Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
FOR IMMEDIATE RELEASE
Contact:
Gary Larson
Chief Financial Officer
(510)623-9400 x321
AEHR TEST SYSTEMS REPORTS FINANCIAL RESULTS
FOR SECOND QUARTER FISCAL 2010
Fremont, CA (January 6, 2010) -- Aehr Test Systems (Nasdaq: AEHR), a
technology leader in the semiconductor test and burn-in equipment industry,
today announced financial results for the second quarter of fiscal 2010 ended
November 30, 2009.
Net sales were $1.6 million in the second quarter of fiscal 2010, compared
with $9.2 million in the second quarter of fiscal 2009. Aehr Test reported
a net loss of $2.2 million, or $0.25 per diluted share, in the second quarter
of fiscal 2010, compared with net income of $0.9 million, or $0.10 per diluted
share, in the second quarter of fiscal 2009.
Commenting on the second quarter results, Rhea Posedel, chairman and chief
executive officer of Aehr Test Systems said, "Similar to recent quarters,
our business continued to be impacted by the challenging global
macroeconomic climate and lower-than-normal levels of capital spending by
our customers in the semiconductor industry. However, there are several
data points that suggest our business is in the early stages of a recovery.
The second quarter showed marked growth in net sales, when compared with
recent quarters. In addition, second quarter shipments of $2.5 million were
significantly higher than the prior quarter, due in large part to the
on-schedule shipment of the FOXTM-15 wafer-level burn-in and test system to
Micronas, a leading supplier of automotive and industrial integrated
circuits. We will record revenue after Micronas completes qualification
runs and accepts the system. Looking forward in calendar 2010, quoting
activity is beginning to increase and we are hopeful this will result in
the addition of new customers and an increase in net sales as industry
conditions improve. We believe that these factors set the stage for improved
results in the second half of fiscal 2010."
Net sales were $2.9 million in the first six months of fiscal 2010 compared
with $18.9 million in the first six months of fiscal 2009. Net loss for
the six months ended November 30, 2009 was $1.2 million, or $0.14 per diluted
share, compared with net income of $1.7 million, or $0.20 per diluted share,
in the same period of the prior fiscal year.
At November 30, 2009, cash and cash equivalents were $5.1 million and include
the proceeds of approximately $3.3 million received in September 2009 from
the sale of a portion of the bankruptcy claim against Spansion Inc. Aehr
Test completed the second quarter of fiscal 2010 with no outstanding debt
and shareholders' equity of $10.0 million, or $1.17 per share outstanding
at November 30, 2009.
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Aehr Test Systems Reports Second Quarter Fiscal 2010 Results
January 6, 2010
Page 2 of 5
Management Conference Call
Management of Aehr Test will host a conference call and webcast today,
January 6, 2010 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's second quarter fiscal 2010 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 ABTSTM, FOX, MTX and MAX systems and the
DiePak(R) carrier. The ABTS system 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. 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 2010 Results
January 6, 2010
Page 3 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
November 30, November 30,
------------------ -----------------
2009 2008 2009 2008
-------- -------- -------- --------
Net sales............................. $1,646 $9,242 $2,914 $18,932
Cost of sales......................... 1,297 4,650 2,622 9,422
-------- -------- -------- --------
Gross profit.......................... 349 4,592 292 9,510
-------- -------- -------- --------
Operating expenses:
Selling, general and administrative. 1,623 1,830 2,936 3,915
Research and development............ 1,077 1,577 2,019 3,055
Gain on sale of bankruptcy claim.... -- -- (3,289) --
-------- -------- -------- --------
Total operating expenses.......... 2,700 3,407 1,666 6,970
-------- -------- -------- --------
(Loss) income from operations..... (2,351) 1,185 (1,374) 2,540
Interest income....................... 2 47 3 110
Other income, net .................... 26 384 12 377
-------- -------- -------- --------
(Loss) income before income tax
(benefit)expense.................. (2,323) 1,616 (1,359) 3,027
Income tax (benefit)expense .......... (165) 744 (162) 1,290
-------- -------- -------- --------
Net (loss) income ................ $(2,158) $ 872 $(1,197) $ 1,737
======== ======== ======== ========
Net (loss) income per share
Basic............................. $(0.25) $0.10 $(0.14) $0.21
Diluted........................... $(0.25) $0.10 $(0.14) $0.20
Shares used in per share calculations:
Basic............................. 8,526 8,426 8,504 8,411
Diluted........................... 8,526 8,447 8,504 8,600
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Aehr Test Systems Reports Second Quarter Fiscal 2010 Results
January 6, 2010
Page 4 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
November 30, November 30,
------------------ -----------------
2009 2008 2009 2008
-------- -------- -------- --------
GAAP net (loss) income..................... $(2,158) $ 872 $(1,197) $1,737
Gain on sale of bankruptcy claim1.......... -- -- (3,289) --
Stock compensation expense2 ............... 780 330 1,085 616
Income tax effect on non-GAAP adjustments.. -- (132) -- (255)
-------- -------- -------- --------
Non-GAAP net (loss) income................. $(1,378) $1,070 $(3,401) $2,098
======== ======== ======== ========
GAAP net (loss) income per diluted share.... $(0.25) $0.10 $(0.14) $0.20
======== ======== ======== ========
Non-GAAP net (loss) income per diluted share $(0.16) $0.13 $(0.40) $0.24
======== ======== ======== ========
Shares used in diluted shares calculation... 8,526 8,447 8,504 8,600
======== ======== ======== ========
_____________________________________________________________________________
1 The Company's largest customer, Spansion Inc. ("Spansion") filed for
bankruptcy in February and March 2009. The Company has filed a claim in the
Spansion U.S. bankruptcy action. In the first quarter of fiscal 2010,
the Company sold a portion of its bankruptcy claim to a third party for net
proceeds of approximately $3.3 million and recorded the amount in income from
operations.
2 In the second quarter of fiscal 2010, officers of the Company elected to
forfeit certain stock options granted. The forfeiture of these options resulted
in the immediate recognition of the unamortized portion of stock compensation
expense of $0.5 million.
Non-GAAP net (loss) income is a non-GAAP measure and should not be considered
a replacement for GAAP results. Non-GAAP net (loss) 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 (loss) income.
This limitation is best addressed by using this measure in combination with
net (loss) income (the most comparable GAAP measure).
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Aehr Test Systems Reports Second Quarter Fiscal 2010 Results
January 6, 2010
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
November 30, May 31,
2009 2009
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 5,052 $ 4,360
Accounts receivable, net............................ 971 931
Inventories ........................................ 3,950 4,472
Prepaid expenses and other ......................... 628 879
----------- -----------
Total current assets ........................... 10,601 10,642
Property and equipment, net .......................... 2,446 2,741
Other assets.......................................... 534 528
----------- -----------
Total assets ................................... $13,581 $13,911
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 366 $ 995
Accrued expenses ................................... 1,728 2,107
Deferred revenue ................................... 872 241
----------- -----------
Total current liabilities ...................... 2,966 3,343
Income tax payable.................................... 299 299
Deferred lease commitment ............................ 294 306
----------- -----------
Total liabilities .............................. 3,559 3,948
----------- -----------
Shareholders' equity ................................. 10,022 9,963
----------- -----------
Total liabilities and shareholders' equity ..... $13,581 $13,911
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