FREMONT, Calif., July 13, 2023 (GLOBE NEWSWIRE) -- Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of semiconductor test and production burn-in equipment, today announced financial results for its fiscal 2023 fourth quarter and full year ended May 31, 2023.

Fiscal Fourth Quarter Financial Results:

• Net sales were a record $22.3 million, up from $20.3 million in the fourth quarter of fiscal 2022.
• GAAP net income was a record $6.1 million, or $0.21 per diluted share, up from GAAP net income of $5.8 million, or $0.20 per diluted share, in the fourth quarter of fiscal 2022.
• Non-GAAP net income, which excludes the impact of stock-based compensation, was a record $6.8 million, or $0.23 per diluted share, compared to non-GAAP net income of $6.5 million, or $0.23 per diluted share, in the fourth quarter of fiscal 2022.
• Backlog as of May 31, 2023, was $24.5 million. Effective backlog, which includes all orders received since the end of the fourth quarter, is $39.7 million.
• Total cash, cash equivalents, and short-term investments as of May 31, 2023 were $47.9 million, up from $31.5 million at May 31, 2022.
  

Fiscal Year Financial Results:

• Net sales were a record $65.0 million, up 28% from $50.8 million in fiscal 2022.
• GAAP net income was a record $14.6 million, or $0.50 per diluted share, up 54% from GAAP net income of $9.5 million, or $0.34 per diluted share, in fiscal 2022.
• Non-GAAP net income, which excludes the impact of stock-based compensation, was a record $17.3 million, or $0.59 per diluted share, up 62% from non-GAAP net income of $10.7 million, or $0.38 per diluted share, in fiscal 2022.
  

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.

Gayn Erickson, President and CEO of Aehr Test Systems, commented:

“We are pleased to report record financial performance for both the quarter as well as the entire fiscal year ended May 31. For fiscal 2023, total revenue grew 28% to a record $65.0 million, bookings reached a record of $78.3 million, and our GAAP profit of $14.6 million and non-GAAP profit of $17.3 million were also records, growing 54% and 62% year over year, respectively. This record performance was driven by bookings and revenue shipments of our FOX wafer level test and burn-in systems and WaferPak full wafer Contactors for silicon carbide semiconductors used in electric vehicles and electric vehicle charging infrastructure, as well as silicon photonics devices used in data and telecommunications infrastructure and a new application for multichip modules using optical data interconnections.

“We saw fiscal 2023 as a breakout year for our unique and proprietary wafer level test and burn-in products. These products provide complete solutions for semiconductor manufacturers for high-volume test, burn-in, and stabilization of semiconductors such as those used in electric vehicles, electric vehicle charging infrastructure, photovoltaic (solar) power conversion, and data and telecommunications infrastructure. We also see on the horizon a significant new market opportunity for test and burn-in of semiconductors such as silicon photonics devices used in optical input/output (I/O) and co-packaged optics for data farms, computing, and Artificial Intelligence (AI) markets. 

“In our fiscal fourth quarter just completed, we received the first purchase order from another new silicon carbide semiconductor company for our production FOX-XP solution to be used for volume production wafer level test and burn-in of silicon carbide devices for electric vehicles, trucks, and train traction inverter modules. The train traction inverter application represents an exciting new market driver for our FOX production test solutions due to the extreme reliability and length of service requirements of this application leading to prolonged test times. This new customer, a multinational industrial conglomerate and manufacturer of semiconductors including power semiconductors, is forecasting to grow their silicon carbide business significantly to meet the market demand, which we forecast will in turn drive incremental capacity of our FOX systems as well as our proprietary WaferPak full wafer Contactors.

“With the addition of this latest customer, we have significantly expanded our customer base by adding a total of four new silicon carbide customers this year. Each of these customers is already ramping or plans to ramp our products into high-volume production using our multi wafer test and burn-in systems.

“We also have multiple potential customers inquiring about our systems with the new high voltage option introduced last year to test and burn-in gallium nitride (GaN) semiconductors for power conversion applications. The gallium nitride market appears to be a potentially significant growth driver for our systems and WaferPak full wafer Contactors, particularly for automotive and photovoltaic applications where burn-in appears to be critical for meeting the initial quality and reliability needs of those markets. 

“We also see a major market opportunity with the upcoming application of silicon photonics integrated circuits for use in optical chip-to-chip communication. This is in addition to the current photonics transceiver market used in data and telecommunications. Multiple companies such as Intel, nVidia, AMD, TSMC, and Global Foundries have made announcements regarding their product roadmaps for co-packaged photonics integrated circuits with microprocessors, graphics processors, chip sets for computing as well as artificial intelligence applications. During the fiscal fourth quarter, we received our first order from a current major silicon photonics customer for a volume production FOX-XP configured to enable cost-effective production test of wafers of next-generation photonic integrated circuits, which can be used in new optical I/O or heterogeneous integrated packages. This customer is one of the world’s largest semiconductor manufacturers and we expect to receive orders for additional production systems as they increase production of these devices.

“Another major milestone is that we have now installed both configurations of our new fully automated WaferPak Aligner at multiple customers, with the standalone Aligner already accepted and released into production just this week, and the FOX-XP with integrated Aligner expected to receive acceptance before the end of our current fiscal first quarter. Our new automated WaferPak Aligner allows hands free operation of WaferPak handling and Alignment and is available either as a standalone with movement between the Aligner and portable carts or in full integration with the FOX-XP system. As capacity and volume forecast increase, eliminating all manual interfaces for automated handling can become critical. The added automation capability of our new Aligner gives our wafer level test and burn-in offering even greater value and opens several incremental markets to Aehr, such as high-volume processors and chipsets with integrated photonics transceivers, flash and ultimately DRAM memories. This capability is also important for high volume, high mix devices requiring extremely high reliability and 100% burn-in such as automotive microcontrollers and sensors. We have received positive feedback on our new Aligner from multiple current and prospective customers across several markets and believe it will be an important addition to our product portfolio going forward.

“The market forecast for wafer level burn-in products is significant. William Blair estimates that the total available market for wafer level burn-in products for silicon carbide alone will be over $400 million by 2027. We believe Aehr has the potential to capture a significant portion of that market based on the level of silicon carbide engagements we have with customers across the globe.

“We start fiscal 2024 with an effective backlog of almost $40 million and a strong forecast from our current and prospective customers. Our engagements with numerous potential customers give us confidence in our growth expectations over the next several years, including record revenue and profit projections for this current fiscal year that ends next May, particularly as the positive momentum in demand for silicon carbide in electric vehicles continues to accelerate.”

Fiscal 2024 Financial Guidance:

For the fiscal year ending May 31, 2024, Aehr expects total revenue to be at least $100 million, representing growth of over 50% year over year, and GAAP net income of at least $28 million, representing earnings growth of greater than 90% year over year.

Management Conference Call and Webcast

Aehr Test Systems will host a conference call and webcast today at 5:00 p.m. Eastern (2:00 p.m. PT) to discuss its fiscal 2023 fourth quarter and full year operating results. To access the live call, dial +1 844-735-3765 (US and Canada) or +1 412-317-5712 (International) and ask to join the Aehr Test Systems earnings call.

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 call and will remain available for one week. To access the call replay, dial +1 877-344-7529 (US and Canada) or +1 412-317-0088 (International) and enter replay passcode 7898611.