Aehr Test Systems (NASDAQ:AEHR) Q2 2020 Earnings Conference Call - Final Transcript

Jan 09, 2020 • 05:00 pm ET

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Aehr Test Systems (NASDAQ:AEHR) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you, sir. [Operator Instructions]. We'll take our first question from Christian Schwab with Craig-Hallum. Please go ahead, sir.

Analyst
Tyler Burmeister

Hi, guys. This is Tyler on for Christian. Thanks for letting us ask a few questions.

Executive
Gayn Erickson

Hi, Tyler.

Analyst
Tyler Burmeister

First, a similar question -- hi guys. I think a similar type of question I've asked in the past. Could you help bridge the gap between these current revenue levels and the expected strength in back half, what that incremental growth is particularly coming from maybe rank or just broken down by customer or end market type?

Executive
Gayn Erickson

Well, normally, as it is, we've been relatively conservative on detailing our forecast in general. But I think that as we look at our second half, the expectation is that it would be of similar type of mix of markets, particularly from a revenue perspective, I don't think we'll see any significant revenue in a new market segment, if you will.

So, the customers that were anticipating -- that have ordered, that will be shipping against backlog and the new orders that will be getting including orders that will come in time to ship are within, as I said, the primary market segments. We talked about I think silicon photonics, it will be largest. Silicon carbide is in there. Some automotive applications and some of the 3D sensor, particular mobile sensor applications will see bookings and revenue in our fiscal second half to fill out our range of forecast.

And just a little bit of color behind the range of $27 million and $31 million, one of the challenges for our business always is the customers range of forecast in a system that comes in, in May 31st versus June 4th can have an impact on us. We're seeing positive feedback from customers, bookings and revenue forecast from pretty much all of our customer base and just depending on how those things play out is where we think we're going to come in. But I think we're still feeling really good about our range and choose not to tighten it up at this point, but we'll see as we continue to go through the second half as to where we come in. Okay?

Analyst
Tyler Burmeister

That's perfect. Thank you. And then maybe for Gayn, a little bit more of a modeling question, maybe a couple of parts here, so on gross margins, I don't believe I heard you reiterate your previous guidance was for 46% -- 40% [Phonetic] for the full year. I guess is there a chance that could be a little bit better now? And then also with the WaferPak and DiePak products being 44% of revenue this quarter, is that maybe a little bit high as far as the immediate run rate? And how might that kind of affect margins in the back half of the new year.

Executive
Gayn Erickson

So, I'm going to look at Ken a little bit across here, but I think our margins, you would probably anticipate to be somewhat similar, although, I think