Fiscal First Quarter Financial Results:
- Net revenue was
$20.6 million , up 93% from$10.7 million in the first quarter of fiscal 2023. - GAAP net income was
$4.7 million , or$0.16 per diluted share, up from GAAP net income of$589,000 , or$0.02 per diluted share, in the first quarter of fiscal 2023. - Non-GAAP net income, which excludes the impact of stock-based compensation, was
$5.2 million , or$0.18 per diluted share, compared to non-GAAP net income of$1.3 million , or$0.05 per diluted share, in the first quarter of fiscal 2023. - Bookings were
$18.4 million for the quarter. - Backlog as of
August 31, 2023 was$22.3 million . Effective backlog, which includes all orders received since the end of the first quarter, is$24.0 million . - Cash provided by operations was
$3.9 million . - Total cash, cash equivalents, and short-term investments as of
August 31, 2023 were$51.0 million , up from$47.9 million atMay 31, 2023 .
An explanation of the use of non-GAAP financial measures and a reconciliation of Aehr’s non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying tables.
“We finished the first quarter with solid revenue and non-GAAP net income, the strongest first quarter in our history, which has historically been our seasonally softest quarter. We are off to a very good start to our fiscal year and are reaffirming our expectation to grow fiscal full year revenue by at least 50% and profit by over 90% year over year.
“During the quarter we had record shipments of our FOX™ WaferPak full wafer Contactors in both revenue and units and are very pleased with the continued stream of new designs we are seeing. Our new design volume has tripled over the last nine months as we are seeing more electric vehicles coming online with their own specific device design for inverters and onboard chargers.
“We have now received customer acceptance of both configurations of our new fully automated FOX WaferPak Aligner, which allows hands free operation of WaferPak handling and alignment and is available either as a standalone unit or in full integration with the FOX-XP system. We recognized revenue for two standalone WaferPak Aligners in the first quarter and received customer acceptance and sign off on two fully integrated WaferPak Aligners with the integrated FOX-XPs in September. These acceptances and the associated revenue recognition are a great way to start our second quarter and pave the path for revenue recognition immediately upon future shipments of these products.
“Additionally, we announced last month our sixth customer for silicon carbide wafer level burn-in. This new customer is a US-based multibillion-dollar semiconductor supplier that serves several markets, including automotive, computing, consumer, energy, industrial, and medical markets. After conducting a detailed financial evaluation of Aehr and Aehr’s
“Including this newest customer, our last two announced customers have selected our systems primarily for applications other than electric vehicles including industrial, solar, and commuter electric trains. This further extends our application space beyond the opportunity we see in silicon carbide for traction inverters and onboard and offboard chargers for electric vehicles. These applications expand our market opportunity to include what
“We continue to see increased interest from prospective new customers for our solutions for silicon carbide wafer level burn-in. In the last few weeks, we have attended two international conferences in
“We are also in extensive engagements with multiple gallium nitride suppliers, including companies that also supply silicon carbide devices. Gallium nitride is similar to silicon carbide in that both of these semiconductor compounds are considered wide bandgap semiconductors that are able to withstand high-voltage applications more directly than silicon. Gallium nitride semiconductor material has characteristics that make it optimal for lower power converter applications such as consumer power converters, solar micro inverters, and industrial motor controllers, compared with silicon carbide that is optimal for higher power / higher voltage applications such as traction inverters in electric vehicles, trucks, trains, and converters used in charging infrastructure and storage. The gallium nitride market is another potential growth driver for our wafer level solutions, particularly for automotive and photovoltaic applications where burn-in appears to be critical for meeting the initial quality and reliability needs of those markets. This fiscal year, while we do expect to recognize some revenue for systems, WaferPaks and Aligners for gallium nitride applications, we continue to expect a significant majority of our revenue to come from silicon carbide.
“In addition to these power semiconductor applications, we continue to be excited about the current application of silicon photonics devices for fiber optic transceivers used in data centers and data and telecommunication networks, as well as the major market opportunity we see with the upcoming application of silicon photonics integrated circuits for use in optical chip-to-chip communication. As we’ve previously announced, we received a first order from a current major silicon photonics customer for a new configuration of our FOX-XP multi-wafer test and burn-in system for use in very high-power silicon devices, and we expect to receive orders for additional production systems as they increase production of these devices. While we believe that it will likely be several years before we will potentially see significant revenue generated from this optical chip-to-chip communications market, we are working with some of the leaders in silicon photonics to ensure that we have the products and solutions available to meet their needs for this potentially significant market application.
“In conclusion, we are encouraged by the continued positive momentum we are seeing for silicon carbide in electric vehicles and are also excited about the expanding growth opportunities we are seeing in several additional markets with current and prospective customers.”
Fiscal 2024 Financial Guidance:
For the fiscal year ending
Management Conference Call and Webcast:
In addition, a live and archived webcast of the conference call will be available over the Internet at www.aehr.com in the Investor Relations section and may also be accessed by clicking here. A replay of the conference call will also be available via telephone beginning approximately two hours after conclusion of the live call and will remain available for one week. To access the call replay, dial +1 877-344-7529 (US and
About
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Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Aehr’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," “sees,” or "continue," or the negative of these words or other similar terms or expressions that concern Aehr’s expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, Aehr’s ability to generate bookings and revenue increases in the future; the timing of Aehr’s ability to recognize revenue; future requirements and orders of Aehr’s new and existing customers; bookings forecasted for proprietary WaferPak™ and DiePak consumables across multiple market segments; shipping timelines for products and follow-on capacity orders; the growth of Aehr’s systems and consumables, including as a percentage of total revenue; financial guidance for fiscal 2024, including related to revenue and profitability, and expectations regarding fiscal 2024; Aehr’s ability to expand its number of customers using its FOX-P™ solutions; the ability to secure potential customer engagements and Aehr’s plans to meet with potential new customers and end users; expectations related to long-term demand for Aehr’s products; market opportunity expansion; the growth and attractiveness of key markets and Aehr’s ability to receive orders and generate revenue in the future. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Aehr’s recent 10-K, 10-Q and other reports filed from time to time with the
- Financial Tables to Follow -
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
(In thousands, except per share data) | 2023 | 2023 | 2022 | ||||||||
Revenue: | |||||||||||
Product | $ | 19,357 | $ | 21,002 | $ | 9,588 | |||||
Services | 1,267 | 1,267 | 1,083 | ||||||||
Total revenue | 20,624 | 22,269 | 10,671 | ||||||||
Cost of revenue: | |||||||||||
Product | 9,919 | 9,774 | 5,349 | ||||||||
Services | 724 | 1,016 | 841 | ||||||||
Total cost of revenue | 10,643 | 10,790 | 6,190 | ||||||||
Gross profit | 9,981 | 11,479 | 4,481 | ||||||||
Operating expenses: | |||||||||||
Research and development | 2,457 | 2,253 | 1,498 | ||||||||
Selling, general and administrative | 3,409 | 3,587 | 2,525 | ||||||||
Total operating expenses | 5,866 | 5,840 | 4,023 | ||||||||
Income from operations | 4,115 | 5,639 | 458 | ||||||||
Interest income, net | 581 | 487 | 121 | ||||||||
Other income (expense), net | (6 | ) | (4 | ) | 24 | ||||||
Income before provision for income taxes | 4,690 | 6,122 | 603 | ||||||||
Provision for income taxes | 16 | 11 | 14 | ||||||||
Net income | $ | 4,674 | $ | 6,111 | $ | 589 | |||||
Net income per share: | |||||||||||
Basic | $ | 0.16 | $ | 0.21 | $ | 0.02 | |||||
Diluted | $ | 0.16 | $ | 0.21 | $ | 0.02 | |||||
Shares used in per share calculations: | |||||||||||
Basic | 28,649 | 28,425 | 27,242 | ||||||||
Diluted | 29,632 | 29,572 | 28,788 | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
(in thousands, except per share data) | 2023 | 2023 | 2022 | ||||||||||
Reconciliation of GAAP to non-GAAP gross profit | |||||||||||||
GAAP gross profit | $ | 9,981 | $ | 11,479 | $ | 4,481 | |||||||
Special items: | |||||||||||||
a) Stock-based compensation expense | 63 | 80 | 91 | ||||||||||
Non-GAAP gross profit | $ | 10,044 | $ | 11,559 | $ | 4,572 | |||||||
Reconciliation of GAAP to non-GAAP operating expenses | |||||||||||||
GAAP operating expenses | $ | 5,866 | $ | 5,840 | $ | 4,023 | |||||||
Special items: | |||||||||||||
a) Stock-based compensation expense | (459 | ) | (574 | ) | (619 | ) | |||||||
Non-GAAP operating expenses | $ | 5,407 | $ | 5,266 | $ | 3,404 | |||||||
Reconciliation of GAAP to non-GAAP income from operations | |||||||||||||
GAAP income from operations | $ | 4,115 | $ | 5,639 | $ | 458 | |||||||
Special items: | |||||||||||||
a) Stock-based compensation expense | 522 | 654 | 710 | ||||||||||
Non-GAAP income from operations | $ | 4,637 | $ | 6,293 | $ | 1,168 | |||||||
Reconciliation of GAAP to non-GAAP income before taxes | |||||||||||||
GAAP income before taxes | $ | 4,690 | $ | 6,122 | $ | 603 | |||||||
Special items: | |||||||||||||
a) Stock-based compensation expense | 522 | 654 | 710 | ||||||||||
Non-GAAP income before taxes | $ | 5,212 | $ | 6,776 | $ | 1,313 | |||||||
Reconciliation of GAAP to non-GAAP net income | |||||||||||||
GAAP net income | $ | 4,674 | $ | 6,111 | $ | 589 | |||||||
Special items: | |||||||||||||
a) Stock-based compensation expense | 522 | 654 | 710 | ||||||||||
Non-GAAP net income | $ | 5,196 | $ | 6,765 | $ | 1,299 | |||||||
GAAP income diluted per share | $ | 0.16 | $ | 0.21 | $ | 0.02 | |||||||
Non-GAAP income diluted per share | $ | 0.18 | $ | 0.23 | $ | 0.05 | |||||||
Non-GAAP measures should not be considered a replacement for GAAP results. The Non-GAAP measures indicated above are financial measures the Company uses to evaluate the underlying results and operating performance of the business. The limitation of these measures are that they exclude items that impact the Company’s current period GAAP measures. This limitation is best addressed by using these measures in combination with the most directly comparable GAAP financial measures. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies.
We believe these measures enhance investors’ ability to review the Company’s business from the same perspective as the Company’s management and facilitate comparisons of this period’s results with prior periods.
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
(In thousands, except par value) | 2023 | 2023 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 50,955 | $ | 30,054 | |||
Short-term investments | - | 17,853 | |||||
Accounts receivable, net | 13,161 | 16,594 | |||||
Inventories | 31,557 | 23,908 | |||||
Prepaid expenses and other current assets | 540 | 621 | |||||
Total current assets | 96,213 | 89,030 | |||||
Property and equipment, net | 3,083 | 2,759 | |||||
Operating lease right-of-use assets, net | 5,951 | 6,123 | |||||
Other non-current assets | 222 | 231 | |||||
Total assets | $ | 105,469 | $ | 98,143 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | 8,328 | 9,206 | |||||
Accrued expenses | 4,536 | 4,143 | |||||
Operating lease liabilities, short-term | 275 | 137 | |||||
Deferred revenue, short-term | 6,114 | 2,822 | |||||
Total current liabilities | 19,253 | 16,308 | |||||
Operating lease liabilities, long-term | 5,997 | 6,163 | |||||
Deferred revenue, long-term | 33 | 31 | |||||
Other long-term liabilities | 41 | 41 | |||||
Total liabilities | 25,324 | 22,543 | |||||
Shareholders’ equity: | |||||||
Preferred stock, | |||||||
Issued and outstanding: none | - | - | |||||
Common stock, | |||||||
Issued and outstanding: 28,763 shares and 28,539 shares at | 288 | 285 | |||||
Additional paid-in-capital | 127,630 | 127,776 | |||||
Accumulated other comprehensive loss | (141 | ) | (155 | ) | |||
Accumulated deficit | (47,632 | ) | (52,306 | ) | |||
Total shareholders' equity | 80,145 | 75,600 | |||||
Total liabilities and shareholders’ equity | $ | 105,469 | $ | 98,143 | |||
The Condensed Consolidated Balance Sheet as of |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
(In thousands) | 2023 | 2022 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 4,674 | $ | 589 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Stock-based compensation expense | 522 | 710 | |||||
Depreciation and amortization | 138 | 104 | |||||
Accretion of investment discount | (130 | ) | - | ||||
Non-cash lease expenses | 172 | 177 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 3,437 | 7,648 | |||||
Inventories | (7,704 | ) | (2,323 | ) | |||
Prepaid expenses and other current assets | 90 | (210 | ) | ||||
Accounts payable | (939 | ) | (769 | ) | |||
Accrued expenses | 355 | (1,130 | ) | ||||
Deferred revenue | 3,294 | 855 | |||||
Operating lease liabilities | (28 | ) | (192 | ) | |||
Income taxes payable | 20 | 2 | |||||
Net cash provided by operating activities | 3,901 | 5,461 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (284 | ) | (84 | ) | |||
Proceeds from maturities of investments | 18,000 | - | |||||
Net cash provided by (used in) investing activities | 17,716 | (84 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock under employee plans | 318 | 455 | |||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (1,012 | ) | (1,179 | ) | |||
Net cash used in financing activities | (694 | ) | (724 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (22 | ) | 10 | ||||
Net increase in cash, cash equivalents and restricted cash | 20,901 | 4,663 | |||||
Cash, cash equivalents and restricted cash, beginning of period (1) | 30,204 | 31,564 | |||||
Cash, cash equivalents and restricted cash, end of period (1) | $ | 51,105 | $ | 36,227 | |||
(1) Includes restricted cash in other assets. | |||||||
Contacts: | |
Chief Financial Officer csiu@aehr.com | MKR Investor Relations Inc. Analyst/Investor Contact (323) 468-2300 aehr@mkr-group.com |
Source:
2023 GlobeNewswire, Inc., source