What’s Aehr Test Systems (NASDAQ:AEHR) Predicting?


When Aehr Test Systems (NASDAQ:AEHR) posted its F3Q2016, management admitted that the numbers reported weren’t exciting. Revenue and earnings in the quarter pulled back relative to the corresponding quarter a year earlier. Management blamed delays in the shipment of their next-generation testing systems for the adverse impact on the financial performance.

According to Aehr’s CEO, Gayn Erickson, they are making progress toward shipping of the upgraded systems and he believes that the future is promising despite the near—term pressures. For example, the CEO said that a key customer recently approved and accepted the final test system, which marks a milestone in beginning the shipment of the next-generation systems.

In the meantime, Aehr Test Systems (NASDAQ:AEHR) is in talks with another key customer and believes the customers will be placing initial order for the new system within the current quarter. Aehr’s high-volume product test cell is priced between $4 and $7 million.

What did Aehr report in F3Q?

Aehr Test Systems (NASDAQ:AEHR) posted net sales of $1.7 million in F3Q2016, weaker than $2 million in the similar quarter a year ago. Non-GAAP EPS loss of $0.21 was wider than non-GAAP EPS loss of $0.12 in the corresponding quarter a year earlier.

On a GAAP basis, EPS loss was recorded as $0.23 for the latest quarter, higher than $0.14 in the year ago quarter.

Aehr explained that both the GAAP and non-GAAP net losses in F3Q2016 included $0.6 million one-off write-downs relating to obsolete materials for earlier generation products.

What about the first nine months of fiscal 2016?

Aehr Test Systems (NASDAQ:AEHR) also updated on the financials for the first nine months of F2016. Net sales for the period rose 58% from a similar period last year to $12.9 million. Non-GAAP EPS loss for the period came in at $0.23 compared to $0.34 a year earlier. GAAP EPS loss of the period was quoted at $0.29 compared to $0.40 in the corresponding period last year.

Growth expectations

As Aehr Test Systems (NASDAQ:AEHR) moves closer to shipping its next-generation test systems, the management is projecting substantial top-line and bottom-line growth. The growth is expected to primarily come from higher ASP and margins for the new systems.



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