Aehr Test Systems Reports Second Quarter Results for Fiscal 2002
FREMONT, Calif., Jan. 8 /PRNewswire-FirstCall/ -- Aehr Test Systems (Nasdaq: AEHR - news) today announced financial results for the second fiscal quarter and six months ended November 30, 2001.
Net sales for the quarter were $2.8 million, a decrease of 68 percent from net sales of $9.0 million in the same quarter of the prior fiscal year. Net loss for the quarter was $774,000, or $0.11 per share, compared with a net income of $280,000, or $0.04 per share, in the same quarter of the prior year.
The Company reported gross margin of 50 percent for the quarter, compared with gross margin of 38 percent in the same quarter a year ago. As of November 30, 2001, cash and short-term investments totaled $12.2 million, and book value was $4.70 per share.
``Because of the continued downturn in the semiconductor equipment industry, we experienced another quarter of low net sales. However, we are pleased to see that the level of customer quote activities has started to pick up. We are also encouraged by the strengthening of our business in Taiwan, which is evidenced by recent repeat orders for several MTX parallel test systems received from a major DRAM production facility,'' said C.J. Meurell, president and chief operating officer of Aehr Test Systems. ``In order to control spending and maintain our competitiveness, we have continued to drive our cost reduction programs, while maintaining our research and development projects.''
Net sales for the six months ended November 30, 2001 were $5.6 million, a decrease of 68 percent from net sales of $17.7 million in the comparable period of fiscal 2001. Net loss for the six months ended November 30, 2001 was $1.4 million, or $0.20 per share. Net loss for the same period of the prior fiscal year was $1.2 million, or $0.17 per share, which included a charge of $1.6 million for the cumulative effect of applying the Securities and Exchange Commission's Staff Accountant Bulletin 101 for revenue recognition. The income for the six months ended November 30, 2000 before that charge was $445,000, or $0.06 per share.
``The FOX full wafer contact system continues to be a major part of our growth strategy, as it is designed to provide cost effective test solutions for the latest technology integrated circuits,'' said Rhea Posedel, chairman and chief executive officer of Aehr Test Systems. ``In view of our recently received MTX system orders, we expect that for our third fiscal quarter net sales will increase and gross margin will decrease, compared with those of the quarter just reported. Overall, we believe that the Company has passed beyond its low point in net sales for this semiconductor downturn.''
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, 2001, Aehr Test had acquired 442,700 of its outstanding common shares at an average price of $4.23.
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 several innovative products, including the FOX(TM), MTX and MAX systems and the DiePak® carrier. The FOX is a full wafer contact burn-in and test system. 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 MAX 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 IC manufacturers to perform cost-effective final test and burn-in of bare die.
Safe Harbor Statement
This release contains forward-looking statements that involve risks and uncertainties relating to projections regarding industry growth and customer demand for the Company's products. Actual results may vary from projected results. These risks and uncertainties include economic conditions in Asia and elsewhere, world events, acceptance by customers of the FOX, MTX, MAX and DiePak technologies, the Company's development and manufacture of a commercially successful wafer-level burn-in system, and the potential emergence of alternative technologies, which could adversely affect demand for the Company's products in calendar year 2002. See the Company's 10-K report 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)
(Unaudited)
Three Months Ended Six Months Ended
November 30, November 30,
2001 2000 2001 2000
Net sales $2,822 $8,958 $5,627 $17,664
Cost of sales 1,401 5,572 2,811 10,892
Gross profit 1,421 3,386 2,816 6,772
Operating expenses:
Selling, general and
administrative 1,500 1,884 3,131 3,902
Research and development 999 1,348 1,965 2,600
Research and development cost
reimbursement - DARPA -- (300) -- (300)
Total operating expenses 2,499 2,932 5,096 6,202
Income (loss) from
operations (1,078) 454 (2,280) 570
Interest income 145 230 313 463
Interest expense -- (3) -- (6)
Other expense, net (102) (74) (1) (74)
Income (loss) before income
taxes (1,035) 607 (1,968) 953
Income tax expense (benefit) (261) 327 (560) 509
Income (loss) before
cumulative effect of
change in accounting
principle (774) 280 (1,408) 444
Cumulative effect of change in
accounting principle-net of tax -- -- -- (1,629)
Net income (loss) $(774) $280 $(1,408) $(1,185)
Income (loss) before cumulative effect
Basic $(0.11) $0.04 $(0.20) $0.06
Diluted $(0.11) $0.04 $(0.20) $0.06
Net income (loss) per share
Basic $(0.11) $0.04 $(0.20) $(0.17)
Diluted $(0.11) $0.04 $(0.20) $(0.17)
Shares used in per share calculations:
Basic 7,128 7,078 7,125 7,021
Diluted 7,128 7,251 7,125 7,244
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
November 30, May 31,
2001 2001
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $5,994 $10,391
Short-term investments 6,186 3,764
Accounts receivable 4,734 5,751
Inventories 9,472 10,125
Prepaid expenses and other 3,426 3,321
Total current assets 29,812 33,352
Property and equipment, net 1,874 2,103
Long-term investments 2,563 2,267
Other assets, net 1,966 1,870
Total assets $36,215 $39,592
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $371 $1,213
Accurued expenses 1,623 3,336
Deferred revenue 327 51
Total current liabilities 2,321 4,600
Deferred revenue 39 39
Deferred lease commitment 190 146
Total liabilities 2,550 4,785
Shareholders' equity:
Common stock, $.01 par value outstanding:
7,170 shares and 7,116 shares at
November 30, 2001
and May 31, 2001, respectively 72 71
Additional paid-in capital 36,345 36,134
Notes receivable from shareholders (84) (84)
Net unrealized gain on investments 45 19
Cumulative translation adjustment 1,496 1,468
Accumulated deficit (4,209) (2,801)
Total shareholders' equity 33,665 34,807
Total liabilities and
shareholders' equity $36,215 $39,592
SOURCE: Aehr Test Systems |
