Aehr Test Systems (AEHR) F1Q2011 Earnings Call Transcript September 30, 2010 5:00 pm ET Executives Lasse Glassen – IR, Financial Relations Board Gary Larson – VP of Finance and CFO Rhea Posedel – Chairman and CEO Analysts Geoffrey Scott – Scott Asset Management 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 a 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 other reports from time to time filed with the U.S. 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 information contained in any forward-looking statements to reflect events or circumstances occurring after the date of this conference call. Now, I would like to introduce our chairman and CEO, Rhea Posedel. Rhea? Rhea Posedel Thank you, Gary. Good afternoon and welcome to our conference call for the first quarter of fiscal year 2011. Net sales for the first quarter of fiscal 2011 were about as we expected at $2.2 million, up compared to the prior year's first quarter net sales of $1.3 million. The net loss for the quarter of $1.5 million compares to a net income of $1 million in the first quarter of the prior year, but it should be noted that last year's number included a $3.3 million benefit from the sale of a portion of our Spansion U.S. bankruptcy claims. We had four highlights during the first quarter that I would like to bring to your attention. To begin with, in our previous conference call I mentioned that Spansion, a leading NOR flash producer, has exited from bankruptcy and is winning more business and adding capacity. As a result, they are running more products through our FOX-1 full wafers or testers. During the first quarter, we announced receiving approximately $2 million in orders for our FOX full wafer WaferPak contactors. We expect to receive additional orders for WaferPak contactors and FOX-1 system upgrades over the next few quarters.
Second, we are pleased to report that we shipped and received acceptance for a new version of our MAX-4i Burn-in system, supporting individual device temperature control. The customer is a major Japanese consumer electronics IC producer and we remain hopeful that they will – we will receive follow-on orders later this fiscal year.Third, in the first quarter we announced that we are partnering with ISE Labs, the largest semiconductor test services provider in Silicon Valley, which will provide burn-in services for low to high-power devices using our new ABTS-L56i system. The ABTS-L56i system was shipped to ISE Labs in our first quarter and we expect to recognize revenue on this system later this fiscal year. As we have mentioned in the past, we are targeting the high-power logic burn-in market of up to 70 watts per device with our new ABTS-L56i system, which provides individual device temperature control. Having an ABTS system at a leading test lab like ISE is important, because this should increase our visibility and credibility with other potential customers in this growing market segment. Our field data shows that the ABTS system offers higher capacity and cost savings advantages, which should allow us to gain share in the growing market for high-power logic burn-in. And finally, our development team continues to make progress on a new low-cost ABTS platform for low to medium-power logic devices. As you may recall, last March we announced the sale of a special ABTS system to a major Japanese integrated device manufacturer for burn-in of high-end microcontroller devices. This first system is scheduled to ship in the second quarter. We expect follow-on production orders from this customer after the system is qualified for production. Read the rest of this transcript for free on seekingalpha.com