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 THIRD QUARTER FISCAL 2010
Fremont, CA (March 31, 2010) - Aehr Test Systems (Nasdaq: AEHR), a worldwide
supplier of semiconductor test and burn-in equipment, today announced
financial results for the third quarter of fiscal 2010 ended February 28,
2010.
Net sales were $5.2 million in the third quarter of fiscal 2010, compared
with $1.2 million in the third quarter of fiscal 2009. Aehr Test reported
net income of $1.5 million, or $0.18 per diluted share, in the third quarter
of fiscal 2010. This compares to a net loss of $27.7 million, or $3.28 per
diluted share, in the third quarter of fiscal 2009, which includes aggregate
charges of $25.3 million, or $3.00 per share, related to the Spansion
bankruptcy filing in February and March 2009.
Commenting on the third quarter results, Rhea Posedel, chairman and chief
executive officer of Aehr Test Systems, said, "While third quarter financial
results benefitted from the $4.6 million in proceeds received from the sale
of the remainder of the Spansion U.S. bankruptcy claim, our operating
performance continues to improve. Excluding the benefit of the cancellation
charges of $2.7 million related to the bankruptcy claim, product sales of
$2.5 million were up 49% on a sequential quarter basis. To expand our
customer base and grow market share, our sales efforts remain focused on
potential new production accounts with our new Advanced Burn-in and Test
System (ABTSTM) and FOXTM products. This month, we announced that we received
orders from two leading Japanese semiconductor manufacturers. We intend
to invest in research and development over the next several quarters to
accelerate new product development initiatives, which we expect will help
the Company win additional new accounts as semiconductor equipment spending
returns to more normal levels."
Net sales were $8.1 million in the first nine months of fiscal 2010 compared
with $20.2 million in the first nine months of fiscal 2009. Net income for
the nine months ended February 28, 2010 was $338,000, or $0.04 per diluted
share, compared with a net loss of $25.9 million, or $3.08 per diluted share,
in the same period of the prior fiscal year.
At February 28, 2010, cash and cash equivalents were $8.7 million and include
the proceeds of approximately $4.6 million received in January 2010 from
the sale of the remainder of the bankruptcy claim against Spansion. Aehr
Test completed the third quarter of fiscal 2010 with no outstanding debt
and shareholders' equity of $11.8 million, or $1.37 per share outstanding
at February 28, 2010.
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Aehr Test Systems Reports Third Quarter Fiscal 2010 Results
March 31, 2010
Page 2 of 5
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, March
31, 2010 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
third 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 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, 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, net sales 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 Third Quarter Fiscal 2010 Results
March 31, 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 Nine Months Ended
February 28, February 28,
------------------ -----------------
2010 2009 2010 2009
-------- -------- -------- --------
Net sales:
Product sales....................... $2,453 $1,235 $5,367 $20,167
Cancellation charges................ 2,740 -- 2,740 --
-------- -------- -------- --------
Total net sales................... 5,193 1,235 8,107 20,167
Cost of sales......................... 1,178 8,049 3,800 17,471
-------- -------- -------- --------
Gross profit (loss)................... 4,015 (6,814) 4,307 2,696
-------- -------- -------- --------
Operating expenses:
Selling, general and administrative. 1,664 15,328 4,600 19,243
Research and development............ 1,451 1,596 3,470 4,651
Impairment of goodwill.............. -- 274 -- 274
Gain on sale of bankruptcy claim.... (584) -- (3,873) --
-------- -------- -------- --------
Total operating expenses.......... 2,531 17,198 4,197 24,168
-------- -------- -------- --------
Income (loss) from operations..... 1,484 (24,012) 110 (21,472)
Interest income....................... 1 26 4 136
Other income, net .................... 55 7 67 384
-------- -------- -------- --------
Income (loss) before income tax
expense (benefit)................. 1,540 (23,979) 181 (20,952)
Income tax expense (benefit).......... 5 3,701 (157) 4,991
-------- -------- -------- --------
Net income (loss)................. $1,535 $(27,680) $ 338 $(25,943)
======== ======== ======== ========
Net income (loss) per share
Basic............................. $0.18 $(3.28) $0.04 $(3.08)
Diluted........................... $0.18 $(3.28) $0.04 $(3.08)
Shares used in per share calculations:
Basic............................. 8,601 8,450 8,541 8,424
Diluted........................... 8,759 8,450 8,594 8,424
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Aehr Test Systems Reports Third Quarter Fiscal 2010 Results
March 31, 2010
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 GAAP TO NON-GAAP NET INCOME
Three Months Ended Nine Months Ended
February 28, February 28,
------------------ -----------------
2010 2009 2010 2009
-------- -------- -------- --------
GAAP net income (loss)....................... $1,535 $(27,680) $ 338 $(25,943)
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
Gain on sale of bankruptcy claim3............ (3,323) -- (6,612) --
Stock compensation expense4 ................. 324 331 1,408 947
Income tax effect on non-GAAP adjustments.... -- 255 -- --
-------- -------- -------- --------
Non-GAAP net (loss) income................... $(1,464) $(1,773) $(4,866) $ 325
======== ======== ======== ========
GAAP net income (loss) per diluted share..... $0.18 $(3.28) $0.04 $(3.08)
======== ======== ======== ========
Shares used in GAAP diluted shares calculation 8,759 8,450 8,594 8,424
======== ======== ======== ========
Non-GAAP net (loss) income per diluted share.. $(0.17) $(0.21) $(0.57) $0.04
======== ======== ======== ========
Shares used in non-GAAP diluted shares
calculation............................... 8,601 8,450 8,541 8,550
======== ======== ======== ========
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1 The Company's largest customer, Spansion Inc. ("Spansion") filed for
bankruptcy in February and March 2009. The Company recorded a charge
to provision for bad debts in the third quarter of fiscal 2009 related
to accounts receivable of Spansion.
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 The Company filed a claim in the Spansion U.S. bankruptcy action.
In the first quarter of fiscal 2010, the Company sold a portion of its
Spansion U.S bankruptcy claim to a third party for net proceeds of
approximately $3.3 million and recorded the amount as a reduction of
operating expenses. In the third quarter of fiscal 2010, the Company
sold the remaining balance of its Spansion U.S. bankruptcy claim for
net proceeds of approximately $4.6 million and recorded $2.7 million
as revenue related to cancellation charges, $1.3 million as deferred
revenue and $0.6 million as a reduction of operating expenses.
4 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 income (loss) is a non-GAAP measure and should not be considered
a replacement for GAAP results. Non-GAAP net income (loss) 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 (loss).
This limitation is best addressed by using this measure in combination with
net income (loss) (the most comparable GAAP measure).
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Aehr Test Systems Reports Third Quarter Fiscal 2010 Results
March 31, 2010
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
February 28, May 31,
2010 2009
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 8,673 $ 4,360
Accounts receivable, net............................ 1,321 931
Inventories ........................................ 4,035 4,472
Prepaid expenses and other ......................... 752 879
----------- -----------
Total current assets ........................... 14,781 10,642
Property and equipment, net .......................... 1,654 2,741
Other assets.......................................... 532 528
----------- -----------
Total assets ................................... $16,967 $13,911
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 528 $ 995
Accrued expenses ................................... 1,615 2,107
Deferred revenue ................................... 2,448 241
----------- -----------
Total current liabilities ...................... 4,591 3,343
Income tax payable.................................... 302 299
Deferred lease commitment ............................ 287 306
----------- -----------
Total liabilities .............................. 5,180 3,948
----------- -----------
Shareholders' equity ................................. 11,787 9,963
----------- -----------
Total liabilities and shareholders' equity ..... $16,967 $13,911
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