Aehr Test Systems (NASDAQ: AEHR) Enters Investment Agreement With Semics


Aehr Test Systems (NASDAQ: AEHR) and partner Semics have inked an investment deal that also includes product development and manufacturing collaboration. Semics will acquire 200,000 common shares in AEHR as part of the agreement.

Aehr Test Systems (NASDAQ: AEHR) didn’t say what kind of financial impact it anticipates from the latest deal it is signing with Semics. However, the management of the company provided a glimpse of how the see the deal working out in the future.

Strengthening existing partnership

It is not the first time that AEHR and Semics are coming together in a strategic partnership arrangement. The companies have been collaborating in development and manufacturing of a number of products. However, they believe that they can increase their opportunities if they work closer together in the future, which is why Semics has decided to make an equity investment in AEHR.

According to AEHR, the initial products from collaboration with Semics have already been delivered to some customers and have been qualified in a production environment.

The milestone that the companies have reached in their strategic partnership has inspired the desire for closer collaboration between them. One of the areas that AEHR cited it expects to work closely with partner Semics is wafer automation.

$4 million order

The announcement of development and manufacturing collaboration comes after Aehr Test Systems (NASDAQ: AEHR) recently announced a repeat order from a leading semiconductor manufacturer. The company said the order is valued at $4 million and it expects to ship the order in within the first three quarters of F2017.

Though AEHR didn’t identify the customer, CEO Gayn Erickson said that repeat order is a positive gesture for their base business. Erickson recalled that the base business has been soft in the last few quarters.

How Aehr Test Systems (NASDAQ: AEHR) fared in F4Q2016

Aehr Test Systems (NASDAQ: AEHR) posted EPS loss of $-0.44, missing the consensus estimate for breakeven. However, revenue of $14.5 million rose 45% YoY and easily topped the consensus estimate.


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