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
SECOND QUARTER RESULTS FOR FISCAL 2007
Fremont, CA (January 4, 2007) - Aehr Test Systems (Nasdaq: AEHR), a leading
supplier of semiconductor test and burn-in equipment, today announced
financial results for the second quarter of fiscal 2007 ended November 30,
2006.
Net sales were $6.2 million in the second quarter of fiscal 2007, an increase
of 7.4% from $5.8 million in the second quarter of fiscal 2006. The Company
reported net income of $687,000, or $0.08 per diluted share, in the second
quarter of fiscal 2007, compared with a net income of $166,000, or $0.02
per diluted share, in the second quarter of fiscal 2006. Net income,
excluding stock compensation expense of $172,000 was $856,000, or $0.10 per
diluted share, in the second quarter of fiscal 2007. The Company did not
record stock compensation expense prior to fiscal 2007. The attached
condensed consolidated 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") for the three and six months ended November 30, 2006.
"We continued to see increasing levels of demand for our new FOX-1(TM)full
wafer parallel tester," said Rhea Posedel, chairman and chief executive
officer of Aehr Test Systems. "Today we announced receiving over $6 million
in follow-on orders from our initial FOX-1 customer for multiple FOX-1
systems and full wafer contactors. We are especially excited because these
orders include FOX-1 systems targeted to test 300mm wafers, significantly
expanding our potential for increased current and new business
opportunities. We would expect to receive additional orders from this
customer based on the success of our FOX-1 parallel testers and 300mm full
wafer contactors.
"Another positive for the quarter was the shipment of our first two FOX-1
test systems for 200mm wafer parallel testing in a single touch-down," said
Posedel. "Although the increase in FOX-1 system revenues was offset by lower
shipments of our core MAX burn-in test products, we continue to be optimistic
about our long-term growth outlook. We are encouraged by the continued
market demand for our FOX family of wafer level test and burn-in products."
During the second quarter of fiscal 2007, the Company recorded other income
of $651,000. The other income primarily relates to the recognition of an
earn-out payment included in the consideration received for the 2003 sale
of a portion of the Company's ownership in ESA Electronics, a Singapore
company.
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Aehr Test Systems Reports Second Quarter Results for Fiscal 2007
January 4, 2007
Page 2 of 5
At November 30, 2006, cash and cash equivalents and short-term investments
were $12.1 million. Aehr Test closed the second quarter of fiscal 2007 with
no outstanding debt and shareholders' equity of $20.9 million, or $2.69 per
share outstanding, at November 30, 2006.
"During the third quarter of fiscal 2007, we expect net sales to be relatively
similar to those of the second quarter of fiscal 2007," said Gary Larson,
vice president and chief financial officer of Aehr Test Systems. "Based
on the trends we are seeing, we believe that the FOX family of products will
comprise a greater percentage of our total revenue going forward, and we
expect to report a solid increase in net sales for the full fiscal year 2007."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today,
January 4, 2007 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's second 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 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
report, 10-Q 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]
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Aehr Test Systems Reports Second Quarter Results for Fiscal 2007
January 4, 2007
Page 3 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
November 30, November 30,
--------- --------- --------- --------
2006 2005 2006 2005
--------- --------- --------- --------
Net sales............................. $6,249 $5,817 $13,385 $10,463
Cost of sales......................... 3,290 3,112 7,173 5,570
--------- --------- --------- --------
Gross profit.......................... 2,959 2,705 6,212 4,893
--------- --------- --------- --------
Operating expenses:
Selling, general and administrative. 1,519 1,542 3,154 2,994
Research and development............ 1,522 1,006 2,909 2,040
--------- --------- -------- --------
Total operating expenses.......... 3,041 2,548 6,063 5,034
--------- --------- --------- --------
Income (loss) from operations..... (82) 157 149 (141)
Interest income....................... 134 36 256 80
Other income, net..................... 651 12 867 14
--------- --------- --------- --------
Income (loss) before income taxes. 703 205 1,272 (47)
Income tax expense ................... 16 39 28 31
--------- --------- --------- --------
Net income (loss)................. $ 687 $ 166 $ 1,244 $ (78)
========= ========= ========= ========
Net income (loss) per share
Basic............................. $ 0.09 $ 0.02 $ 0.16 $ (0.01)
Diluted........................... $ 0.08 $ 0.02 $ 0.15 $ (0.01)
Shares used in per share calculations:
Basic............................. 7,749 7,496 7,716 7,489
Diluted........................... 8,243 7,514 8,284 7,489
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Aehr Test Systems Reports Second Quarter Results for Fiscal 2007
November 4, 2007
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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 Six Months Ended
November 30, 2006 November 30, 2006
------------------ -----------------
Net income ................................ $ 687 $1,244
Stock compensation expense................. 172 335
------------------ -----------------
Income before income taxes, excluding
stock compensation expense ......... 859 1,579
Income tax expense ........................ 3 6
------------------ -----------------
Net income excluding stock compensation
expense ............................ $ 856 $1,573
================== =================
Diluted net income per share excluding
Stock compensation expense ............ $0.10 $ 0.19
================== =================
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.
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Aehr Test Systems Reports Second Quarter Results for Fiscal 2007
January 4, 2007
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
November 30, May 31,
2006 2006
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 8,963 $ 9,405
Short-term investments ............................. 3,182 1,600
Accounts receivable, net .......................... 3,557 4,531
Inventories ........................................ 5,938 7,242
Prepaid expenses and other ......................... 1,107 357
----------- -----------
Total current assets ........................... 22,747 23,135
Property and equipment, net .......................... 1,032 959
Goodwill ............................................. 274 274
Other assets ......................................... 523 525
----------- -----------
Total assets ................................... $24,576 $24,893
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 901 $ 1,130
Accrued expenses ................................... 2,330 2,347
Deferred revenue ................................... 238 2,335
----------- -----------
Total current liabilities ...................... 3,469 5,812
Deferred lease commitment ............................ 247 264
----------- -----------
Total liabilities .............................. 3,716 6,076
----------- -----------
Shareholders' equity:
Common stock, $0.01 par value outstanding:
7,757 and 7,630 shares at November 30, 2006
and May 31, 2006, respectively.................... 77 76
Additional paid-in capital ......................... 38,905 38,081
Accumulated other comprehensive income.............. 1,265 1,291
Accumulated deficit ................................ (19,387) (20,631)
----------- -----------
Total shareholders' equity ..................... 20,860 18,817
----------- -----------
Total liabilities and shareholders' equity ..... $24,576 $24,893
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