Hello, and welcome to the Aehr Test Systems Fiscal 2023 First Quarter Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Todd Kehrli of MKR Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, and welcome to Aehr Test Systems first quarter fiscal 2023 financial results conference call. With me on today’s call are Aehr Test’s President and Chief Executive Officer, Gayn Erickson; and Chief Financial Officer, Ken Spink. Before I turn the call over to you Gayn and Ken, I’d like to cover a few quick items. This afternoon Aehr Test issued a press release announcing its first quarter financial results. That release is available on the company’s website at aehr.com. This call is being broadcast live over the internet for all interested parties and the webcast will be archived on the Investor Relations page of the company’s website. I’d like to remind everyone that on today’s call management will be making forward-looking statements that are based on current information and estimates, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements which may cause the results to differ materially from those in the forward-looking statements are discussed in the company’s most recent periodic and current reports filed with the SEC. These forward-looking statements, including the guidance provided today are only valid as of this date and Aehr Test undertakes no obligation to update the forward-looking statements. Now I’d like to turn the call over to Gayn Erickson, President and Chief Executive Officer of Aehr Test. Gayn?

Thanks, Todd. Good afternoon, everyone. Thank you too for joining us on the first quarter conference call. Let’s start with a quick summary of the highlights of the quarter and momentum we’re experiencing in semiconductor wafer level test and burn-in market and then Ken will go over the financials in detail. After that we’ll open up the lines to take your questions. We’re off to a good start this year finishing the quarter with revenue and net income ahead of consensus estimates and strong bookings of $19.1 million. Revenue for the quarter was $10.7 million, which is up at 89% year-over-year and we’ve generated non-GAAP net income of $1.3 million. As we’ve noted before and discussed last quarter, over the last couple of years, our first quarter tends to be our seasonally softest quarter, as it was again this year and we expect each consecutive quarter to ramp higher throughout the year. So let me get right to it and talk about how we’re doing it getting into more accounts focused on silicon carbide for electric vehicles and other markets since that’s where a lot of the questions are coming in at. We’re currently engaged or in discussions with almost all the existing and future silicon carbide suppliers now, regarding our unique low-cost multi-wafer level test and burn-in solution that enables contact to and test of 100% of devices on every wave. This allows our customers to burn-in every device at a lower cost than they could in any other form, due to our ability to contact thousands of devices on each of 18 wafers at a time with our FOX-XP multi-wafer test and burn-in system and proprietary FOX Full Wafer Contact WaferPaks. All of these major silicon carbide companies expect that electric vehicle traction inverters will move to multi-chip…

Thank you, Gayn. Good afternoon, everyone. We’re off to a solid start to fiscal 2023 after a record Q4 and fiscal 2022. During our first quarter we recognized strong revenues, increased backlog and improved cash flow. As Gayn noted, revenue for the first quarter was up 89% year-over-year. Both our bottom -- our top and bottomline results came in ahead of analysts estimates for Q1. Bookings in the first quarter were $19.1 million and we ended the quarter with a healthy backlog of $19.5 million. Included in our bookings were announced orders of $16.8 million from our lead silicon carbide customer for additional systems, WaferPaks and a high volume production WaferPak Aligner. Looking at our financial results, net sales in the first quarter were $10.7 million, which is down 47% sequentially from our record sales of $20.3 million in the fourth quarter and up 89% from $5.6 million in the first quarter last year. The first quarter sales were consistent with our expectations and we are forecasting significant growth in the upcoming quarters. The sequential decrease in net sales from Q4 includes a decrease in WaferPak, DiePak revenues of $8.7 million. These consumable revenues accounted for only 5% of revenues in Q1 2023, compared to 45% of revenues in Q4 2022. Customers often buy systems and then WaferPaks later, after they’ve completed their WaferPak designs. While our lead customers ordered several systems recently, we have yet to receive all the WaferPak orders to match up with these systems. We expect to receive these WaferPak orders later this year. This change in product mix had a direct impact on our gross margin in Q1 2023, as our Consumables business delivers higher gross margins. Gross profit in the first quarter was $4.5 million or 42% of sales, down from gross profit of…

Thank you. [Operator Instructions] The first question today comes from Christian Schwab with Craig-Hallum Capital Group. Please go ahead.

Good evening, guys. Congrats on a great start to the year. Gayn, can you…

Hi, Christian.

Could you give us a number, you talked about being engaged in discussions with almost all existing and future silicon carbide suppliers as you see it today? How many potential customers is there?

Well, that’s a good question. I actually don’t have that in front of me. I’m looking -- I’m kind of mentally imagining the list that Vernon has and it’s a pretty long list. I’m kind of guessing here, but a dozen or more it kind of range, I’d say.

Okay. Great. And then…

Yeah.

…as the several new customers ramp throughout the course of this year, is this the type of ramp that you expect to accelerate strongly this year and be greater next year? And can it ramp to the level that your largest customer ramped, once they started making production type of orders on a kind of a…

Couple -- I mean, a couple of questions in there. I mean, the traditional model is people usually take like one system and they will, I call it, sit on it and work through some issues or just make sure it gets called into production, then they’ll order another one and you go through lead times and then start shipping it. I would say, that’s not what the shape looks like with these customers. It’s more of full systems, maybe multiple systems in a short period of time and some cases in multiple facilities and it’s kind of go, go, go. So, now, the other customer has -- our lead customer has been making some really significant investments. They, to some extent, led the industry in this wafer-level burn-in portion. It’s certainly been felt in the industry, everybody’s quite aware of it and they took a pretty long time to absorb the first one and then started ramping pretty hard. My guess is, is that, it’s softer during the first six months to 12 months and then it gets stronger thereafter. We’ll see it. It depends on the customer. Even -- it’s kind of interesting, I mean, even with test times, I’ve had been engaged with customers and they’ll tell me their test time is such and such over and over and over again. And then they go to place the order and then they told me the real test times and they are longer than they were. Why is that? Is it just they’re trying to be coy or not tell you everything? So we’re right now when things happen is we’re definitely trying to ferret out long, lead and forecasts for multiple customers, as we just stated, to just make sure we have plenty of material on that is being purchased. But I think they will start a little slower and then gradually pick up. And as we had -- if you look at the amount of capacity that everybody’s talking about to hit in 2025 calendar-wise, most people are just really focused on second half 2023 and into 2024 is where just a lot of capacity is coming online and so it may be less to do with the timing of us as the timing of that silicon carbide ramp. And our goal is to get qualified before that ramp happens and have a ton of capacity and material on hand to be able to address it.

That’s a great question, Gayn. Can you remind us what you think your yearly manufacturing capacity is or could be by the time you get to calendar 2025?

Yeah. I mean, it’s broken up of maybe a few things. One is that seemingly what most people think is the obvious, which is if you come look at our facility, and you say, well, how many tools can you build on the floor here. But in reality, that’s some ways the easiest thing. The testers basically bolt-in to water and power and they test themselves. And we have a pretty good sized facility here with enough test based to build significantly. Ken alluded to that. We’re actually going to be doing some investments probably couple few million dollars into the facility over the next couple of years, putting in additional power, water drops and some other enhancements to support our WaferPak business as well. But that would allow us to have maybe 10-plus drops, meaning we can be billing 10 systems at a time on two weeks spreads. I mean, that’s a lot of capacity, more than the whole industry would take right now. We were building 20 systems a month, for example. The next one is the subcontractors that are building all those subassemblies that come to us and then I have to go down the list of them. But basically, we have multiple chambers suppliers, multiple blade suppliers, multiple printed circuit board suppliers. And generally speaking, even as grandiose as we are excited, we don’t really press that. And the key here is we’ve been able to do this without really being impacted by everybody’s whining about supply chain, outside of one thing and that’s the last one and that is the semiconductor components. Semiconductor components we have a really, really good handle on. We know exactly how many that go in the system, we’re forecasting and we’re buying semiconductor components right now 12 month and 18 months out, and have been for 18 months. And because of the, quite frankly, massive leverage on semiconductor components to our revenue, we’re able to afford to buy a lot of semiconductors ahead of time. So we’re just not really being caught. Now having said that, we still have our onesie, twosie along the way and hiccups, and the guys are working their butts off to just make sure it looks like it’s easy. But for the most part, we’ve just not been impacted and allow us to keep both our lead times down and our capacity up. But could we go ship $100 million, $200 million, $300 million worth of FOX-XP systems in a year? Absolutely.

Great. And then just one last question, I’ll let others chime in. In your guidance of $60 million to $70 million, can you give us just kind of your rough expectation of what you think you’ll be customer will be of that?

Well, not as much as it was last year as a percentage. So that’s a good sign. And some of the upside within that range and some of the upside beyond that range include them. And just not always having all the perfect visibility we have, obviously, we know a lot more about sharing, but they’re going through all kinds of different manufacturing plans scenarios where they’re going to be putting systems more facilities. And we don’t -- even with our current installed base customer, we don’t have perfect visibility. So partly we just buy enough material, because we can anticipate the amount of market share that we’re going to have. But we definitely have within that number several new customers and not just engineering, but product -- first production systems being installed. And the part of the front end of that, too, is how many will we get installed in time, will we have any kind of rev rec things with respect to being right on the edge with their acceptance, that creates some of the sort of uncertainty. Guys, if we didn’t have to do quarters or years, you hear from CEOs all the time, my life would be a lot easier. The reality is, if I just look in the next year or I look out to next December and you look at what that ramp looks like, I’m way more focused on that. But I get it, we’ve got straight expectations to meet and we want to make our shareholders happy too. I just think exactly timing everything within a quarter. Sometimes it’s harder. And that’s where you see that kind of wiggle room of the $60 million to -- at least $60 million to $70 million and we -- and then make statements like and we have capacity to do beyond that, okay?

That’s great. Well, just a quick follow up on that, is -- using your words, if you could just look out for December, after of next year, if we looked at your business in the calendar basis, next year that you’re excited about it, how big of a revenue range opportunity are you thinking about?

Yeah. I am not going to go there, Christian. Sorry, we spent a lot of time making sure that I’m -- that’s the one thing we do discuss as a Board pretty hard to make sure. I apologize for that. But I will tell you, I’m very confident and I’ll go ahead and it’s not a big stretch out there. We definitely believe that will grow next year over this year. Let me leave it at that.

Yeah. Great. All right. No other questions. Thanks, Gayn.

Okay. Nice try though, Christian. All good.

The next question comes from Bradford Ferguson of Halter Ferguson Financial Group. Please go ahead.

Hello. I’m curious, is your lead customer successfully making their own substrate. Wolfspeed has come out and said on a go-forward basis, as of some certain date, they’re not going to be selling substrate or extra substrate to other suppliers of silicon carbide devices. I am curious if this is a risk for Aehr Test Systems?

So obviously we have insight under non-disclosures and given the fact that I said I’m talking to all of them major suppliers, you can imply I’m talking to every one of the big guys, including the ones you mentioned and then some under non-disclosures. And that gives me in many ways way more visibility than others, but primarily related to the devices. There exactly what they know non-public related to their substrates. I don’t have as much visibility and I wouldn’t really share. It’s my belief that all of the major suppliers are all having success and counting on success of developing their own substrate supply chain, and obviously, that includes the big guys. Wolfspeed, of course is, has been, was the major supplier of it, they’re obviously expected to be very successful making devices out of that. ST, with their announcement of their new fab or their manufacturing facility is absolutely counting on ramping their own. And obviously, on Semiconductor is another one along those lines in the course, Infineon has got some more going on, too. It’s my belief that all of them will be successful. I don’t -- I’m not hearing anyone that can genuinely say, there’s certainly people that are saying it’s not as easy as it looks. It’s take some time, but there’s a lot of money being put in. I mean, Wolfspeed spent 30 years working on this stuff and they -- their competitors are spending more money to make pools in this year that maybe Wolfspeed spent in their whole career or so. I don’t know if that’s fair, but it feels like that. So, there’s a lot of energy to go try and solve this problem and my belief is they’ll find, they’ll figure it out.

One name I haven’t heard you mentioned is Infineon, are there any large silicon carbide makers who aren’t doing wafer-level burn-in or doing that in math as the others intend to do?

Let me do it differently. There’s most of the vendors, most of the companies today have either little or zero wafer-level burn-in with the exception of our lead customer. I actually happen to know by quantity how many wafers a capacity and it is a very small fraction comparatively. Keep in mind, one of my systems can test 18 wafers at a time. We’ve publicly talked about our competitors. I choose really not to do it in this forum, because then they can read about it and it’s not because -- but the people that are out there test one way for at a time with a prober and it just doesn’t scale. I mean, in the same footprint of, I actually use this analogy. I apologize if I did it on this group before. But our tester and the surrounding area that it takes to actually service it is about the size of like a small Prius car and it sits in a parking lot, like imagine that space, okay. That’s what our system is and in that stall I’m looking at at our parking lot, in that room -- actually it’s smaller than that, but in that room, you can test 18 wafers. That’s about the same size as our competitors test one. If you go through the math and I’ve done this before, if you realize that the world needs 8 million wafers in 2030, that was a Canaccord number and I round down using like 8700 hours a year with inefficiencies, et cetera. You need 1000 wafers an hour, okay, to meet that demand. So if you start looking at like a 10-hour burn-in time, you have 10,000 wafers of capacity, that’s a 10,000 car parking lot by my competitor. Now we’re 18 times smaller. It’s -- we’re not zero footprint. But in the cost of it of a manufacturing floor of a wafer fab, that’s enormous. And so if you’re a player playing in a market that’s going to need 10,000 wafers of capacity of testers and you want to have 20% market share and you need 2000 wafers a capacity. Where are you going to put that? There is no test floor in the world that has 2000 wafers that -- it can support 2000 wafers -- wafer probers for silicon carbide. There’s no way. So we’re just -- obviously a very big opportunity.

Can I ask one more?

Sure.

You mentioned a brand new player that’s an experience chipmaker, are there chipmakers that are going to enter this market and sizes like the current announced plans of the top three players like our other people going…

Yeah. I had -- we’re talking to now several. I had to go double check that, because we’ve been talking to these guys for not very long by the way. I mean, I wouldn’t say it’s been four months that we went from zero to first order in four months with these guys. I had to go double check to make sure they haven’t publicly said anything when I wrote that, but they haven’t. And we -- there’s another customer we’ve been working with that has never said anything public, either. But I did notice they showed up at one of the tradeshows recently, I still not going to talk any more about it. But we know they have massive plans, on the order of to some of the current top fours. Keep in mind, and this is always, I’ve done this math before, it’s always interesting, if you just go through the simple math of these forecasts and say there was 125,000 wafer starts to do silicon carbide last year and there’s 4 million, I think, if you remember, like, 25 times. Another way of thinking about it is that, all of the silicon carbide that was built last year, right, is not even what 2% or 2, what is that like, I’m sorry, go ahead 25 year, 4% of the overall market, you get that. So all of the suppliers today don’t even dent the market in eight years. So they all have to grow substantially. People need to grow a lot to just sustain a small percentage market share. So they’re going to need a lot more players. I mean, I sat in meetings where leaders like ST Microelectronics, who is the number one at a conference last May in San Diego, he stood up and said, listen, I just want to be very clear, we have no plans to build enough capacity to maintain a 50% market share like we did last year. They just don’t. They’re not going to spend that much. So by definition, they’re going to lose market share from being number one at 50%. But they’re still planning to grow like a huge amount, but they’re not going to go 25x. So the world actually needs a lot more players.

Hey. Thank you very much.

You’re welcome.

The next question comes from Gregory Ratliff with Nobis Partners. Please go ahead.

Yeah. Mr. Erickson, congratulations on the company and the good the opportunity [ph]. One thought I have is to carry on with that final question and if you were to look at the maybe the weaknesses in the structure of the company currently or the competitive threats down the road. Could you give us a bit of your thinking regarding what you need to do to continue to be a champion or to be a champion, but the tough competition they had? That’s…

Okay. So, I’m not foolish to think that as the market is obviously large and growing, there won’t be people trying to figure out how to get into it. We are in a particular unique scenario where the way we do our testing is truly unique. Perhaps you could say, it could be in a negative connotation. If you look at every way for tester in the world, I’ve been in this industry for 35 years. I built them for most of that. The way you build an ATE system to test semiconductors is all the same. Every one of the companies, all 20 of them in the last 20 years have done it the same way. You build a tester box that sits on one of the three main wafer prober companies probers, it docks to one of 20 probe card suppliers and the three different industries, the tester, the prober and the probe card supplier have effectively have multiple people competing for the same capability and then people buy those tools, integrated themselves and put them on their floor. And that is a very successful business. It’s -- combined it’s a big chunk of the $13 billion semiconductor automated test business last year. The problem with that is that those test times are all designed around seconds of test time. And so that test style might be an average somewhere between $1 million and $2 million to test the wafer. If you just look at the capital depreciation, testing one or two or four, eight devices at a time, it’s extremely expensive to do it, but the test times are so low, it’s okay. Now you take that exact same test time. And by the way, that’s how you test silicon carbide at wafer level today. Functional test…

Thank you so much for that.

Thank you, Greg. It’s nice talking to you.

My pleasure, sir.

The next question comes from Matthew Winthrop with Equitable. Please go ahead.

Hi. Hi, there. Gayn, how are you?

I’m good, sir. In a particularly good mood these days.

You sound it. I wanted to just blow some smoke for a quick second. As you know, as a retail advisor, I’ve been following Aehr for four years or five years. I have lived through this downtime. And you were so brutally honest when things weren’t great and I just wanted to thank you and commend the fact that you guys have kept your eye on the ball, and obviously, you’re starting to see some successes and that’s a rare attribute in this environment that we’re in. So nice work, sir.

All right. I really appreciate that. Real quickly, it does seem on the outset that you’re having shorter lead times, because of how well a customer wanted to see and when they got it and they messed around for a while. Am I interpreting that correct that the mass adoption or that your system really does work that well. But what’s changed now, are they more in the workforce that suddenly sounds like the sales lead time is a little quicker unless I’m misinterpreting that?

Yeah. I think I got it. You broke up a little. So I apologize if I think I got the gist of it. So let me kind of repeat it back a little bit. So this idea that, it seems like things are going a little faster, maybe the sales cycles a little shorter, et cetera. There’s -- that’s absolutely the case and I think there’s a few things going on there. This really is one where COVID being over helps, okay. I mean, just things were so slow with current and new customers and people weren’t traveling and it’s just hard to sell and it’s hard to communicate. You can only do so much over tune. So that’s definitely one of them. There’s also this element that, if you -- three years ago, right, we were selling these systems, people know the lead customers of this platform were Apple and Intel and ST Microelectronics and some of these, because they were 10% customers for us, right? But they’re still kind of…

Right.

… is it real, does it really make sense, it’s kind of niche, these are weird products, whatever it is, right? It’s like, I’m not sure. Then all of a sudden as people know that one of the big silicon carbide customers came along and bought this, and quite frankly, bought one system and sat on it for more than a year, of course, code was going on. So there’s still sort of this, is it real, is it really going to work, does -- that whole thing. Then all sudden, they start ramping, then all of a sudden, from what it feels like and I’ve heard this directly, they -- companies that they’re selling to are kind of coming back, because they really have done a good job of marketing themselves has being quality differentiated, selling the modules, selling the quality of the modules, and quite frankly, they did presentations, I talked about their wafer-level burn-in earlier and I think it’s come through. So then they’re winning deals and those customers, their customers are turning around and talking to now their competitors and saying, oh, do you have wafer-level burn-in? There’s no doubt some of that’s going on, okay. And we’re doing everything we can do to foster that environment, okay. Because all we have to do is get somebody say, I want to do wafer-level burn-in and right now, we win. We’re done, because our value proposition, our solution, our lead times, our price points, they’re a slam dunk. And so right now it’s like, we’re not taking advantage of this. We’re not raising up. We did not raise our prices, guys, okay. Did not do it. We had some things where our cost went up. I mean, I did pay $50,000 to ship a chamber and last Christmas, it was crazy. But I didn’t pass that on to my customer. I’m not doing that game. And I -- we make good money. We’re going to make a lot of it. We’re going to provide a value to our customers and we’re going to be there for them. And I think that we’re in this -- in good position because of that.

That’s great. I have one follow up if I may. I’ll act like an analyst here. Last quarter what were you projecting for potential revenues for was a calendar of fiscal 2023, but now I think you’re release said $60 odd million, maybe more. Had that number just in the last quarter increased dramatically or was that?

No. We provide -- we really only provide guidance annually and we only do it once a year, rather we have kind of fallen into the we reiterate or in some cases we’ve uptick.

Okay.

So we provided that guidance. And I get it, people said, what does that mean at least $60 million or $70 million? Is it $60 million and is it $70 million. What -- and we were not intentionally trying to be acute, but that still feels about right? I mean, we think we’re in good shape for that and it just really depends on some of the timing of these customers ramps. So sometimes I don’t feed anyone questions, but I’m going to feed you a question that is, were you able to ship everything your customers wanted last quarter? Yes. So why was it only 10 whatever? That’s all they wanted? I mean, that’s the reality of it. And you think you’re going to grow? Why? Because the customers want more and I can build more. It’s like -- it’s sort of like that we were actually ahead of the game on this. And so now we’re getting into why is it that there was it seems softer than Q4 and I know some of those reasons. So very private about customers ramps and their design wins and when they wanted WaferPaks and I got facility issues with people that are talking about bringing on new facilities and some of that stuff just hard to handicap and know what the answer is. And so -- and of course, I have to guess correctly with these guys. And some of this is, I’m pretty confident in winning these customers, but it’ll be -- it’ll feel good when they give us the first POS, too, right? So…

Yeah.

… it’s hard to guide that way. But, yeah, we did not change our guidance, if you will. I guess, we said, we’re very confident of that number. And as our backlog builds up and if the backlog and the customers asked for more than that, we will guide up at that time or as it makes sense, but again, we’re not trying to play that game.

Nice work.

Okay.

Appreciate your efforts. Let’s make sure I get to see you when you’re in New York.

Okay. Awesome. It’d be good to go back. I love the travel personally, so.

I know you’ve talked about Europe all the time. Thank you so much.

Okay. Thank you.

The next question is from Larry Chlebina with Chlebina Capital. Please go ahead.

Good afternoon, Gayn. Real quick question on this new version of your XP in terms of the higher voltages or the adjustable voltages.

Yeah.

The testing that you did in a past for a particular large silicon carbide customer, I think, it was in August of last year. Does that mean that this is the process that they’re going to use these higher voltages one, I think, you just sent him some…

Yeah. Let me try and answer as clear as I...

[Inaudible] The following is…

Go ahead.

… is the higher voltage or is this adjustable voltage, the way you think most potential customers are going to go or they build like…

I am glad you asked it that way. That’ll be easier for me to answer.

Yeah.

Because it’s -- I’m not trying to be coy here, okay. But let me try. Let me try and guess. So there are several ways, not 10, there’s primarily two main ways that you can stress these MOSFET devices to weed out infant mortality, okay. A MOSFET is a transistor. A transistor, if you imagine a water valve, like on your sink is a great analogy. All you do is a transistor allows electrical current or water to flow through it, when you turn on the valve, or in this case, apply a voltage to the gate. That’s it. You apply a voltage, water flows through it, you turn off the gate, the water stops flowing through it. If the device works properly, when you turn it off, it doesn’t drip. Recall that leakage. If you put a big power pressure behind it, it might leak a little and they actually specify how much it leaks. But if it leaks more than that, it’s bad, okay. Now, there are two main stresses you can do to verify that. One of them is, is a gate bias, a high voltage gate bias on the gate itself. Imagine the valve I’m describing, I want you to put your hand on the valve and I want you to turn it over as hard as you can, try and break it on, okay. Sounds kind of odd, but that’s exactly what we do. We basically overstressed the gate, and if the gate breaks, it snaps off. We actually call that a glass rod snap in-house. It --we love showing those to customers, particularly when they take 24 hours or 48 hours to show up, okay. That is a failure that shows up. It is the primary failure in silicon carbide MOSFETs that everybody talks…

So you…

Okay. Now…

You think most of the systems will be like the original versions going forward?

I do. I do. I do.

Okay.

I think over time, that’s really where the cost is going and that’s we’ve been talking multiple. We -- by the way, the new BVCM, I know nobody cares about our language here. But the new bipolar voltage, it actually allows it to go a little higher voltage. We had some people that want to do that. Interestingly, as the devices mature, the voltage is actually going down. So we’re kind of feel like, but there’s some people that ask for it, particularly in the gallium nitride and so we’re like, sure, no problem. We also have a negative voltage and there’s some technical white papers out there that people are doing to do that as an accelerant and now we have, I think, the only solution out there to do that, even in packaged parts. So now we have the ability to do a negative voltage, which is something people may want to do too and we’ll be happy to sell them those systems. It looks just like our current system. It just simply goes a larger voltage range, okay.

Okay. I’m glad you introduced the fully automated aligner, which gives you the fully automated XP. Do you have a name for the XP fully automated yet?

No. Because I -- I’m leaking my, that we’re taking orders, but I haven’t -- we haven’t even put it on the website yet. So I don’t yet. But, actually, I do if you’re under non-disclosure. But you have to qualify first as a silicon carbide buyer and you don’t qualify. I’m kidding. For everybody’s watching. Larry always asked me about this thing. We’ll be talking about that in a little bit here, Larry. But, yeah, as Larry alludes to, we are selling as a turnkey solution with an integrated XP with the automated aligner attached to it. And we’ll probably…

[Inaudible]

… make those announcements with those first production orders that we get from customers.

I know that that was originally targeting memory and there’s a lot of memory activity out there.

Yeah.

We will be able to get to a record standing for that sort -- wafer sorting, because you talked about the need to sort wafers or devices for threshold voltage and silicon carbide. So you can match them up later, when you have a similar need and flash, the thought goes based on quality or available cells, is that kind of the same thought there?

Yeah. I mean, I’m probably a little too familiar with that, because you got a little wrong. But generally, yes, the cycling test of a NAND flash memory and wafer-level is one -- as a -- is a potentially critically, it’s a good idea before you put it into enterprise-based solid state devices and there are people that are doing that today. And you are correct, our FOX-XP system, when we first were talking to it, we were engaged in talking with some of the memory suppliers and our FOX-XP system is capable of testing flash memory. So it’s kind of funny that a MOSFET is a single transistor and the tester is also capable of testing in full memory.

Okay.

As people know, one of the challenges we had at the time, we did not have automation and candidly, we were pretty small and we were on the drawing board with this solution, as opposed to now we’re shipping it in volume. So that may give you some insight as to what our long-term intentions are.

So just one more thing on that score, you can potentially get two birds with one stone, you get the infant mortality, screening, as well as the sorting. And how are they doing that currently, what are they using?

Are we talking about memory guys?

Yeah.

Memory guys use a Memory ATE system primarily from Advantest Teradyne or in-house built systems and...

So those are single wafer systems, aren’t they?

They are or there are -- there is a solution out there for people that using multi-wafer prober. So they’re basically like 12 probers kind of bolted together on top of each other. They’re very expensive. But with a custom in-house test system that does it. That architecturally is significantly more expensive than us and it has a larger footprint.

Yeah. So your system is substantial a smaller footprint, because you can do 18 at a time. So it seems to me that while these guys are starting to plan out new fabs and you mentioned in the last time there would be a new fab deployment. You’d want to get to a record status as soon as possible. And then you might think that that would upset the people that sell those testers and masks because there’s whole floor is for them, right?

Do it upset me if I were selling them testers? Yes.

And just one last thing, in the past you mentioned, even though you can do 18 at a time, the volume would be so massive, you would still need how many potential XPs for a typical, say, a flash fab?

75 to 100 per floor.

Fully automated?

Yes. If there were counted. Folks online, Larry, I do want to be also clear, we do not currently have revenue expectations for shipping into the memory guys this year. But if you are investing in us, you’re always investing in us getting into memory someday. I just want to balance the enthusiasm. And Larry knows darn well, that it’s one of my absolute pet peeves and one of my passions is to get this company into the memory business. So, thank you, Larry, for teeing that up.

But -- hey, great job and keep up the great work.

Thanks, Larry.

We are coming on it. We’re coming on it.

At this time, there are no more questions in the queue.

All right.

I would like…

I am glad we were able to get to everybody. Thank you, Operator. Glad we had a chance a couple of times, I think, we cut off a little early and we’re trying to get our cam statements in, in the first 30 minutes and give people enough air to get their questions in. So I really appreciate all our shareholders that have been sticking with us and we’re really excited about this new market opportunity this year and heading into the next years. And we’ll look forward to seeing anyone that happens to be coming into town to visit. We do take those or at one of the shareholder meetings or the investor conferences. We’re getting a lot more miles on us these days. So thank you very much for your time and we’ll talk to you next time. Bye-bye.

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