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
THIRD QUARTER RESULTS FOR FISCAL 2007
Fremont, CA (March 27, 2007) - 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 2007 ended February 28,
2007.
Net sales were $5.7 million in the third quarter of fiscal 2007, a decline
of 10.0% from $6.3 million in the third quarter of fiscal 2006. Aehr Test
reported net income of $265,000, or $0.03 per diluted share, in the third
quarter of fiscal 2007, compared with net income of $360,000, or $0.05 per
diluted share, in the third quarter of fiscal 2006. Net income excluding
stock compensation expense of $171,000 was $433,000, or $0.05 per diluted
share, in the third 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 nine months ended February 28, 2007.
"The demand for our new FOX TM -1 full wafer parallel tester continues to grow,
as evidenced by the $8 million in follow-on orders that we announced today,"
said Rhea Posedel, chairman and chief executive officer of Aehr Test Systems.
"Since the beginning of fiscal 2007, we have announced more than $18 million
in orders for FOX-1 testers and WaferPak contactors, which has driven strong
growth in our backlog. All of our FOX family of testers are 300mm wafer
ready, and we expect this capability will have a positive impact on our
ability to penetrate additional IC manufacturers in the future."
Net sales were $19.1 million in the first nine months of fiscal 2007, compared
with $16.8 million in the first nine months of fiscal 2006. Net income for
the nine months ended February 28, 2007 was $1.5 million, or $0.18 per diluted
share, compared with net income of $282,000, or $0.04 per diluted share,
in the same period of the prior fiscal year.
At February 28, 2007, cash and cash equivalents and short-term investments
were $10.1 million. Aehr Test closed the third quarter of fiscal 2007 with
no outstanding debt and shareholders' equity of $21.5 million, or $2.76 per
share outstanding, at February 28, 2007.
-more-
Aehr Test Systems Reports Third Quarter Results for Fiscal 2007
March 27, 2007
Page 2 of 5
Commenting on the outlook for the fourth quarter of fiscal 2007, Gary Larson,
vice president and chief financial officer of Aehr Test Systems, said, "Based
on our solid backlog of FOX products and the number of systems and contactors
scheduled to ship in the fourth quarter, we expect net sales and net income
to increase in the fourth quarter, exceeding the levels of the fourth quarter
of fiscal 2006."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, March
27, 2007 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
third 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]
-more-
Aehr Test Systems Reports Third Quarter Results for Fiscal 2007
March 27, 2007
Page 3 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
February 28, February 28,
--------- --------- --------- --------
2007 2006 2007 2006
--------- --------- --------- --------
Net sales............................. $5,687 $6,318 $19,072 $16,781
Cost of sales......................... 2,369 3,780 9,542 9,350
--------- --------- --------- --------
Gross profit.......................... 3,318 2,538 9,530 7,431
--------- --------- --------- --------
Operating expenses:
Selling, general and administrative. 1,619 1,328 4,773 4,322
Research and development............ 1,634 1,015 4,543 3,055
--------- --------- -------- --------
Total operating expenses.......... 3,253 2,343 9,316 7,377
--------- --------- --------- --------
Income from operations............ 65 195 214 54
Interest income....................... 134 77 390 157
Other income, net..................... 70 102 937 116
--------- --------- --------- --------
Income before income tax expense.. 269 374 1,541 327
Income tax expense ................... 4 14 32 45
--------- --------- --------- --------
Net income ....................... $ 265 $ 360 $ 1,509 $ 282
========= ========= ========= ========
Net income per share
Basic............................. $ 0.03 $ 0.05 $ 0.20 $ 0.04
Diluted........................... $ 0.03 $ 0.05 $ 0.18 $ 0.04
Shares used in per share calculations:
Basic............................. 7,765 7,508 7,732 7,495
Diluted........................... 8,115 7,550 8,228 7,507
-more-
Aehr Test Systems Reports Third Quarter Results for Fiscal 2007
March 27, 2007
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 Nine Months Ended
February 28, 2007 February 28, 2007
------------------ -----------------
Net income ................................ $ 265 $1,509
Stock compensation expense................. 171 506
------------------ -----------------
Income before income taxes, excluding
stock compensation expense ......... 436 2,015
Income tax expense ........................ 3 9
------------------ -----------------
Net income excluding stock compensation
expense ............................ $ 433 $2,006
================== =================
Diluted net income per share excluding
Stock compensation expense ............ $0.05 $ 0.24
================== =================
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
periods. 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 Third Quarter Results for Fiscal 2007
March 27, 2007
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
February 28, May 31,
2007 2006
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 6,799 $ 9,405
Short-term investments ............................. 3,312 1,600
Accounts receivable, net .......................... 6,073 4,531
Inventories ........................................ 7,079 7,242
Prepaid expenses and other ......................... 432 357
----------- -----------
Total current assets ........................... 23,695 23,135
Property and equipment, net .......................... 1,261 959
Goodwill ............................................. 274 274
Other assets ......................................... 523 525
----------- -----------
Total assets ................................... $25,753 $24,893
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 1,416 $ 1,130
Accrued expenses ................................... 2,369 2,347
Deferred revenue ................................... 239 2,335
----------- -----------
Total current liabilities ...................... 4,024 5,812
Deferred lease commitment ............................ 233 264
----------- -----------
Total liabilities .............................. 4,257 6,076
----------- -----------
Shareholders' equity:
Common stock, $0.01 par value outstanding:
7,798 and 7,630 shares at February 28, 2007
and May 31, 2006, respectively.................... 78 76
Additional paid-in capital ......................... 39,267 38,081
Accumulated other comprehensive income.............. 1,273 1,291
Accumulated deficit ................................ (19,122) (20,631)
----------- -----------
Total shareholders' equity ..................... 21,496 18,817
----------- -----------
Total liabilities and shareholders' equity...... $25,753 $24,893
=========== ===========
# # #