Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
For Immediate Release
Contact:
Gary Larson
Chief Financial Office
(510) 623-9400 x321
AEHR TEST SYSTEMS REPORTS FINANCIAL RESULTS
FOR THIRD QUARTER FISCAL 2009
Fremont, CA (April 2, 2009) -- Aehr Test Systems (Nasdaq: AEHR), a technology
leader in the semiconductor test and burn-in equipment industry, today
announced financial results for the third quarter of fiscal 2009 ended
February 28, 2009.
Financial results for the third quarter reflect the impact of the bankruptcy
filing of the Company's largest customer, Spansion. Due to the bankruptcy
filing and to the current weak market for the Company's products, Aehr Test
Systems recorded the following charges in the third quarter of fiscal 2009:
$13.7 million provision for bad debts
$5.7 million provision for excess and obsolete inventory
$4.9 million increase in the valuation allowance against the Company's
deferred tax assets
$0.5 million charge related to cancellation costs
$0.3 million goodwill impairment charge
$0.2 million severance charge
In aggregate, these charges recorded in the third quarter of fiscal 2009,
total $25.3 million, or $3.00 per share.
Net sales were $1.2 million in the third quarter of fiscal 2009, compared
with $10.8 million in the third quarter of fiscal 2008. Aehr Test reported
a net loss of $27.7 million, or $3.28 per share, in the third quarter of
fiscal 2009, compared with net income of $1.9 million, or $0.23 per diluted
share, in the third quarter of fiscal 2008.
"We strongly believe that we are taking the appropriate actions that will
enable Aehr Test to weather both the Spansion bankruptcy filing and the very
weak market conditions," said Rhea Posedel, chairman and chief executive
officer of Aehr Test Systems. "We have already significantly reduced our
headcount and initiated other expense reduction measures. We intend to take
additional actions as necessary to maintain sufficient cash to manage
through this economic downturn.
"While the semiconductor capital equipment market remains very depressed,
we are seeing interest in many of our new products, particularly our family
of Advanced Burn-in and Test Systems (ABTSTM). Based on our sales pipeline,
we believe additional ABTS customers will be added in the next three to six
months.
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Aehr Test Systems Reports Third Quarter Fiscal 2009 Results
April 2, 2009
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"We expect that the next six to nine months will be very challenging, as
it appears that a recovery in the semiconductor equipment market will not
occur until later in the year, at the earliest. However, we are optimistic
that when capital spending trends improve, our continuing investment in new
product development and our strong product portfolio will enable us to add
new customers and expand our market share," said Mr. Posedel.
Net sales were $20.2 million in the first nine months of fiscal 2009, compared
with $28.1 million in the first nine months of fiscal 2008. Net loss for
the nine months ended February 28, 2009 was $25.9 million, or $3.08 per share,
compared with net income of $4.1 million, or $0.48 per diluted share, in
the same period of the prior fiscal year.
At February 28, 2009, cash and cash equivalents were $7.4 million. Aehr
Test closed the third quarter of fiscal 2009 with no outstanding debt and
shareholders' equity of $13.5 million at February 28, 2009.
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, April
2, 2009 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
third 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, world economic conditions, the timing of the recovery of the
semiconductor equipment market, the Company's ability to maintain
sufficient cash to support operations, 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.
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Aehr Test Systems Reports Third Quarter Fiscal 2009 Results
April 2, 2009
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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 Third Quarter Fiscal 2009 Results
April 2, 2009
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
------------------------ -----------------------
February 28, February 29, February 28,February 29,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Net sales........................ $ 1,235 $10,792 $20,167 $28,127
Cost of sales.................... 8,049 5,262 17,471 13,532
----------- ----------- ----------- -----------
Gross (loss) profit.............. (6,814) 5,530 2,696 14,595
----------- ----------- ----------- -----------
Operating expenses:
Selling, general and
administrative................. 15,328 2,001 19,243 5,664
Research and development....... 1,596 1,826 4,651 4,919
Impairment of goodwill......... 274 -- 274 --
----------- ----------- ----------- -----------
Total operating expenses..... 17,198 3,827 24,168 10,583
----------- ----------- ----------- -----------
(Loss) income from operations (24,012) 1,703 (21,472) 4,012
Interest income.................. 26 55 136 213
Other income (expense), net ..... 7 38 384 (70)
----------- ----------- ----------- -----------
(Loss) income before income
tax expense (benefit)....... (23,979) 1,796 (20,952) 4,155
Income tax expense (benefit)..... 3,701 (130) 4,991 84
----------- ----------- ----------- -----------
Net (loss) income ........... $(27,680) $1,926 $(25,943) $ 4,071
=========== =========== =========== ===========
Net (loss) income per share
Basic........................ $(3.28) $0.24 $(3.08) $0.51
Diluted...................... $(3.28) $0.23 $(3.08) $0.48
Shares used in per share
calculations:
Basic........................ 8,450 8,025 8,424 7,919
Diluted...................... 8,450 8,476 8,424 8,398
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Aehr Test Systems Reports Third Quarter Fiscal 2009 Results
April 2, 2009
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
------------------------ -----------------------
February 28, February 29, February 28,February 29,
2009 2008 2009 2008
----------- ----------- ----------- -----------
GAAP net (loss) income ............. $(27,680) $1,926 $(25,943) $4,071
Provision for bad debts1............ 13,708 13,708
Restructuring and asset impairments2 6,670 6,670
Reinstatement of deferred tax asset
valuation allowance 4,943 4,943
Stock compensation expense ......... 331 216 947 612
Income tax effect on non-GAAP
adjustments3...................... 255 (4) -- (12)
----------- ----------- ----------- -----------
Non-GAAP net (loss) income.......... $ (1,773) $2,138 $ 325 $4,671
=========== =========== =========== ===========
GAAP net (loss) income per diluted
share............................. $(3.28) $0.23 $(3.08) $ 0.48
=========== =========== =========== ===========
Share used in GAAP diluted shares
calculation....................... 8,450 8,476 8,424 8,398
=========== =========== =========== ===========
Non-GAAP net (loss) income per
diluted share..................... $(0.21) $0.25 $ 0.04 $ 0.56
=========== =========== =========== ===========
Shares used in non-GAAP diluted
shares calculation................ 8,450 8,476 8,550 8,398
=========== =========== =========== ===========
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1 Related to accounts receivable of Spansion Inc., which filed for backruptcy in
February and March 2009.
2 Includes provision for excess/obsolete inventory of $5.7 million, cancellation
charges of $0.5 million, impairment of goodwill of $0.3 million and severance
costs of $0.2 million.
3 Excludes $4.9 million tax provision related to reinstatement of the deferred
tax asset valuation allowance.
Non-GAAP net income is a non-GAAP measure and should not be considered a
replacement for GAAP results. Non-GAAP net income is a financial measure
the Company uses to evaluate the underlying results and operating performance
of the business. The limitation of this measure is that it excludes items
that impact the Company's current period net income. This limitation is best
addressed by usine this measure in combination with net income (the most
comparable GAAP measure).
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Aehr Test Systems Reports Third Quarter Fiscal 2009 Results
April 2, 2009
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AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
February 28, May 31,
2009 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 7,399 $15,648
Accounts receivable, net............................ 1,075 10,927
Inventories ........................................ 5,927 10,209
Deferred income taxes............................... -- 3,043
Prepaid expenses and other ......................... 884 396
----------- -----------
Total current assets ........................... 15,285 40,223
Property and equipment, net .......................... 2,792 2,278
Goodwill ............................................. -- 274
Deferred income taxes................................. -- 1,900
Other assets.......................................... 525 524
----------- -----------
Total assets ................................... $18,602 $45,199
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 1,703 $ 2,981
Accrued expenses ................................... 2,666 3,694
Deferred revenue ................................... 125 186
----------- -----------
Total current liabilities ...................... 4,494 6,861
Income tax payable.................................... 320 297
Deferred lease commitment ............................ 309 269
----------- -----------
Total liabilities .............................. 5,123 7,427
----------- -----------
Shareholders' equity ................................. 13,479 37,772
----------- -----------
Total liabilities and shareholders' equity ..... $18,602 $45,199
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