EX-99 2 q307-ex99.txt EXHIBIT 99.1 Exhibit 99.1 [LOGO]AEHR TEST SYSTEMS FOR IMMEDIATE RELEASE --------------------- Contact: Erin Cox Financial Relations Board for Aehr Test Systems Investor/Analyst Contact (310) 854-8319 AEHR TEST SYSTEMS REPORTS THIRD QUARTER RESULTS FOR FISCAL 2007 Fremont, CA (March 27, 2007) - Aehr Test Systems (Nasdaq: AEHR), a leading supplier of semiconductor test and burn-in equipment, today announced financial results for the third quarter of fiscal 2007 ended February 28, 2007. Net sales were $5.7 million in the third quarter of fiscal 2007, a decline of 10.0% from $6.3 million in the third quarter of fiscal 2006. Aehr Test reported net income of $265,000, or $0.03 per diluted share, in the third quarter of fiscal 2007, compared with net income of $360,000, or $0.05 per diluted share, in the third quarter of fiscal 2006. Net income excluding stock compensation expense of $171,000 was $433,000, or $0.05 per diluted share, in the third quarter of fiscal 2007. The Company did not record stock compensation expense prior to fiscal 2007. The attached condensed consolidated financial statements include a table reconciling the Company's net income excluding stock compensation expense to net income calculated according to accounting principles generally accepted in the United States ("GAAP") for the three and nine months ended February 28, 2007. "The demand for our new FOX TM -1 full wafer parallel tester continues to grow, as evidenced by the $8 million in follow-on orders that we announced today," said Rhea Posedel, chairman and chief executive officer of Aehr Test Systems. "Since the beginning of fiscal 2007, we have announced more than $18 million in orders for FOX-1 testers and WaferPak contactors, which has driven strong growth in our backlog. All of our FOX family of testers are 300mm wafer ready, and we expect this capability will have a positive impact on our ability to penetrate additional IC manufacturers in the future." Net sales were $19.1 million in the first nine months of fiscal 2007, compared with $16.8 million in the first nine months of fiscal 2006. Net income for the nine months ended February 28, 2007 was $1.5 million, or $0.18 per diluted share, compared with net income of $282,000, or $0.04 per diluted share, in the same period of the prior fiscal year. At February 28, 2007, cash and cash equivalents and short-term investments were $10.1 million. Aehr Test closed the third quarter of fiscal 2007 with no outstanding debt and shareholders' equity of $21.5 million, or $2.76 per share outstanding, at February 28, 2007. -more- Aehr Test Systems Reports Third Quarter Results for Fiscal 2007 March 27, 2007 Page 2 of 5 Commenting on the outlook for the fourth quarter of fiscal 2007, Gary Larson, vice president and chief financial officer of Aehr Test Systems, said, "Based on our solid backlog of FOX products and the number of systems and contactors scheduled to ship in the fourth quarter, we expect net sales and net income to increase in the fourth quarter, exceeding the levels of the fourth quarter of fiscal 2006." Management Conference Call Management of Aehr Test will host a conference call and webcast today, March 27, 2007 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's third quarter fiscal 2007 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 FOX, MTX and MAX systems, and the DiePakR carrier. 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 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, world events, conversion of quote activity to purchase orders and 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 report, 10-Q report and other reports from time to time filed with the Securities and Exchange Commission (SEC) 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 Results for Fiscal 2007 March 27, 2007 Page 3 of 5 AEHR TEST SYSTEMS AND SUBSIDIARIES Condensed Consolidated Statements of Income (in thousands, except per share data) (Unaudited)
Three Months Ended Nine Months Ended February 28, February 28, --------- --------- --------- -------- 2007 2006 2007 2006 --------- --------- --------- -------- Net sales............................. $5,687 $6,318 $19,072 $16,781 Cost of sales......................... 2,369 3,780 9,542 9,350 --------- --------- --------- -------- Gross profit.......................... 3,318 2,538 9,530 7,431 --------- --------- --------- -------- Operating expenses: Selling, general and administrative. 1,619 1,328 4,773 4,322 Research and development............ 1,634 1,015 4,543 3,055 --------- --------- -------- -------- Total operating expenses.......... 3,253 2,343 9,316 7,377 --------- --------- --------- -------- Income from operations............ 65 195 214 54 Interest income....................... 134 77 390 157 Other income, net..................... 70 102 937 116 --------- --------- --------- -------- Income before income tax expense.. 269 374 1,541 327 Income tax expense ................... 4 14 32 45 --------- --------- --------- -------- Net income ....................... $ 265 $ 360 $ 1,509 $ 282 ========= ========= ========= ======== Net income per share Basic............................. $ 0.03 $ 0.05 $ 0.20 $ 0.04 Diluted........................... $ 0.03 $ 0.05 $ 0.18 $ 0.04 Shares used in per share calculations: Basic............................. 7,765 7,508 7,732 7,495 Diluted........................... 8,115 7,550 8,228 7,507
-more- Aehr Test Systems Reports Third Quarter Results for Fiscal 2007 March 27, 2007 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 non-GAAP Financial Measure - net income to net income excluding stock compensation expense
Three Months Ended Nine Months Ended February 28, 2007 February 28, 2007 ------------------ ----------------- Net income ................................ $ 265 $1,509 Stock compensation expense................. 171 506 ------------------ ----------------- Income before income taxes, excluding stock compensation expense ......... 436 2,015 Income tax expense ........................ 3 9 ------------------ ----------------- Net income excluding stock compensation expense ............................ $ 433 $2,006 ================== ================= Diluted net income per share excluding Stock compensation expense ............ $0.05 $ 0.24 ================== =================
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 periods. 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). The Company believes net income excluding stock compensation expense is a useful measure that allows investors to draw comparison between net income results reported prior to adoption of SFAS 123R and the current period, which may mask underlying trends and make it difficult to give investors perspective on underlying business results. -more- Aehr Test Systems Reports Third Quarter Results for Fiscal 2007 March 27, 2007 Page 5 of 5 AEHR TEST SYSTEMS AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (Unaudited)
February 28, May 31, 2007 2006 ----------- ----------- ASSETS Current assets: Cash and cash equivalents .......................... $ 6,799 $ 9,405 Short-term investments ............................. 3,312 1,600 Accounts receivable, net .......................... 6,073 4,531 Inventories ........................................ 7,079 7,242 Prepaid expenses and other ......................... 432 357 ----------- ----------- Total current assets ........................... 23,695 23,135 Property and equipment, net .......................... 1,261 959 Goodwill ............................................. 274 274 Other assets ......................................... 523 525 ----------- ----------- Total assets ................................... $25,753 $24,893 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable ................................... $ 1,416 $ 1,130 Accrued expenses ................................... 2,369 2,347 Deferred revenue ................................... 239 2,335 ----------- ----------- Total current liabilities ...................... 4,024 5,812 Deferred lease commitment ............................ 233 264 ----------- ----------- Total liabilities .............................. 4,257 6,076 ----------- ----------- Shareholders' equity: Common stock, $0.01 par value outstanding: 7,798 and 7,630 shares at February 28, 2007 and May 31, 2006, respectively.................... 78 76 Additional paid-in capital ......................... 39,267 38,081 Accumulated other comprehensive income.............. 1,273 1,291 Accumulated deficit ................................ (19,122) (20,631) ----------- ----------- Total shareholders' equity ..................... 21,496 18,817 ----------- ----------- Total liabilities and shareholders' equity...... $25,753 $24,893 =========== ===========
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