Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
Contact:
Tricia Ross
Financial Relations Board for Aehr Test Systems
Investor/Analyst Contact
(310) 403-7322
AEHR TEST SYSTEMS REPORTS 27% INCREASE IN NET SALES
FOR FIRST QUARTER FISCAL 2009
Fremont, CA (September 25, 2008) - 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 2009 ended August
31, 2008.
Net sales were $9.7 million in the first quarter of fiscal 2009, an increase
of 27% from $7.7 million in the first quarter of fiscal 2008. Income from
operations was $1.4 million in the first quarter of fiscal 2009, an increase
of 89% from $717,000 in the first quarter of fiscal 2008. Aehr Test reported
net income of $865,000, or $0.10 per diluted share, in the first quarter
of fiscal 2009, compared with net income of $779,000, or $0.09 per diluted
share, in the first quarter of fiscal 2008. Net income for the first quarter
of fiscal 2009 reflects a significantly higher effective tax rate than the
same period of the prior year, as the Company now expects to accrue tax
expense at close to the statutory rates for the countries in which it
generates income.
"We are pleased with our execution this quarter, as our design and
manufacturing team produced a record number of custom WaferPak contactors
for our installed base of FOX systems, while also keeping a tight control
on our expense levels," said Rhea Posedel, chairman and chief executive
officer of Aehr Test Systems. "Our vision to have our custom WaferPaks
represent a meaningful recurring revenue stream for the Company is
materializing, and we expect WaferPaks to provide a significant amount of
our revenue in fiscal 2009.
"We are expanding our addressable market in order to create additional growth
catalysts beyond the FOX products. We plan to introduce new core parallel
test and burn-in systems specifically designed for high-power logic, DRAM
and flash memory devices, which would represent new market opportunities
for Aehr Test. As the capital spending environment improves in the
semiconductor industry, we believe we will be well positioned to take
additional market share with our new systems," said Posedel.
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 second quarter of fiscal
2009 will be higher on both a sequential quarter and year-over-year basis."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today,
September 25, 2008 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's first quarter fiscal 2009 operating results. The conference call
will be accessible live via the internet at www.aehr.com. Please go to the
website at least
-more-
Aehr Test Systems Reports First Quarter Fiscal 2009 Results
September 25, 2008
Page 2 of 5
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 ABTS, FOXTM, MTX and MAX systems and the
DiePak(R) carrier. The ABTS is Aehr Test's newest system for packaged part
test during burn-in for both low-power and high-power logic as well as all
common types of memory devices. 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 report 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]
-more-
Aehr Test Systems Reports First Quarter Fiscal 2009 Results
September 25, 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
August 31,
---------- ----------
2008 2007
---------- ----------
Net sales...................................... $9,690 $7,660
Cost of sales.................................. 4,772 3,479
---------- ----------
Gross profit................................... 4,918 4,181
---------- ----------
Operating expenses:
Selling, general and administrative.......... 2,085 1,816
Research and development..................... 1,478 1,648
---------- ----------
Total operating expenses................... 3,563 3,464
---------- ----------
Income from operations..................... 1,355 717
Interest income................................ 63 75
Other income (expense), net ................... (7) 2
---------- ----------
Income before income tax expense........... 1,411 794
Income tax expense............................. 546 15
---------- ----------
Net income................................. $ 865 $ 779
========== ==========
Net income per share
Basic...................................... $ 0.10 $ 0.10
Diluted.................................... $ 0.10 $ 0.09
Shares used in per share calculations:
Basic...................................... 8,395 7,827
Diluted.................................... 8,753 8,301
-more-
Aehr Test Systems Reports First Quarter Fiscal 2009 Results
September 25, 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 Three Months Ended
August 31, 2008 August 31, 2007
------------------ ------------------
GAAP net income ......................... $ 865 $779
Stock compensation expense............... 286 193
Income tax effect on stock compensation
expense........................... (123) (4)
------------------ ------------------
Non-GAAP net income...................... $1,028 $968
================== ==================
GAAP net income per diluted share........ $0.10 $0.09
================== ==================
Non-GAAP net income per diluted share.... $0.12 $0.12
================== ==================
Shares used in diluted shares calculation 8,753 8,301
================== ==================
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).
-more-
Aehr Test Systems Reports First Quarter Fiscal 2009 Results
September 25, 2008
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
August 31, May 31,
2008 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 7,452 $15,648
Short-term investments ............................. 2,000 --
Accounts receivable, net............................ 16,948 10,927
Inventories ........................................ 10,767 10,209
Deferred income taxes............................... 2,521 3,043
Prepaid expenses and other ......................... 556 396
----------- -----------
Total current assets ........................... 40,244 40,223
Property and equipment, net .......................... 2,378 2,278
Goodwill ............................................. 274 274
Deferred income taxes ................................ 1,900 1,900
Other assets.......................................... 518 524
----------- -----------
Total assets ................................... $45,314 $45,199
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 2,414 $ 2,981
Accrued expenses ................................... 3,179 3,694
Deferred revenue ................................... 204 186
----------- -----------
Total current liabilities ...................... 5,797 6,861
Income tax payable.................................... 298 297
Deferred lease commitment ............................ 314 269
----------- -----------
Total liabilities .............................. 6,409 7,427
----------- -----------
Shareholders' equity ................................. 38,905 37,772
----------- -----------
Total liabilities and shareholders' equity ..... $45,314 $45,199
=========== ===========
# # #