Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
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Contacts:
Financial Relations Board
Jocelyn Hunter Laurie Berman
Analyst Contact General Inquiries
(415) 248-3433 (310) 407-6546
AEHR TEST SYSTEMS REPORTS THIRD QUARTER
RESULTS FOR FISCAL 2004
Fremont, CA (March 25, 2004) - Aehr Test Systems (Nasdaq: AEHR), a leading
supplier of semiconductor test and burn-in equipment, today announced
financial results for the third quarter ended February 29, 2004.
Net sales in the third quarter of fiscal 2004 were $2.2 million, compared
with $4.0 million in the third quarter of fiscal 2003. The Company posted a
net loss of $1.7 million, or a loss of $0.24 per share, in the third quarter
of fiscal 2004, compared with a net loss of $988,000, or a loss of $0.14 per
share, in the same period of the prior year.
For the nine months ended February 29, 2004, net sales were $9.9 million,
compared with $10.5 million in the same period of fiscal 2003. The Company
posted a net loss of $3.5 million, or a loss of $0.48 per share, for the nine
months ended February 29, 2004. Net loss was $3.9 million, or a loss of
$0.54 per share, for the comparable period of the prior year.
"Net sales were much lower than expected, primarily because of certain
customer and manufacturing delays that were resolved after quarter-end. We
have already shipped approximately $2 million in product during the current
month," said Rhea Posedel, chairman and chief executive officer of Aehr Test
Systems. "Although we are obviously disappointed with our financial
performance this quarter, we met several important operational milestones
that set the tone for improved results going forward."
"Today, we announced the shipment of a FOX(TM) wafer level burn-in system to
Fuji Xerox Co., Ltd. We believe that the FOX product line allows customers
to save money through the early detection of process defects, driving the
continued interest in the product line. Also today, we announced the booking
of a $2 million turnkey, multi-system order for our newly released MTX-Fp+
system. This order is important to Aehr Test because it allows us to
penetrate a new production customer for our MTX massively parallel test
system," continued Mr. Posedel.
At February 29, 2004, cash, short-term investments and long-term investments
were $13.1 million, up from $12.9 million at the end of the second quarter of
fiscal 2004. The Company closed the third quarter of fiscal 2004 with no
debt outstanding and shareholders' equity of $22.7 million, or $3.08 per
share.
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"We remain upbeat about our ability to maintain the Company's position as a
market leader and, over the next few quarters, reduce operating losses and
return Aehr Test to profitability," said Gary Larson, vice president of
finance and chief financial officer. "Based primarily on the announced MTX-
Fp+ system orders and FOX system delivery to Fuji Xerox, we believe net sales
in the fourth quarter of fiscal 2004 will be significantly higher than those
in the quarter just ended, and also higher than those in the same quarter of
the prior year."
Management Conference Call
Management of Aehr Test will host a conference call and webcast on Thursday,
March 25, 2004 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's third quarter results. The conference call can be accessed live
via the Internet at www.aehr.com. Please go to the Web site at least fifteen
minutes early to register, download and install any necessary audio software.
A replay of the webcast will be available for 90 days.
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(R)
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 Web site 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 Fuji Xerox of
the FOX system for burning-in laser diodes, acceptance by customers of the
FOX, MTX, MAX and DiePak technologies, the Company's development and
manufacture of a commercially successful wafer-level test and burn-in system,
and the potential emergence of alternative technologies, which could adversely
affect demand for Aehr Test's products in calendar year 2004. See Aehr Test's
recent 10-K and 10-Q reports filed with the Securities and Exchange Commission
(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}
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AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
February 29, February 28, February 29, February 28,
------------ ------------ ------------ ------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Net sales................................... $ 2,166 $4,028 $ 9,928 $10,464
Cost of sales............................... 1,356 2,512 6,150 6,369
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Gross profit................................ 810 1,516 3,778 4,095
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Operating expenses:
Selling, general and administrative....... 1,414 1,497 4,197 4,660
Research and development.................. 1,134 1,100 3,492 3,295
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Total operating expenses................ 2,548 2,597 7,689 7,955
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Loss from operations........................ (1,738) (1,081) (3,911) (3,860)
Interest income............................. 36 44 306 185
Other income (expense), net................. 13 99 174 (160)
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Loss before income taxes.................... (1,689) (938) (3,431) (3,835)
Income tax expense.......................... 28 50 43 32
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Net Loss.................................... $(1,717) $ (988) $(3,474) $(3,867)
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Net loss per share
Basic................................... $ (0.24) $(0.14) $ (0.48) $ (0.54)
Diluted................................. $ (0.24) $(0.14) $ (0.48) $ (0.54)
Shares used in per share calculation:
Basic................................... 7,270 7,137 7,203 7,162
Diluted................................. 7,270 7,137 7,203 7,162
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
February 29, May 31,
2004 2003
(Unaudited)
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ASSETS
Current assets:
Cash and cash equivalents .......................... $ 6,710 $ 8,362
Short-term investments ............................. 5,611 2,429
Accounts receivable................................. 1,467 2,889
Inventories ........................................ 8,307 9,247
Prepaid expenses and other ......................... 466 1,640
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Total current assets ........................... 22,561 24,567
Property and equipment, net .......................... 1,337 1,515
Long-term investments ................................ 822 607
Other assets, net .................................... 1,529 1,558
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Total assets ................................... $26,249 $28,247
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 819 $ 748
Accrued expenses ................................... 2,104 1,739
Deferred revenue ................................... 330 106
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Total current liabilities ...................... 3,253 2,593
Deferred revenue ..................................... 30 30
Deferred lease commitment ............................ 303 279
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Total liabilities .............................. 3,586 2,902
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Shareholders' equity:
Common stock, $.01 par value outstanding:
7,363 and 7,157 shares at February 29, 2004
and May 31, 2003, respectively.................... 74 72
Additional paid-in capital ......................... 37,268 36,364
Net unrealized gain on investments.................. 2 2
Cumulative translation adjustment................... 1,405 1,519
Accumulated deficit ................................ (16,086) (12,612)
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Total shareholders' equity ..................... 22,663 25,345
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Total liabilities and shareholders' equity ..... $26,249 $28,247
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