Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Feb. 28, 2014 | Mar. 31, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'AEHR TEST SYSTEMS | ' |
Entity Central Index Key | '0001040470 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Feb-14 | ' |
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 | ' | 11,035,994 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Feb. 28, 2014 | 31-May-13 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and cash equivalents | $1,846 | $2,324 | [1] |
Accounts receivable, net | 3,378 | 2,632 | [1] |
Inventories | 5,931 | 5,369 | [1] |
Prepaid expenses and other | 399 | 276 | [1] |
Total current assets | 11,554 | 10,601 | [1] |
Property and equipment, net | 311 | 301 | [1] |
Other assets | 78 | 73 | [1] |
Total assets | 11,943 | 10,975 | [1] |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' | |
Line of credit | 406 | 1,101 | [1] |
Accounts payable | 2,265 | 1,188 | [1] |
Accrued expenses | 1,447 | 1,440 | [1] |
Customer deposits and deferred revenue, short-term | 1,345 | 1,972 | [1] |
Total current liabilities | 5,463 | 5,701 | [1] |
Income tax payable | 77 | 109 | [1] |
Deferred lease commitment | 32 | 103 | [1] |
Deferred revenue, long-term | 8 | 68 | [1] |
Total liabilities | 5,580 | 5,981 | [1] |
Aehr Test System shareholders' equity: | ' | ' | |
Common stock, $0.01 par value per share: Authorized: 75,000 shares; Issued and outstanding: 11,018 shares and 10,599 shares at February 28, 2014 and May 31, 2013, respectively | 110 | 106 | [1] |
Additional paid-in capital | 51,703 | 50,580 | [1] |
Accumulated other comprehensive income | 2,502 | 2,442 | [1] |
Accumulated deficit | -47,931 | -48,114 | [1] |
Total Aehr Test Systems shareholders' equity | 6,384 | 5,014 | [1] |
Noncontrolling interest | -21 | -20 | [1] |
Total shareholders' equity | 6,363 | 4,994 | [1] |
Total liabilities and shareholders' equity | $11,943 | $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 $) | Feb. 28, 2014 | 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 shares authorized | 75,000 | 75,000 |
Common stock shares issued | 11,018 | 10,599 |
Common stock shares outstanding | 11,018 | 10,599 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Condensed Consolidated Statements Of Operations | ' | ' | ' | ' |
Net sales | $5,612 | $3,340 | $14,314 | $13,226 |
Cost of sales | 2,742 | 2,575 | 7,006 | 7,742 |
Gross profit | 2,870 | 765 | 7,308 | 5,484 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 1,701 | 1,511 | 4,638 | 5,368 |
Research and development | 907 | 685 | 2,386 | 2,577 |
Total operating expenses | 2,608 | 2,196 | 7,024 | 7,945 |
Income (loss) from operations | 262 | -1,431 | 284 | -2,461 |
Interest expense | -7 | -18 | -21 | -43 |
Other expense, net | -21 | -9 | -85 | -43 |
Income (loss) before income tax (expense) benefit | 234 | -1,458 | 178 | -2,547 |
Income tax (expense) benefit | -22 | 0 | 5 | -18 |
Net income (loss) | 212 | -1,458 | 183 | -2,565 |
Less: Net income attributable to the noncontrolling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Aehr Test Systems common shareholders | $212 | ($1,458) | $183 | ($2,565) |
Net income (loss) per share - basic | $0.02 | ($0.16) | $0.02 | ($0.28) |
Net income (loss) per share - diluted | $0.02 | ($0.16) | $0.02 | ($0.28) |
Shares used in per share calculation - Basic | 10,982 | 9,363 | 10,807 | 9,276 |
Shares used in per share calculation - Diluted | 12,277 | 9,363 | 11,583 | 9,276 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Condensed Consolidated Statements Of Comprehensive Income Loss | ' | ' | ' | ' |
Net income (loss) | $212 | ($1,458) | $183 | ($2,565) |
Other comprehensive income (loss), net of tax: Foreign currency translation gain (loss) | 14 | -13 | 60 | 11 |
Total comprehensive income (loss) | 226 | -1,471 | 243 | -2,554 |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | -1 | 0 |
Comprehensive income (loss), attributable to Aehr Test Systems | $226 | ($1,471) | $242 | ($2,554) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income (loss) | $183 | ($2,565) | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' | |
Stock-based compensation expense | 625 | 427 | |
Provision for (recovery of) doubtful accounts | 13 | -15 | |
Gain on disposal of fixed asset | -41 | 0 | |
Depreciation and amortization | 119 | 247 | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -685 | 951 | |
Inventories | -546 | 375 | |
Prepaid expenses and other | -123 | -11 | |
Accounts payable | 1,075 | 379 | |
Accrued expenses | 8 | -49 | |
Customer deposits and deferred revenue | -691 | 0 | |
Income tax payable | -35 | 15 | |
Deferred lease commitment | -71 | -57 | |
Net cash used in operating activities | -169 | -303 | |
Cash flows from investing activities: | ' | ' | |
Purchases of property and equipment | -154 | -126 | |
Proceeds from sales of property and equipment | 50 | 0 | |
Net cash used in investing activities | -104 | -126 | |
Cash flows from financing activities: | ' | ' | |
Line of credit repayments, net | -695 | -193 | |
Proceeds from issuance of common stock and excercise of stock options | 502 | 180 | |
Net cash used in financing activities | -193 | -13 | |
Effect of exchange rates on cash | -12 | -250 | |
Net decrease in cash and cash equivalents | -478 | -692 | |
Cash and cash equivalents, beginning of period | 2,324 | [1] | 2,073 |
Cash and cash equivalents, end of period | 1,846 | 1,381 | |
Supplemental disclosure of non-cash flow information: | ' | ' | |
Net change in capitalized share-based compensation | $0 | $25 | |
[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 | 9 Months Ended |
Feb. 28, 2014 | |
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 Aehr Test Systems' 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 (loss), 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 | 9 Months Ended | |||||||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||||||
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 nine months ended February 28, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Stock-based compensation in the form of employee stock options and ESPP shares, included in: | ||||||||||||||||||||||||||||
Cost of sales | $ | 10 | $ | 9 | $ | 33 | $ | 26 | ||||||||||||||||||||
Selling, general and administrative | 184 | 159 | 471 | 315 | ||||||||||||||||||||||||
Research and development | 41 | 33 | 121 | 86 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 235 | $ | 201 | $ | 625 | $ | 427 | ||||||||||||||||||||
There was no stock-based compensation costs capitalized as part of inventory at February 28, 2014. As of February 28, 2013, stock-based compensation costs of $25,000 were capitalized as part of inventory. | ||||||||||||||||||||||||||||
During the three months ended February 28, 2014 and 2013, the Company recorded stock-based compensation related to stock options of $205,000 and $189,000, respectively. During the nine months ended February 28, 2014 and 2013, the Company recorded stock-based compensation related to stock options of $533,000 and $381,000, respectively. | ||||||||||||||||||||||||||||
As of February 28, 2014, 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 $1,013,000, 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 service period is approximately 2.6 years. | ||||||||||||||||||||||||||||
During the three months ended February 28, 2014 and 2013, the Company recorded stock-based compensation related to the ESPP of $30,000 and $12,000, respectively. During the nine months ended February 28, 2014 and 2013, the Company recorded stock-based compensation related to the ESPP of $92,000 and $46,000, respectively. | ||||||||||||||||||||||||||||
As of February 28, 2014, the total compensation cost related to options to purchase the Company’s common stock under the ESPP but not yet recognized was approximately $137,000. This cost will be amortized on a straight-line basis over a weighted average service period of approximately 1.1 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 months ended February 28, 2013, and the nine months ended February 28, 2014 and 2013 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Option plan shares | ||||||||||||||||||||||||||||
Expected term (in years) | 5 | 4 | 5 | |||||||||||||||||||||||||
Volatility | 0.94 | 0.95 | 0.91 | |||||||||||||||||||||||||
Expected dividend | $0.00 | $0.00 | $0.00 | |||||||||||||||||||||||||
Risk-free interest rates | 0.76 | % | 1.4 | % | 0.72 | % | ||||||||||||||||||||||
Estimated forfeiture rate | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||
Weighted average grant date fair value | $0.62 | $1.03 | $0.78 | |||||||||||||||||||||||||
There were no options granted during the three months ended February 28, 2014. | ||||||||||||||||||||||||||||
The fair values of the ESPP purchase rights granted for the nine months ended February 28, 2014 were estimated using the following weighted-average assumptions: | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
February 28,2014 | ||||||||||||||||||||||||||||
Employee stock purchase plan purchase rights | ||||||||||||||||||||||||||||
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 purchase rights granted during the three months ended February 28, 2014 and 2013, and the nine months ended February 28, 2013. There were no ESPP shares issued during the three months ended February 28, 2014 and 2013. Total ESPP shares issued during the nine months ended February 28, 2014 and 2013 were 75,000 shares and 79,000 shares, respectively. As of February 28, 2014 there were 400,000 ESPP shares available for issuance. | ||||||||||||||||||||||||||||
The following table summarizes the stock option transactions during the three and nine months ended February 28, 2014 (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 granted | -- | -- | ||||||||||||||||||||||||||
Options terminated | -- | -- | ||||||||||||||||||||||||||
Options exercised | -- | (85 | ) | $ | 0.93 | |||||||||||||||||||||||
Balances, February 28, 2014 | 1,221 | 3,065 | $ | 1.26 | $ | 3,370 | ||||||||||||||||||||||
Options fully vested and expected to vest at February 28, 2014 | 3,004 | $ | 1.26 | $ | 3,303 | |||||||||||||||||||||||
Options exercisable at February 28, 2014 | 1,852 | $ | 1.21 | $ | 2,051 | |||||||||||||||||||||||
The options outstanding and exercisable at February 28, 2014 were in the following exercise price ranges (in thousands, except per share data): | ||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
at February 28, 2014 | at February 28, 2014 | |||||||||||||||||||||||||||
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 | Aggregate Intrinsic Value | |||||||||||||||||||||
Prices | Exercise Price | |||||||||||||||||||||||||||
$ | 0.59-$0.97 | 1,000 | 3.76 | $ | 0.75 | 804 | 3.5 | $ | 0.79 | |||||||||||||||||||
$ | 1.09-$1.42 | 1,442 | 5.11 | $ | 1.28 | 585 | 4.37 | $ | 1.29 | |||||||||||||||||||
$ | 1.73-$1.95 | 461 | 3.05 | $ | 1.88 | 361 | 2.47 | $ | 1.91 | |||||||||||||||||||
$ | 2.15-$2.68 | 162 | 4.83 | $ | 2.5 | 102 | 4 | $ | 1.57 | |||||||||||||||||||
$ | 0.59-$2.68 | 3,065 | 4.35 | $ | 1.26 | 1,852 | 3.6 | $ | 1.21 | $2,051 | ||||||||||||||||||
The total intrinsic value of options exercised during the three and nine months ended February 28, 2014 was $162,000 and $315,000, respectively. The total intrinsic value of options exercised during the three and nine months ended February 28, 2013 was $0 and $42,000, respectively. The weighted average remaining contractual life of the options exercisable and expected to be exercisable at February 28, 2014 was 4.35 years. |
3_EARNINGS_PER_SHARE
3. EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: Net income (loss) | $ | 212 | $ | (1,458 | ) | $ | 183 | $ | (2,565 | ) | |||||||
Denominator for basic net income (loss) per share: | |||||||||||||||||
Weighted-average shares outstanding | 10,982 | 9,363 | 10,807 | 9,276 | |||||||||||||
Shares used in basic net income (loss) per share calculation | 10,982 | 9,363 | 10,807 | 9,276 | |||||||||||||
Effect of dilutive securities | 1,295 | -- | 776 | -- | |||||||||||||
Denominator for diluted net income (loss) per share | 12,277 | 9,363 | 11,583 | 9,276 | |||||||||||||
Basic net income (loss) per share | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.28 | ) | |||||||
Diluted net income (loss) per share | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.28 | ) | |||||||
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. Stock options to purchase 192,000 shares of common stock and ESPP rights to purchase 177,000 ESPP shares were outstanding for the three months ending February 28, 2014, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. Stock options to purchase 370,000 shares of common stock and ESPP rights to purchase 177,000 ESPP shares were outstanding for the nine months ending February 28, 2014, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive. In the three and nine months ended February 28, 2013, 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 2,967,000 shares of common stock and ESPP rights to purchase 178,000 ESPP shares were outstanding on February 28, 2013, 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 | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 February 28, 2014 (in thousands): | |||||||||||||||||
Balance as of | |||||||||||||||||
28-Feb-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 452 | $ | 452 | $ | -- | $ | -- | |||||||||
Assets | $ | 452 | $ | 452 | $ | -- | $ | -- | |||||||||
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 | |||||||||||||||||
31-May-13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 102 | $ | 102 | $ | -- | $ | -- | |||||||||
Assets | $ | 102 | $ | 102 | $ | -- | $ | -- | |||||||||
Liabilities | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||
As of February 28, 2014 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 | 9 Months Ended |
Feb. 28, 2014 | |
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 $52,000 at February 28, 2014 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 | 9 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
InventoriesAbstract | ' | ||||||||
Inventories | ' | ||||||||
6. INVENTORIES | |||||||||
Inventories are comprised of the following (in thousands): | |||||||||
February 28, | May 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and sub-assemblies | $ | 2,920 | $ | 3,180 | |||||
Work in process | 3,011 | 2,187 | |||||||
Finished goods | -- | 2 | |||||||
$ | 5,931 | $ | 5,369 |
7_SEGMENT_INFORMATION
7. SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 February 28, 2014: | |||||||||||||||||
Net sales | $ | 2,863 | $ | 1,039 | $ | 1,710 | $ | 5,612 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
Nine months ended February 28, 2014: | |||||||||||||||||
Net sales | $ | 7,082 | $ | 4,963 | $ | 2,269 | $ | 14,314 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
Three months ended February 28, 2013: | |||||||||||||||||
Net sales | $ | 2,100 | $ | 1,188 | $ | 52 | $ | 3,340 | |||||||||
Property and equipment, net | 321 | 57 | -- | 378 | |||||||||||||
Nine months ended February 28, 2013: | |||||||||||||||||
Net sales | $ | 6,095 | $ | 6,546 | $ | 585 | $ | 13,226 | |||||||||
Property and equipment, net | 321 | 57 | -- | 378 | |||||||||||||
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 95% and 94% of its net sales in the three and nine months ended February 28, 2014, respectively. Four customers accounted for approximately 36%, 28%, 19% and 11% of the Company’s net sales in the three months ended February 28, 2014. Two customers accounted for approximately 46% and 33% of the Company’s net sales in the nine months ended February 28, 2014. Sales to the Company’s five largest customers accounted for approximately 98% and 80% of its net sales in the three and nine months ended February 28, 2013, respectively. Three customers accounted for approximately 40%, 37%, and 16% of the Company’s net sales in the three months ended February 28, 2013. Three customers accounted for approximately 30%, 27% and 11% of the Company’s net sales in the nine months ended February 28, 2013. 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 | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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. | |||||||||||||||||
Following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 28, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at the beginning of the period | $ | 208 | $ | 174 | $ | 222 | $ | 91 | |||||||||
Accruals for warranties issued during the period | 34 | 162 | 188 | 412 | |||||||||||||
Settlement made during the period (in cash or in kind) | (46 | ) | (139 | ) | (214 | ) | (306 | ) | |||||||||
Balance at the end of the period | $ | 196 | $ | 197 | $ | 196 | $ | 197 | |||||||||
The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets. |
9_INCOME_TAXES
9. INCOME TAXES | 9 Months Ended |
Feb. 28, 2014 | |
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 - 2013 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 | 9 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Customer Deposits And Deferred Revenue Short-Term | ' | ||||||||
CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM | ' | ||||||||
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM | |||||||||
Customer deposits and deferred revenue, short-term (in thousands): | |||||||||
February 28, | May 31, | ||||||||
2014 | 2013 | ||||||||
Customer deposits | $ | 1,158 | $ | 1,728 | |||||
Deferred revenue, short-term | 187 | 244 | |||||||
$ | 1,345 | $ | 1,972 |
11_LINE_OF_CREDIT
11. LINE OF CREDIT | 9 Months Ended |
Feb. 28, 2014 | |
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 February 28, 2014, the weighted average interest rate on the outstanding loan balance was 4.375%. The average loan balance for the three and nine months ending February 28, 2014 was $475,000 and $482,000, respectively. At February 28, 2014, the Company had drawn $406,000 against the credit facility. The balance available to borrow under the line at February 28, 2014 was $1,039,000. The Company was in compliance with all covenants at February 28, 2014. |
12_RECENT_ACCOUNTING_PRONOUNCE
12. RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Feb. 28, 2014 | |
Recent Accounting Pronouncements | ' |
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) | 9 Months Ended |
Feb. 28, 2014 | |
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 Aehr Test Systems' 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 (loss), 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) | 9 Months Ended | |||||||||||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||||||||||
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 nine months ended February 28, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Stock-based compensation in the form of employee stock options and ESPP shares, included in: | ||||||||||||||||||||||||||||
Cost of sales | $ | 10 | $ | 9 | $ | 33 | $ | 26 | ||||||||||||||||||||
Selling, general and administrative | 184 | 159 | 471 | 315 | ||||||||||||||||||||||||
Research and development | 41 | 33 | 121 | 86 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 235 | $ | 201 | $ | 625 | $ | 427 | ||||||||||||||||||||
Assumptions for Options Valuation Model | ' | |||||||||||||||||||||||||||
Fair Value. The fair value of the Company’s stock options granted to employees for the three months ended February 28, 2013, and the nine months ended February 28, 2014 and 2013 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||||||||||
2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Option plan shares | ||||||||||||||||||||||||||||
Expected term (in years) | 5 | 4 | 5 | |||||||||||||||||||||||||
Volatility | 0.94 | 0.95 | 0.91 | |||||||||||||||||||||||||
Expected dividend | $0.00 | $0.00 | $0.00 | |||||||||||||||||||||||||
Risk-free interest rates | 0.76 | % | 1.4 | % | 0.72 | % | ||||||||||||||||||||||
Estimated forfeiture rate | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||||||||||||||
Weighted average grant date fair value | $0.62 | $1.03 | $0.78 | |||||||||||||||||||||||||
Fair values of the ESPP shares | ' | |||||||||||||||||||||||||||
The fair values of the ESPP purchase rights granted for the nine months ended February 28, 2014 were estimated using the following weighted-average assumptions: | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
February 28,2014 | ||||||||||||||||||||||||||||
Employee stock purchase plan purchase rights | ||||||||||||||||||||||||||||
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 nine months ended February 28, 2014 (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 granted | -- | -- | ||||||||||||||||||||||||||
Options terminated | -- | -- | ||||||||||||||||||||||||||
Options exercised | -- | (85 | ) | $ | 0.93 | |||||||||||||||||||||||
Balances, February 28, 2014 | 1,221 | 3,065 | $ | 1.26 | $ | 3,370 | ||||||||||||||||||||||
Options fully vested and expected to vest at February 28, 2014 | 3,004 | $ | 1.26 | $ | 3,303 | |||||||||||||||||||||||
Options exercisable at February 28, 2014 | 1,852 | $ | 1.21 | $ | 2,051 | |||||||||||||||||||||||
Options Outstanding | ' | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||
at February 28, 2014 | at February 28, 2014 | |||||||||||||||||||||||||||
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 | Aggregate Intrinsic Value | |||||||||||||||||||||
Prices | Exercise Price | |||||||||||||||||||||||||||
$ | 0.59-$0.97 | 1,000 | 3.76 | $ | 0.75 | 804 | 3.5 | $ | 0.79 | |||||||||||||||||||
$ | 1.09-$1.42 | 1,442 | 5.11 | $ | 1.28 | 585 | 4.37 | $ | 1.29 | |||||||||||||||||||
$ | 1.73-$1.95 | 461 | 3.05 | $ | 1.88 | 361 | 2.47 | $ | 1.91 | |||||||||||||||||||
$ | 2.15-$2.68 | 162 | 4.83 | $ | 2.5 | 102 | 4 | $ | 1.57 | |||||||||||||||||||
$ | 0.59-$2.68 | 3,065 | 4.35 | $ | 1.26 | 1,852 | 3.6 | $ | 1.21 | $2,051 |
3_EARNINGS_PER_SHARE_Tables
3. EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: Net income (loss) | $ | 212 | $ | (1,458 | ) | $ | 183 | $ | (2,565 | ) | |||||||
Denominator for basic net income (loss) per share: | |||||||||||||||||
Weighted-average shares outstanding | 10,982 | 9,363 | 10,807 | 9,276 | |||||||||||||
Shares used in basic net income (loss) per share calculation | 10,982 | 9,363 | 10,807 | 9,276 | |||||||||||||
Effect of dilutive securities | 1,295 | -- | 776 | -- | |||||||||||||
Denominator for diluted net income (loss) per share | 12,277 | 9,363 | 11,583 | 9,276 | |||||||||||||
Basic net income (loss) per share | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.28 | ) | |||||||
Diluted net income (loss) per share | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.28 | ) |
4_FAIR_VALUE_OF_FINANCIAL_INST1
4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 February 28, 2014 (in thousands): | |||||||||||||||||
Balance as of | |||||||||||||||||
28-Feb-14 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 452 | $ | 452 | $ | -- | $ | -- | |||||||||
Assets | $ | 452 | $ | 452 | $ | -- | $ | -- | |||||||||
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 | |||||||||||||||||
31-May-13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds | $ | 102 | $ | 102 | $ | -- | $ | -- | |||||||||
Assets | $ | 102 | $ | 102 | $ | -- | $ | -- | |||||||||
Liabilities | $ | -- | $ | -- | $ | -- | $ | -- |
6_INVENTORIES_Tables
6. INVENTORIES (Tables) | 9 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Inventories Tables | ' | ||||||||
Inventories | ' | ||||||||
Inventories are comprised of the following (in thousands): | |||||||||
February 28, | May 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and sub-assemblies | $ | 2,920 | $ | 3,180 | |||||
Work in process | 3,011 | 2,187 | |||||||
Finished goods | -- | 2 | |||||||
$ | 5,931 | $ | 5,369 |
7_SEGMENT_INFORMATION_Tables
7. SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 February 28, 2014: | |||||||||||||||||
Net sales | $ | 2,863 | $ | 1,039 | $ | 1,710 | $ | 5,612 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
Nine months ended February 28, 2014: | |||||||||||||||||
Net sales | $ | 7,082 | $ | 4,963 | $ | 2,269 | $ | 14,314 | |||||||||
Property and equipment, net | 268 | 42 | 1 | 311 | |||||||||||||
Three months ended February 28, 2013: | |||||||||||||||||
Net sales | $ | 2,100 | $ | 1,188 | $ | 52 | $ | 3,340 | |||||||||
Property and equipment, net | 321 | 57 | -- | 378 | |||||||||||||
Nine months ended February 28, 2013: | |||||||||||||||||
Net sales | $ | 6,095 | $ | 6,546 | $ | 585 | $ | 13,226 | |||||||||
Property and equipment, net | 321 | 57 | -- | 378 |
8_PRODUCT_WARRANTIES_Tables
8. PRODUCT WARRANTIES (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Product Warranties Tables | ' | ||||||||||||||||
Liability for product warranties | ' | ||||||||||||||||
Following is a summary of changes in the Company's liability for product warranties during the three and nine months ended February 28, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at the beginning of the period | $ | 208 | $ | 174 | $ | 222 | $ | 91 | |||||||||
Accruals for warranties issued during the period | 34 | 162 | 188 | 412 | |||||||||||||
Settlement made during the period (in cash or in kind) | (46 | ) | (139 | ) | (214 | ) | (306 | ) | |||||||||
Balance at the end of the period | $ | 196 | $ | 197 | $ | 196 | $ | 197 |
10_CUSTOMER_DEPOSITS_AND_DEFER1
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM (Tables) | 9 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Customer Deposits And Deferred Revenue Short-Term Tables | ' | ||||||||
Customer deposits and deferred revenue | ' | ||||||||
Customer deposits and deferred revenue, short-term (in thousands): | |||||||||
February 28, | May 31, | ||||||||
2014 | 2013 | ||||||||
Customer deposits | $ | 1,158 | $ | 1,728 | |||||
Deferred revenue, short-term | 187 | 244 | |||||||
$ | 1,345 | $ | 1,972 |
2_STOCKBASED_COMPENSATION_Comp
2. STOCK-BASED COMPENSATION - Compensation costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ' | ' | ' | ' |
Total stock-based compensation | $235 | $201 | $625 | $427 |
Cost of Sales | ' | ' | ' | ' |
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ' | ' | ' | ' |
Total stock-based compensation | 10 | 9 | 33 | 26 |
Selling, General and Administrative | ' | ' | ' | ' |
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ' | ' | ' | ' |
Total stock-based compensation | 184 | 159 | 471 | 315 |
Research and Development | ' | ' | ' | ' |
Stock-based compensation in the form of employee stock options and ESPP shares included in: | ' | ' | ' | ' |
Total stock-based compensation | $41 | $33 | $121 | $86 |
2_STOCKBASED_COMPENSATION_Opti
2. STOCK-BASED COMPENSATION - Options (Details 1) (Stock Options, USD $) | 3 Months Ended | 9 Months Ended | |
Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Stock Options | ' | ' | ' |
Expected term (in years) | '5 years | '4 years | '5 years |
Volatility | 94.00% | 95.00% | 91.00% |
Expected dividend | $0 | $0 | $0 |
Risk-free interest rates | 0.76% | 1.40% | 0.72% |
Estimated forfeiture rate | 0.25% | 0.25% | 0.25% |
Weighted average grant date fair value | $0.62 | $1.03 | $0.78 |
2_STOCKBASED_COMPENSATION_Fair
2. STOCK-BASED COMPENSATION - Fair values of the ESPP shares (Details 2) (Employee Stock Purchase Plan, USD $) | 9 Months Ended |
Feb. 28, 2014 | |
Volatility, Minimum | 86.00% |
Volatility, Maximum | 100.00% |
Expected dividend | $0 |
Risk-free interest rates, Minimum | 0.04% |
Risk-free interest rates, Maximum | 0.33% |
Estimated forfeiture rate | 0.00% |
Weighted average grant date fair value | $1.34 |
Minimum | ' |
Expected term (in years) | '6 months |
Maximum | ' |
Expected term (in 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 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 |
Stock-Based Compensation - Option Activity Details 3 | ' | ' | ' |
Available Shares, Beginning (in thousands) | 1,221 | 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 | 1,221 | 1,197 |
Options Outstanding, Beginning (in thousands) | 3,150 | 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) | -85 | -149 | -69 |
Number of Options Outstanding, Ending (in thousands) | 3,065 | 3,150 | 3,323 |
Weighted Average Exercise Price Outstanding, Beginning | $1.25 | $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 | $0.93 | $1.71 | $0.86 |
Weighted Average Exercise Price Outstanding, Ending | $1.26 | $1.25 | $1.27 |
Aggregate Intrinsic Value, beginning balance | $4,968 | $1,301 | $964 |
Aggregate Intrinsic Value, ending balance | 3,370 | 4,968 | 1,301 |
Options fully vested and expected to vest at February 28, 2014 (in thousands) | 3,004 | ' | ' |
Options exercisable at February 28, 2014 (in thousands) | 1,852 | ' | ' |
Weighted Average Exercise Price for Options fully vested and expected to vest at February 28, 2014 | $1.26 | ' | ' |
Weighted Average Exercise Price for Options exercisable at February 28, 2014 | $1.21 | ' | ' |
Aggregate Intrinsic Value for Options fully vested and expected to vest at February 28, 2014 | 3,303 | ' | ' |
Options exercisable at February 28, 2014 Aggregate intrinsic value | $2,051 | ' | ' |
2_STOCKBASED_COMPENSATION_Opti2
2. STOCK-BASED COMPENSATION - Options outstanding and exercisable (Details 4) (USD $) | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | 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) | 3,065 | 3,150 | 3,323 | 2,956 |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | '4 years 4 months 6 days | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Ending | $1.26 | $1.25 | $1.27 | $1.79 |
Number Exercisable Shares (in thousands) | 1,852 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | '3 years 7 months 6 days | ' | ' | ' |
Weighted Average Exercise Price Options Excercisable | $1.21 | ' | ' | ' |
Aggregate Intrinsic Value Options Exercisable | $2,051 | ' | ' | ' |
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) | 1,000 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | '3 years 9 months 4 days | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Ending | $0.75 | ' | ' | ' |
Number Exercisable Shares (in thousands) | 804 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | '3 years 6 months | ' | ' | ' |
Weighted Average Exercise Price Options Excercisable | $0.79 | ' | ' | ' |
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) | 1,442 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | '5 years 1 month 10 days | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Ending | $1.28 | ' | ' | ' |
Number Exercisable Shares (in thousands) | 585 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | '4 years 4 months 13 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) | 461 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Outstanding | '3 years 18 days | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Ending | $1.88 | ' | ' | ' |
Number Exercisable Shares (in thousands) | 361 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | '2 years 5 months 19 days | ' | ' | ' |
Weighted Average Exercise Price Options Excercisable | $1.91 | ' | ' | ' |
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 | '4 years 9 months 29 days | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Ending | $2.50 | ' | ' | ' |
Number Exercisable Shares (in thousands) | 102 | ' | ' | ' |
Weighted Average Remaining Contractual Life (Years) Options Exercisable | '4 years | ' | ' | ' |
Weighted Average Exercise Price Options Excercisable | $1.57 | ' | ' | ' |
2_STOCKBASED_COMPENSATION_Deta
2. STOCK-BASED COMPENSATION (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Stock-based compensation costs capitalized as part of inventory | ' | $25 | ' | $25 |
Stock-based compensation expense related to stock options | 205 | 189 | 533 | 381 |
Intrinsic value of options exercised | 162 | 0 | 315 | 42 |
Weighted average remaining contractual life of the options exercisable and expected to be exercisable | ' | ' | '4 years 4 months 6 days | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Weighted average remaining period of the underlying options | ' | ' | '1 year 1 month 6 days | ' |
Stock-based compensation related to the ESPP | 30 | 12 | 92 | 46 |
Compensation cost related to options to purchase the Company's common stock under the ESPP but not yet recognized | 137 | ' | 137 | ' |
ESPP shares issued (in thousands) | ' | ' | 75 | 79 |
ESPP shares available for issuance (in thousands) | 400 | ' | 400 | ' |
1996 Stock Option Plan & 2006 Equity Incentive Plan | ' | ' | ' | ' |
Unrecognized stock-based compensation cost related to unvested stock-based awards | 1,013 | ' | 1,013 | ' |
Estimated forfeitures of unvested stock based awards | $3 | ' | $3 | ' |
Weighted average remaining period of the underlying options | ' | ' | '2 years 7 months 6 days | ' |
3_EARNINGS_PER_SHARE_Details
3. EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Earnings Per Share Details | ' | ' | ' | ' |
Numerator: Net income (loss) | $212 | ($1,458) | $183 | ($2,565) |
Denominator for basic net income (loss) per share: Weighted average shares outstanding (in thousands) | 10,982 | 9,363 | 10,807 | 9,276 |
Shares used in basic net income (loss) per share calculation (in thousands) | 10,982 | 9,363 | 10,807 | 9,276 |
Effect of dilutive securities (in thousands) | 1,295 | 0 | 776 | 0 |
Denominator for diluted net income (loss) per share (in thousands) | 12,277 | 9,363 | 11,583 | 9,276 |
Basic net income (loss) per share | $0.02 | ($0.16) | $0.02 | ($0.28) |
Diluted net income (loss) per share | $0.02 | ($0.16) | $0.02 | ($0.28) |
3_EARNINGS_PER_SHARE_Details_N
3. EARNINGS PER SHARE (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Stock Option [Member] | ' | ' | ' | ' |
Options not included in the computation of diluted net loss per share (in thousands) | 192 | 2,967 | 370 | 2,967 |
ESPP [Member] | ' | ' | ' | ' |
Options not included in the computation of diluted net loss per share (in thousands) | 177 | 178 | 177 | 178 |
4_FAIR_VALUE_OF_FINANCIAL_INST2
4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Money market funds | $452 | $102 |
Assets | 452 | 102 |
Liabilities | 0 | 0 |
Level 1 | ' | ' |
Money market funds | 452 | 102 |
Assets | 452 | 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 $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Accounts Receivable Net Details Narrative | ' | ' |
Allowance for doubtful accounts customer trade receivables | $52 | $39 |
6_INVENTORIES_Details
6. INVENTORIES (Details) (USD $) | Feb. 28, 2014 | 31-May-13 | |
In Thousands, unless otherwise specified | |||
Inventories Details | ' | ' | |
Raw materials and sub-assemblies | $2,920 | $3,180 | |
Work-in-process | 3,011 | 2,187 | |
Finished goods | 0 | 2 | |
Inventory | $5,931 | $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 | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | |
Net sales | $5,612 | $3,340 | $14,314 | $13,226 | ' | |
Property and equipment, net | 311 | 378 | 311 | 378 | 301 | [1] |
US | ' | ' | ' | ' | ' | |
Net sales | 2,863 | 2,100 | 7,082 | 6,095 | ' | |
Property and equipment, net | 268 | 321 | 268 | 321 | ' | |
Asia | ' | ' | ' | ' | ' | |
Net sales | 1,039 | 1,188 | 4,963 | 6,546 | ' | |
Property and equipment, net | 42 | 57 | 42 | 57 | ' | |
Europe | ' | ' | ' | ' | ' | |
Net sales | 1,710 | 52 | 2,269 | 585 | ' | |
Property and equipment, net | $1 | $0 | $1 | $0 | ' | |
[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 | 9 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Customers accounted for10% or more of total revenue | 95.00% | 98.00% | 94.00% | 80.00% |
Customer A | ' | ' | ' | ' |
Customers accounted for10% or more of total revenue | 36.00% | 40.00% | 46.00% | 30.00% |
Customer B | ' | ' | ' | ' |
Customers accounted for10% or more of total revenue | 28.00% | 37.00% | 33.00% | 27.00% |
Customer C | ' | ' | ' | ' |
Customers accounted for10% or more of total revenue | 19.00% | 16.00% | ' | 11.00% |
Customer D | ' | ' | ' | ' |
Customers accounted for10% or more of total revenue | 11.00% | ' | ' | ' |
8_PRODUCT_WARRANTIES_Details
8. PRODUCT WARRANTIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Product Warranties Details | ' | ' | ' | ' |
Balance at the beginning of the period | $208 | $174 | $222 | $91 |
Accruals for warranties issued during the period | 34 | 162 | 188 | 412 |
Settlement made during the period (in cash or in kind) | -46 | -139 | -214 | -306 |
Balance at the end of the period | $196 | $197 | $196 | $197 |
10_CUSTOMER_DEPOSITS_AND_DEFER2
10. CUSTOMER DEPOSITS AND DEFERRED REVENUE, SHORT-TERM (Details) (USD $) | Feb. 28, 2014 | 31-May-13 | |
In Thousands, unless otherwise specified | |||
Customer Deposits And Deferred Revenue Short-Term Details | ' | ' | |
Customer deposits | $1,158 | $1,728 | |
Deferred revenue, short-term | 187 | 244 | |
Total | $1,345 | $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 | 9 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2014 |
Line Of Credit Details Narrative | ' | ' |
Line of credit, maximum borrowing capacity | $2,500 | $2,500 |
Line of credit facility, amount borrowed | 406 | 406 |
Balance available to borrow under the line of credit | 1,039 | 1,039 |
Weighted average interest rate | 4.38% | 4.38% |
Average loan balance | $475 | $482 |
Compliance with covenants | ' | 'The Company was in compliance with all covenants at February 28, 2014. |