Exhibit 99.1
[LOGO]AEHR TEST SYSTEMS
Contact:
Gary Larson
Chief Financial Officer
(510) 623-9400 x321
AEHR TEST SYSTEMS REPORTS FINANCIAL RESULTS
FOR THIRD QUARTER FISCAL 2011
Fremont, CA (March 31, 2011) - 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 2011 ended February 28,
2011.
Product sales were $4.2 million in the third quarter of fiscal 2011, compared
with $2.5 million in the third quarter of fiscal 2010. Product sales were
$10.0 million in the first nine months of fiscal 2011, compared with $5.4
million in the first nine months of fiscal 2010. Commenting on the increase
in product sales, Rhea Posedel, chairman and chief executive officer of
Aehr Test Systems, said, "Demand for our FOXT products and Advanced Burn-in
and Test Systems (ABTST) continues to improve. At the top line, product
sales of $4.2 million were up 19% on a sequential quarter basis and up 73%
year-over-year. Product sales in the third quarter of fiscal 2011 were
driven by previously announced follow-on orders for FOX-1 WaferPak
contactors. This indicates to us that this customer is achieving ongoing
cost and through-put benefits with the FOX full wafer contact solution."
Net sales were $4.2 million in the third quarter of fiscal 2011, compared
with $5.2 million in the third quarter of fiscal 2010 which included the
impact of $2.7 million of cancellation charges resulting from the sale of
the remaining portion of the Spansion bankruptcy claim. Aehr Test reported
a net loss of $946,000, or $0.11 per diluted share, in the third quarter
of fiscal 2011. This compares to net income of $1.5 million, or $0.18 per
diluted share, in the third quarter of fiscal 2010. Fiscal 2010 third quarter
results benefited from the sale of the Company's remaining Spansion U.S.
bankruptcy claim for net proceeds of approximately $4.6 million, which
resulted in the recording of $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.
Net sales were $10.0 million in the first nine months of fiscal 2011 compared
with $8.1 million in the first nine months of fiscal 2010. Net loss for
the nine months ended February 28, 2011 was $3.2 million, or $0.37 per diluted
share, compared with net income of $338,000 or $0.04 per diluted share,
in the same period of the prior fiscal year. Aehr Test completed the third
quarter of fiscal 2011 with no outstanding debt.
Posedel added, "We are also encouraged by the increase in activity we are
generating with our ABTS family of products for packaged device test and
burn-in. Earlier this month we announced an ABTS order from a European
supplier of high reliability military/aerospace ASIC devices. This is the
first ABTS ordered by this customer.
-more-
Aehr Test Systems Reports Third Quarter Fiscal 2011 Results
March 31, 2011
Page 2 of 5
"We are saddened by the loss of life and damage caused by the horrific
earthquake and tsunami in Japan earlier this month," continued Posedel.
"Fortunately, none of our in-country employees or their family members were
injured. The FOX-1 systems and WaferPak contactors at our customer's site
in the affected area were not damaged and the systems are ready to be returned
to production. We are hopeful that the customers we are targeting in Japan
will continue to move forward with their plans for equipment purchases this
year.
"Looking further ahead, I am encouraged by stronger customer demand for
our products and I am confident in our ability to penetrate additional
production accounts in the future," concluded Posedel.
Management Conference Call
Management of Aehr Test will host a conference call and webcast today, March
31, 2011 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
third quarter fiscal 2011 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 and MAX systems and the DiePakr 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 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 state of the semiconductor
equipment market, the Company's ability to maintain sufficient cash to
support operations, the impact of the Japanese earthquake and tsunami upon
the Company's operations, acceptance by customers of Aehr Test's
technologies, acceptance by customers of the systems shipped upon receipt
of a purchase order, 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, 10-Q 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 Third Quarter Fiscal 2011 Results
March 31, 2011
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,
------------------ -----------------
2011 2010 2011 2010
-------- -------- -------- --------
Net sales:
Product sales....................... $4,242 $ 2,453 $ 9,988 $ 5,367
Cancellation charges................ -- 2,740 -- 2,740
-------- -------- -------- --------
Total net sales................... 4,242 5,193 9,988 8,107
Cost of sales......................... 2,637 1,178 6,085 3,800
-------- -------- -------- --------
Gross profit.......................... 1,605 4,015 3,903 4,307
-------- -------- -------- --------
Operating expenses:
Selling, general and administrative. 1,486 1,664 4,499 4,600
Research and development............ 1,039 1,451 3,377 3,470
Gain on bankruptcy claim............ -- (584) (155) (3,873)
-------- -------- -------- --------
Total operating expenses.......... 2,525 2,531 7,721 4,197
-------- -------- -------- --------
(Loss) income from operations..... (920) 1,484 (3,818) 110
Interest income....................... -- 1 3 4
Other (expense) income, net........... (30) 55 593 67
-------- -------- -------- --------
(Loss) income before income tax
(benefit) expense................. (950) 1,540 (3,222) 181
Income tax (benefit) expense.......... (4) 5 7 (157)
-------- -------- -------- --------
Net (loss) income................. $ (946) $ 1,535 $(3,229) $ 338
======== ======== ======== ========
Net (loss) income per share
Basic............................. $(0.11) $ 0.18 $ (0.37) $ 0.04
Diluted........................... $(0.11) $ 0.18 $ (0.37) $ 0.04
Shares used in per share calculations:
Basic............................. 8,828 8,601 8,742 8,541
Diluted........................... 8,828 8,759 8,742 8,594
-more-
Aehr Test Systems Reports Third Quarter Fiscal 2011 Results
March 31, 2011
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 Nine Months Ended
February 28, February 28,
------------------ -----------------
2011 2010 2011 2010
-------- -------- -------- --------
GAAP net (loss) income......................... $ (946) $ 1,535 $(3,229) $ 338
Gain on bankruptcy claim1...................... -- (3,324) (155) (6,613)
Stock compensation expense..................... 223 324 735 1,408
-------- -------- -------- --------
Non-GAAP net loss.............................. $ (723) $(1,465) $(2,649) $(4,867)
======== ======== ======== ========
GAAP net (loss) income per diluted share....... $ (0.11) $ 0.18 $ (0.37) $ 0.04
======== ======== ======== ========
Shares used in GAAP diluted shares calculation. 8,828 8,759 8,742 8,594
======== ======== ======== ========
Non-GAAP net loss per diluted share............ $ (0.08) $ (0.17) $ (0.30) $ (0.57)
======== ======== ======== ========
Shares used in non-GAAP diluted shares calculation 8,828 8,601 8,742 8,541
======== ======== ======== ========
________________________________________________________________________
1 The Company filed claims in the Spansion U.S. and Spansion Japan bankruptcy
actions. 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. In the first quarter of fiscal 2011,
the Company's Japanese subsidiary received approximately $155,000 in
proceeds from the Spansion Japan bankruptcy claim and recorded the amount
as a reduction of operating expenses.
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 using this measure in combination with net income (the
most comparable GAAP measure).
-more-
Aehr Test Systems Reports Third Quarter Fiscal 2011 Results
March 31, 2011
Page 5 of 5
AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
February 28, May 31,
2011 2010
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 3,808 $ 7,766
Accounts receivable, net............................ 2,229 596
Inventories, net.................................... 4,687 3,635
Prepaid expenses and other ......................... 220 445
----------- -----------
Total current assets ........................... 10,944 12,442
Property and equipment, net .......................... 1,078 1,504
Other assets.......................................... 540 528
----------- -----------
Total assets ................................... $12,562 $14,474
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 1,672 $ 703
Accrued expenses ................................... 1,213 1,626
Deferred revenue ................................... 50 286
----------- -----------
Total current liabilities ...................... 2,935 2,615
Income tax payable.................................... 298 298
Deferred lease commitment ............................ 249 280
----------- -----------
Total liabilities .............................. 3,482 3,193
Shareholders' equity ................................. 9,080 11,281
----------- -----------
Total liabilities and shareholders' equity ..... $12,562 $14,474
=========== ===========
# # #