-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JSfC6DRL4mZVftlnZpqogtFUYiZySaNIUPRdXyLDLlD1lA6jk29e7JrH0SY1B/ci 5EY3mPiEOiRzTeWj/l4MDQ== 0001040470-07-000026.txt : 20070724 0001040470-07-000026.hdr.sgml : 20070724 20070724161308 ACCESSION NUMBER: 0001040470-07-000026 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070724 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070724 DATE AS OF CHANGE: 20070724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AEHR TEST SYSTEMS CENTRAL INDEX KEY: 0001040470 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 942424084 STATE OF INCORPORATION: CA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22893 FILM NUMBER: 07996404 BUSINESS ADDRESS: STREET 1: 400 KATO TERRACE CITY: FREMONT STATE: CA ZIP: 94539 BUSINESS PHONE: 5106239400 MAIL ADDRESS: STREET 1: 400 KATO TERRACE CITY: FREMONT STATE: CA ZIP: 94539 8-K 1 q407-e8k1.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): July 24, 2007 Aehr Test Systems (Exact name of Registrant as specified in its charter) California 000-22893 94-2424084 (State or other jurisdiction of [Commission File Number] (I.R.S. Employer incorporation or organization) Identification Number) 400 Kato Terrace Fremont, California 94539 (Address of principal executive offices, including zip code) 510-623-9400 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 24, 2007, Aehr Test Systems (the "Company") issued a press release announcing the Company's financial results for its fourth fiscal quarter and fiscal year 2007 ended May 31, 2007. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Form 8-K, including the exhibit attached hereto, are being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, as amended. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press Release of Aehr Test Systems dated July 24, 2007 entitled "Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results." SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Aehr Test Systems (Registrant) Date: July 24, 2007 By: /S/ GARY L. LARSON ------------------------- Gary L. Larson Vice President of Finance and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - ------- ------------ 99.1 Press Release of Aehr Test Systems dated July 24, 2007 entitled "Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results." - - more - EX-99 2 q407-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 FOURTH QUARTER AND FISCAL 2007 RESULTS Fremont, CA (July 24, 2007) - Aehr Test Systems (Nasdaq: AEHR), a leading supplier of semiconductor test and burn-in equipment, today announced financial results for the fourth quarter of fiscal 2007 ended May 31, 2007. Net sales were $8.3 million in the fourth quarter of fiscal 2007, an increase of 18.0% from $7.0 million in the fourth quarter of fiscal 2006. Aehr Test reported net income of $919,000, or $0.11 per diluted share, in the fourth quarter of fiscal 2007, compared with net income of $528,000, or $0.07 per diluted share, in the fourth quarter of fiscal 2006. Net income excluding stock compensation expense of $172,000 was $1.1 million, or $0.13 per diluted share, in the fourth 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 months and fiscal year ended May 31, 2007. "We are very pleased with our performance in the fourth quarter, which represented our highest level of quarterly sales in more than six years," said Rhea Posedel, chairman and chief executive officer of Aehr Test Systems. "Our net sales reflect solid contributions from both our FOX?-1 full wafer parallel tester and our MAX burn-in systems. Most importantly, the sales momentum for the FOX-1 systems allowed us to exit fiscal 2007 with a record backlog of $21.3 million, compared with a $12.5 million backlog at the end of the prior fiscal year." Net sales were $27.4 million in fiscal 2007, an increase of 14.9% over $23.8 million in fiscal 2006. Net income for the year ended May 31, 2007 was $2.4 million, or $0.30 per diluted share, compared with net income of $810,000, or $0.11 per diluted share, in the prior fiscal year. Net income excluding stock compensation expense of $678,000 was $3.1 million, or $0.38 per diluted share, in fiscal 2007. At May 31, 2007, cash and cash equivalents and short-term investments were $9.6 million. Aehr Test closed the fourth quarter of fiscal 2007 with no outstanding debt and shareholders' equity of $22.7 million, or $2.90 per share outstanding, at May 31, 2007. -more- Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results July 24, 2007 Page 2 of 5 Commenting on the outlook for the first quarter of fiscal 2008, Gary Larson, vice president and chief financial officer of Aehr Test Systems, said, "Based on our solid backlog of FOX products, we expect to get off to a good start in fiscal 2008 with net sales and net income in the first quarter being similar to our fourth quarter results." Management Conference Call Management of Aehr Test will host a conference call and webcast today, July 24, 2007 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's fourth 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 FOXTM, 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 Fourth Quarter and Fiscal 2007 Results July 24, 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 Year Ended May 31, May 31, --------- --------- --------- -------- 2007 2006 2007 2006 --------- --------- --------- -------- Net sales............................. $8,279 $7,019 $27,351 $23,801 Cost of sales......................... 3,896 3,814 13,438 13,165 --------- --------- --------- -------- Gross profit.......................... 4,383 3,205 13,913 10,636 --------- --------- --------- -------- Operating expenses: Selling, general and administrative. 1,765 1,520 6,538 5,842 Research and development............ 1,781 1,284 6,324 4,339 --------- ---------- --------- -------- Total operating expenses.......... 3,546 2,804 12,862 10,181 --------- --------- --------- -------- Income from operations............ 837 401 1,051 455 Interest income....................... 101 98 491 255 Other income (expense), net .......... 24 (37) 961 79 --------- --------- --------- -------- Income before income tax expense (benefit)......................... 962 462 2,503 789 Income tax expense (benefit).......... 43 (66) 75 (21) --------- --------- --------- -------- Net income ....................... $ 919 $ 528 $ 2,428 $ 810 ========= ========= ========= ======== Net income per share Basic............................. $ 0.12 $ 0.07 $ 0.31 $ 0.11 Diluted........................... $ 0.11 $ 0.07 $ 0.30 $ 0.11 Shares used in per share calculations: Basic............................. 7,807 7,574 7,751 7,515 Diluted........................... 8,218 7,859 8,225 7,605
-more- Aehr Test Systems Reports Fourth Quarter and Fiscal 2007 Results July 24, 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 Fiscal Year Ended May 31, 2007 May 31, 2007 ------------------ ----------------- Net income ................................ $ 919 $ 2,428 Stock compensation expense................. 172 678 ------------------ ----------------- Income before income taxes, excluding stock compensation expense ......... 1,091 3,106 Income tax expense ........................ 3 12 ------------------ ----------------- Net income excluding stock compensation expense ............................ $ 1,088 $ 3,094 ================== ================= Diluted net income per share excluding Stock compensation expense ............ $0.13 $ 0.38 ================== =================
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 Fourth Quarter and Fiscal 2007 Results July 24, 2007 Page 5 of 5 AEHR TEST SYSTEMS AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (Unaudited)
May 31, May 31, 2007 2006 ----------- ----------- ASSETS Current assets: Cash and cash equivalents .......................... $ 6,564 $ 9,405 Short-term investments ............................. 2,987 1,600 Accounts receivable, net .......................... 6,614 4,531 Inventories ........................................ 9,701 7,242 Prepaid expenses and other ......................... 326 357 ----------- ----------- Total current assets ........................... 26,192 23,135 Property and equipment, net .......................... 1,689 959 Goodwill ............................................. 274 274 Other assets ......................................... 520 525 ----------- ----------- Total assets ................................... $28,675 $24,893 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable ................................... $ 2,517 $ 1,130 Accrued expenses ................................... 2,927 2,347 Deferred revenue ................................... 378 2,335 ----------- ----------- Total current liabilities ...................... 5,822 5,812 Deferred lease commitment ............................ 185 264 ----------- ----------- Total liabilities .............................. 6,007 6,076 ----------- ----------- Shareholders' equity: Common stock, $0.01 par value outstanding: 7,820 and 7,630 shares at May 31, 2007 and May 31, 2006, respectively.................... 78 76 Additional paid-in capital ......................... 39,552 38,081 Accumulated other comprehensive income.............. 1,241 1,291 Accumulated deficit ................................ (18,203) (20,631) ----------- ----------- Total shareholders' equity ..................... 22,668 18,817 ----------- ----------- Total liabilities and shareholders' equity...... $28,675 $24,893 =========== ===========
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