7. SEGMENT INFORMATION

9 Months Ended

Feb. 28, 2014

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 (in thousands).

	United
	States		Asia		Europe		Total
Three months ended February 28, 2014:
Net sales	$	2,863	$	1,039	$	1,710	$	5,612
Property and equipment, net		268		42		1		311
Nine months ended February 28, 2014:
Net sales	$	7,082	$	4,963	$	2,269	$	14,314
Property and equipment, net		268		42		1		311
Three months ended February 28, 2013:
Net sales	$	2,100	$	1,188	$	52	$	3,340
Property and equipment, net		321		57		--		378
Nine months ended February 28, 2013:
Net sales	$	6,095	$	6,546	$	585	$	13,226
Property and equipment, net		321		57		--		378

The Company’s Japanese and German subsidiaries primarily comprise the foreign operations.  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 95% and 94% of its net sales in the three and nine months ended February 28, 2014, respectively.  Four customers accounted for approximately 36%, 28%, 19% and 11% of the Company’s net sales in the three months ended February 28, 2014. Two customers accounted for approximately 46% and 33% of the Company’s net sales in the nine months ended February 28, 2014.  Sales to the Company’s five largest customers accounted for approximately 98% and 80% of its net sales in the three and nine months ended February 28, 2013, respectively.  Three customers accounted for approximately 40%, 37%, and 16% of the Company’s net sales in the three months ended February 28, 2013. Three customers accounted for approximately 30%, 27% and 11% of the Company’s net sales in the nine months ended February 28, 2013.  No other customers represented more than 10% of the Company’s net sales for either fiscal 2014 or fiscal 2013.