AEHR TEST SYSTEMS (NASDAQ:AEHR) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05.
Costs Associated with Exit or Disposal Activities.
On February 12, 2019, Aehr Test Systems (the “Company”) committed to a restructuring planin order to streamline its operations and better align the Company’s structure with its objectives going forward. This restructuring plan includes structural changes in the sales and marketing, R&D and manufacturing operations organization to focus the Company’s resources on the key market opportunities in test and burn-in of devices where confidence in reliability, security, and safety are critically important.
The Company currently estimates it will incur approximately $500,000 of cash expenditures in connection with the restructuring, substantially all of which relate to severance costs. The Company expects to recognize these restructuring charges in the third quarter of fiscal 2019. The restructuring plan is expected to reduce the Company’s operating expenses by approximately $300,000 per quarter starting in the first quarter of fiscal 2020 beginning June 1, 2019.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
In connection with the restructuring described under Item 2.05 above, Mark Allison, the Company’s Vice President of Worldwide Sales, and Carl Buck, the Company’s Vice President of Marketing, will cease employment with the Company effective as of March 29, 2019. Mr. Allison and Mr. Buck are expected to receive severance payments together totaling approximately $150,000, which are included in the estimate of cash expenditures in connection with the restructuring described under Item 2.05 above.
This Current Report on Form 8-K contains forward-looking statements, including, but not limited to, statements related to the expected costs and annual savings associated with and the expected timing of the restructuring plan. These forward-looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties. A further description of the risks and uncertainties relating to the business of the Company is contained in the Company’s Annual Report on Form 10-K for the year ended May 31, 2018, filed with the Securities and Exchange Commission (the “SEC”), and the Company’s subsequent current and periodic reports filed with the SEC. Except as otherwise required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this Current Report on Form 8-K as a result of new information, future events or changes in its expectations.
About AEHR TEST SYSTEMS (NASDAQ:AEHR)
Aehr Test Systems is engaged in the designing, manufacturing and marketing of advanced test and burn-in products to the semiconductor manufacturing industry. The Company manufactures and markets full wafer contact test systems, test during burn-in systems, test fixtures, die carriers and related accessories. The Company’s principal products are the Advanced Burn-In and Test System (ABTS), the FOX full wafer contact parallel test and burn-in systems, WaferPak full wafer contactor, the DiePak carrier and test fixtures. The Company develops, manufactures and sells systems, which are designed to reduce the cost of testing and to perform reliability screening, or burn-in, of complex logic devices, memory integrated circuits (ICs), sensors and optical devices. These systems can be used to perform parallel testing and burn-in of packaged ICs, singulated bare die or ICs still in wafer form.
