SEGMENT INFORMATION

6 Months Ended

Nov. 30, 2011

Notes to Financial Statements

SEGMENT INFORMATION

7. SEGMENT INFORMATION

The Company operates in one reportable segment: the design, manufacture and marketing of advanced test and burn-in products to the semiconductor manufacturing industry.

The following presents information about the Company’s operations in different geographic areas (in thousands):

	United
	States		Asia		Europe		Total
Three months ended November 30, 2011:
Net sales	$	2,997	$	573	$	290	$	3,860
Property and equipment, net		630		71		6		707
Six months ended November 30, 2011:
Net sales	$	6,903	$	599	$	488	$	7,990
Property and equipment, net		630		71		6		707
Three months ended November 30, 2010:
Net sales	$	3,137	$	184	$	256	$	3,577
Property and equipment, net		1,130		78		13		1,221
Six months ended November 30, 2010:
Net sales	$	4,746	$	683	$	317	$	5,746
Property and equipment, net		1,130		78		13		1,221

The Company’s foreign operations are primarily those of its Japanese and German subsidiaries. Substantially all of the sales of the subsidiaries are made to unaffiliated Japanese or European customers. Net sales from outside the United States include those of Aehr Test Systems Japan K.K. and Aehr Test Systems GmbH.

Sales to the Company’s five largest customers accounted for approximately 90% and 84% of its net sales in the three and six months ended November 30, 2011, respectively. Three customers accounted for approximately 38%, 21% and 17% of the Company’s net sales in the three months ended November 30, 2011. Three customers accounted for approximately 46%, 13% and 10% of the Company’s net sales in the six months ended November 30, 2011. Sales to the Company’s five largest customers accounted for approximately 94% and 88% of its net sales in the three and six months ended November 30, 2010, respectively. Two customers accounted for approximately 69% and 11% of the Company’s net sales in the three months ended November 30, 2010. Two customers accounted for approximately 58% and 13% of the Company’s net sales in the six months ended November 30, 2010. No other customers represented more than 10% of the Company’s net sales for either fiscal 2012 or fiscal 2011.