Exhibit 99.1
[AEHR TEST SYSTEMS LOGO]
FOR IMMEDIATE RELEASE
Contacts:
FRB | Weber Shandwick
Jocelyn Hunter Linda Chien
Analyst Contact General Inquiries
(415) 248-3433 (310) 407-6547
AEHR TEST SYSTEMS REPORTS FOURTH QUARTER
AND FISCAL 2003 RESULTS
Fremont, CA (July 22, 2003) -- Aehr Test Systems (Nasdaq: AEHR) today
announced financial results for the fourth quarter and fiscal year ended May
31, 2003.
Net sales for the fourth quarter of fiscal 2003 were $4.6 million, an
increase of 31 percent from $3.5 million for the fourth quarter of fiscal
2002. Net sales for the fourth quarter increased by 15 percent to $4.6
million from $4.0 million in the third quarter of fiscal 2003. The operating
loss for the fourth quarter of fiscal 2003 was $864,000, representing a 28
percent reduction from the operating loss of $1.2 million in the fourth
quarter of fiscal 2002 and a 20 percent reduction from the operating loss of
$1.1 million in the third quarter of fiscal 2003. Net loss for the fourth
quarter of fiscal 2003 was $677,000, or $0.09 per share, compared with a net
loss of $3.1 million, or $0.43 per share, in the same quarter of fiscal 2002.
The net loss for the fourth quarter of fiscal 2002 included a $2.5 million,
or $0.34 per share, non-cash charge related to the deferred tax assets
valuation allowance.
"We are very pleased with our fourth quarter net sales performance, which
marked the second sequential quarter of double-digit growth," said Rhea
Posedel, chairman and chief executive officer of Aehr Test. "Net sales
reached their highest quarterly level of the last two years, during the
protracted semiconductor industry downturn. The growth was primarily driven
by an increase in demand for our core burn-in and test systems, a trend we
began seeing in the third quarter."
"During the quarter, we achieved a major product development goal," said C.J.
Meurell, president and chief operating officer of Aehr Test. "We made
significant progress in the development of our FOX full wafer burn-in and
test system and completed another key development milestone, which resulted
in the recognition of $400,000 in net sales in the fourth quarter. Many IC
manufacturers are interested in our FOX products because of the systems'
innovative capability to parallel test and burn-in devices at the wafer
level, which they anticipate will reduce test cost, decrease cycle time and
eliminate process steps. We believe the FOX technology can be used in a wide
variety of applications, expanding our addressable market and creating new
revenue opportunities. We expect the FOX products to fuel our growth over
the long-term."
Net sales for the year ended May 31, 2003 were $15.1 million, a 20 percent
increase from net sales of $12.6 million in fiscal 2002. The operating loss
for fiscal 2003 was $4.7 million compared with the operating loss of $4.5
million for fiscal 2002. Net loss for fiscal 2003 was $4.5 million, or $0.63
per share, compared with a net loss of $5.3 million, or $0.74 per share, in
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fiscal 2002. Net loss for fiscal 2002 included the $2.5 million non-cash
charge related to the deferred tax assets valuation allowance.
As of May 31, 2003, the Company had no debt outstanding; its cash, short-term
investments and long-term investments totaled $11.4 million, and its book
value was $3.54 per share.
"Despite this extremely difficult market environment, we are very proud of our
accomplishments in fiscal 2003," commented Posedel. "We grew revenues 20
percent on an annual basis and ended fiscal 2003 with an order backlog of $5.1
million compared with $3.9 million at the end of the prior fiscal year. We
also made tremendous strides in new product development. With the successful
completion of two development milestones for the FOX product line, our efforts
are beginning to bear fruit."
Posedel concluded, "The outlook for the semiconductor equipment sector is
still cloudy, and we believe that our net sales in the first quarter of
fiscal 2004 may be down somewhat compared to the fourth quarter of fiscal
2003. Despite limited visibility, we are confident that our strategy will
continue to enable us to weather this downturn. We remain committed to our
product development efforts and will continue to fund this investment with
our solid, debt-free balance sheet. We are optimistic about the potential of
the FOX products and the long-term future of Aehr Test."
About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a leading
worldwide provider of systems for burning-in and testing DRAM and logic
integrated circuits and has an installed base of more than 2,000 systems
worldwide. Aehr Test has developed and introduced several innovative
products, including the FOX, MTX, MAX3 and MAX4 systems and the DiePak
carrier. The FOX system is a full wafer contact test and burn-in system.
The MTX system is a massively parallel test system designed to reduce the
cost of memory testing by performing both test and burn-in on thousands of
devices simultaneously. The MAX system can effectively burn-in and
functionally test complex devices, such as digital signal processors,
microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier
is a reusable, temporary package that enables IC manufacturers to perform
cost-effective final test and burn-in of bare die. For more information,
please visit the Company's website at www.aehr.com.
Safe Harbor Statement
This release contains forward-looking statements that involve risks and
uncertainties relating to projections regarding industry growth and customer
demand for Aehr Test's products. Actual results may vary from projected
results. These risks and uncertainties include, without limitation, economic
conditions in Asia and elsewhere, world events, acceptance by customers of the
FOX, MTX, MAX and DiePak technologies, the ability of the Company to gain
business in China, the Company's development and manufacture of a commercially
successful wafer-level burn-in system, and the potential emergence of
alternative technologies, which could adversely affect demand for Aehr Test's
products in fiscal year 2004. See Aehr Test's recent 10-K and 10-Q reports
filed with the SEC for a more detailed description of the risks facing our
business. The Company disclaims any obligation to update information
contained in any forward-looking statement to reflect events or circumstances
occurring after the date of this press release.
{Financial Tables to Follow}
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Year Ended
May 31, May 31,
(Unaudited)
---------- ---------- ---------- ----------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Net sales...................................... $ 4,628 $ 3,522 $15,092 $12,568
Cost of sales.................................. 2,985 1,876 9,354 6,488
---------- ---------- ---------- ----------
Gross profit................................... 1,643 1,646 5,738 6,080
---------- ---------- ---------- ----------
Operating expenses:
Selling, general and administrative.......... 1,259 1,733 5,919 6,547
Research and development..................... 1,248 1,105 4,543 4,036
---------- ---------- ---------- ----------
Total operating expenses................... 2,507 2,838 10,462 10,583
---------- ---------- ---------- ----------
Loss from operations........................... (864) (1,192) (4,724) (4,503)
Interest income................................ 67 97 252 520
Other income (expense), net.................... 14 49 (146) (43)
---------- ---------- ---------- ----------
Loss before income taxes....................... (783) (1,046) (4,618) (4,026)
Income tax expense (benefit)................... (106) 2,076 (74) 1,241
---------- ---------- ---------- ----------
Net Loss....................................... $ (677) $(3,122) $(4,544) $(5,267)
========== ========== ========== ==========
Net loss per share
Basic...................................... $ (0.09) $ (0.43) $ (0.63) $ (0.74)
Diluted.................................... $ (0.09) $ (0.43) $ (0.63) $ (0.74)
Shares used in per share calculation:
Basic...................................... 7,157 7,182 7,161 7,151
Diluted.................................... 7,157 7,182 7,161 7,151
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AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
May 31, May 31,
2003 2002
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 8,362 $ 7,485
Short-term investments ............................. 2,429 8,003
Accounts receivable................................. 2,889 3,132
Inventories ........................................ 9,247 8,633
Prepaid expenses and other ......................... 1,640 2,373
---------- ----------
Total current assets ........................... 24,567 29,626
Property and equipment, net .......................... 1,515 2,356
Long-term investments ................................ 607 --
Other assets, net .................................... 1,558 1,836
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Total assets ................................... $28,247 $33,818
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 748 $ 874
Accrued expenses ................................... 1,739 2,260
Deferred revenue ................................... 106 540
---------- ----------
Total current liabilities ...................... 2,593 3,674
Deferred revenue ..................................... 30 35
Deferred lease commitment ............................ 279 224
---------- ----------
Total liabilities .............................. 2,902 3,933
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Shareholders' equity:
Common stock, $.01 par value outstanding:
7,157 and 7,184 shares at May 31, 2003
and May 31, 2002, respectively.................... 72 72
Additional paid-in capital ......................... 36,364 36,387
Net unrealized gain on investments.................. 2 2
Cumulative translation adjustment................... 1,519 1,492
Accumulated deficit ................................ (12,612) (8,068)
---------- ----------
Total shareholders' equity ..................... 25,345 29,885
---------- ----------
Total liabilities and shareholders' equity ..... $28,247 $33,818
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