Latest NewsAehr Test Systems Reports Second Quarter Results for Fiscal 2001
Fremont, CA., January 3, 2001 - Aehr Test Systems (Nasdaq: AEHR) today announced financial results for the second fiscal quarter and six months ended November 30, 2000.
Net sales for the quarter were $9.0 million, an increase of 43 percent over net sales of $6.3 million in the same quarter of the prior fiscal year. Net income for the quarter was $298,000, or $0.04 per share, compared with a net loss of $736,000, or $0.11 per share, in the same quarter of the prior year.
The Company reported gross margin of 38 percent for the quarter, compared with gross margin of 21 percent in the same quarter a year ago. As of November 30, 2000 cash and short-term investments totaled $16.2 million, and book value was $4.89 per share.
“Shipments of our products continued to be strong this past quarter,” stated C.J. Meurell, president and chief operating officer of Aehr Test Systems. “Our solid sales, mostly driven by the demand for MAX and ATX systems for telecom and wireless communication applications, are evidence of Aehr Test’s continued dedication to create high quality test and burn-in equipment,” added Meurell.
Net sales for the six months ended November 30, 2000 were $17.6 million, an increase of 65 percent over net sales of $10.7 million in the comparable period of fiscal 2000. Net income for the six months ended November 30, 2000 was $374,000, or $0.05 per share, compared with a net loss of $1.5 million, or $0.22 per share, in the same period a year ago.
“We are very pleased with our strong financial performance this quarter as we have achieved our sixth sequential quarterly increase in net sales,” said Rhea Posedel, chief executive officer of Aehr Test Systems. “However, we are seeing a slowdown in spending by a number of our customers, a trend which has been noted previously by other companies in the semiconductor equipment industry. Some of our customers have delayed their placement of orders with us. New orders for our MTX massively parallel memory tester may be delayed because of the excess production capacity of DRAMs, which is currently being reported by industry analysts. Given this uncertain near-term business environment, we anticipate that our net sales in the third quarter will be at about the same level as, or slightly down from, our net sales in the second quarter. Our goal is to remain profitable in the third quarter.”
“Despite the near-term industry slowdown, we continue to be optimistic about the future of Aehr Test Systems, as we believe we have a strong family of products and a worldwide customer base,” concluded Posedel.
In August 1998, the Company’s board of directors authorized the repurchase of up to one million shares of the Company’s common stock. As of November 30, 2000, Aehr Test had acquired 323,000 of its outstanding common shares at an average price of $4.17.
About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a leading provider of systems for burning-in and testing DRAMs and other integrated circuits and has an installed base of more than 2,000 systems worldwide. Aehr Test has developed and introduced two innovative product families, the MTX system and DiePak? carrier. The MTX is a massively parallel test system designed to reduce the cost of memory testing by performing both test and burn-in on thousands of devices simultaneously. The DiePak carrier is a reusable, temporary package that enables integrated circuit manufacturers to perform cost-effective final test and burn-in of bare die.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Securities Act of 1933. Such forward-looking statements include statements regarding industry growth, customer demand for the Company’s products, and net sales and net income expectations related to the third quarter. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to vary. These risks and uncertainties involve economic conditions in Asia and elsewhere, increased acceptance by customers of the MTX, MAX and DiePak technologies, and the potential emergence of alternative technologies, which could adversely affect demand for the Company’s products. See the company’s 10-K and most recent 10-Q filed with the SEC for additional risks affecting the Company.
AEHR TEST SYSTEMS AND SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended Six Months Ended November 30 November 30 2000 1999 2000 1999 Net sales $8,986 $6,294 $17,555 $10,650 Cost of sales 5,572 4,957 10,892 8,164 Gross profit 3,414 1,337 6,663 2,486 Operating expenses: Selling, general and administrative 1,884 2,112 3,902 3,947 Research and development 1,348 1,334 2,600 2,654 Research and development cost reimbursement - DARPA (300) (268) (300) (516) Total operating expenses 2,932 3,178 6,202 6,085 Income (loss) from operations 482 (1,841) 461 (3,599) Interest income 230 264 463 540 Interest expense (3) (3) (6) (6) Other income (expense), net (74) 325 (74) 666 Income (loss) before income taxes 635 (1,255) 844 (2,399) Income tax expense (benefit) 337 (519) 470 (895) Net income (loss) $298 $(736) $374 $(1,504) Net income (loss) per share (basic) $0.04 $(0.11) $0.05 $(0.22) Net income (loss) per share (diluted) $0.04 $(0.11) $0.05 $(0.22) Shares used in per share calculations: Basic 7,078 6,799 7,021 6,785 Diluted 7,251 6,799 7,244 6,785 AEHR SYSTEMS AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except per share data) November 30, May 31, 2000 2000 (unaudited) ASSETS Current assets: Cash and cash equivalents $10,826 $8,323 Short-term investments 5,343 7,365 Accounts receivable 7,888 6,294 Inventories 10,074 11,183 Prepaid expenses and other 3,514 3,277 Total current assets 37,645 36,442 Property and equipment, net 2,369 2,613 Long-term investments 736 580 Other assets, net 1,146 1,094 Total assets $41,896 $40,729 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $138 $143 Accounts payable 2,231 2,989 Accrued expenses 3,636 2,873 Deferred revenue 63 37 Total current liabilities 6,068 6,042 Long-term debt, net of current portion 183 297 Deferred revenue 39 39 Deferred lease commitment 140 46 Total liabilities 6,430 6,424 Shareholders' equity: Common stock, $.01 par value outstanding: 7,125 shares at November 30, 2000 and 6,906 at May 31, 2000 70 69 Additional paid-in capital 36,206 35,332 Accumulated deficit (2,286) (2,660) Net unrealized loss on investments (13) (13) Cumulative translation adjustment 1,489 1,577 Total shareholders' equity 35,466 34,305 Total liabilities and shareholders' equity $41,896 $40,729 For more information on Aehr Test Systems, via fax at no cost, dial 800-PRO-INFO(732-544-2850 outside the U.S.), ticker symbol: AEHR