Aehr Test Systems (NASDAQ:AEHR) Q4 2023 Earnings Call Transcript

Christian Schwab: Great. And then just if I could slip one last question in. The difference between you said at least 100 million, what should we be looking for monitoring throughout the course of the year to say that revenue goes 100 million, 105 million? What would it take for revenue to be 120 million or 130 million? Is there one or two things you could point us to that you’re thinking about or is it just too early to think about that?

Gayn Erickson: Yeah, I mean, it’s too early. A lot of this is just still uncertainty and timing of customer ramps themselves. That’s one of the challenges with this thing, I mean, an ASP of a system with a set of WaferPaks at $4 million plus or minus a couple of days is a big number, right, on a quarter and on a year. But for us to be able to look out there and try and understand what it was, I think, we’re confident that’s why we use at least $100 million. But, you know, as things firm up and we get a little bit more visibility and we believe that we will, you know, it gets a lot stronger. We’ll let you guys know. But we’re starting off with a great backlog. We have great forecasts of current and prospective, which we believe are likely to be customer wins this year.

And as those things firm up, I mean, it’s boding well and we think that it’s — we’re just right at the start where a lot of these companies are starting to kick in the silicon carbide plans. This last year was kind of a big number for us in terms of just sort of the initial progress got us to test our wheels to be able to ramp up our production and things like that. But we’re just going to be continuing to ramp as we go into the end of into this year and certainly into the next year.

Christian Schwab: Fantastic. No other questions. Thanks.

Gayn Erickson: Thanks, Christian.

Ken Spink: Thanks, Christian.

Operator: The next question comes from Jed Dorsheimer with William Blair. Please go ahead.

Jed Dorsheimer: Hi. Thanks for taking my question. Congratulations on the quarter. Ken, I hope you have some good travel plans and, Chris, welcome. It’s been a while since the AeA days at meeting with you at Trident. So welcome to Aehr.

Chris Siu: Thank you.

Jed Dorsheimer: And then I’d be remiss, Gayn, thanks for the technology primer. So I appreciate that. I guess just want to dig into basically what Christian was kind of coming to and maybe just take a different, a slightly different angle, which is around the sausage making for this — for your — your full year guide. And specifically if we look at this past year and your largest customer being 52 million based on the 79% and their targets of growing 300% over the next few years. I would assume that creates a solid base for your — for your business. So as you look at already having 8 million to 10 million booked on that, number two, you’re really talking about a 30 million incremental number to hit that minimum threshold and you’ve already got three customers.

So could you just walk us through sort of how when Vernon brings the spreadsheet of the customers, how you’re thinking about the puts and takes for that level of confidence in terms of that guide? And then I have a few follow-ups.

Gayn Erickson: Sure, Jed. As I hear you talk through that, I felt like you were going to end it with why we’re such sandbaggers but anyhow.

Jed Dorsheimer: I would never say that again.