8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

         Date of Report (Date of earliest event reported): MARCH 7, 2007

                           NEXTEST SYSTEMS CORPORATION
             (Exact name of registrant as specified in its charter)

            Delaware                   000-51851               77-047-0150
  (State or other jurisdiction        (Commission           (I.R.S. Employer
        of incorporation)             File Number)         Identification No.)

                      1901 MONTEREY RD, SAN JOSE, CA 95112
             (Address of principal executive offices, with zip code)

                                 (408) 817-7200
              (Registrant's telephone number, including area code)

     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities
     Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
     Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

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ITEM 5.02. DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS;
           APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF
           CERTAIN OFFICERS

     As announced on March 9, 2007, the Board of Directors of Nextest Systems
Corporation (the "Company") appointed Mr. Tim F. Moriarty, currently the
Company's Vice President of Sales and Marketing, as the Company's President,
effective on March 7, 2007. Mr. Robin Adler will remain the Company's Chief
Executive Officer and the Company's principal executive officer.

     As the Company's President, Mr. Moriarty will be entitled to receive annual
cash compensation of $375,000, and be eligible to receive a bonus based on the
achievement of certain individual and corporate objectives, in accordance with
the Company's fiscal 2007 Management Bonus Plan. For fiscal 2007, the target
amount of Mr. Moriarty's bonus is $200,000, with Mr. Moriarty's minimum
guaranteed bonus for fiscal 2007 being $67,000.

     On March 7, 2007, Mr. Moriarty was granted an option to purchase 250,000
shares of the Company's common stock, which option will vest and become
exercisable at the rate of 20% per year, beginning on July 1, 2007, for so long
as Mr. Moriarty continues to be employed by the Company. The per-share exercise
price of the option is $12.46, the closing price of the Company's common stock
on the grant date. Additionally, on March 7, 2007, Mr. Moriarty was granted
50,000 restricted shares of the Company's common stock, subject to a right of
repurchase by the Company, which right will lapse with respect to 20% of the
shares each year, beginning on August 15, 2007.

     On March 9, 2007, the Company issued a press release announcing the
appointment of Mr. Moriarty as the Company's President. The text of the press
release is attached as Exhibit 99.1 hereto.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(C) EXHIBITS

99.1    Press Release of Nextest Systems Corporation dated March 9, 2007

                                       -2-


                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                                     NEXTEST SYSTEMS CORPORATION


Date:  March 9, 2007                                 By: /s/ Robin Adler
                                                         -----------------------
                                                         Robin Adler
                                                         Chief Executive Officer

                                       -3-

EX-99.1

                                                                    Exhibit 99.1

                   NEXTEST NAMES TIM F. MORIARTY AS PRESIDENT

    SAN JOSE, Calif., March 9 /PRNewswire-FirstCall/ -- Nextest Systems
Corporation (Nasdaq: NEXT), a leading manufacturer of automatic test equipment
(ATE) for cost-sensitive semiconductors, announced that Tim F. Moriarty, vice
president, sales and marketing, has been named president of Nextest, effective
immediately. Moriarty will report to Nextest founder Robin Adler, who continues
in his roles as the Company's chief executive officer and chairman of the board.
As president, Moriarty will lead sales, marketing, operations and R&D for the
company. The role of vice president, sales and marketing has been divided into
two separate positions with Jim Fraine as VP of sales, and Young Kim as VP of
marketing.

    "Tim's vision, character, and leadership ability have been instrumental in
Nextest's success over the past ten years," stated Adler. "He has assembled a
strong team of experts with clearly defined objectives, and I have full
confidence in his ability to position the company for even greater success. We
have worked very closely together, and I am looking forward to the expanded
contribution that Tim will make as president. We are fortunate to be able to
strengthen our management team by adding a president of Tim's caliber."

    Moriarty is a highly regarded ATE veteran, possessing over 22 years
experience within management, marketing, and sales at various high technology
companies. Tim joined Nextest in 1997, the same year the company was founded,
with the charter to build a worldwide sales and customer support team for the
Maverick test system. Since that time, the company has introduced an array of
widely successful test products and to date has shipped over 1,700 test systems
worldwide. Prior to joining Nextest, Moriarty held executive positions at
Megatest Corporation and Teradyne, Inc.

    ABOUT NEXTEST

    Nextest Systems Corporation is a low-cost leader in the design and
manufacture of automatic test equipment (ATE) for Flash memory and System-On-
Chip semiconductors. Nextest's products address the growing demand from
manufacturers for ATE with increased throughput, functionality and reliability,
while reducing time to market and cost of test. Nextest has shipped over 1,700
systems to more than 60 semiconductor companies worldwide. Further information
is available at www.nextest.com.

    At Nextest Systems Corporation:
    So-Yeon Jeong
    Investor Relations Manager
    408-817-7276

    Nextest Agency Contact :
    GEM Design & Public Relations
    Connie Graybeal-Berar
    408-529-4694

SOURCE  Nextest Systems Corporation
    -0-                             03/09/2007
    /CONTACT:  So-Yeon Jeong, Investor Relations Manager, Nextest Systems
Corporation, +1-408-817-7276, or sjeong@nextest.com; or Connie Graybeal-Berar
of GEM Design & Public Relations, +1-408-529-4694, or cberar@mac.com, for
Nextest Systems Corporation/
    /Web site:  http://www.nextest.com/
    (NEXT)