12. SEGMENT INFORMATION

3 Months Ended

Aug. 31, 2018

Segment Reporting [Abstract]

12. SEGMENT INFORMATION

12. 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 August 31, 2018:
Net sales	$	2,695	$	1,734	$	311	$	4,740
Property and equipment, net		1,130		39		5		1,174
Three months ended August 31, 2017:
Net sales	$	1,290	$	5,660	$	20	$	6,970
Property and equipment, net		1,089		39		12		1,140

    The following table shows revenues by major product categories, similar to our reportable segment disclosure. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flow are substantially similar. With the exception of the amount of service revenues, our product category revenues are recognized at point in time when control transfers to customers. Our revenues by product category are as follows (in thousands):

	Three Months Ended
	August 31,
	2018		2017
Type of good / service:
Systems	$	1,806	$	3,476
Contactors		1,153		2,677
Services		1,781		817
	$	4,740	$	6,970
Timing of revenue recognition:
Products and services transferred at a point in time	$	4,118	$	6,500
Services transferred over time		622		470
	$	4,740	$	6,970

    There were no revenues through distributors for the three months ended August 31, 2018 and 2017.

    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 78% and 99% of its net sales for the three months ended August 31, 2018 and 2017, respectively. Four customers accounted for approximately 21%, 18%, 17% and 14% of the Company’s net sales in the three months ended August 31, 2018. Two customers accounted for approximately 54% and 35% of the Company’s net sales in the three months ended August 31, 2017. No other customers represented more than 10% of the Company's net sales for either of the three months ended August 31, 2018 and 2017.