Attached files
Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
Contact:
Gary Larson
Chief Financial Officer
(510)623-9400 x321
AEHR TEST SYSTEMS REPORTS FINANCIAL RESULTS
FOR FOURTH QUARTER FISCAL 2010
Fremont, CA (July 21, 2010) - Aehr Test Systems (Nasdaq: AEHR), a worldwide
supplier of semiconductor test and burn-in equipment, today announced
financial results for the fourth quarter and full fiscal year ended May 31,
2010.
Net sales were $3.6 million in the fourth quarter of fiscal 2010, compared
with $1.2 million in the fourth quarter of fiscal 2009. Aehr Test reported
a net loss of $0.8 million, or $0.09 per diluted share, in the fourth quarter
of fiscal 2010. This compares to a net loss of $4.0 million, or $0.48 per
diluted share, in the fourth quarter of fiscal 2009.
Commenting on the fourth quarter and full year results, Rhea Posedel,
chairman and chief executive officer of Aehr Test Systems, said, "Although
we faced significant challenges in fiscal 2010, we ended the year with
improved operating performance that has the Company poised for growth.
During the fourth quarter, net sales increased to $3.6 million, nearly three
times higher than net sales in the fourth quarter of the prior year. This
growth was driven by revenue recognition of the previously announced
shipment of a FOXTM-15 wafer-level burn-in and test system to Micronas, a
leading supplier of automotive and industrial integrated circuits. Net
sales also benefitted from shipments of FOX-1 WaferPak contactors to a
leading flash memory manufacturer. Looking ahead, our sales efforts remain
focused on potential new production accounts with our new Advanced Burn-in
and Test System (ABTSTM) and FOX products. With capital spending for
semiconductor equipment improving, we believe that we are well positioned
to increase our net sales in fiscal 2011 compared with the prior year."
Net sales were $11.7 million in fiscal 2010, compared with $21.4 million
in fiscal 2009. Net loss for the year ended May 31, 2010 was $0.5 million,
or $0.06 per share, compared with a net loss of $30.0 million, or $3.55 per
diluted share, in the prior fiscal year.
At May 31, 2010, cash and cash equivalents were $7.8 million. Aehr Test
closed the fourth quarter of fiscal 2010 with no outstanding debt and
shareholders' equity of $11.3 million, or $1.30 per share outstanding at
May 31, 2010. As of May 31, 2010, the Company's backlog was $2.5 million,
compared with $1.7 million at May 31, 2009.
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, July
21, 2010 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
fourth quarter fiscal 2010 operating results. The conference call will be
accessible live via the internet at www.aehr.com. Please go to the website
at least
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Aehr Test Systems Reports Fourth Quarter Fiscal 2010 Results
July 21, 2010
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15 minutes before start time to register, download and install any necessary
audio software. A replay of the webcast will be available at www.aehr.com
for 90 days.
About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a worldwide
provider of systems for burning-in and testing DRAMs, flash and other memory
and logic integrated circuits and has an installed base of more than 2,500
systems worldwide. Aehr Test has developed and introduced several
innovative products, including the ABTS, FOX, MTX and MAX systems and the
DiePak(R) carrier. The ABTS system is Aehr Test's newest system for packaged
part test during burn-in for both low-power and high-power logic as well
as all common types of memory devices. The FOX system is a full wafer contact
test and burn-in system. The MTX system 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 MAX system can
effectively burn-in and functionally test complex devices, such as digital
signal processors, microprocessors, microcontrollers and
systems-on-a-chip. The DiePak carrier is a reusable, temporary package that
enables IC manufacturers to perform cost-effective final test and burn-in
of bare die. For more information, please visit the Company's website at
www.aehr.com.
Safe Harbor Statement
This release contains forward-looking statements that involve risks and
uncertainties relating to projections regarding revenues, net sales and
customer demand and acceptance of Aehr Test's products. Actual results may
vary from projected results. These risks and uncertainties include without
limitation, world economic conditions, the state of the semiconductor
equipment market, the Company's ability to maintain sufficient cash to
support operations, acceptance by customers of Aehr Test's technologies,
acceptance by customers of the systems shipped upon receipt of a purchase
order and the ability of new products to meet customer needs or perform as
described, and the Company's development and manufacture of a commercially
successful wafer-level test and burn-in system. See Aehr Test's recent 10-K
and 10-Q reports and other reports from time to time filed with the U.S.
Securities and Exchange Commission for a more detailed description of the
risks facing our business. The Company disclaims any obligation to update
information contained in any forward-looking statement to reflect events
or circumstances occurring after the date of this press release.
[Financial Tables to Follow]
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Aehr Test Systems Reports Fourth Quarter Fiscal 2010 Results
July 21, 2010
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
May 31, May 31,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
Net sales:
Product sales....................... $3,567 $1,240 $8,934 $21,407
Cancellation charges................ -- -- 2,740 --
-------- -------- -------- --------
Total net sales................... 3,567 1,240 11,674 21,407
Cost of sales......................... 1,771 2,752 5,571 20,223
-------- -------- -------- --------
Gross profit (loss)................... 1,796 (1,512) 6,103 1,184
-------- -------- -------- --------
Operating expenses:
Selling, general and administrative. 1,494 1,380 6,094 20,623
Research and development............ 1,288 1,111 4,758 5,762
Impairment of goodwill.............. -- -- -- 274
Gain on sale of bankruptcy claim.... (120) -- (3,993) --
-------- -------- -------- --------
Total operating expenses.......... 2,662 2,491 6,859 26,659
-------- -------- -------- --------
Loss from operations.............. (866) (4,003) (756) (25,475)
Interest income....................... 1 6 5 142
Other income (expense), net .......... 64 (107) 131 277
-------- -------- -------- --------
Loss before income tax
expense (benefit)................. (801) (4,104) (620) (25,056)
Income tax expense (benefit).......... 18 (76) (139) 4,915
-------- -------- -------- --------
Net loss.......................... $(819) $(4,028) $(481) $(29,971)
======== ======== ======== ========
Net loss per share
Basic............................. $(0.09) $(0.48) $(0.06) $(3.55)
Diluted........................... $(0.09) $(0.48) $(0.06) $(3.55)
Shares used in per share calculations:
Basic............................. 8,631 8,473 8,563 8,436
Diluted........................... 8,631 8,473 8,563 8,436
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Aehr Test Systems Reports Fourth Quarter Fiscal 2010 Results
July 21, 2010
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
May 31, May 31,
------------------ ------------------
2010 2009 2010 2009
-------- -------- -------- --------
GAAP net loss............................... $(819) $(4,028) $ (481) $(29,971)
Provision for bad debts1 ................... -- -- -- 13,708
Restructuring and asset impairments2........ -- 1,467 -- 8,137
Reinstatement of deferred tax asset
valuation allowance .................... -- -- -- 4,943
Gain on sale of bankruptcy claim3........... (120) -- (3,993) --
Cancellation charges3....................... -- -- (2,740) --
Stock compensation expense4 ................ 325 338 1,733 1,285
-------- -------- -------- --------
Non-GAAP net loss........................... $(614) $(2,223) $(5,481) $(1,898)
======== ======== ======== ========
GAAP net loss per diluted share............. $(0.09) $(0.48) $(0.06) $(3.55)
======== ======== ======== ========
Non-GAAP net loss per diluted share......... $(0.07) $(0.26) $(0.64) $(0.22)
======== ======== ======== ========
Shares used in diluted shares calculation... 8,631 8,473 8,563 8,436
======== ======== ======== ========
1 Related to accounts receivable of Spansion Inc., which filed for bankruptcy
in Japan in February 2009 and in the U.S. in March 2009.
2 The three months ended May 31, 2009 includes a provision for excess/obsolete
inventory of $1.5 million, $0.2 million severance costs, and a credit of
$0.3 million for settlement of cancellation charges accrued in the prior
fiscal quarter. The year ended May 31, 2009 includes a provision for
excess/obsolete inventory of $7.2 million, cancellation charges of $0.3 million,
$0.3 million impairment of goodwill, and $0.4 million severance.
3 The Company filed a claim in the Spansion U.S. bankruptcy action. In the
first quarter of fiscal 2010, the Company sold a portion of its Spansion U.S.
bankruptcy claim to a third party for net proceeds of approximately $3.3 million
and recorded the amount as a reduction of operating expenses. In the third
quarter of fiscal 2010, the Company sold the remaining balance of its Spansion
U.S. bankruptcy claim for net proceeds of approximately $4.6 million and
recorded $2.7 million as revenue related to cancellation charges, $1.3 million
as deferred revenue and $0.6 million as a reduction of operating expenses.
In the fourth quarter of fiscal 2010, the Company received the remaining payment
of $0.1 million due from its Q1 bankruptcy claim sale and recognized the amount
as a reduction of operating expenses. The $1.3 million deferred at the end of
the third quarter of fiscal 2010 was recognized as product revenue during the
fourth quarter of fiscal 2010.
4 In the second quarter of fiscal 2010, officers of the Company elected to
forfeit certain stock options granted. The forfeiture of these options
resulted in the immediate recognition of the unamortized portion of stock
compensation expense of $0.5 million.
Non-GAAP net loss is a non-GAAP measure and should not be considered a
replacement for GAAP results. Non-GAAP net loss is a financial measure
the Company uses to evaluate the underlying results and operating performance
of the business. The limitation of this measure is that it excludes items
that impact the Company's current period net loss. This limitation is best
addressed by using this measure in combination with net loss (the most
comparable GAAP measure).
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Aehr Test Systems Reports Fourth Quarter Fiscal 2010 Results
July 21, 2010
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
May 31, May 31,
2010 2009
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 7,766 $ 4,360
Accounts receivable, net............................ 596 931
Inventories ........................................ 3,635 4,472
Prepaid expenses and other ......................... 445 879
----------- -----------
Total current assets ........................... 12,442 10,642
Property and equipment, net .......................... 1,504 2,741
Other assets.......................................... 528 528
----------- -----------
Total assets ................................... $14,474 $13,911
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 703 $ 995
Accrued expenses ................................... 1,626 2,107
Deferred revenue ................................... 286 241
----------- -----------
Total current liabilities ...................... 2,615 3,343
Income tax payable.................................... 298 299
Deferred lease commitment ............................ 280 306
----------- -----------
Total liabilities .............................. 3,193 3,948
----------- -----------
Shareholders' equity ................................. 11,281 9,963
----------- -----------
Total liabilities and shareholders' equity ..... $14,474 $13,911
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