Aehr Test Systems (AEHR) Q1 2012 Earnings Call September 29, 2011 5:00 pm ET Executives Gary L. Larson - Chief Financial Officer, Principal Accounting Officer and Vice President of Finance Joe Calabrese - Rhea J. Posedel - Founder, Chairman and Chief Executive Officer Analysts Geoffrey Scott Presentation Operator
These risks and uncertainties include, without limitation, world economic conditions, the state of the semiconductor equipment market, acceptance by customers of Aehr Test technologies, acceptance by customers of the systems shipped upon receipt of a purchase order, the ability of new products to meet customer needs or perform as described, the company's ability to maintain sufficient cash to support operations, the company's 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 products in fiscal 2012.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'd like to introduce our Chairman and CEO, Rhea Posedel. Rhea? Rhea J. Posedel Thank you, Gary. Good afternoon, and welcome to our conference call for the first quarter of fiscal 2012. I'm pleased to report that we got off to a good start in our first quarter of fiscal 2012, as reflected by our revenue growth on both a year-over-year and a sequential quarterly basis. Net sales for the first quarter were $4.1 million, 90% higher than the first quarter of fiscal 2011 and up 10% sequentially compared to net sales of $3.7 million in our prior quarter. During the quarter, we benefited from revenue of approximately $2 million in FOX-1 WaferPak contactor system upgrades and services from a leading NOR flash producer. Importantly, we also saw an increase in ABTS system revenues as we continue to make inroads adding new customers.
We had a number of additional highlights that I'd like to bring to your attention. First, our Nor flash customer has all of its FOX-1 testers up and running. Our field support team did an excellent job in moving the systems from its prior Japanese production site and reinstalling and getting them production-ready on schedule.Second, we shipped our new ABTS-L56i burn-in system to a leading logic integrated device manufacturer for evaluation. The target application is for burn-in of high-power logic devices requiring individual temperature control per device. Even though this won't be recorded as revenue until our customer validates that the ABTS can pass their qualification process, we believe this is a major milestone. This customer has a high-interest level in our ABTS because it offers higher capacity at a lower cost per device than competitive systems. If the qualification is successful, which could take up to 3 months, we believe this customer has the potential to order significant quantities of ABTS systems over a number of years. Third, on September 1, we shipped the first ABTS burn-in system to a leading Japanese microcontroller producer's Singapore production site. We announced booking this order on last quarter's conference call. We are hopeful that this could be another major opportunity for us, as we expect this site to purchase significant quantities of systems in calendar 2012 and 2013. Fourth, we continue to gain traction with our ABTS products. Having landed a new customer in Mainland China, as well as having booked follow-on ABTS systems to existing customers. Finally, we shipped the first article of 1 of 5 new WaferPak contactor designs to a leading automotive provider of magnetic sensors for use in their FOX-15 wafer-level burn-in systems. We would expect to see follow-on production WaferPak orders for some of these new designs in calendar 2012, as demand for new cars drive their sensor sales. Read the rest of this transcript for free on seekingalpha.com