SEGMENT INFORMATION

9 Months Ended

Feb. 29, 2012

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 February 29, 2012:
Net sales	$	2,810	$	9	$	36	$	2,855
Property and equipment, net		517		66		4		587
Nine months ended February 29, 2012:
Net sales	$	9,713	$	608	$	524	$	10,845
Property and equipment, net		517		66		4		587
Three months ended February 28, 2011:
Net sales	$	4,159	$	20	$	63	$	4,242
Property and equipment, net		990		76		12		1,078
Nine months ended February 28, 2011:
Net sales	$	8,905	$	703	$	380	$	9,988
Property and equipment, net		990		76		12		1,078

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 98% and 86% of its net sales in the three and nine months ended February 29, 2012, respectively.  Three customers accounted for approximately 59%, 17% and 17% of the Company’s net sales in the three months ended February 29, 2012. Three customers accounted for approximately 38%, 25% and 10% of the Company’s net sales in the nine months ended February 29, 2012.  Sales to the Company’s five largest customers accounted for approximately 95% and 87% of its net sales in the three and nine months ended February 28, 2011, respectively.  One customer accounted for approximately 73% of the Company’s net sales in the three months ended February 28, 2011. Two customers accounted for approximately 64% and 12% of the Company’s net sales in the nine months ended February 28, 2011.  No other customers represented more than 10% of the Company’s net sales for either fiscal 2012 or fiscal 2011.