Aehr Test Systems (AEHR) F4Q 2010 (Qtr. End 06/30/2010) Earnings Call July 21, 2010, 05:00 PM ET Executives Lasse Glassen - Financial Relations Board Gary Larson - Vice President of Finance, CFO Rhea Posedel - Chairman of the Board, CEO Analysts Jeffrey Scott - Scott Asset Management John Nelson - State of Wisconsin Investment Board Presentation Operator
Actual results may differ materially from projected results and should not be considered as an indication of future performance. These risks and uncertainties include, without limitation, world economic conditions, the state of the semiconductor equipment market, acceptance by customers of Aehr Test's technologies, acceptance by customers of the systems shipped upon receipt of a purchase order, the ability of new products to meet customer needs or performance described, the company's development, manufacture and marketing of commercially successful wafer-level test and burn-in system and the potential emergence of alternative technologies, each of which could adversely affect demand for Aehr Test's products in fiscal year 2011.We refer you to our most recent 10-K and 10-Q reports and other reports from time to time filed with the US Securities and Exchange Commission for a more detailed description of the risks facing our business and factors that could cause actual results to differ materially from projected results. The company disclaims any obligation to update any information contained in any forward-looking statements to reflect events or circumstances occurring after the date of this conference call. Now I'd like to introduce you to our chairman and CEO, Rhea Posedel. Rhea? Rhea Posedel Thank you, Gary. Good afternoon and welcome to our conference call for the fourth quarter and fiscal year 2010. Net sales for the fourth quarter were $3.6 million, nearly three times greater than those of the same quarter of the prior year. With the full year results, net sales were $11.7 million, a decrease of approximately 45% compared to net sales of $21.4 million for fiscal year 2009. Despite the lower net sales we were successful in reducing our net loss to less than $500,000 in fiscal 2010 which is a significant improvement from the prior year. Importantly, we ended the year on a stronger financial footing.
I am pleased that we increased our fiscal 2010 year-end cash balance to $7.8 million, up from $4.4 million at the beginning of the fiscal year.A major highlight during the fourth quarter was the acceptance by Micronas of their second production FOX-15 wafer-level burn-in system. This is important for Aehr Test as it is evidence of Micronas' commitment to their wafer-level burn-in strategy. We are hopeful that as their [automotive] IC business grows Micronas will purchase additional FOX products during this current fiscal year. Another fourth quarter highlight was that we shipped several FOX-1 WaferPack contactors supporting Spansion's growing embedded NOR flash business. I am encouraged that Spansion has resumed buying WaferPack contactors again after a year-long dry spell. I'm also pleased that during the fourth quarter we booked an order from a top tier test lab for ABTS high power logic burn-in system. We are targeting the high power logic burn-in market up to 70 watts per device with our new ABTS L56I system. This order is an important win for Aehr Test because it is our first order of an ABTS system that supports individual temperature control per device. This should increase our visibility and credibility with other potential customers in this new market segment. We are partnering with Wells-CTI and using their iSocket Thermal Management technology in this high power ABTS system. Our field data shows that ABTS system offers both higher capacity and cost saving advantages which should allow us to gain share in the high power logic burn-in market. This is a growing market because as process feature size continues to decrease device burn-in leakage current and power increases. Our challenge in fiscal 2011 is to grow revenue for both ABTS package device and FOX wafer-test and burn-in systems. Read the rest of this transcript for free on seekingalpha.com