First, I wanted to credit “bits and bobs”. I’ve never heard that phrase before, but it’s awesome and made me laugh.
I’d like to point out this exchange on the call regarding customer concentration:
CFO Kenneth Spink
We’re filing our 10-K at the end of August. I think August 28 is our proposed filing date right now.
Analyst Christian Schwab
Could you be willing to share if there was more than one 10% customer and exactly if there was only one – exactly how much revenue came from just the one customer?
Kenneth Spink
Yes, absolutely. We did actually have 2 customers over 10%, one at 79% of revenues and the other at 10% of revenues.
Christian Schwab
Excellent. And Ken, when you guys are talking about your greater than $100 million expectation for revenue next fiscal year, how many 10% customers are you assuming in that guidance?
CEO Gayn Erickson
Let me try and field that one. Maybe almost better I don’t have it in front of me because I don’t want to get too specific on it. But I think we expect several, maybe [ 3 or 4 ]. So there will be – we’re obviously very heavily focused on our big silicon carbide customer this last year. And we expect while they will continue to be a great customer and certainly a 10% customer for years to come that there will be less of a focus in terms of concentration with them.
Doing some quick-and-dirty math, that implies going from one customer at $51M and another at $6.5M this year to potentially 3-4 customers at $10M+ next year. As others have pointed out, there are only so many SIC customers Aehr can chase anyway. I’m personally much less concerned with customer concentration now than I was a couple days ago.
This. With the lack of IPO’s over the last 18 months, it has been darn near impossible to find small companies with the chance for true hypergrowth. While AEHR’s math is lumpier than most, it does appear to have that chance (and is already doing it profitably I might add).
Size your bets accordingly.