Aehr Test Systems (AEHR) 10-Q 13 Jan 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Nov. 30, 2013	Dec. 31, 2013
Document And Entity Information	'	'
Entity Registrant Name	'AEHR TEST SYSTEMS	'
Entity Central Index Key	'0001040470	'
Document Type	'10-Q	'
Document Period End Date	30-Nov-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--05-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	10,974,682
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Nov. 30, 2013	31-May-13
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$2,494	$2,324	[1]
Accounts receivable, net	2,735	2,632	[1]
Inventories	5,650	5,369	[1]
Prepaid expenses and other	420	276	[1]
Total current assets	11,299	10,601	[1]
Property and equipment, net	249	301	[1]
Other assets	78	73	[1]
Total assets	11,626	10,975	[1]
LIABILITIES AND SHAREHOLDERS' EQUITY	'	'
Line of credit	476	1,101	[1]
Accounts payable	1,892	1,188	[1]
Accrued expenses	1,245	1,440	[1]
Customer deposits and deferred revenue, short-term	2,038	1,972	[1]
Total current liabilities	5,651	5,701	[1]
Income tax payable	76	109	[1]
Deferred lease commitment	56	103	[1]
Deferred revenue, long-term	20	68	[1]
Total liabilities	5,803	5,981	[1]
Aehr Test System shareholders' equity:	'	'
Common stock, $0.01 par value per share: Authorized: 75,000 shares; Issued and outstanding: 10,934 shares and 10,599 shares at November 30, 2013 and May 31, 2013, respectively	109	106	[1]
Additional paid-in capital	51,390	50,580	[1]
Accumulated other comprehensive income	2,488	2,442	[1]
Accumulated deficit	-48,143	-48,114	[1]
Total Aehr Test Systems shareholders' equity	5,844	5,014	[1]
Noncontrolling interest	-21	-20	[1]
Total shareholders' equity	5,823	4,994	[1]
Total liabilities and shareholders' equity	$11,626	$10,975	[1]
[1]	The condensed consolidated balance sheet at May 31, 2013 has been derived from the audited consolidated financial statements at that date.

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Nov. 30, 2013	31-May-13
In Thousands, except Per Share data, unless otherwise specified
Condensed Consolidated Balance Sheets Parenthetical	'	'
Common stock shares par value	$0.01	$0.01
Common stock authorized	75,000	75,000
Common stock shares issued	10,934	10,599
Common stock shares outstanding	10,934	10,599

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Condensed Consolidated Statements Of Operations	'	'	'	'
Net sales	$4,950	$5,054	$8,702	$9,886
Cost of sales	2,456	2,791	4,264	5,167
Gross profit	2,494	2,263	4,438	4,719
Operating expenses:	'	'	'	'
Selling, general and administrative	1,517	2,068	2,937	3,857
Research and development	798	962	1,479	1,892
Total operating expenses	2,315	3,030	4,416	5,749
Income (loss) from operations	179	-767	22	-1,030
Interest expense	-10	-13	-14	-25
Other expense, net	-30	-15	-64	-34
Income (loss) before income tax (expense) benefit	139	-795	-56	-1,089
Income tax (expense) benefit	-2	-16	27	-18
Net income (loss)	137	-811	-29	-1,107
Less: Net income attributable to the noncontrolling interest	0	0	0	0
Net income (loss) attributable to Aehr Test Systems common shareholders	$137	($811)	($29)	($1,107)
Net income (loss) per share - Basic	$0.01	($0.09)	$0	($0.12)
Net income (loss) per share - Diluted	$0.01	($0.09)	$0	($0.12)
Shares used in per share calculation - Basic	10,806	9,300	10,721	9,233
Shares used in per share calculation - Diluted	11,839	9,300	10,721	9,233

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Condensed Consolidated Statements Of Comprehensive Income Loss	'	'	'	'
Net income (loss)	$137	($811)	($29)	($1,107)
Other comprehensive income, net of tax: Foreign currency translation gain	23	9	46	24
Total comprehensive income (loss)	160	-802	17	-1,083
Less: Comprehensive income attributable to noncontrolling interest	0	0	-1	0
Comprehensive income (loss) attributable to Aehr Test Systems	$160	($802)	$16	($1,083)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013		Nov. 30, 2012
Cash flows from operating activities:	'		'
Net loss	($29)		($1,107)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'		'
Stock-based compensation expense	390		226
Provision for doubtful accounts	5		5
Loss on disposal of asset	9		0
Depreciation and amortization	95		170
Changes in operating assets and liabilities:	'		'
Accounts receivable	-58		-297
Inventories	-281		-304
Prepaid expenses and other	-146		-193
Accounts payable	711		54
Accrued expenses	-183		201
Customer deposits and deferred revenue	16		39
Income tax payable	-47		14
Deferred lease commitment	-47		-37
Net cash provided by (used in) operating activities	435		-1,229
Cash flows from investing activities:	'		'
Purchase of property and equipment	-52		-21
Net cash used in investing activities	-52		-21
Cash flows from financing activities:	'		'
Line of credit (repayments) borrowings, net	-625		277
Proceeds from issuance of common stock and excercise of stock options	423		180
Net cash (used in) provided by financing activities	-202		457
Effect of exchange rates on cash	-11		-88
Net increase (decrease) in cash and cash equivalents	170		-881
Cash and cash equivalents, beginning of period	2,324	[1]	2,073
Cash and cash equivalents, end of period	2,494		1,192
Supplemental disclosure of non-cash flow information:	'		'
Net change in capitalized share-based compensation	$0		$67
[1]	The condensed consolidated balance sheet at May 31, 2013 has been derived from the audited consolidated financial statements at that date.

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	Nov. 30, 2013
Basis Of Presentation	'
BASIS OF PRESENTATION	'
	1. BASIS OF PRESENTATION
	The accompanying condensed consolidated financial information has been prepared by Aehr Test Systems, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, and therefore does not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America.
	In the opinion of management, the unaudited condensed consolidated financial statements for the interim periods presented reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial position and results of operations as of and for such periods indicated.  These condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2013.  Results for the interim periods presented herein are not necessarily indicative of results which may be reported for any other interim period or for the entire fiscal year.
	PRINCIPLES OF CONSOLIDATION.  The condensed consolidated financial statements include the accounts of Aehr Test Systems and its subsidiaries (collectively, the "Company," "we," "us," and "our").  All significant intercompany balances have been eliminated in consolidation.  For the majority owned subsidiary, we reflected the noncontrolling interest of the portion we do not own on our Consolidated Balance Sheets in Shareholders’ Equity and in the Consolidated Statements of Operations.
	RECLASSIFICATION.  Certain reclassifications have been made to the consolidated financial statements to conform to the current period presentation. These reclassifications did not result in any change in previously reported net income, total assets or shareholders’ equity.
	ACCOUNTING ESTIMATES.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.  Actual results could differ materially from those estimates.
	SIGNIFICANT ACCOUNTING POLICIES.  The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2013.

2_STOCKBASED_COMPENSATION

2. STOCK-BASED COMPENSATION	6 Months Ended
	Nov. 30, 2013
Stock-Based Compensation	'
STOCK-BASED COMPENSATION	'
	2. STOCK-BASED COMPENSATION
	Stock-based compensation expense consists of expenses for stock options and employee stock purchase plan, or ESPP, shares. Stock-based compensation cost is measured at each grant date, based on the fair value of the award using the Black-Scholes option valuation model, and is recognized as expense over the employee’s requisite service period.  This model was developed for use in estimating the value of publicly traded options that have no vesting restrictions and are fully transferable.  The Company’s employee stock options have characteristics significantly different from those of publicly traded options.  All of the Company’s stock based compensation is accounted for as an equity instrument.  See Notes 10 and 11 in the Company’s Annual Report on Form 10-K for fiscal 2013 filed on August 28, 2013 for further information regarding the stock option plan and the ESPP.
	The following table summarizes compensation costs related to the Company’s stock-based compensation for the three and six months ended November 30, 2013 and 2012, respectively (in thousands):
			Three Months Ended								Six Months Ended
			November 30,								November 30,
			2013				2012				2013				2012
	Stock-based compensation in the form of employee stock options and ESPP shares, included in:
	Cost of sales		$	15			$	7			$	23			$	17
	Selling, general and administrative			183				66				287				156
	Research and development			49				26				80				53
	Total stock-based compensation		$	247			$	99			$	390			$	226
	There were no stock-based compensation costs capitalized as part of inventory at November 30, 2013.  As of November 30, 2012, stock-based compensation costs of $67,000 were capitalized as part of inventory.
	During the three months ended November 30, 2013 and 2012, the Company recorded stock-based compensation related to stock options of $193,000 and $83,000, respectively.  During the six months ended November 30, 2013 and 2012, the Company recorded stock-based compensation related to stock options of $328,000 and $192,000, respectively.
	As of November 30, 2013, the total unrecognized stock-based compensation cost related to unvested stock-based awards under the Company’s 1996 Stock Option Plan and 2006 Equity Incentive Plan was approximately $1,218,000, which is net of estimated forfeitures of $3,000.  This cost will be amortized over the remaining service period of the underlying options.  The weighted average period is approximately 2.9 years.
	During the three months ended November 30, 2013 and 2012, the Company recorded stock-based compensation related to the ESPP of $54,000 and $16,000, respectively.  During the six months ended November 30, 2013 and 2012, the Company recorded stock-based compensation related to the ESPP of $62,000 and $34,000, respectively.
	As of November 30, 2013, the total compensation cost related to options to purchase the Company’s common stock under the ESPP but not yet recognized was approximately $315,000.  This cost will be amortized on a straight-line basis over a weighted average period of approximately 1.2 years.
	Valuation Assumptions
	Valuation and Amortization Method.  The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model and a single option award approach.  The fair value under the single option approach is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period.
	Expected Term.  The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as evidenced by changes to the terms of its stock-based awards.
	Expected Volatility.  Volatility is a measure of the amounts by which a financial variable such as stock price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period.  The Company uses the historical volatility for the past four or five years, which matches the expected term of most of the option grants, to estimate expected volatility. Volatility for each of the ESPP’s four time periods of six months, twelve months, eighteen months, and twenty-four months is calculated separately and included in the overall stock-based compensation cost recorded.
	Dividends.  The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future.  Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes option valuation model.
	Risk-Free Interest Rate.  The Company bases the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield in effect at the time of option grant on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the stock awards including the ESPP.
	Estimated Forfeitures.  When estimating forfeitures, the Company considers voluntary termination behavior as well as analysis of actual option forfeitures.
	Fair Value.  The fair value of the Company’s stock options granted to employees for the three and six months ended November 30, 2013 and 2012 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model:
			Three Months Ended								Six Months Ended
			November 30,								November 30,
			2013				2012				2013				2012
	Option plan shares
	Expected term (in years)			4				5				4				5
	Volatility			0.94				0.93				0.95				0.91
	Expected dividend		$	0			$	0			$	0			$	0
	Risk-free interest rates			0.95	%			0.64	%			1.4	%			0.72	%
	Estimated forfeiture rate			0.25	%			0.25	%			0.25	%			0.25	%
	Weighted average grant date fair value		$	1.77			$	0.57			$	1.03			$	0.79
	The fair values of the ESPP shares granted for the three and six months ended November 30, 2013 were estimated using the following weighted-average assumptions:
			Three and Six
			Months Ended
			November 30,
			2013
	Employee stock purchase plan shares
	Expected term (in years)			0.5-2.0
	Volatility			0.86-1.00
	Expected dividend		$	0
	Risk-free interest rates			0.04%-0.33	%
	Estimated forfeiture rate			0	%
	Weighted average grant date fair value		$	1.34
	There were no ESPP shares granted for the three and six months ended November 30, 2012.
	The following table summarizes the stock option transactions during the three and six months ended November 30, 2013 (in thousands, except per share data):
						Outstanding Options
											Weighted
							Number				Average				Aggregate
			Available				of				Exercise				Intrinsic
			Shares				Shares				Price				Value
	Balances, May 31, 2013			1,737				2,956			$	1.79			$	964
	Options granted			(725	)			725			$	1.38
	Options terminated			289				(289	)		$	6.99
	Plan shares expired			(104	)			--
	Options exercised			--				(69	)		$	0.86
	Balances, August 31, 2013			1,197				3,323			$	1.27			$	1,301
	Options granted			(107	)			107			$	2.68
	Options terminated			131				(131	)		$	2.26
	Options exercised			--				(149	)		$	1.71
	Balances, November 30, 2013			1,221				3,150			$	1.25			$	4,968
Options fully vested and expected to vest at November 30, 2013							3,087			$	1.25			$	4,868
Options exercisable at November 30, 2013							1,734			$	1.19			$	2,837
The options outstanding and exercisable at November 30, 2013 were in the following exercise price ranges (in thousands, except per share data):
				Options Outstanding												Options Exercisable
				at November 30, 2013												at November 30, 2013
Range of Exercise				Number Outstanding Shares				Weighted Average Remaining Contractual Life (Years)				Weighted Average Exercise Price				Number Exercisable Shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
Prices
$	0.59-$0.97				1,074				3.77			$	0.76				853		3.43	$	0.8
$	1.09-$1.42				1,449				5.34			$	1.28				506		4.43	$	1.29
$	1.73-$1.95				465				3.28			$	1.88				315		2.42	$	1.92
$	2.15-$2.68				162				5.08			$	2.5				60		2.71	$	2.26
$	0.59-$2.68				3,150				4.49			$	1.25				1,734		3.51	$	1.19	$2,837
The total intrinsic value of options exercised during the three and six months ended November 30, 2013 was $110,000 and $153,000, respectively.  The total intrinsic value of options exercised during the three and six months ended November 30, 2012 was $0 and $42,000, respectively.  The weighted average remaining contractual life of the options exercisable and expected to be exercisable at November 30, 2013 was 4.49 years.

3_EARNINGS_PER_SHARE

3. EARNINGS PER SHARE	6 Months Ended
	Nov. 30, 2013
Earnings Per Share	'
EARNINGS PER SHARE	'
	3. EARNINGS PER SHARE
	Earnings per share is computed based on the weighted average number of common and common equivalent shares (common stock options and ESPP shares) outstanding, when dilutive, during each period using the treasury stock method.
	The following table presents the computation of basic and diluted net income (loss) per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):
		Three Months Ended					Six Months Ended
		November 30,					November 30,
		2013		2012			2013			2012
	Numerator: Net income (loss)	$	137	$	(811	)	$	(29	)	$	(1,107	)
	Denominator for basic net income (loss) per share:
	Weighted-average shares outstanding		10,806		9,300			10,721			9,233
	Shares used in basic net income (loss) per share calculation		10,806		9,300			10,721			9,233
	Effect of dilutive securities		1,033		--			--			--
	Denominator for diluted net income (loss) per share		11,839		9,300			10,721			9,233
	Basic net income (loss) per share	$	0.01	$	(0.09	)	$	(0.00	)	$	(0.12	)
	Diluted net income (loss) per share	$	0.01	$	(0.09	)	$	(0.00	)	$	(0.12	)
	For the purpose of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair value of the Company’s common stock for the period, as the effect would be anti-dilutive.  In the three months ended November 30, 2012 and the six months ended November 30, 2013 and 2012 potential common shares have not been included in the calculation of diluted net loss per share as the effect would be anti-dilutive.  As such, the numerator and the denominator used in computing both basic and diluted net loss per share for these periods are the same.  Stock options to purchase 262,998 shares of common stock were outstanding on November 30, 2013, but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive.  Stock options to purchase 2,982,000 shares of common stock were outstanding on November 30, 2012, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.

4_FAIR_VALUE_OF_FINANCIAL_INST

4. FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Nov. 30, 2013
Fair Value Of Financial Instruments	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	4. FAIR VALUE OF FINANCIAL INSTRUMENTS
	The Company’s financial instruments are measured at fair value consistent with authoritative guidance. This authoritative guidance defines fair value, establishes a framework for using fair value to measure assets and liabilities, and disclosures required related to fair value measurements.
	The guidance establishes a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable.  Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions.  The fair value hierarchy consists of the following three levels:
	Level 1 - instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets.
	Level 2 - instrument valuations are obtained from readily-available pricing sources for comparable instruments.
	Level 3 - instrument valuations are obtained without observable market values and require a high level of judgment to determine the fair value.
	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of November 30, 2013 (in thousands):
		Balance as of
		November 30,		Level 1		Level 2		Level 3
		2013
	Money market funds	$	402	$	402	$	--	$	--
	Assets	$	402	$	402	$	--	$	--
	Liabilities	$	--	$	--	$	--	$	--
	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2013 (in thousands):
		Balance as of
		May 31,		Level 1		Level 2		Level 3
		2013
	Money market funds	$	102	$	102	$	--	$	--
	Assets	$	102	$	102	$	--	$	--
	Liabilities	$	--	$	--	$	--	$	--
	As of November 30, 2013 and May 31, 2013, the Company did not have any assets or liabilities with significant other observable inputs (Level 2), and significant unobservable market values that would require a high level of judgment to determine fair value (Level 3 assets).
	The Company has at times invested in debt and equity of private companies, and may do so again in the future, as part of its business strategy.  These investments are carried at cost and are included in “Other Assets” in the consolidated balance sheets.  If the Company determines that an other-than-temporary decline exists in the fair value of an investment, the Company writes down the investment to its fair value and records the related write-down as an investment loss in “Other expense, net” in its consolidated statements of operations.

5_ACCOUNTS_RECEIVABLE_NET

5. ACCOUNTS RECEIVABLE, NET	6 Months Ended
	Nov. 30, 2013
Accounts Receivable, Net [Abstract]	'
ACCOUNTS RECEIVABLE, NET	'
	5. ACCOUNTS RECEIVABLE, NET
	Accounts receivable represents customer trade receivables and is presented net of allowances for doubtful accounts of $44,000 at November 30, 2013 and $39,000 at May 31, 2013.  Accounts receivable are derived from the sale of products throughout the world to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers and burn-in and test service companies.  The Company’s allowance for doubtful accounts is based upon historical experience and review of trade receivables by aging category to identify specific customers with known disputes or collection issues.  Uncollectible receivables are recorded as bad debt expense when all efforts to collect have been exhausted and recoveries are recognized when they are received.

6_INVENTORIES

6. INVENTORIES	6 Months Ended
	Nov. 30, 2013
InventoriesAbstract	'
Inventories	'
	6. INVENTORIES
	Inventories are comprised of the following (in thousands):
		November 30,		May 31,
		2013		2013
	Raw materials and sub-assemblies	$	2,786	$	3,180
	Work in process		2,765		2,187
	Finished goods		99		2
		$	5,650	$	5,369

7_SEGMENT_INFORMATION

7. SEGMENT INFORMATION	6 Months Ended
	Nov. 30, 2013
Segment Information	'
Segment Information	'
	7. SEGMENT INFORMATION
	The Company operates in one reportable segment: the design, manufacture and marketing of advanced test and burn-in products to the semiconductor manufacturing industry.
	The following presents information about the Company’s operations in different geographic areas.  Net sales are based upon ship-to location (in thousands).
		United
		States		Asia		Europe		Total
	Three months ended November 30, 2013:
	Net sales	$	2,881	$	1,608	$	461	$	4,950
	Property and equipment, net		206		42		1		249
	Six months ended November 30, 2013:
	Net sales	$	4,219	$	3,924	$	559	$	8,702
	Property and equipment, net		206		42		1		249
	Three months ended November 30, 2012:
	Net sales	$	701	$	4,016	$	337	$	5,054
	Property and equipment, net		293		64		1		358
	Six months ended November 30, 2012:
	Net sales	$	3,995	$	5,358	$	533	$	9,886
	Property and equipment, net		293		64		1		358
	The Company’s Japanese and German subsidiaries primarily comprise the foreign operations.  Substantially all of the sales of the subsidiaries are made to unaffiliated Japanese or European customers.  Net sales from outside the United States include those of Aehr Test Systems Japan K.K. and Aehr Test Systems GmbH.
	Sales to the Company’s five largest customers accounted for approximately 96% and 95% of its net sales in the three and six months ended November 30, 2013, respectively.  Two customers accounted for approximately 43% each of the Company’s net sales in the three months ended November 30, 2013. Two customers accounted for approximately 52% and 36% of the Company’s net sales in the six months ended November 30, 2013.  Sales to the Company’s five largest customers accounted for approximately 85% and 81% of its net sales in the three and six months ended November 30, 2012, respectively.  Five customers accounted for approximately 28%, 18%, 17%, 12% and 10% of the Company’s net sales in the three months ended November 30, 2012. Three customers accounted for approximately 27%, 24% and 14% of the Company’s net sales in the six months ended November 30, 2012.  No other customers represented more than 10% of the Company’s net sales for either fiscal 2014 or fiscal 2013.

8_PRODUCT_WARRANTIES

8. PRODUCT WARRANTIES	6 Months Ended
	Nov. 30, 2013
Product Warranties	'
Product Warranties	'
	8. PRODUCT WARRANTIES
	The Company provides for the estimated cost of product warranties at the time the products are shipped.  While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure.  Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required.
	The standard warranty period is ninety days for parts and service and one year for systems.
	The following is a summary of changes in the Company's liability for product warranties during the three and six months ended November 30, 2013 and 2012 (in thousands):
		Three Months Ended						Six Months Ended
		November 30,						November 30,
		2013			2012			2013			2012
	Balance at the beginning of the period	$	226		$	115		$	222		$	91
	Accruals for warranties issued during the period		62			120			154			250
	Settlement made during the period (in cash or in kind)		(80	)		(61	)		(168	)		(167	)
	Balance at the end of the period	$	208		$	174		$	208		$	174
	The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets.

9_INCOME_TAXES

9. INCOME TAXES	6 Months Ended
	Nov. 30, 2013
Income Taxes	'
Income Taxes	'
	9. INCOME TAXES
	Income taxes have been provided using the liability method whereby deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and net operating loss and tax credit carryforwards measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse or the carryforwards are utilized.  Valuation allowances are established when it is determined that it is more likely than not that such assets will not be realized.
	During fiscal 2009, a full valuation allowance was established against all deferred tax assets as management determined that it is more likely than not that certain deferred tax assets will not be realized.
	The Company accounts for uncertain tax positions consistent with authoritative guidance.  The guidance prescribes a “more likely than not” recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The Company does not expect any material change in its unrecognized tax benefits over the next twelve months.  The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income taxes.
	Although the Company files U.S. federal, various state, and foreign tax returns, the Company’s only major tax jurisdictions are the United States, California, Germany and Japan.  Tax years 1996 - 2012 remain subject to examination by the appropriate governmental agencies due to tax loss carryovers from those years.

10_CUSTOMER_DEPOSITS_AND_DEFER

10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM	6 Months Ended
	Nov. 30, 2013
Customer Deposits And Deferred Revenue Short-Term	'
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM	'
	10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM
	Customer deposits and deferred revenue, short-term (in thousands):
		November 30,		May 31,
		2013		2013
	Customer deposits	$	1,866	$	1,728
	Deferred revenue, short-term		172		244
		$	2,038	$	1,972

11_LINE_OF_CREDIT

11. LINE OF CREDIT	6 Months Ended
	Nov. 30, 2013
Line Of Credit	'
Line of Credit	'
	11. LINE OF CREDIT
	On August 25, 2011, the Company entered into a working capital credit facility agreement allowing the Company to borrow up to $1.5 million based upon qualified accounts receivable, and export-related inventory. On May 29, 2012 the credit agreement was amended to increase the borrowing limit to $2.0 million.  On September 11, 2012, the Company entered into the second amendment to the Loan and Security Agreement to increase the borrowing limit under the credit facility from $2.0 million to $2.5 million.  On August 21, 2013 the Company entered into the Third Amendment to Loan and Security Agreement to extend the term of the agreement to August 22, 2014.  Under the terms of the amendment to the line of credit, the lender will also have a security interest in the Company’s intellectual property.  The line of credit is collateralized by all of the Company’s assets.  Each account receivable financed by the lender will bear an annual interest rate or finance charge equal to the greater of the lender's prime rate less 0.5%, or 3.50%, if the Company meets certain borrowing base requirements. If the Company does not meet the borrowing base requirements, each account receivable financed by the lender will bear an annual interest rate or finance charge equal to the greater of the lender's prime rate plus 0.75%, or 4.75%.  The applicable interest is calculated based on the full amount of the account receivable and export-related inventory provided as collateral for the actual amounts borrowed.  Depending on the composition of the collateral items, whether or not the Company meets certain borrowing base requirements and the relative cash position of the Company, the equivalent annual interest rate applied to the actual loan balances may vary from 3.89% to 8.94%, assuming that the bank’s prime rate is 4.00% or less.  At November 30, 2013 the weighted average interest rate on the outstanding loan balance was 4.375%.  The average loan balance for the three and six months ending November 30, 2013 was $221,000 and $486,000, respectively.  At November 30, 2013, the Company had drawn $476,000 against the credit facility.  The balance available to borrow under the line at November 30, 2013 was $2,024,000.  The Company was in compliance with all covenants at November 30, 2013.

12_RECENT_ACCOUNTING_PRONOUNCE

12. RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Nov. 30, 2013
Recent Accounting Pronouncements	'
12. RECENT ACCOUNTING PRONOUNCEMENTS	'
	12. RECENT ACCOUNTING PRONOUNCEMENTS
	In July 2013, the Financial Accounting Standards Board (FASB) issued authoritative guidance that will require an unrecognized tax benefit to be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, with certain exceptions. The authoritative guidance becomes effective for the Company in the first quarter of fiscal 2015, with early adoption permitted. The guidance is not expected to have an impact on the Company's financial position or results of operations.

1_BASIS_OF_PRESENTATION_Polici

1. BASIS OF PRESENTATION (Policies)	6 Months Ended
	Nov. 30, 2013
Accounting Policies [Abstract]	'
BASIS OF PRESENTATION	'
	BASIS OF PRESENTATION The accompanying condensed consolidated financial information has been prepared by Aehr Test Systems, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, and therefore does not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America.
	In the opinion of management, the unaudited condensed consolidated financial statements for the interim periods presented reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the condensed consolidated financial position and results of operations as of and for such periods indicated.  These condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2013.  Results for the interim periods presented herein are not necessarily indicative of results which may be reported for any other interim period or for the entire fiscal year.
PRINCIPLES OF CONSOLIDATION	'
	PRINCIPLES OF CONSOLIDATION.  The condensed consolidated financial statements include the accounts of Aehr Test Systems and its subsidiaries (collectively, the "Company," "we," "us," and "our").  All significant intercompany balances have been eliminated in consolidation.  For the majority owned subsidiary, we reflected the noncontrolling interest of the portion we do not own on our Consolidated Balance Sheets in Shareholders’ Equity and in the Consolidated Statements of Operations.
RECLASSIFICATION	'
	RECLASSIFICATION.  Certain reclassifications have been made to the consolidated financial statements to conform to the current period presentation. These reclassifications did not result in any change in previously reported net income, total assets or shareholders’ equity.
ACCOUNTING ESTIMATES	'
	ACCOUNTING ESTIMATES.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.  Actual results could differ materially from those estimates.
SIGNIFICANT ACCOUNTING POLICIES	'
	SIGNIFICANT ACCOUNTING POLICIES.  The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2013.

2_STOCKBASED_COMPENSATION_Tabl

2. STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Nov. 30, 2013
Stock-Based Compensation Tables	'
Compensation costs related to the Company's stock-based compensation	'
	The following table summarizes compensation costs related to the Company’s stock-based compensation for the three and six months ended November 30, 2013 and 2012, respectively (in thousands):
			Three Months Ended								Six Months Ended
			November 30,								November 30,
			2013				2012				2013				2012
	Stock-based compensation in the form of employee stock options and ESPP shares, included in:
	Cost of sales		$	15			$	7			$	23			$	17
	Selling, general and administrative			183				66				287				156
	Research and development			49				26				80				53
	Total stock-based compensation		$	247			$	99			$	390			$	226
Assumptions for Options Valuation Model	'
	Fair Value. The fair value of the Company’s stock options granted to employees for the three and six months ended November 30, 2013 and 2012 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model:
			Three Months Ended								Six Months Ended
			November 30,								November 30,
			2013				2012				2013				2012
	Option plan shares
	Expected term (in years)			4				5				4				5
	Volatility			0.94				0.93				0.95				0.91
	Expected dividend		$	0			$	0			$	0			$	0
	Risk-free interest rates			0.95	%			0.64	%			1.4	%			0.72	%
	Estimated forfeiture rate			0.25	%			0.25	%			0.25	%			0.25	%
	Weighted average grant date fair value		$	1.77			$	0.57			$	1.03			$	0.79
Fair values of the ESPP shares	'
	The fair values of the ESPP shares granted for the three and six months ended November 30, 2013 were estimated using the following weighted-average assumptions:
			Three and Six
			Months Ended
			November 30,
			2013
	Employee stock purchase plan shares
	Expected term (in years)			0.5-2.0
	Volatility			0.86-1.00
	Expected dividend		$	0
	Risk-free interest rates			0.04%-0.33	%
	Estimated forfeiture rate			0	%
	Weighted average grant date fair value		$	1.34
Stock option transactions	'
	The following table summarizes the stock option transactions during the three and six months ended November 30, 2013 (in thousands, except per share data):
						Outstanding Options
											Weighted
							Number				Average				Aggregate
			Available				of				Exercise				Intrinsic
			Shares				Shares				Price				Value
	Balances, May 31, 2013			1,737				2,956			$	1.79			$	964
	Options granted			(725	)			725			$	1.38
	Options terminated			289				(289	)		$	6.99
	Plan shares expired			(104	)			--
	Options exercised			--				(69	)		$	0.86
	Balances, August 31, 2013			1,197				3,323			$	1.27			$	1,301
	Options granted			(107	)			107			$	2.68
	Options terminated			131				(131	)		$	2.26
	Options exercised			--				(149	)		$	1.71
	Balances, November 30, 2013			1,221				3,150			$	1.25			$	4,968
	Options fully vested and expected to vest at November 30, 2013							3,087			$	1.25			$	4,868
	Options exercisable at November 30, 2013							1,734			$	1.19			$	2,837
Options Outstanding	'
	The options outstanding and exercisable at November 30, 2013 were in the following exercise price ranges (in thousands, except per share data):
					Options Outstanding												Options Exercisable
					at November 30, 2013												at November 30, 2013
	Range of Exercise				Number Outstanding Shares				Weighted Average Remaining Contractual Life (Years)				Weighted Average Exercise Price				Number Exercisable Shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
	Prices
	$	0.59-$0.97				1,074				3.77			$	0.76				853		3.43	$	0.8
	$	1.09-$1.42				1,449				5.34			$	1.28				506		4.43	$	1.29
	$	1.73-$1.95				465				3.28			$	1.88				315		2.42	$	1.92
	$	2.15-$2.68				162				5.08			$	2.5				60		2.71	$	2.26
	$	0.59-$2.68				3,150				4.49			$	1.25				1,734		3.51	$	1.19	$2,837

3_EARNINGS_PER_SHARE_Tables

3. EARNINGS PER SHARE (Tables)	6 Months Ended
	Nov. 30, 2013
Earnings Per Share	'
EARNINGS PER SHARE	'
	The following table presents the computation of basic and diluted net income (loss) per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):
		Three Months Ended					Six Months Ended
		November 30,					November 30,
		2013		2012			2013			2012
	Numerator: Net income (loss)	$	137	$	(811	)	$	(29	)	$	(1,107	)
	Denominator for basic net income (loss) per share:
	Weighted-average shares outstanding		10,806		9,300			10,721			9,233
	Shares used in basic net income (loss) per share calculation		10,806		9,300			10,721			9,233
	Effect of dilutive securities		1,033		--			--			--
	Denominator for diluted net income (loss) per share		11,839		9,300			10,721			9,233
	Basic net income (loss) per share	$	0.01	$	(0.09	)	$	(0.00	)	$	(0.12	)
	Diluted net income (loss) per share	$	0.01	$	(0.09	)	$	(0.00	)	$	(0.12	)

4_FAIR_VALUE_OF_FINANCIAL_INST1

4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Nov. 30, 2013
Fair Value Of Financial Instruments Tables	'
Fair Value by Hierarchy	'
	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of November 30, 2013 (in thousands):
		Balance as of
		November 30,		Level 1		Level 2		Level 3
		2013
	Money market funds	$	402	$	402	$	--	$	--
	Assets	$	402	$	402	$	--	$	--
	Liabilities	$	--	$	--	$	--	$	--
	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2013 (in thousands):
		Balance as of
		May 31,		Level 1		Level 2		Level 3
		2013
	Money market funds	$	102	$	102	$	--	$	--
	Assets	$	102	$	102	$	--	$	--
	Liabilities	$	--	$	--	$	--	$	--

6_INVENTORIES_Tables

6. INVENTORIES (Tables)	6 Months Ended
	Nov. 30, 2013
Inventories Tables	'
Inventories	'
	Inventories are comprised of the following (in thousands):
		November 30,		May 31,
		2013		2013
	Raw materials and sub-assemblies	$	2,786	$	3,180
	Work in process		2,765		2,187
	Finished goods		99		2
		$	5,650	$	5,369

7_SEGMENT_INFORMATION_Tables

7. SEGMENT INFORMATION (Tables)	6 Months Ended
	Nov. 30, 2013
Segment Information Tables	'
Company's operations in different geographic areas	'
	The following presents information about the Company’s operations in different geographic areas. Net sales are based upon ship-to location (in thousands).
		United
		States		Asia		Europe		Total
	Three months ended November 30, 2013:
	Net sales	$	2,881	$	1,608	$	461	$	4,950
	Property and equipment, net		206		42		1		249
	Six months ended November 30, 2013:
	Net sales	$	4,219	$	3,924	$	559	$	8,702
	Property and equipment, net		206		42		1		249
	Three months ended November 30, 2012:
	Net sales	$	701	$	4,016	$	337	$	5,054
	Property and equipment, net		293		64		1		358
	Six months ended November 30, 2012:
	Net sales	$	3,995	$	5,358	$	533	$	9,886
	Property and equipment, net		293		64		1		358

8_PRODUCT_WARRANTIES_Tables

8. PRODUCT WARRANTIES (Tables)	6 Months Ended
	Nov. 30, 2013
Product Warranties Tables	'
Liability for product warranties	'
	The following is a summary of changes in the Company's liability for product warranties during the three and six months ended November 30, 2013 and 2012 (in thousands):
		Three Months Ended						Six Months Ended
		November 30,						November 30,
		2013			2012			2013			2012
	Balance at the beginning of the period	$	226		$	115		$	222		$	91
	Accruals for warranties issued during the period		62			120			154			250
	Settlement made during the period (in cash or in kind)		(80	)		(61	)		(168	)		(167	)
	Balance at the end of the period	$	208		$	174		$	208		$	174

10_CUSTOMER_DEPOSITS_AND_DEFER1

10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM (Tables)	6 Months Ended
	Nov. 30, 2013
Customer Deposits And Deferred Revenue Short-Term Tables	'
Customer deposits and deferred revenue	'
	Customer deposits and deferred revenue, short-term (in thousands):
		November 30,		May 31,
		2013		2013
	Customer deposits	$	1,866	$	1,728
	Deferred revenue, short-term		172		244
		$	2,038	$	1,972

2_STOCKBASED_COMPENSATION_Comp

2. STOCK-BASED COMPENSATION - Compensation costs (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Stock-based compensation in the form of employee stock options and ESPP shares included in:	'	'	'	'
Total stock-based compensation	$247	$99	$390	$226
Cost of Sales	'	'	'	'
Stock-based compensation in the form of employee stock options and ESPP shares included in:	'	'	'	'
Total stock-based compensation	15	7	23	17
Selling, General and Administrative	'	'	'	'
Stock-based compensation in the form of employee stock options and ESPP shares included in:	'	'	'	'
Total stock-based compensation	183	66	287	156
Research and Development	'	'	'	'
Stock-based compensation in the form of employee stock options and ESPP shares included in:	'	'	'	'
Total stock-based compensation	$49	$26	$80	$53

2_STOCKBASED_COMPENSATION_Opti

2. STOCK-BASED COMPENSATION - Options (Details 1) (Stock Options, USD $)	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Stock Options	'	'	'	'
Expected term (in years)	'4 years	'5 years	'4 years	'5 years
Volatility	94.00%	93.00%	95.00%	91.00%
Expected dividend	$0	$0	$0	$0
Risk-free interest rates	0.95%	0.64%	1.40%	0.72%
Estimated forfeiture rate	0.25%	0.25%	0.25%	0.25%
Weighted average grant date fair value	$1.77	$0.57	$1.03	$0.79

2_STOCKBASED_COMPENSATION_Fair

2. STOCK-BASED COMPENSATION - Fair values of the ESPP shares (Details 2) (Employee Stock Purchase Plan, USD $)	3 Months Ended	6 Months Ended
	Nov. 30, 2013	Nov. 30, 2013
Volatility, Minimum	86.00%	86.00%
Volatility, Maximum	100.00%	100.00%
Expected dividend	$0	$0
Risk-free interest rates, Minimum	0.04%	0.04%
Risk-free interest rates, Maximum	0.33%	0.33%
Estimated forfeiture rate	0.00%	0.00%
Weighted average grant date fair value	$1.34	$1.34
Minimum	'	'
Expected term (in years)	'6 months	'6 months
Maximum	'	'
Expected term (in years)	'2 years	'2 years

2_STOCKBASED_COMPENSATION_Opti1

2. STOCK-BASED COMPENSATION - Option Activity (Details 3) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Nov. 30, 2013	Aug. 31, 2013
Stock-Based Compensation - Option Activity Details 3	'	'
Available Shares, Beginning (in thousands)	1,197	1,737
Options granted (in thousands)	-107	-725
Options terminated (in thousands)	131	289
Plan shares expired (in thousands)	'	-104
Available Shares, Ending (in thousands)	1,221	1,197
Options Outstanding, Beginning (in thousands)	3,323	2,956
Options Granted (in thousands)	107	725
Options terminated (in thousands)	-131	-289
Plan shares expired (in thousands)	'	0
Plan options exercised (in thousands)	-149	-69
Number of Options Outstanding, Ending (in thousands)	3,150	3,323
Weighted Average Exercise Price Outstanding, Beginning	$1.27	$1.79
Weighted Average Exercise Price Granted	$2.68	$1.38
Weighted Average Exercise Price Terminated	$2.26	$6.99
Weighted Average Exercise Price Exercised	$1.71	$0.86
Weighted Average Exercise Price Outstanding, Ending	$1.25	$1.27
Aggregate Intrinsic Value, beginning balance	$1,301	$964
Aggregate Intrinsic Value, ending balance	4,968	1,301
Options fully vested and expected to vest at November 30, 2013 (in thousands)	3,087	'
Options exercisable at November 30, 2013 (in thousands)	1,734	'
Weighted Average Exercise Price for Options fully vested and expected to vest at November 30, 2013	$1.25	'
Weighted Average Exercise Price for Options exercisable at November 30, 2013	$1.19	'
Aggregate Intrinsic Value for Options fully vested and expected to vest at November 30, 2013	4,868	'
Options exercisable at November 30, 2013 Aggregate intrinsic value	$2,837	'

2_STOCKBASED_COMPENSATION_Opti2

2. STOCK-BASED COMPENSATION - Options outstanding and exercisable (Details 4) (USD $)	6 Months Ended
In Thousands, except Share data, unless otherwise specified	Nov. 30, 2013	Aug. 31, 2013	31-May-13
Range Exercise Prices Options Outstanding Minimum	$0.59	'	'
Range Exercise Prices Options Outstanding Maximum	$2.68	'	'
Number of Options Outstanding, Ending (in thousands)	3,150	3,323	2,956
Weighted Average Remaining Contractual Life (Years) Options Outstanding	'4 years 5 months 26 days	'	'
Weighted Average Exercise Price Outstanding, Ending	$1.25	$1.27	$1.79
Number Exercisable Shares (in thousands)	1,734	'	'
Weighted Average Remaining Contractual Life (Years) Options Exercisable	'3 years 6 months 4 days	'	'
Weighted Average Exercise Price Options Excercisable	$1.19	'	'
Aggregate Intrinsic Value Options Exercisable	$2,837	'	'
Options Price Range A	'	'	'
Range Exercise Prices Options Outstanding Minimum	$0.59	'	'
Range Exercise Prices Options Outstanding Maximum	$0.97	'	'
Number of Options Outstanding, Ending (in thousands)	1,074	'	'
Weighted Average Remaining Contractual Life (Years) Options Outstanding	'3 years 9 months 7 days	'	'
Weighted Average Exercise Price Outstanding, Ending	$0.76	'	'
Number Exercisable Shares (in thousands)	853	'	'
Weighted Average Remaining Contractual Life (Years) Options Exercisable	'3 years 5 months 5 days	'	'
Weighted Average Exercise Price Options Excercisable	$0.80	'	'
Options Price Range B	'	'	'
Range Exercise Prices Options Outstanding Minimum	$1.09	'	'
Range Exercise Prices Options Outstanding Maximum	$1.42	'	'
Number of Options Outstanding, Ending (in thousands)	1,449	'	'
Weighted Average Remaining Contractual Life (Years) Options Outstanding	'5 years 4 months 2 days	'	'
Weighted Average Exercise Price Outstanding, Ending	$1.28	'	'
Number Exercisable Shares (in thousands)	506	'	'
Weighted Average Remaining Contractual Life (Years) Options Exercisable	'4 years 5 months 5 days	'	'
Weighted Average Exercise Price Options Excercisable	$1.29	'	'
Options Price Range C	'	'	'
Range Exercise Prices Options Outstanding Minimum	$1.73	'	'
Range Exercise Prices Options Outstanding Maximum	$1.95	'	'
Number of Options Outstanding, Ending (in thousands)	465	'	'
Weighted Average Remaining Contractual Life (Years) Options Outstanding	'3 years 3 months 11 days	'	'
Weighted Average Exercise Price Outstanding, Ending	$1.88	'	'
Number Exercisable Shares (in thousands)	315	'	'
Weighted Average Remaining Contractual Life (Years) Options Exercisable	'2 years 5 months 1 day	'	'
Weighted Average Exercise Price Options Excercisable	$1.92	'	'
Options Price Range D	'	'	'
Range Exercise Prices Options Outstanding Minimum	$2.15	'	'
Range Exercise Prices Options Outstanding Maximum	$2.68	'	'
Number of Options Outstanding, Ending (in thousands)	162	'	'
Weighted Average Remaining Contractual Life (Years) Options Outstanding	'5 years 29 days	'	'
Weighted Average Exercise Price Outstanding, Ending	$2.50	'	'
Number Exercisable Shares (in thousands)	60	'	'
Weighted Average Remaining Contractual Life (Years) Options Exercisable	'2 years 8 months 16 days	'	'
Weighted Average Exercise Price Options Excercisable	$2.26	'	'

2_STOCKBASED_COMPENSATION_Deta

2. STOCK-BASED COMPENSATION (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Stock-based compensation costs capitalized as part of inventory	$0	$67	$0	$67
Stock-based compensation related to stock options	193	83	328	192
Intrinsic value of options exercised	110	0	153	42
Weighted average remaining contractual life of the options exercisable and expected to be exercisable	'	'	'4 years 5 months 26 days	'
1996 Stock Option Plan and 2006 Equity Incentive Plan	'	'	'	'
Unrecognized stock-based compensation cost related to unvested stock-based awards	1,218	'	1,218	'
Estimated forfeitures of unvested stock based awards	3	'	3	'
Weighted average remaining period of the underlying options	'	'	'2 years 10 months 24 days	'
Employee Stock Purchase Plan	'	'	'	'
Stock-based compensation related to the ESPP	54	16	62	34
Weighted average remaining period of the underlying options	'	'	'1 year 2 months 12 days	'
Compensation cost related to options to purchase the Company's common stock under the ESPP but not yet recognized	$315	'	$315	'

3_EARNINGS_PER_SHARE_Details

3. EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Earnings Per Share Details	'	'	'	'
Numerator: Net income (loss)	$137	($811)	($29)	($1,107)
Denominator for basic net income (loss) per share: Weighted average shares outstanding (in thousands)	10,806	9,300	10,721	9,233
Shares used in basic net income (loss) per share calculation (in thousands)	10,806	9,300	10,721	9,233
Effect of dilutive securities (in thousands)	1,033	0	0	0
Denominator for diluted net income (loss) per share (in thousands)	11,839	9,300	10,721	9,233
Basic net income (loss) per share	$0.01	($0.09)	$0	($0.12)
Diluted net income (loss) per share	$0.01	($0.09)	$0	($0.12)

3_EARNINGS_PER_SHARE_Details_N

3. EARNINGS PER SHARE (Details Narrative)	3 Months Ended	6 Months Ended
	Nov. 30, 2013	Nov. 30, 2012
Earnings Per Share Details Narrative	'	'
Options not included in the computation of diluted net loss per share (in thousands)	262,998	2,982,000

4_FAIR_VALUE_OF_FINANCIAL_INST2

4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Nov. 30, 2013	31-May-13
In Thousands, unless otherwise specified
Money market funds	$402	$102
Assets	402	102
Liabilities	0	0
Level 1	'	'
Money market funds	402	102
Assets	402	102
Liabilities	0	0
Level 2	'	'
Money market funds	0	0
Assets	0	0
Liabilities	0	0
Level 3	'	'
Money market funds	0	0
Assets	0	0
Liabilities	$0	$0

5_ACCOUNTS_RECEIVABLE_NET_Deta

5. ACCOUNTS RECEIVABLE NET (Details Narrative) (USD $)	Nov. 30, 2013	31-May-13
In Thousands, unless otherwise specified
Accounts Receivable Net Details Narrative	'	'
Allowance for doubtful accounts customer trade receivables	$44	$39

6_INVENTORIES_Details

6. INVENTORIES (Details) (USD $)	Nov. 30, 2013	31-May-13
In Thousands, unless otherwise specified
Inventories Details	'	'
Raw materials and sub-assemblies	$2,786	$3,180
Work-in-process	2,765	2,187
Finished goods	99	2
Inventory	$5,650	$5,369	[1]
[1]	The condensed consolidated balance sheet at May 31, 2013 has been derived from the audited consolidated financial statements at that date.

7_SEGMENT_INFORMATION_Details

7. SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012	31-May-13
Net sales	$4,950	$5,054	$8,702	$9,886	'
Property and equipment, net	249	358	249	358	301	[1]
US	'	'	'	'	'
Net sales	2,881	701	4,219	3,995	'
Property and equipment, net	206	293	206	293	'
Asia	'	'	'	'	'
Net sales	1,608	4,016	3,924	5,358	'
Property and equipment, net	42	64	42	64	'
Europe	'	'	'	'	'
Net sales	461	337	559	533	'
Property and equipment, net	$1	$1	$1	$1	'
[1]	The condensed consolidated balance sheet at May 31, 2013 has been derived from the audited consolidated financial statements at that date.

7_SEGMENT_INFORMATION_Details_

7, SEGMENT INFORMATION (Details Narrative)	3 Months Ended		6 Months Ended
	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Segment Information Details Narrative	'	'	'	'
Sales to the Company's five largest customers percentage of net sales	'96%	'85%	'95%	'81%
Percentage of sales of customer A relative to total net sales	'43%	'28%	'52%	'27%
Percentage of sales of customer B relative to total net sales	'43%	'18%	'36%	'24%
Percentage of sales of customer C relative to total net sales	'	'17%	'	'14%
Percentage of sales of customer D relative to total net sales	'	'12%	'	'
Percentage of sales of customer E relative to total net sales	'	'10%	'	'

8_PRODUCT_WARRANTIES_Details

8. PRODUCT WARRANTIES (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2012	Nov. 30, 2013	Nov. 30, 2012
Product Warranties Details	'	'	'	'
Balance at the beginning of the period	$226	$115	$222	$91
Accruals for warranties issued during the period	62	120	154	250
Settlement made during the period (in cash or in kind)	-80	-61	-168	-167
Balance at the end of the period	$208	$174	$208	$174

10_CUSTOMER_DEPOSITS_AND_DEFER2

10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM (Details) (USD $)	Nov. 30, 2013	31-May-13
In Thousands, unless otherwise specified
Customer Deposits And Deferred Revenue Short-Term Details	'	'
Customer deposits	$1,866	$1,728
Deferred revenue, short-term	172	244
Total	$2,038	$1,972	[1]
[1]	The condensed consolidated balance sheet at May 31, 2013 has been derived from the audited consolidated financial statements at that date.

11_LINE_OF_CREDIT_Details_Narr

11. LINE OF CREDIT (Details Narrative) (USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Nov. 30, 2013	Nov. 30, 2013
Line Of Credit Details Narrative	'	'
Line of credit, maximum borrowing capacity	$2,500	$2,500
Line of credit facility, amount borrowed	476	476
Balance available to borrow under the line of credit	2,024	2,024
Weighted average interest rate	4.38%	4.38%
Average loan balance	$221	$486
Compliance with covenants	'	'The Company was in compliance with all covenants at November 30, 2013.