3. EARNINGS PER SHARE

3 Months Ended

Aug. 31, 2016

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, RSUs 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,
	2016			2015
Numerator: Net (loss) income	$	(755	)	$	294
Denominator for basic net (loss) income per share:
Weighted average shares outstanding		13,317			12,963
Shares used in basic net (loss) income per share calculation		13,317			12,963
Effect of dilutive securities		—			851
Denominator for diluted net (loss) income per share		13,317			13,814
Basic net (loss) income per share	$	(0.06	)	$	0.02
Diluted net (loss) income per share	$	(0.06	)	$	0.02

    For the purpose of computing diluted earnings per share, the weighted average number of potential common shares does 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, 2016, 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 this period are the same. Stock options to purchase 3,382,000 shares of common stock, RSUs for 74,000 shares and ESPP rights to purchase 304,000 ESPP shares were outstanding as of August 31, 2016 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 1,371,000 shares of common stock and ESPP rights to purchase 175,000 ESPP shares were outstanding as of 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.