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 2007 RESULTS
Fremont, CA (July 24, 2007) - 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 2007 ended May 31, 2007.
Net sales were $8.3 million in the fourth quarter of fiscal 2007, an increase
of 18.0% from $7.0 million in the fourth quarter of fiscal 2006. Aehr Test
reported net income of $919,000, or $0.11 per diluted share, in the fourth
quarter of fiscal 2007, compared with net income of $528,000, or $0.07 per
diluted share, in the fourth quarter of fiscal 2006. Net income excluding
stock compensation expense of $172,000 was $1.1 million, or $0.13 per diluted
share, in the fourth 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 months and fiscal year ended May 31, 2007.
"We are very pleased with our performance in the fourth quarter, which
represented our highest level of quarterly sales in more than six years,"
said Rhea Posedel, chairman and chief executive officer of Aehr Test Systems.
"Our net sales reflect solid contributions from both our FOX?-1 full wafer
parallel tester and our MAX burn-in systems. Most importantly, the sales
momentum for the FOX-1 systems allowed us to exit fiscal 2007 with a record
backlog of $21.3 million, compared with a $12.5 million backlog at the end
of the prior fiscal year."
Net sales were $27.4 million in fiscal 2007, an increase of 14.9% over $23.8
million in fiscal 2006. Net income for the year ended May 31, 2007 was $2.4
million, or $0.30 per diluted share, compared with net income of $810,000,
or $0.11 per diluted share, in the prior fiscal year. Net income excluding
stock compensation expense of $678,000 was $3.1 million, or $0.38 per diluted
share, in fiscal 2007.
At May 31, 2007, cash and cash equivalents and short-term investments were
$9.6 million. Aehr Test closed the fourth quarter of fiscal 2007 with no
outstanding debt and shareholders' equity of $22.7 million, or $2.90 per
share outstanding, at May 31, 2007.
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results
July 24, 2007
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Commenting on the outlook for the first quarter of fiscal 2008, Gary Larson,
vice president and chief financial officer of Aehr Test Systems, said, "Based
on our solid backlog of FOX products, we expect to get off to a good start
in fiscal 2008 with net sales and net income in the first quarter being
similar to our fourth quarter results."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, July
24, 2007 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
fourth 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 FOXTM, 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 Fourth Quarter and Fiscal 2007 Results
July 24, 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 Year Ended
May 31, May 31,
--------- --------- --------- --------
2007 2006 2007 2006
--------- --------- --------- --------
Net sales............................. $8,279 $7,019 $27,351 $23,801
Cost of sales......................... 3,896 3,814 13,438 13,165
--------- --------- --------- --------
Gross profit.......................... 4,383 3,205 13,913 10,636
--------- --------- --------- --------
Operating expenses:
Selling, general and administrative. 1,765 1,520 6,538 5,842
Research and development............ 1,781 1,284 6,324 4,339
--------- ---------- --------- --------
Total operating expenses.......... 3,546 2,804 12,862 10,181
--------- --------- --------- --------
Income from operations............ 837 401 1,051 455
Interest income....................... 101 98 491 255
Other income (expense), net .......... 24 (37) 961 79
--------- --------- --------- --------
Income before income tax expense
(benefit)......................... 962 462 2,503 789
Income tax expense (benefit).......... 43 (66) 75 (21)
--------- --------- --------- --------
Net income ....................... $ 919 $ 528 $ 2,428 $ 810
========= ========= ========= ========
Net income per share
Basic............................. $ 0.12 $ 0.07 $ 0.31 $ 0.11
Diluted........................... $ 0.11 $ 0.07 $ 0.30 $ 0.11
Shares used in per share calculations:
Basic............................. 7,807 7,574 7,751 7,515
Diluted........................... 8,218 7,859 8,225 7,605
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results
July 24, 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 Fiscal Year Ended
May 31, 2007 May 31, 2007
------------------ -----------------
Net income ................................ $ 919 $ 2,428
Stock compensation expense................. 172 678
------------------ -----------------
Income before income taxes, excluding
stock compensation expense ......... 1,091 3,106
Income tax expense ........................ 3 12
------------------ -----------------
Net income excluding stock compensation
expense ............................ $ 1,088 $ 3,094
================== =================
Diluted net income per share excluding
Stock compensation expense ............ $0.13 $ 0.38
================== =================
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.
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results
July 24, 2007
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
May 31, May 31,
2007 2006
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ASSETS
Current assets:
Cash and cash equivalents .......................... $ 6,564 $ 9,405
Short-term investments ............................. 2,987 1,600
Accounts receivable, net .......................... 6,614 4,531
Inventories ........................................ 9,701 7,242
Prepaid expenses and other ......................... 326 357
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Total current assets ........................... 26,192 23,135
Property and equipment, net .......................... 1,689 959
Goodwill ............................................. 274 274
Other assets ......................................... 520 525
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Total assets ................................... $28,675 $24,893
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 2,517 $ 1,130
Accrued expenses ................................... 2,927 2,347
Deferred revenue ................................... 378 2,335
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Total current liabilities ...................... 5,822 5,812
Deferred lease commitment ............................ 185 264
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Total liabilities .............................. 6,007 6,076
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Shareholders' equity:
Common stock, $0.01 par value outstanding:
7,820 and 7,630 shares at May 31, 2007
and May 31, 2006, respectively.................... 78 76
Additional paid-in capital ......................... 39,552 38,081
Accumulated other comprehensive income.............. 1,241 1,291
Accumulated deficit ................................ (18,203) (20,631)
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Total shareholders' equity ..................... 22,668 18,817
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Total liabilities and shareholders' equity...... $28,675 $24,893
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