Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
- ---------------------
Contact:
Erin Cox
Financial Relations Board for Aehr Test Systems
Investor/Analyst Contact
(310) 854-8319
AEHR TEST SYSTEMS REPORTS
FIRST QUARTER RESULTS FOR FISCAL 2007
Fremont, CA (September 26, 2006) -- 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 2007 ended August
31, 2006.
Net sales were $7.1 million in the first quarter of fiscal 2007, an increase
of 54% from $4.6 million in the first quarter of fiscal 2006. The Company
reported net income of $557,000, or $0.07 per diluted share, in the first
quarter of fiscal 2007, compared with a net loss of $244,000, or $0.03 per
diluted share, in the first quarter of fiscal 2006. Net income, excluding
stock compensation expense of $163,000, was $717,000, or $0.09 per diluted
share, in the first quarter of fiscal 2007. The Company did not record stock
compensation expense prior to fiscal 2007. The attached financial
statements include a table reconciling the Company's net income excluding
stock compensation expense to net income calculated according to accounting
principles generally accepted in the United States ("GAAP").
"We had another quarter of strong execution on our business plan, which
resulted in the Company's fourth consecutive profitable quarter," said Rhea
Posedel, chairman and chief executive officer of Aehr Test Systems. "Our
first quarter net sales were largely generated by the demand for our MAX
burn-in systems from manufacturers of mobile communications and automotive
ICs.
"We also continued to move forward with the introduction of our new FOX-1(TM)
full wafer parallel tester, which included the shipment of our first system
in September. Today, we announced that this customer has placed orders for
more than $4 million of FOX-1 systems and full wafer contactors, which we
expect to ship over the next six months. Since we believe our FOX-1 parallel
tester can significantly increase throughput and reduce test costs, we
expect to receive follow-on orders for the FOX-1 system and full wafer
contactors later this fiscal year," said Posedel.
At August 31, 2006, cash and cash equivalents and short-term investments
were $10.3 million. Aehr Test closed the first quarter of fiscal 2007 with
no outstanding debt and shareholders' equity of $19.9 million, or $2.58 per
share outstanding, at August 31, 2006.
-more-
Aehr Test Systems Reports First Quarter Results for Fiscal 2007
September 26, 2006
Page 2 of 5
"During the second quarter of fiscal 2007, we expect net sales and net income
to be relatively similar to those of the first quarter of fiscal 2007," said
Gary Larson, vice president and chief financial officer of Aehr Test Systems.
"Longer term, we are expecting solid top-line growth, resulting from an
increasing level of FOX-1 orders and the expansion of our design and
manufacturing capacity to accommodate anticipated future demand for our FOX
family of products."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today,
September 26, 2006 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's first quarter fiscal 2007 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 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 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
report 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]
-more-
Aehr Test Systems Reports First Quarter Results for Fiscal 2007
September 26, 2006
Page 3 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended
August 31,
---------- ----------
2006 2005
---------- ----------
Net sales...................................... $7,136 $4,646
Cost of sales.................................. 3,883 2,458
---------- ----------
Gross profit................................... 3,253 2,188
---------- ----------
Operating expenses:
Selling, general and administrative.......... 1,635 1,452
Research and development..................... 1,387 1,034
---------- ----------
Total operating expenses................... 3,022 2,486
---------- ----------
Income (loss) from operations.............. 231 (298)
Interest income................................ 122 46
Other income, net.............................. 216 --
---------- ----------
Income (loss) before income taxes.......... 569 (252)
Income tax expense (benefit)................... 12 (8)
---------- ----------
Net income (loss).......................... $ 557 $ (244)
========== ==========
Net income (loss) per share
Basic...................................... $ 0.07 $(0.03)
Diluted.................................... $ 0.07 $(0.03)
Shares used in per share calculation:
Basic...................................... 7,683 7,482
Diluted.................................... 8,326 7,482
-more-
Aehr Test Systems Reports First Quarter Results for Fiscal 2007
September 26, 2006
Page 4 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(Unaudited)
Reconciliation of non-GAAP Financial Measure - net income to net income
excluding stock compensation expense
Three Months Ended
August 31, 2006
------------------
Net income ...................................... $ 557
Stock compensation expense....................... 163
------------------
Income before income taxes, excluding
stock compensation expense ............... 720
Income tax expense .............................. 3
------------------
Net income excluding stock compensation
expense .................................. $ 717
==================
Diluted net income per share excluding
Stock compensation expense .................. $ 0.09
==================
Net income excluding stock compensation expense is a non-GAAP measure and
should not be considered a replacement for GAAP results.
Net income excluding stock compensation expense is a financial measure the
Company uses to evaluate the underlying results and operating performance
of the business. The difference between net income (the most comparable
GAAP measure) and net income excluding stock compensation expense (the
non-GAAP measure) reflects the impact of applying SFAS 123R to the current
period. The limitation of this measure is that it excludes an item that
impacts the Company's current period net income. This limitation is best
addressed by using this measure in combination with net income (the most
comparable GAAP measure) because net income excluding stock compensation
expense does not reflect the impact of adopting SFAS 123R and may be higher
than net income (the most comparable GAAP measure). The Company believes
net income excluding stock compensation expense is a useful measure that
allows investors to draw comparison between net income results reported
prior to adoption of SFAS 123R and the current period, which may mask
underlying trends and make it difficult to give investors perspective on
underlying business results.
-more-
Aehr Test Systems Reports First Quarter Results for Fiscal 2007
September 26, 2006
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
August 31, May 31,
2006 2006
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 8,550 $ 9,405
Short-term investments ............................. 1,773 1,600
Accounts receivable, net............................ 5,248 4,531
Inventories ........................................ 6,285 7,242
Prepaid expenses and other ......................... 316 357
----------- -----------
Total current assets ........................... 22,172 23,135
Property and equipment, net .......................... 854 959
Goodwill ............................................. 274 274
Other assets, net .................................... 520 525
----------- -----------
Total assets ................................... $23,820 $24,893
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 1,076 $ 1,130
Accrued expenses ................................... 2,119 2,347
Deferred revenue ................................... 464 2,335
----------- -----------
Total current liabilities ...................... 3,659 5,812
Deferred lease commitment ............................ 255 264
----------- -----------
Total liabilities .............................. 3,914 6,076
----------- -----------
Shareholders' equity:
Common stock, $0.01 par value outstanding:
7,721 and 7,630 shares at August 31, 2006
and May 31, 2006, respectively.................... 76 76
Additional paid-in capital ......................... 38,623 38,081
Accumulated other comprehensive income.............. 1,281 1,291
Accumulated deficit ................................ (20,074) (20,631)
----------- -----------
Total shareholders' equity ..................... 19,906 18,817
----------- -----------
Total liabilities and shareholders' equity ..... $23,820 $24,893
=========== ===========
# # #