3. EARNINGS PER SHARE

3 Months Ended

Aug. 31, 2015

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,
	2015		2014
Numerator: Net income (loss)	$	294	$	(907	)
Denominator for basic net income (loss) per share:
Weighted-average shares outstanding		12,963		11,391
Shares used in basic net income (loss) per share calculation		12,963		11,391
Effect of dilutive securities		851		--
Denominator for diluted net income (loss) per share		13,814		11,391
Basic net income (loss) per share	$	0.02	$	(0.08	)
Diluted net income (loss) per share	$	0.02	$	(0.08	)

    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 1,371,000 shares of common stock and ESPP rights to purchase 175,000 ESPP shares were outstanding for the three months ending August 31, 2015, 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 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.