Aehr Test Systems (AEHR) Q3 2012 Earnings Call March 29, 2012 5:00 pm ET Executives Marilynn Meek - Gary L. Larson - Chief Financial Officer, Principal Accounting Officer and Vice President of Finance Gayn Erickson - Chief Executive Officer and President Analysts Geoffrey Scott Presentation Operator
These risks and uncertainties include without limitation world economic conditions, the state of the semiconductor equipment market, acceptance of 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 performance 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 calendar year 2012. We refer you to our most recent 10-K, 10-Q 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 Chief Executive Officer, Gayn Erickson. Gayn? Gayn Erickson Thank you, Gary. Welcome to everyone and thank you for joining us on our third quarter conference call. As I indicated last quarter, I'm extremely pleased to be here at Aehr Test, and I'm very excited about the opportunities for our company. In the past 3 months, I had the chance to visit a significant number of customers, I think a little over 20, in the U.S., Taiwan, Japan and Korea with many more to see. The reception that I received universally was both welcoming and encouraging, as our customers are very optimistic about the business prospects. This optimism is translating into our seeing increased activity the likes of which we have not seen since before the downturn. This, coupled with the growing recognition of our products' value proposition and our competitive advantage, resulted in a significant increase in orders during the third quarter. Aehr Test ended the quarter with the largest backlog that we have had in the past 3 years.
Let me take a few minutes to bring you up-to-date on recent orders and significant milestones we have achieved. We announced in January that we received an initial order for our ABTS, which is the Advanced Burn-in and Test Systems for our high-powered device burn-in system from a leading logic, analog and mixed signal semiconductor manufacturer. This is a major milestone for us at our company as we believe that they will purchase additional ABTS systems for both production and engineering burn-in requirements as they ramp capacity for new higher-powered wireless and mobile processors. The purchase signifies the successful completion of extensive qualification of the ABTS system performed at the customer site.Also today, you'll see we announced 3 additional significant orders for us on the line. One order was for our ABTS from a leading test lab in Korea that focuses on reliability qualification and High Temperature Operating Life testing. Labs such as this one in Korea demand premium performance and reliability from their test and burn-in system to the duration of the test, which often lasts 6 weeks or longer. A typical HTOL or High Temp Operating Life test lasts 1,000 hours for a single lot of devices. This ABTS system features high-power logic device testing capability, using our dynamic individual temperature control and advanced test capabilities. The second order is a follow-on production order for our ABTS systems from a leading provider of embedded wireless technology. This order confirms that the burn-in and test process using the ABTS system is effective for this customer's wireless devices that are used in the automotive market, which requires that the ICs be qualified to operate extremely reliably in harsh environmental conditions. Read the rest of this transcript for free on seekingalpha.com