3. EARNINGS PER SHARE

3 Months Ended

Aug. 31, 2014

Earnings Per Share [Abstract]

3. EARNINGS PER SHARE

3.  EARNINGS PER SHARE

Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, and employee stock purchase plan shares) outstanding during the 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,
	2014		2013
Numerator: Net loss	$	(907)	$	(166)
Denominator for basic net loss per share:
Weighted-average shares outstanding		11,391		10,635
Shares used in basic net loss per share calculation		11,391		10,635
Effect of dilutive securities		--		--
Denominator for diluted net loss per share		11,391		10,635
Basic net loss per share	$	(0.08)	$	(0.02)
Diluted net loss per share	$	(0.08)	$	(0.02)

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.  In the three months ended August 31, 2014, 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 for these periods are the same.  Stock options to purchase 3,323,000 shares of common stock and ESPP rights to purchase 131,000 ESPP shares were outstanding on August 31, 2014, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.