Latest NewsAehr Test Systems Reports Third Quarter Results for Fiscal 2001
Fremont, CA., March 19, 2001 - Aehr Test Systems (Nasdaq: AEHR) today announced financial results for the third fiscal quarter and nine months ended February 28, 2001.
Net sales for the quarter were $7.8 million, an increase of 18 percent over net sales of $6.6 million in the same quarter of the prior fiscal year. Net income for the quarter was $142,000 or $0.02 per share, compared with a net loss of $678,000, or $0.10 per share, in the same quarter of the prior year.
“We are pleased that we remained profitable during our third fiscal quarter in light of the continued industry-wide slowdown,” said Rhea Posedel, chief executive officer of Aehr Test Systems. “We have implemented cost reduction programs in order to control spending, while maintaining our research and development efforts.”
Net sales for the nine months ended February 28, 2001 were $25.4 million, an increase of 47 percent over net sales of $17.3 million in the comparable period of fiscal 2000. Net income for the nine months ended February 28, 2001 was $516,000, or $0.07 per share, compared with a net loss of $2.2 million, or $0.32 per share, in the same period a year ago. As of February 28, 2001, cash and short-term investments totaled $18.4 million, and book value was $4.95 per share.
“We continue to see a slowdown in spending by a number of our customers and a few have delayed shipments or cancelled existing orders,” said C.J. Meurell, president and chief operating officer of Aehr Test Systems. “Certain semiconductor manufacturers and industry analysts have said that they expect this trend to continue at least through calendar year 2001. Given the current adverse market conditions, and our lack of visibility related to the timing of a potential business rebound, we expect that our net sales in the fourth quarter of fiscal 2001 will be down significantly from our net sales in the third quarter. Our goal during this downturn is to continue to build on our strong product base to meet our customers’ new requirements.”
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 February 28, 2001, Aehr Test had acquired 400,500 of its outstanding common shares at an average price of $4.26.
About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a leading provider of systems for burning-in and testing DRAM and logic integrated circuits and has an installed base of more than 2,000 systems worldwide. Aehr Test has developed and introduced three innovative products, the MTX and MAX3 systems and the 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 MAX3 can effectively burn-in and functionally test sophisticated devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. 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 spending expectations. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to vary. These risks and uncertainties include the level of capital equipment spending by semiconductor manufacturers in calendar year 2001, 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 Reports Third Quarter Results for Fiscal 2001 AEHR TEST SYSTEMS AND SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended February 28, February 29, February 28, February 29, 2001 2000 2001 2000 Net sales $7,818 $6,644 $25,373 $17,294 Cost of sales 5,114 4,368 16,006 12,532 Gross profit 2,704 2,276 9,367 4,762 Operating expenses: Selling, general and administrative 1,757 1,927 5,659 5,874 Research and development 1,266 1,308 3,866 3,962 Research and development cost reimbursement - DARPA (300) (350) (600) (866) Total operating expenses 2,723 2,885 8,925 8,970 Income (loss) from operations (19) (609) 442 (4,208) Interest income 276 234 739 774 Interest expense (1) (3) (7) (9) Other income (expense), net (16) (409) (90) 257 Income (loss) before income taxes 240 (787) 1,084 (3,186) Income tax expense (benefit) 98 (109) 568 (1,004) Net income (loss) $142 $(678) $516 $(2,182) Net income (loss) per share (basic) $0.02 $(0.10) $0.07 $(0.32) Net income (loss) per share (diluted) $0.02 $(0.10) $0.07 $(0.32) Shares used in per share calculations: Basic 7,138 6,795 7,060 6,788 Diluted 7,186 6,795 7,205 6,788 AEHR TEST SYSTEMS AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except per share data) February 28, May 31, 2001 2000 (unaudited) ASSETS Current assets: Cash and cash equivalents $12,662 $8,323 Short-term investments 5,763 7,365 Accounts receivable 6,822 6,294 Inventories 9,758 11,183 Prepaid expenses and other 3,168 3,277 Total current assets 38,173 36,442 Property and equipment, net 2,236 2,613 Long-term investments 516 580 Other assets, net 1,113 1,094 Total assets $42,038 $40,729 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ -- $143 Accounts payable 2,188 2,989 Accrued expenses 4,080 2,873 Deferred revenue 51 37 Total current liabilities 6,319 6,042 Long-term debt, net of current portion -- 297 Deferred revenue 44 39 Deferred lease commitment 122 46 Total liabilities 6,485 6,424 Shareholders' equity: Common stock, $.01 par value outstanding: 7,105 shares at February 28, 2001 and 6,906 at May 31, 2000 70 69 Additional paid-in capital 36,091 35,332 Accumulated deficit (2,144) (2,660) Net unrealized loss on investments 31 (13) Cumulative translation adjustment 1,505 1,577 Total shareholders' equity 35,553 34,305 Total liabilities and shareholders' equity $42,038 $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