Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
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Contact:
Erin Cox
Financial Relations Board for Aehr Test Systems
Investor/Analyst Contact
(310) 854-8319
AEHR TEST SYSTEMS REPORTS FOURTH QUARTER
AND FISCAL 2006 RESULTS
FREMONT, CA (July 19, 2006) - Aehr Test Systems (Nasdaq: AEHR), a leading
supplier of semiconductor test and burn-in equipment, today announced
financial results for the fourth quarter of fiscal 2006 ended May 31, 2006.
Net sales were $7.0 million in the fourth quarter of fiscal 2006, an increase
of 115% from $3.3 million in the fourth quarter of fiscal 2005. The Company
reported net income of $528,000, or $0.07 per diluted share, in the fourth
quarter of fiscal 2006, compared with a net loss of $1.7 million, or $0.23
per diluted share, in the fourth quarter of fiscal 2005.
"Our strong momentum continued in the fourth quarter as we achieved another
significant year-over-year increase in revenue and our third consecutive
quarter of profitability," said Rhea Posedel, chairman and chief executive
officer of Aehr Test Systems. "We saw increasing demand in fiscal 2006 for
both our MTX-Fp+ parallel test systems, driven by the growing flash memory
market, and our MAX burn-in systems. The Company's order backlog, net of
cancellations, at the end of fiscal 2006 was $12.5 million, up from $4.9
million at year-end fiscal 2005.
"Importantly, we completed the final development milestone of our new FOX-1
full wafer parallel tester, and the leading IC manufacturer with whom we've
been working on this project accepted the milestone in June. Based on the
benchmarked performance of the FOX-1 tester, we believe it can significantly
improve throughput and reduce test costs. We expect to ship our first FOX-1
tester in the second quarter of fiscal 2007, and we believe it will be a key
driver of our growth in the next few years," said Posedel.
Net sales were $23.8 million for the full fiscal year 2006, compared with
$16.1 million for fiscal year 2005. Net income for the year ended May 31,
2006 was $810,000, or $0.11 per diluted share, compared with a net loss of
$4.9 million, or $0.66 per diluted share, in the prior fiscal year.
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2006 Results
July 19, 2006
Page 2 of 4
At May 31, 2006, cash and cash equivalents, short-term investments and long-
term investments were $11.0 million. Aehr Test ended fiscal 2006 with no
outstanding debt and shareholders' equity of $18.8 million, or $2.47 per
share outstanding, at May 31, 2006.
"We expect first quarter fiscal 2007 net sales to be similar to the level we
saw in the fourth quarter of fiscal 2006," said Gary Larson, vice president
and chief financial officer of Aehr Test Systems. "Due to gross margin
improvement, we also expect net income, excluding stock option expense, to be
higher than the fourth quarter 2006 level. Beginning in fiscal 2007, we will
start recognizing stock option expense, which we expect to range between
$150,000 and $200,000 in the first quarter of fiscal 2007."
MANAGEMENT CONFERENCE CALL
Management of Aehr Test will host a conference call and webcast today, July
19, 2006 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
fourth quarter and 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 DRAMs, Flash, and
other memory 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, economic conditions
in Asia and elsewhere, world events, conversion of quote activity to purchase
orders and 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, and
the Company's development and manufacture of a commercially successful wafer-
level test and burn-in system. 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 Fourth Quarter and Fiscal 2006 Results
July 19, 2006
Page 3 of 4
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
May 31, May 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net sales................................... $ 7,019 $3,270 $23,801 $16,080
Cost of sales............................... 3,814 2,366 13,165 11,817
------------ ------------ ------------ ------------
Gross profit................................ 3,205 904 10,636 4,263
------------ ------------ ------------ ------------
Operating expenses:
Selling, general and administrative....... 1,520 1,403 5,842 5,215
Research and development.................. 1,284 1,138 4,339 4,023
------------ ------------ ------------ ------------
Total operating expenses................ 2,804 2,541 10,181 9,238
------------ ------------ ------------ ------------
Income (loss) from operations........... 401 (1,637) 455 (4,975)
Interest income............................. 98 58 255 155
Other income (expense), net................. (37) (123) 79 86
------------ ------------ ------------ ------------
Income (loss) before income taxes....... 462 (1,702) 789 (4,734)
Income tax expense (benefit)................ (66) 24 (21) 136
------------ ------------ ------------ ------------
Net income (loss)....................... $ 528 $ (1,726) $ 810 $(4,870)
============ ============ ============ ============
Net income (loss) per share
Basic................................... $ 0.07 $ (0.23) $ 0.11 $ (0.66)
Diluted................................. $ 0.07 $ (0.23) $ 0.11 $ (0.66)
Shares used in per share calculations:
Basic................................... 7,574 7,450 7,515 7,420
Diluted................................. 7,859 7,450 7,605 7,420
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2006 Results
July 19, 2006
Page 4 of 4
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
May 31, May 31,
2006 2005
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ASSETS
Current assets:
Cash and cash equivalents .......................... $ 9,405 $ 4,952
Short-term investments ............................. 1,600 3,813
Accounts receivable................................. 4,531 2,537
Inventories ........................................ 7,242 7,140
Prepaid expenses and other ......................... 357 585
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Total current assets ........................... 23,135 19,027
Property and equipment, net .......................... 959 1,232
Long-term investments ................................ -- 409
Goodwill ............................................. 274 274
Other assets, net .................................... 525 527
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Total assets ................................... $24,893 $21,469
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 1,130 $ 1,050
Accrued expenses ................................... 2,347 1,943
Deferred revenue ................................... 2,335 692
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Total current liabilities ...................... 5,812 3,685
Deferred lease commitment ............................ 264 332
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Total liabilities .............................. 6,076 4,017
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Shareholders' equity:
Common stock, $0.01 par value outstanding:
7,630 and 7,482 shares at May 31, 2006
and May 31, 2005, respectively.................... 76 75
Additional paid-in capital ......................... 38,081 37,568
Accumulated other comprehensive income.............. 1,291 1,250
Accumulated deficit ................................ (20,631) (21,441)
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Total shareholders' equity ..................... 18,817 17,452
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Total liabilities and shareholders' equity ..... $24,893 $21,469
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