Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
- ---------------------
Contact:
Tricia Ross
Financial Relations Board for Aehr Test Systems
Investor/Analyst Contact
(310) 403-7322
AEHR TEST SYSTEMS REPORTS 32% INCREASE IN NET SALES
FOR FOURTH QUARTER FISCAL 2008
Fremont, CA (July 22, 2008) - Aehr Test Systems (Nasdaq: AEHR), a leading
supplier of semiconductor test and burn-in equipment, today announced
financial results for the fourth quarter and full fiscal year ended May 31,
2008.
Net sales were $10.9 million in the fourth quarter of fiscal 2008, an increase
of 32% from $8.3 million in the fourth quarter of fiscal 2007. Aehr Test
reported net income of $6.5 million, or $0.74 per diluted share, in the fourth
quarter of fiscal 2008, compared with net income of $919,000, or $0.11 per
diluted share, in the fourth quarter of fiscal 2007. Net income for the
fourth quarter of fiscal 2008 was positively impacted by a tax benefit of
$4.6 million, or $0.53 per diluted share, related to the reversal of a
valuation allowance against the Company's deferred tax assets, following
a determination by management that certain deferred tax assets are more
likely than not to be realizable in the future.
Net income excluding stock compensation expense of $225,000 was $6.7
million, or $0.77 per diluted share, in the fourth quarter of fiscal 2008.
In the same period of the prior fiscal year, net income excluding stock
compensation expense of $172,000 was $1.1 million, or $0.13 per diluted
share. 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 12 months
ended May 31, 2008 and 2007.
"We delivered another quarter of strong year-over-year revenue and earnings
growth, driven primarily by shipments of custom designed WaferPak contactors
for our growing installed base of FOXTM-1 full wafer parallel test systems,
and acceptance of a FOX-15 wafer level burn-in system," said Rhea Posedel,
chairman and chief executive officer of Aehr Test Systems.
"We were pleased to announce the first order for our new Advanced Burn-In
and Test System (ABTS) and the strategic partnership with Antares Advanced
Test Technologies. The Antares partnership will enhance our ability to
pursue growing market segments for burn-in and test of high power logic
devices. We anticipate that our new ABTS family of products will serve as
a meaningful driver of additional revenue growth in the future," said
Posedel.
Net sales were $39.0 million in fiscal 2008, an increase of 43% over $27.4
million in fiscal 2007. Net income for the year ended May 31, 2008 was $10.6
million, or $1.24 per diluted share, compared with net income of $2.4
million, or $0.30 per diluted share, in the prior fiscal year. The tax
benefit recognized
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2008 Results
July 22, 2008
Page 2 of 5
in the fourth quarter of fiscal 2008 resulted in a positive impact of $4.6
million, or $0.54 per diluted share, for the year ended May 31, 2008. Net
income excluding stock compensation expense of $838,000 was $11.4 million,
or $1.34 per diluted share, in fiscal 2008.
At May 31, 2008, cash and cash equivalents and short-term investments were
$15.6 million. Aehr Test closed the fourth quarter of fiscal 2008 with no
outstanding debt and shareholders' equity of $37.8 million, or $4.52 per
share outstanding, at May 31, 2008. As of May 31, 2008, the Company's backlog
was $18.6 million, compared with $21.3 million in the prior year period.
Commenting on the outlook for Aehr Test Systems, Gary Larson, vice president
and chief financial officer, said, "Based on expected shipment schedules
for FOX products, we believe our net sales in the first quarter of fiscal
2009 will be higher than those in the same quarter of the prior year."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, July
22, 2008 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
fourth quarter fiscal 2008 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 revenues and 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, 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 U.S. Securities and Exchange
Commission 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 2008 Results
July 22, 2008
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,
--------- --------- --------- --------
2008 2007 2008 2007
--------- --------- --------- --------
Net sales............................. $10,914 $8,279 $39,041 $27,351
Cost of sales......................... 5,540 3,896 19,072 13,438
--------- --------- --------- --------
Gross profit.......................... 5,374 4,383 19,969 13,913
--------- --------- --------- --------
Operating expenses:
Selling, general and administrative. 1,993 1,765 7,657 6,538
Research and development............ 1,582 1,781 6,501 6,324
--------- ---------- --------- --------
Total operating expenses.......... 3,575 3,546 14,158 12,862
--------- --------- --------- --------
Income from operations............ 1,799 837 5,811 1,051
Interest income....................... 18 101 231 491
Other income (expense), net .......... (1) 24 (71) 961
--------- --------- --------- --------
Income before income tax expense
(benefit)......................... 1,816 962 5,971 2,503
Income tax expense (benefit).......... (4,686) 43 (4,602) 75
--------- --------- --------- --------
Net income ....................... $6,502 $ 919 $10,573 $ 2,428
========= ========= ========= ========
Net income per share
Basic............................. $ 0.79 $ 0.12 $ 1.32 $ 0.31
Diluted........................... $ 0.74 $ 0.11 $ 1.24 $ 0.30
Shares used in per share calculations:
Basic............................. 8,234 7,807 8,013 7,751
Diluted........................... 8,774 8,218 8,508 8,225
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2008 Results
July 22, 2008
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 Year Ended
May 31, May 31,
-------------------- ---------------------
2008 2007 2008 2007
--------- --------- ---------- ---------
GAAP net income .................... $6,502 $919 $10,573 $2,428
Stock compensation expense.......... 225 172 836 678
Income tax effect on stock
compensation expense ........... (5) (3) (17) (12)
--------- --------- ---------- ---------
Non-GAAP net income................. $6,722 $1,088 $11,392 $3,094
========= ========= ========== =========
GAAP net income per diluted share... $ 0.74 $0.11 $ 1.24 $ 0.30
========= ========= ========== =========
Non-GAAP net income per diluted share $ 0.77 $0.13 $ 1.34 $ 0.38
========= ========= ========== =========
Shares used in diluted shares
calculation .................... 8,774 8,218 8,508 8,225
========= ========= ========== =========
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 SFAS 123R and may be higher than net
income (the most comparable GAAP measure).
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Aehr Test Systems Reports Fourth Quarter and Fiscal 2008 Results
July 22, 2008
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
May 31, May 31,
2008 2007
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $15,648 $ 6,564
Short-term investments ............................. -- 2,987
Accounts receivable, net............................ 10,927 6,614
Inventories ........................................ 10,209 9,701
Deferred income taxes............................... 3,043 --
Prepaid expenses and other ......................... 396 326
----------- -----------
Total current assets ........................... 40,223 26,192
Property and equipment, net .......................... 2,278 1,689
Goodwill ............................................. 274 274
Deferred income taxes ................................ 1,900 --
Other assets.......................................... 524 520
----------- -----------
Total assets ................................... $45,199 $28,675
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 2,981 $ 2,517
Accrued expenses ................................... 3,694 2,927
Deferred revenue ................................... 186 378
----------- -----------
Total current liabilities ...................... 6,861 5,822
Deferred income taxes ................................ 297 --
Deferred lease commitment ............................ 269 185
----------- -----------
Total liabilities .............................. 7,427 6,007
----------- -----------
Shareholders' equity ................................. 37,772 22,668
----------- -----------
Total liabilities and shareholders' equity ..... $45,199 $28,675
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