Aehr Test Systems Reports Financial Results for Fourth Quarter Fiscal 2013

Aehr Test Systems Reports Financial Results for Fourth Quarter Fiscal 2013

FREMONT, Calif., July 18, 2013 (GLOBE NEWSWIRE) -- Aehr Test Systems
(Nasdaq:AEHR), a worldwide supplier of semiconductor test and burn-in
equipment, today announced financial results for the fourth quarter and fiscal
year ended May 31, 2013.

Total net sales were $3.3 million in the fourth quarter of fiscal 2013, flat
with $3.3 million in the third quarter of fiscal 2013. Aehr Test reported a
net loss of $0.9 million, or $0.08 per diluted share, in the fourth quarter of
fiscal 2013. This compares to a net loss of $1.5 million, or $0.16 per diluted
share, in the third quarter of fiscal 2013.

Net sales for fiscal year 2013 were $16.5 million, an increase of 6.2%
compared with net sales of $15.5 million in fiscal 2012. Net loss for fiscal
2013 was $3.4 million, or $0.36 per diluted share, compared to a net loss of
$3.4 million, or $0.38 per diluted share, in fiscal 2012. As of May 31, 2013,
the Company's backlog was $9.1 million, compared with $7.3 million at May 31,
2012.

Commenting on the results of the fourth quarter of fiscal 2013, Gayn Erickson,
President and CEO of Aehr Test Systems, said, "Sequentially our revenues were
basically flat as we continued to experience the industry wide softness that
has affected Aehr Test, along with other companies in the semiconductor test
space, in the recent past. We were pleased however to have improved our bottom
line quarter-over-quarter as a result of improved margins.

"We are continuing to make inroads in advancing our goal of growing our
business with both new and existing customers. We are pleased to have
announced in late May the first order for multiple production systems of our
next generation FOX™ Semiconductor Test System from a leading manufacturer of
flash memory devices," added Erickson. "This order is the first of what we
believe will be multiple follow-on system orders as this customer ramps
capacity worldwide. We currently expect to begin shipping our new FOX systems
in the first half of calendar 2014.We are excited to see additional interest
from several other customers who are looking at our new FOX products for
production functional test, wafer level burn-in and process monitor
applications.We believe our new FOX wafer level burn-in and whole wafer
functional test products will open up significantly greater market
opportunities for Aehr Test."

Erickson continued, "During the quarter we also received over $4 million in
follow-on orders for multiple FOX-1 Full Wafer Parallel Test Systems and
WaferPak contactors from a leading manufacturer of semiconductor memory
devices.These orders represent systems and WaferPak contactors with shipments
through our third quarter of fiscal 2014.

"We continue to see an increase in interest globally for our ABTS^TM and
MAX^TM burn-in and test systems which are designed to be a cost-effective
solution for production and reliability screening of a wide range of ICs,
especially for those who manufacture ICs for the automotive and mobility
markets," said Erickson."During the quarter we announced orders for these
products from a top tier manufacturer of advanced logic ICs for embedded
processing, digital signal processing, automotive and analog devices. In
early June, we also announced that iST, a leading subcontract manufacturer of
reliability and test services in Taiwan and China, has added to its capacity
of systems from Aehr Test our new ABTS-Pi test system for testing devices with
up to 70-80 Amps per device. We are able to provide a highly competitive test
solution for end customers and subcontract manufacturers serving the growth
opportunities in the automotive and mobility market segments."

Erickson concluded, "Overall, particularly given the headwinds we faced during
much of fiscal 2013, we are pleased with the progress we made in advancing our
business strategy to address new market segments and customers with our ABTS
and FOX product lines.Webelieve we are well positioned to build further on
this plan in fiscal 2014 as market conditions improve,particularly in our
second half as our new FOX products are released and we begin
shipments.Although our backlog exceeds $9 million, much of our backlog is
focused on shipments later in our fiscal year.Therefore, revenue in our first
quarter of fiscal 2014 is expected to be similar to that of the fourth quarter
of fiscal 2013, although we do expect an improved bottom line.We are
continuing to concentrate our efforts and R&D spending on addressing new
customer and market opportunities, while at the same time we remain focused on
managing costs in order to return to profitability to benefit our company and
our shareholders."

Management Conference Call

Management of Aehr Test will host a conference call and webcast today, July
18, 2013 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the Company's
fourth quarter fiscal 2013 operating results.The conference call will be
accessible live via the internet at www.aehr.com.Please go to the website at
least 15 minutes before start time to register, download and install any
necessary audio software.A replay of the webcast will be available at
www.aehr.com for 90 days.

About Aehr Test Systems

Headquartered in Fremont, California, Aehr Test Systems is a worldwide
provider of test systems for burning-in and testing logic and memory
integrated circuits and has an installed base of more than 2,500 systems
worldwide.Increased quality and reliability needs of the Automotive and
Mobility integrated circuit markets are driving additional test requirements,
capacity needs and opportunities for Aehr Test products in package and wafer
level test.Aehr Test has developed and introduced several innovative
products, including the ABTS and FOX families of test and burn-in systems and
the DiePak® carrier.The ABTS system is used in production and qualification
testing of packaged parts for both low-power and high-power logic as well as
all common types of memory devices.The FOX system is a full wafer contact
test and burn-in system used for burn-in and functional test of complex
devices, such as leading-edge memories, digital signal processors,
microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is
a reusable, temporary package that enables IC manufacturers to perform
cost-effective final test and burn-in of bare die.For more information,
please visit the Company's website at www.aehr.com.

Safe Harbor Statement

This press release contains certain forward-looking statements based on
current expectations, forecasts and assumptions that involve risks and
uncertainties. These statements are based on information available to Aehr
Test as of the date hereof and actual results could differ materially from
those stated or implied due to risks and uncertainties. Forward-looking
statements include statements regarding Aehr Test's expectations, beliefs,
intentions or strategies regarding the future including statements regarding
projected future customer orders; expected release and shipping dates for Aehr
Test's new FOX systems; future market conditions; and projected revenue for
the first quarter of 2014. The risks and uncertainties that could cause our
results to differ materially from those expressed or implied by such
forward-looking statements include, without limitation, general world economic
conditions and events, the state of the semiconductor equipment market, our
ability to maintain sufficient cash to support operations, acceptance by
customers of our technologies, acceptance by customers of the systems shipped
upon receipt of a purchase order, the ability of new products to meet customer
needs or perform as described and our ability to successfully market a
wafer-level test and burn-in system.See Aehr Test's recent 10-K, 10-Q and
other reports from time to time filed with the U.S. Securities and Exchange
Commission for a more detailed description of the risks facing our
business.The Company disclaims any obligation to update information contained
in any forward-looking statement to reflect events or circumstances occurring
after the date of this press release.

                        - Financial Tables to Follow –

                                                               
AEHR TEST SYSTEMS AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
                                                               
                         Three Months Ended            Year Ended
                         May 31,   Feb 28,    May 31,   May 31,    May 31,
                         2013      2013       2012      2013       2012
                                                               
Net sales                 $3,262  $3,340   $4,676  $16,488  $15,521
Cost of sales            1,970     2,575      2,507     9,712      9,314
Gross profit              1,292     765        2,169     6,776      6,207
                                                               
Operating expenses:                                             
Selling, general and      1,504     1,511      1,872     6,872      6,526
administrative
Research and development  634       685        1,134     3,211      4,188
Total operating expenses  2,138     2,196      3,006     10,083     10,714
                                                               
Loss from operations      (846)     (1,431)    (837)     (3,307)    (4,507)
                                                               
Interest expense          (6)      (18)      (4)      (49)      (4)
Gain on sale of long-term --      --       --      --       990
investment
Other income (expense),   10        (9)        64        (33)       117
net
                                                               
Loss before income        (842)     (1,458)    (777)     (3,389)    (3,404)
taxexpense (benefit)
                                                               
Income tax expense        12       --       2         30         (15)
(benefit)
                                                               
Net loss                 (854)     (1,458)    (779)     (3,419)    (3,389)
                                                               
Less:Net income
attributable to the       --      --       --      --       1
noncontrolling interest
                                                               
Net loss attributable to
Aehr Test Systems common  $(854)  $(1,458) $(779)  $(3,419) $(3,390)
shareholders
                                                               
Net loss per share                                              
Basic                     $(0.08) $(0.16)  $(0.09) $(0.36)  $(0.38)
Diluted                   $(0.08) $(0.16)  $(0.09) $(0.36)  $(0.38)
                                                               
Shares used in per share                                        
calculations:
Basic                     10,367    9,363      9,095     9,549      9,016
Diluted                   10,367    9,363      9,095     9,549      9,016
                                                               

AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
                                                               
                         Three Months Ended             Year Ended
                         May 31,   Feb 28,    May 31,   May 31,    May 31,
                         2013      2013       2012      2013       2012
                                                               
                                                               
GAAP net loss             $(854)  $(1,458) $(779)  $(3,419) $(3,390)
Gain on sale of long-term --      --       --      --       (990)
investment ^1
Stock based compensation  174       201        190       601        709
expense
Non-GAAP net loss         $(680)  $(1,257) $(589)  $(2,818) $(3,671)
                                                               
GAAP net loss per diluted $(0.08) $(0.16)  $(0.09) $(0.36)  $(0.38)
share
Non-GAAP net loss per     $(0.07) $(0.13)  $(0.06) $(0.30)  $(0.41)
diluted share
Shares used in diluted    10,367    9,363      9,095     9,549      9,016
shares calculation
                                                               

^1 During the first quarter of fiscal 2012, the Company sold its long-term
investment in ESA Electronics PTE Ltd., resulting in a gain of $990,000.
Non-GAAP net income (loss)is a non-GAAP measure and should not be considered
a replacement for GAAP results.Non-GAAP net income (loss)is a financial
measure the Company uses to evaluate the underlying results and operating
performance of the business.The limitation of this measure is that it
excludes items that impact the Company's current period net income
(loss).This limitation is best addressed by using this measure in combination
with net income (loss)(the most comparable GAAP measure).


AEHR TEST SYSTEMS AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
                                                                  
                                                 May 31,   Feb 28,  May 31,
                                                 2013      2013     2012
ASSETS                                                             
                                                                  
Current assets:                                                    
Cash and cash equivalents                        $2,324  $1,381 $2,073
Accounts receivable, net                         2,632     1,570    2,588
Inventories                                      5,369     5,722    6,070
Prepaid expenses and other                       197       205      197
Total current assets                             10,522    8,878    10,928
                                                                  
Property and equipment, net                       301       378      510
Other assets                                      152      159     175
Total assets                                     $10,975 $9,415 $11,613
                                                                  
LIABILITIES AND SHAREHOLDERS' EQUITY                                
                                                                  
Current liabilities:                                               
Line of credit                                   $1,101  $1,215 $1,408
Accounts payable                                 1,188     1,517    1,507
Accrued expenses                                 1,440     1,554    1,385
Deferred revenue, short-term                     1,972     238      508
Total current liabilities                        5,701     4,524    4,808
                                                                  
Income tax payable                                109       115      125
Deferred lease commitment, net of current portion 103       122      179
Deferred revenue, long-term                      68        122      47
Total liabilities                                5,981     4,883    5,159
                                                                  
Aehr Test Systems shareholders' equity            5,014     4,553    6,476
Noncontrolling interest                           (20)      (21)     (22)
Total shareholders' equity                       4,994     4,532    6,454
Total liabilities and shareholders' equity       $10,975 $9,415 $11,613
                                                                  

CONTACT: Gary Larson
         Chief Financial Officer
         (510) 623-9400 x321
 
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