Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
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CONTACT:
AT FINANCIAL RELATIONS BOARD
Amy Cozamanis
Investor/Analyst Contact
(310) 854-8314
AEHR TEST SYSTEMS REPORTS
THIRD QUARTER RESULTS FOR FISCAL 2006
FREMONT, CA (MARCH 23, 2006) - Aehr Test Systems (Nasdaq: AEHR), a leading
supplier of semiconductor test and burn-in equipment, today announced
financial results for the third quarter of fiscal 2006 ended February 28,
2006.
Net sales were $6.3 million in the third quarter of fiscal 2006, an increase
of 203% from $2.1 million in the third quarter of fiscal 2005, and up
approximately 9% from $5.8 million in the second quarter of fiscal 2006. The
Company reported net income of $360,000, or $0.05 per diluted share, in the
third quarter of fiscal 2006, compared with a net loss of $1.2 million, or
$0.16 per diluted share, in the third quarter of fiscal 2005, and net income
of $166,000, or $0.02 per diluted share, in the second quarter of fiscal
2006.
"I am pleased to report Aehr Test's second consecutive quarter of
profitability driven by strong sales of our MTX-Fp+ test system for massively
parallel testing of flash memories," said Rhea Posedel, chairman and chief
executive officer of Aehr Test Systems. "With the capacity to parallel test
over 12,000 memory devices, this system is a highly effective tool for
reducing test costs in the price competitive flash memory market.
"We recently announced our first multi-million dollar production order for
our FOXTM wafer-level burn-in system from a leading automotive IC
manufacturer, indicative of our leadership in this growing market as well as
offering a significant follow-on opportunity," Posedel continued. "We also
received over $4 million in repeat orders for our MAX systems from a leading
semiconductor manufacturer, mostly for burn-in of automotive ICs. We
anticipate that the automotive market will remain a key growth driver for our
MAX systems over the next few quarters."
Net sales were $16.8 million in the first nine months of fiscal 2006,
compared with $12.8 million in the first nine months of fiscal 2005. Net
income for the nine months ended February 28, 2006 was $282,000, or $0.04 per
diluted share, compared with a net loss of $3.1 million, or $0.42 per diluted
share, in the same period of the prior fiscal year.
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Aehr Test Systems Reports Third Quarter Results for Fiscal 2006
March 23, 2006
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At February 28, 2006, cash and cash equivalents, short-term investments and
long-term investments were $10.0 million, compared to $6.8 million at the end
of the second quarter of fiscal 2006. Aehr Test ended the third quarter of
fiscal 2006 with no outstanding debt and shareholders' equity of $17.7
million, or $2.36 per share outstanding at February 28, 2006.
"We expect increased net sales and profitability for the fourth quarter of
fiscal 2006, when compared to the prior quarter," said Gary Larson, vice
president and chief financial officer of Aehr Test Systems. "With our solid
execution and the positive trends in our core business, we expect to close
fiscal 2006 by reporting a significant increase in annual net sales over
fiscal 2005. We also anticipate full-year profitability in 2006, which marks
a dramatic improvement in our bottom line compared to the prior year."
MANAGEMENT CONFERENCE CALL
Management of Aehr Test will host a conference call and webcast today, March
23, 2006 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
third quarter fiscal 2006 operating results. The conference call will be
accessible live via the internet at www.aehr.com. Please go to the website
at least 15 minutes before start time to register, download and install any
necessary audio software. A replay of the webcast will be available at
www.aehr.com 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 2,500 systems
worldwide. Aehr Test has developed and introduced several innovative
products, including the FOX, MTX and MAX systems, and the DiePakR 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 customer demand and acceptance
of Aehr Test's products. Actual results may vary from projected results.
These risks and uncertainties include, without limitation, acceptance by
customers of Aehr Test's technologies, acceptance by customers of the systems
shipped upon receipt of a purchase order and the ability of new products to
meet customer needs or perform as described. See Aehr Test's recent 10-K and
10-Q reports and other reports from time to time 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 Reports Third Quarter Results for Fiscal 2006
March 23, 2006
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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 28, February 28,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales................................... $ 6,318 $2,084 $16,781 $12,810
Cost of sales............................... 3,780 1,281 9,350 9,452
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Gross profit................................ 2,538 803 7,431 3,358
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Operating expenses:
Selling, general and administrative....... 1,328 1,265 4,322 3,812
Research and development.................. 1,015 868 3,055 2,885
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Total operating expenses................ 2,343 2,133 7,377 6,697
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Income (loss) from operations............... 195 (1,330) 54 (3,339)
Interest income............................. 77 40 157 96
Other income, net........................... 102 13 116 209
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Income (loss) before income taxes........... 374 (1,277) 327 (3,034)
Income tax expense (benefit)................ 14 (54) 45 112
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Net income (loss)........................... $ 360 $ (1,223) $ 282 $(3,146)
============ ============ ============ ============
Net income (loss) per share
Basic................................... $ 0.05 $ (0.16) $ 0.04 $ (0.42)
Diluted................................. $ 0.05 $ (0.16) $ 0.04 $ (0.42)
Shares used in per share calculations:
Basic................................... 7,508 7,426 7,495 7,410
Diluted................................. 7,550 7,426 7,507 7,410
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Aehr Test Systems Reports Third Quarter Results for Fiscal 2006
March 23, 2006
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AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
February 28, May 31,
2006 2005
(Unaudited)
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ASSETS
Current assets:
Cash and cash equivalents .......................... $ 7,755 $ 4,952
Short-term investments ............................. 2,200 3,813
Accounts receivable................................. 2,851 2,537
Inventories ........................................ 7,821 7,140
Prepaid expenses and other ......................... 354 585
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Total current assets ........................... 20,981 19,027
Property and equipment, net .......................... 1,028 1,232
Long-term investments ................................ -- 409
Goodwill ............................................. 274 274
Other assets, net .................................... 522 527
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Total assets ................................... $22,805 $21,469
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 1,316 $ 1,050
Accrued expenses ................................... 2,119 1,943
Deferred revenue ................................... 1,331 692
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Total current liabilities ...................... 4,766 3,685
Deferred lease commitment ............................ 318 332
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Total liabilities .............................. 5,084 4,017
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Shareholders' equity:
Common stock, $.01 par value outstanding:
7,508 and 7,482 shares at February 28, 2006
and May 31, 2005, respectively.................... 75 75
Additional paid-in capital ......................... 37,639 37,568
Accumulated other comprehensive income.............. 1,166 1,250
Accumulated deficit ................................ (21,159) (21,441)
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Total shareholders' equity ..................... 17,721 17,452
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Total liabilities and shareholders' equity ..... $22,805 $21,469
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