7. SEGMENT INFORMATION

6 Months Ended

Nov. 30, 2012

Segment Information

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.  Net sales are based upon ship-to location.

	United
(in thousands)	States		Asia		Europe		Total
Three months ended November 30, 2012:
Net sales	$	701	$	4,016	$	337	$	5,054
Property and equipment, net		293		64		1		358
Six months ended November 30, 2012:
Net sales	$	3,995	$	5,358	$	533	$	9,886
Property and equipment, net		293		64		1		358
Three months ended November 30, 2011:
Net sales	$	2,054	$	1,370	$	436	$	3,860
Property and equipment, net		630		71		6		707
Six months ended November 30, 2011:
Net sales	$	4,892	$	2,187	$	911	$	7,990
Property and equipment, net		630		71		6		707

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 85% and 81% of its net sales in the three and six months ended November 30, 2012, respectively.  Five customers accounted for approximately 28%, 18%, 17%, 12% and 10% of the Company’s net sales in the three months ended November 30, 2012. Three customers accounted for approximately 27%, 24% and 14% of the Company’s net sales in the six months ended November 30, 2012.  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. No other customers represented more than 10% of the Company’s net sales for either fiscal 2012 or fiscal 2011.