3. EARNINGS PER SHARE

6 Months Ended

Nov. 30, 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) income per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):

	Three Months Ended					Six Months Ended
	November 30,					November 30,
	2014			2013		2014			2013
Numerator: Net (loss) income	$	(2,114	)	$	137	$	(3,021	)	$	(29	)
Denominator for basic net (loss) income per share:
Weighted-average shares outstanding		11,724			10,806		11,557			10,721
Shares used in basic net (loss) income per share calculation		11,724			10,806		11,557			10,721
Effect of dilutive securities		--			1,033		--			--
Denominator for diluted net (loss) income per share		11,724			11,839		11,557			10,721
Basic net (loss) income per share	$	(0.18	)	$	0.01	$	(0.26	)	$	(0.00	)
Diluted net (loss) income per share	$	(0.18	)	$	0.01	$	(0.26	)	$	(0.00	)

     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.  Stock options to purchase 3,418,000 shares of common stock and ESPP rights to purchase 175,000 ESPP shares were outstanding at November 30, 2014, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.  In the three months ended November 30, 2014 and the six months ended November 30, 2014 and 2013 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 262,998 shares of common stock were outstanding at November 30, 2013, but were not included in the computation of diluted net income per share, because the inclusion of such shares would be anti-dilutive.