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 FINANCIAL RESULTS
FOR SECOND QUARTER FISCAL 2009
Fremont, CA (January 6, 2009) -- 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 2009 ended November 30,
2008.
Net sales were $9.2 million in the second quarter of fiscal 2009, compared
with $9.7 million in the second quarter of fiscal 2008. Pre-tax income was
$1.6 million in the second quarter of fiscal 2009, compared with $1.6 million
in the second quarter of fiscal 2008. Aehr Test reported net income of
$872,000, or $0.10 per diluted share, in the second quarter of fiscal 2009,
compared with net income of $1.4 million, or $0.16 per diluted share, in
the second quarter of fiscal 2008. Net income for the second 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.
"Our net sales for the second quarter of fiscal 2009 came in lower than we
originally expected, as we saw customers delay new orders or defer delivery
on existing orders in light of the current economic slowdown," said Rhea
Posedel, chairman and chief executive officer of Aehr Test Systems. "During
this slowdown we are focusing on two strategies. First, we hope to maintain
our strong financial position by maximizing our cash balance and keeping
expenses low. In response to the challenging business conditions, we
implemented a two-week shutdown of our facilities in December, and are
actively exploring other measures to control or reduce our expenses until
capital spending in the semiconductor equipment industry returns to more
normal levels. Second, we are aggressively introducing new products, such
as our ABTS system, which are targeting new test and burn-in market segments.
We believe that our aggressive product development and marketing efforts
during this time will position us well to win additional business with new
and existing customers as the semiconductor industry begins to recover."
Net sales were $18.9 million in the first six months of fiscal 2009, an
increase of 9% when compared with $17.3 million in the first six months of
fiscal 2008. Net income for the six months ended November 30, 2008 was $1.7
million, or $0.20 per diluted share, compared with net income of $2.1
million, or $0.26 per diluted share, in the same period of the prior fiscal
year.
At November 30, 2008, cash and cash equivalents and short-term investments
were $13.7 million, an increase of $4.3 million from the balance at the end
of the prior quarter. Aehr Test closed the second
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Aehr Test Systems Reports Second Quarter Fiscal 2009 Results
January 6, 2009
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quarter of fiscal 2009 with no outstanding debt and shareholders' equity
of $40.8 million, or $4.83 per share outstanding, at November 30, 2008.
Commenting on the outlook for Aehr Test Systems, Gary Larson, vice president
and chief financial officer, said, "We are not expecting a meaningful
improvement in this difficult operating environment until the second half
of calendar 2009 at the earliest. Accordingly, due to the uncertainties
in our market, we find it imprudent to provide guidance for the next several
quarters."
Management Conference Call
Management of Aehr Test will host a conference call and webcast today,
January 6, 2009 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's second 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 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 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 Second Quarter Fiscal 2009 Results
January 6, 2009
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
November 30, November 30,
--------- --------- --------- --------
2008 2007 2008 2007
--------- --------- --------- --------
Net sales............................. $9,242 $9,675 $18,932 $17,335
Cost of sales......................... 4,650 4,791 9,422 8,270
--------- --------- --------- --------
Gross profit.......................... 4,592 4,884 9,510 9,065
--------- --------- --------- --------
Operating expenses:
Selling, general and administrative. 1,830 1,847 3,915 3,663
Research and development............ 1,577 1,445 3,055 3,093
--------- --------- -------- --------
Total operating expenses.......... 3,407 3,292 6,970 6,756
--------- --------- --------- --------
Income from operations............ 1,185 1,592 2,540 2,309
Interest income....................... 47 83 110 158
Other income (expense), net .......... 384 (110) 377 (108)
--------- --------- --------- --------
Income before income tax expense.. 1,616 1,565 3,027 2,359
Income tax expense ................... 744 199 1,290 214
--------- --------- --------- --------
Net income ....................... $ 872 $1,366 $ 1,737 $ 2,145
========= ========= ========= ========
Net income per share
Basic............................. $ 0.10 $ 0.17 $ 0.21 $ 0.27
Diluted........................... $ 0.10 $ 0.16 $ 0.20 $ 0.26
Shares used in per share calculations:
Basic............................. 8,426 7,906 8,411 7,866
Diluted........................... 8,447 8,418 8,600 8,359
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Aehr Test Systems Reports Second Quarter Fiscal 2009 Results
January 6, 2009
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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, November 30,
--------- --------- --------- --------
2008 2007 2008 2007
--------- --------- --------- --------
GAAP net income ......................... $ 872 $1,366 $1,737 $2,145
Stock compensation expense .............. 330 203 616 396
Income tax effect on stock compensation
expense........................... (132) (4) (255) (8)
--------- --------- --------- --------
Non-GAAP net income...................... $1,070 $1,565 $2,098 $2,533
========= ========= ========= ========
GAAP net income per diluted share........ $0.10 $0.16 $0.20 $0.26
========= ========= ========= ========
Non-GAAP net income per diluted share.... $0.13 $0.19 $0.24 $0.30
========= ========= ========= ========
Shares used in diluted shares calculation 8,447 8,418 8,600 8,359
========= ========= ========= ========
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).
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Aehr Test Systems Reports Second Quarter Fiscal 2009 Results
January 6, 2009
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)
November 30, May 31,
2008 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $11,727 $15,648
Short-term investments ............................. 2,003 --
Accounts receivable, net............................ 14,811 10,927
Inventories ........................................ 10,517 10,209
Deferred income taxes............................... 2,046 3,043
Prepaid expenses and other ......................... 564 396
----------- -----------
Total current assets ........................... 41,668 40,223
Property and equipment, net .......................... 2,292 2,278
Goodwill ............................................. 274 274
Deferred income taxes................................. 1,900 1,900
Other assets.......................................... 528 524
----------- -----------
Total assets ................................... $46,662 $45,199
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 2,224 $ 2,981
Accrued expenses ................................... 2,821 3,694
Deferred revenue ................................... 210 186
----------- -----------
Total current liabilities ...................... 5,255 6,861
Income tax payable.................................... 300 297
Deferred lease commitment ............................ 315 269
----------- -----------
Total liabilities .............................. 5,870 7,427
----------- -----------
Shareholders' equity ................................. 40,792 37,772
----------- -----------
Total liabilities and shareholders' equity ..... $46,662 $45,199
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