diffely

Yeah.

any of market stages market of just I just China's is early And of marketplace? growth. But curious EV obviously, this if in any there's Great. on kind know, of and broader the slowdown Okay. this some from a concerns a the very customers been the based

Gayn Erickson

And to all. I haven't We time. it seen obviously it at all pay attention the

categories and There's XX a be people in paying seen, cycle of board, product folks will stuff like remember aren't okay the out if players. don't multinational make portfolio. that’s mean, Infineon's to they're attention, silicon there's slowing -- the -- to think obviously, okay, the I'm is world or cetera. multi-segment XX, there. automotive There's please -- They're the the ON Semiconductors generic, big quote semiconductors carbide going they've it they guys, me, -- whoever, large STs I have this I okay? where trying down. I'm mean and just players, across what and of or simplify the I cancellations just TIs just the in And there big and et the

their they'll hot redirect came doing well. there's carbide towards back even are It my though, as energy HP what way out Customers where days, hot pouring silicon they figure a referred that okay? right always business markets okay? their to other the contract, energy, waves. obviously, very they are We're right aren't to and As now, do in now. is they'll I've units

to all and companies right? market silicon Tesla they lose focus some Tesla pure carbide, that's products discussion in pure have is that the share. or on of that and going the stock what's they're all are at think those I are been happening, in, for multiple so going And players

they to doesn't many matter. rest are. share. going a Guys, to the There's dominant course, way ship world. market the of they're That Of that no they have

carbide, need the all There's than they want if they they have all go they lower-cost charging mileage EVs traction silicon engines, in high-end times. opportunity for have way more efficiency ones, and all in inverters, but they're to

there. to more be And merrier, penetration BBs. they're And so to the market the the get faster out more tons -- all the going we of of think there's the going players

now. get deal meet help us going and So of Vernon I've be to it. had up seen is to we not in three excited about more a them, guys. be to they're we senior having, right have to chance have And these big that's a has picked so It people. to front customers fantastic. new with

Thomas Diffely

And sounds quite that to earlier would itself today sampling I burn-in That they're was assumption right. current be silicon was your I under the lot silicon could good. when frankly All and of after the the that doing initial bigger then question, over X% photonics like customer. a final smaller. than that it carbide a shocked be said you XXX% that, customer set time down orders, such goes always market

Gayn Erickson

All right, two things.

sensing. we it First as is -- And of we XD all, silicon than photonics very different it's photonics -- when talk different. about they're maybe XD,

are of at of the customers sampling, They only time that applications, sensors is. or sensors, facial have et installed XXX,XXX that -- they all have applications Those multiple that we but doing infant understand XD they're reasonably because only what the have those because -- a lifetime people redundancy. proven base devices, those life It sensing also has XD using proximity mortality sometimes far in the they whatever things for are millisecond have high that fingerprint they're may for math on rate, okay? and be seconds XX a actually or the recognize a okay? XD so times on Our XD, it, mobile recognition cetera, or

a create modulators, bypassing transceivers has okay? several have Intel now electricity which again. application, XXX% XD that's the to on to way are number. piece putting XD, on is sample only actually until Silicon that And spend don't one definition such, they some business get We actually annuities any of time sensing, or X% that X% is photonics the they still about cetera. So and actually from, talk they that about transceiver, demodulators This people photonics for silicon grail fiber a holy XX back the like a for and optical or it required ongoing do an didn't where of as et and infrastructure That's been thinking reasons. optic we years transition normal been discrete working for to over IBM of thing.

and XXX meet only continue time, path. signal of very go One shrinks cannot or close upper electrical of to range electrical where About the high travel people is is process on faster. gigabit silicon say can today. to XXX we're of improvements over the is conductive signals generation [indiscernible] a and an a so it fast, end within the

So or one we're from double that's generation it. like

class, writing papers your going been been we're is neither from have have or white we're are So going saying, the the to photonics particles. which to to that if have folks waves transmission, remember switch to to business do what photons you need

In the that a signals. much can electrical the limitation rates can it light therefore, no to they're in than you and no at particle, case have faster you there's to not of mass, modulate they go the speed

signals faster gig, photonics started. cannot getting XXX completely electrical where is than go just So

photonics have photonics all announcements on AMD, recently And as TSMC, NVIDIA, microprocessors, put making to to guys processors, these what their silicon GlobalFoundries, graphics Intel, so referred okay? chipsets, in transceiver is to about investments to that been talk IBM,

the I two I silicon would When market said not have than do that that, these calls, silicon be heard say of going do me photonics bigger I instead When to it that, on said is meant traditional related years you believe you to I carbide. ago, transceivers.

more larger is now transceivers. I than the ultimately carbide of Now that silicon public is stated, there's been It than for the leading and believe times burn-in it are -- the and and longer XXX% market. believe times – test I'm times market is silicon into suppliers XXX devices. yeah, XXX longer, sorry, than I've larger times. test silicon photonics And much It transceivers chipsets, intent I way those larger is longer is to okay. announcements the put photonics it

real, XX, or of And going a photonics the is so is X burn-in and because this not time that for years, or very to of be stabilization X XX been nobody low. is around silicon hour it's

opportunity. the in times, of one investment an edges some that. like you is as markets -- as leading And new then these aligner. like we're about the over And And automated burn-in our that's well other talked we're -- of so long making are that make you we've is if big all of the with you And in that memory. a us, said, investment

Thomas Diffely

that’s Well, and Look Thanks your for forward phase third the second growth to time exciting here. stuff. an today. of

Gayn Erickson

Thanks, Tom.

Operator

from question Chlebina Larry next comes The Chlebina ahead. go Please with Capital.

Larry Chlebina

the quarter. Great feel that a factor, can Your Is drove guys. which gross mix know was thoughts be the revenues up, you since to maybe the are line. confident XX%, going you that? margin, your on the sustainable? XX%? but I Hey, bottom going Ken, beat beat on

Ken Spink

So was mix that were some benefits that costs some Larry, about, we we unusual had think We We I would reversal quarter. had an that the QX previously onetime benefits talked issue. the had were like accrued.

of growth about Yeah. well inventory more mix going be that as though to in as some consistent we kind had also [indiscernible]. talked We had But like I think close. would pretty and in half overhead with the the of inventory second labor we the the mix in

Gayn Erickson

driving margin. lots items of is the There

get to on question? we saying, terms what to in not that I was XX% So up your plan going of are that. would XX%

reiterate and in plan think said for what overall year previously an we the what and XX%, I be. fiscal about should about fact, margin talked In the I I'd for forecasted I being that's gross think

Larry Chlebina

All right.

carbide figure So on you want the wafers I have you is and it's do aligner, thing drive was What and the a a NAND that operable I sorts, XD automated if moving a cells -- many WaferPaks? throughput and constantly fully mortgages on is how are silicon the automated XP out wafer? what of sense equipment out parametric as automated What's... maximum a heck long threshold more be could whether -- testing there all of XP, think there for market mentioned sales. you burn-in of But know, to ideally, a a

Gayn Erickson

X something. Yeah. back. indexing I sure all it burn-in all the an if if a get I I'm That's to X and a or want But negligible good WaferPak. is wafers index we come you hours question. hour X.X skirt would that had XX introductions, not of okay? with looking takes Maybe if there background, to you're not or I'm -- Larry, you or as to it long I'll to -- And into time it, mean refer yes, trying it's at but hours how times, in the

to things. you would would then into or the would time, that notice But time. test This had though. throughput it. some on At dead you if comment overall of eat I start something times win you -- at to changes start mean the because is first like that, your X indexing

never to boards. it because a burn-in what's up devices test is and you to X minutes XX to XX burn-in do work or called exchange never to hour all -- on and ramp would the ramp trying takes devices a time XX the do on down system it out, before minutes can chamber hours it the You would minutes takes the pull

they associated it for and Not actually package The with a trying having system all tell wafer extremely and overhead so contact get these these to of much package to packaged the environment, that that package that where in burn-in a the costs. defects implications have scratch leads at whole can result, never and zero has you introduce a the difficult. the different the quality a can't in to Whereas PPM of burn-in measurement for do system. wafer into, could times a XXX,XXX part burn-in I'd in where with is historical processes processing to the failure burn-in we cleanliness you same people resisted of where part WaferPak make clean with have mention

that with tool can material (ph) robots use a our tool, taking have by now boots or it it opportunities production [indiscernible] use systems handling that up down you to walk auto onto as look without this expand we overhead there's move today. and making where even or will us drop So touching liners that it high-volume

interface to end actually free. touch using be fabrication, don't even the tool. And hands So a you you wafer need can a front into

Larry Chlebina

century. into XXXXs think I from the burn-in wafer level XXst the

think just advancement. it's huge a I

Gayn Erickson

I'm with you.

Larry Chlebina

that's WaferPak, in it minutes, a wafers system of If XX drive they trying hasn't thought process some them stress could unloading think aligning XX-minute I on throughput the putting a into and a new and around eyebrows it, that from And wafer There's per either out out of probably that if purposes and system. was, with else a time the system. engineers there wafer characterize measurement a then raise yet. and I would whatever. putting if or per sense places cycle moving anybody hour their how to sitting If hour. probably order that it, sorting for of devices get and problems, to figure say, back that's the you demand X had there's That

anyway, So it's just…

Gayn Erickson

too in that putting big believer. a passionate these very of I memory about one Larry, pet the no subtle using systems line okay? probers, one obviously absolute kind there. level I'm my I'm is wafer and as we're side Yes. standard it. things There system It's thing are mean, of a projects, companies, burn-in of into doing broad is, step large multinational, remember There out companies okay? are the burn-in that a wafer-level such multiproduct

DRAM they But do all mean either They not or or I again there's -- flash guys. both. they're much. memory

deploy going money on to large mean, signing are CEOs silicon into in these scale, of the carbide for one put You off big it. I about one in a the systems they're it a floor of multinationals and it. know their

to and going So they're here. can know exists over they that say, well use we could it minute, it

in first with you. on the really corner, that time we're for really level I'm So completely history. board Aehr Test, but excited wafer for burn-in not And turning just the

Larry Chlebina

update Are that Great. you you going clunker? to beast show old still to have your this website

Gayn Erickson

there, beat to out I'll for It's little a pictures out and yeah, about -- us tuned. got put his here you're to there beautiful. I -- the guy, tester a Well, go something systems my We've about Yes. think But they're next it's if Vernon up, stay like children. and but bit. got time they've team

Larry Chlebina

And one question. last quick

get get space door if designation. -- automated in for level the system, the as know, foot of record in, certainly industry new time burn-in of Feds foot is slowdown least the towards that is memory you is now your door from particularly being technology, just a at your break won't to probably tool fabs online wafer one But I years. in they're getting as -- goal. the ground As the come new you say, long opportune your time the wonder And I oriented that an have, as sales for on for in guys the to money to

Gayn Erickson

turns. That's also a used refer with as you. concur and fair straights statement. I to We to

that who are the as and cost now what else, happened now silicon guys models would ramping these carbide, During sell new super Then test their – at -- review just process They terms have about of vested it. record. But in it's saw a not the have the excited a the out equipment be relooking tough tool were heck the And and we I with seeing And the interest and we the and of product new old to what you're structure think, everything right straightaways, customers turns really offering. last stuff. that straightaway the business memory are any for years. [indiscernible] or we scenario that's to right, over their few were selling strength. products we're

Larry Chlebina

All right.

process hopefully, that -- that to got here announce run tool the it be through So its would somebody tool, an [indiscernible] we you soon announcement would get an paces?

Gayn Erickson

But to. know cautious we're the -- I've be -- Aehr memory I when always the into always out heads a timing ahead business. of up is getting been there'll always right, people up too giving from getting extremely skis we as about memory came and business. about from a our far I'm memory, passionate people is my background, of what and

examples to as concepts have some flash to concept of an of opportunity. and do able past We us that of for wins the tools. some proof in is on proof even DRAM of prototype be And We've believe well. or that, memory these done I

There to nitride sure now, focused candidly, making have energy our possibly is the company as trying are of our also of front into gallium bulk carbide a the on memory immediate every do that but silicon sense opportunities right well. strengths we us in win in us get the of of obvious where silicon we are, photonics resources single and the

that, So Larry? I'll better at leave okay, it

Larry Chlebina

good. job. Very Yeah. Okay. Great

Gayn Erickson

you. Thank

Operator

are queue. would the management over I to remarks. further conference like This There any turn the session. for back questions closing concludes to question-and-answer no our in

Gayn Erickson

thank Well, year. a wish I new everybody happy attending. you, everyone right. All for

meeting. be around calls. And Area, we're the happy feel proud in in the We're to As We're always, happen to reach at is the to be of IR production exciting here, is from what take love or you your take of free will doing we'd floor, blowing us to the short look the folks now right a pretty seams quarter if to here Bay located manufacturing just which too. Tesla. to at really town, out sort

So quarterly Conference I would you encourage to talk And the reach day. you. you, at us. the or nice next like call. if to out to you'd Good at you to Have either a not, we'll if afternoon see Needham

Operator

conference today's for The now Thank has presentation. concluded. you attending

disconnect. You now may

Aehr Test Systems (AEHR) 5 Jan 232023 Q2 Earnings call transcript