Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
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Contacts:
At Financial Relations Board
Amy Cozamanis Laurie Berman
Investor/Analyst Contact General Inquiries
(310) 407-6547 (310) 407-6546
AEHR TEST SYSTEMS REPORTS FIRST QUARTER
RESULTS FOR FISCAL 2005
Fremont, CA (September 21, 2004) -- Aehr Test Systems (Nasdaq: AEHR), a leading
supplier of semiconductor test and burn-in equipment, today announced financial
results for the first quarter of fiscal 2005 ended August 31, 2004.
Net sales increased 42 percent in the first quarter of fiscal 2005 to $5.9
million, compared with $4.2 million in the first quarter of fiscal 2004. The
Company posted a net loss of $1.3 million, or $0.18 per diluted share, in the
first quarter of fiscal 2005, compared with a net loss of $808,000, or $0.11
per diluted share, in the same period of the prior year.
"We are pleased with our increased sales performance," said Rhea Posedel,
chairman and chief executive officer of Aehr Test Systems. "We had a
productive quarter, which included follow-on orders for, and the successful
shipment and installation of, MTX Fp+ systems in Asia. The Company's gross
margins were lower than normal during the quarter, primarily because of the
substantial amount of pass-through products included in the multi-million
dollar MTX Fp+ turnkey orders announced previously. We expect gross margins to
improve in the second quarter of fiscal 2005, as most of the pass-through
products associated with these orders were shipped by the end of the first
quarter of fiscal 2005.
"The interest level for our FOX(TM) full wafer contact products has picked up,
as the demand for stacked packages is driving the need for burned-in and tested
bare die," continued Mr. Posedel. "We believe Aehr Test will benefit from this
over the long-term as we penetrate new market opportunities with our innovative
FOX family of wafer level test and burn-in products."
At August 31, 2004, cash, short-term investments and long-term investments were
$10.9 million, compared to $11.8 million at the end of fiscal 2004. Aehr Test
closed the first quarter of fiscal 2005 with no outstanding debt and
shareholders' equity of $20.9 million, or $2.82 per diluted share.
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"While we believe that fiscal second quarter net sales will show improvement
over the same period in the prior year, we are anticipating a net sales decline
when compared with the first quarter of fiscal 2005, primarily because of the
reduction in pass-through product shipments," said Gary Larson, vice president
and chief financial officer of Aehr Test Systems. "We do, however, anticipate
sequential improvements in gross margins and on the bottom line."
MANAGEMENT CONFERENCE CALL
Management of Aehr Test will host a conference call and webcast today, Tuesday,
September 21, 2004 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's fiscal 2005 first quarter results. The conference call will be
accessible live via the Internet at www.aehr.com. Please go to the website 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 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 as well as projections regarding Aehr Test's
future financial performance. 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 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 fiscal year 2005. See Aehr Test's most recent 10-K
report 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
August 31,
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2004 2003
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Net sales...................................... $ 5,936 $4,169
Cost of sales.................................. 4,869 2,543
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Gross profit................................... 1,067 1,626
Operating expenses:
Selling, general and administrative.......... 1,432 1,514
Research and development..................... 1,025 1,219
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Total operating expenses................... 2,457 2,733
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Loss from operations........................... (1,390) (1,107)
Interest income................................ 24 236
Other income, net.............................. 24 63
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Loss before income taxes................... (1,342) (808)
Income tax benefit............................. (18) --
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Net loss................................... $(1,324) $ (808)
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Net loss per share
Basic...................................... $ (0.18) $(0.11)
Diluted.................................... $ (0.18) $(0.11)
Shares used in per share calculation:
Basic...................................... 7,393 7,157
Diluted.................................... 7,393 7,157
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AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
August 31 May 31,
2004 2004
(Unaudited)
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ASSETS
Current assets:
Cash and cash equivalents .......................... $ 6,271 $ 4,641
Short-term investments ............................. 4,299 5,892
Accounts receivable................................. 5,250 4,205
Inventories ........................................ 7,623 7,989
Prepaid expenses and other ......................... 449 492
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Total current assets ........................... 23,892 23,219
Property and equipment, net .......................... 1,306 1,289
Long-term investments ................................ 299 1,292
Other assets, net .................................... 1,012 1,012
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Total assets ................................... $26,509 $26,812
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 2,617 $ 1,838
Accrued expenses ................................... 2,018 2,100
Deferred revenue ................................... 651 337
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Total current liabilities ...................... 5,286 4,275
Deferred revenue ..................................... 26 26
Deferred lease commitment ............................ 311 307
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Total liabilities .............................. 5,623 4,608
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Shareholders' equity:
Common stock, $.01 par value outstanding:
7,394 and 7,389 shares at August 31, 2004
and May 31, 2004, respectively.................... 74 74
Additional paid-in capital ......................... 37,341 37,322
Net unrealized loss on investments.................. (8) (14)
Cumulative translation adjustment................... 1,374 1,393
Accumulated deficit ................................ (17,895) (16,571)
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Total shareholders' equity ..................... 20,886 22,204
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Total liabilities and shareholders' equity ..... $26,509 $26,812
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