7. SEGMENT INFORMATION

6 Months Ended

Nov. 30, 2016

Segment Reporting [Abstract]

7. 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 November 30, 2016:
Net sales	$	1,709	$	2,256	$	251	$	4,216
Property and equipment, net		740		39		14		793
Six months ended November 30, 2016:
Net sales	$	4,873	$	4,166	$	495	$	9,534
Property and equipment, net		740		39		14		793
Three months ended November 30, 2015:
Net sales	$	507	$	3,768	$	345	$	4,620
Property and equipment, net		530		33		13		576
Six months ended November 30, 2015:
Net sales	$	1,225	$	9,149	$	879	$	11,253
Property and equipment, net		530		33		13		576

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 96% and 95% of its net sales in the three and six months ended November 30, 2016, respectively. Two customers accounted for approximately 60% and 22% of the Company’s net sales in the three months ended November 30, 2016. Three customers accounted for approximately 50%, 19% and 16% of the Company’s net sales in the six months ended November 30, 2016. Sales to the Company’s five largest customers accounted for approximately 97% and 96% of its net sales in the three and six months ended November 30, 2015, respectively. Two customers accounted for approximately 51% and 36% of the Company’s net sales in the three months ended November 30, 2015. Two customers accounted for approximately 54% and 27% of the Company’s net sales in the six months ended November 30, 2015. No other customers represented more than 10% of the Company’s net sales in the six months ended November 30, 2016 and 2015.