3. EARNINGS PER SHARE

3 Months Ended

Aug. 31, 2013

Earnings Per Share

EARNINGS PER SHARE

3.  EARNINGS PER SHARE

 Earnings per share is computed based on the weighted average number of common and common equivalent shares (common stock options and ESPP shares) outstanding, when dilutive, during each period using the treasury stock method.

 The following table presents the computation of basic and diluted net loss per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):

	Three Months Ended
	August 31,
	2013			2012
Numerator: Net loss	$	(166	)	$	(296	)
Denominator for basic net loss per share:
Weighted-average shares outstanding		10,635			9,166
Shares used in basic net loss per share calculation		10,635			9,166
Effect of dilutive securities		--			--
Denominator for diluted net loss per share		10,635			9,166
Basic net loss per share	$	(0.02	)	$	(0.03	)
Diluted net loss per share	$	(0.02	)	$	(0.03	)

 For the purpose of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair value of the Company’s common stock for the period, as the effect would be anti-dilutive.  Potential common shares have not been included in the calculation of diluted net loss per share as the effect would be anti-dilutive.  As such, the numerator and the denominator used in computing both basic and diluted net loss per share are the same.  Stock options to purchase 3,323,000 shares of common stock were outstanding on August 31, 2013, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.  Stock options to purchase 2,893,000 shares of common stock were outstanding on August 31, 2012, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.