Aehr Test Systems Reports Financial Results for First Quarter Fiscal 2014

Aehr Test Systems Reports Financial Results for First Quarter Fiscal 2014

FREMONT, Calif., Sept. 26, 2013 (GLOBE NEWSWIRE) -- Aehr Test Systems
(Nasdaq:AEHR), a worldwide supplier of semiconductor test and burn-in
equipment, today announced financial results for the first quarter of fiscal
2014 ended August 31, 2013.

Total net sales were $3.8 million in the first quarter of fiscal 2014,
compared with $3.3 million in the fourth quarter of fiscal 2013. The Company
reported a net loss of $166,000, or $0.02 per diluted share, in the first
quarter of fiscal 2014, compared to a net loss of $854,000, or $0.08 per
diluted share for the fourth quarter of fiscal 2013.

Commenting on the results of the first quarter of fiscal 2014, Gayn Erickson,
President and CEO of Aehr Test Systems said, "We are pleased to have exceeded
our financial expectations for the quarter. Our revenue was nearly $500,000
greater than in the prior quarter. More importantly, we improved our bottom
line by more than $650,000 to exceed cash break even for the quarter. A key
factor that contributed to these results was the positive momentum we are
achieving with our new Advanced Burn-in and Test System (ABTS™), particularly
in the automotive market segment where we see continued demand for more
information and entertainment in addition to mission critical applications in
traditional, hybrid, and electric automobiles."

Erickson continued, "The increasing demand that we are seeing for our products
is reflected in our strong book-to-bill ratio for the quarter and our highest
backlog in recent years.We continue to see strength in the automotive test
and burn-in space.During the last few months, we announced orders for
multiple ABTS systems as well as a follow-on MAX™ test and burn-in
system.These orders included production orders from a leading manufacturer of
advanced logic ICs for automotive, embedded processing, digital signal
processing and analog applications for our new ABTS-P system.The ABTS-P
system offers optional high voltage power supplies required for power control
devices for the rapidly growing electric/hybrid automotive markets.We expect
to begin shipments of the new ABTS-P system during the next few months.

"Interest in our new FOX products remains strong and, as previously announced,
we have received multiple orders for the new FOX-1 Parallel Test system we are
developing.These orders include development milestone events as well as
delivery of multiple production test systems.We continue to expect initial
shipments of this product during the first half of calendar 2014. At the same
time we are working with potential customers in the definition of a new
product in our FOX product line that extends the capabilities and capacity of
our FOX multi-wafer test system."

Erickson concluded, "With our strong backlog and continued momentum that we
are seeing in our ABTS and FOX markets, we are excited about our prospects for
the year.We now expect to be profitable for the fiscal second quarter, as
well as for fiscal 2014."

Management Conference Call

Management of Aehr Test will host a conference call and webcast today,
September 26, 2013 at 5:00 p.m. Eastern (2:00 p.m. Pacific) to discuss the
Company's first quarter fiscal 2014 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 profitability
in fiscal 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 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.

AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
                                                                  
                                                Three Months Ended
                                                Aug 31,   May 31,   Aug 31,
                                                 2013      2013      2012
                                                                  
Net sales                                        $3,752  $3,262  $4,832
Cost of sales                                    1,808     1,970     2,376
Gross profit                                     1,944     1,292     2,456
                                                                  
Operating expenses:                                                
Selling, general and administrative              1,420     1,504     1,789
Research and development                         681       634       930
Total operating expenses                         2,101     2,138     2,719
                                                                  
Loss from operations                             (157)     (846)     (263)
                                                                  
Interest expense                                 (4)      (6)      (12)
Other (expense) income, net                      (34)      10        (19)
                                                                  
Loss before income tax (benefit) expense         (195)     (842)     (294)
                                                                  
Income tax (benefit) expense                     (29)      12        2
                                                                  
Net loss                                         (166)     (854)     (296)
                                                                  
Less: Net income attributable to the             --      --      --
noncontrolling interest
                                                                  
Net loss attributable to Aehr Test Systems       $(166)  $(854)  $(296)
common shareholders
                                                                  
Net loss per share                                                 
Basic                                            $(0.02) $(0.08) $(0.03)
Diluted                                          $(0.02) $(0.08) $(0.03)
                                                                  
Shares used in per share calculations:                             
Basic                                            10,635    10,367    9,166
Diluted                                          10,635    10,367    9,166



AEHR TEST SYSTEMS AND SUBSIDIARIES
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except per share data)
(unaudited)
                                                             
                               Three Months Ended
                               Aug 31,         May 31,         Aug 31,
                                2013            2013            2012
                                                             
                                                             
GAAP net loss                   $(166)        $(854)        $(296)
Stock based compensation        143             174             169
expense
Non-GAAP net loss               $(23)         $(680)        $(127)
                                                             
GAAP net loss per diluted share $(0.02)       $(0.08)       $(0.03)
Non-GAAP net loss per diluted   $(0.00)       $(0.07)       $(0.01)
share
Shares used in diluted shares   10,635          10,367          9,166
calculation
Shares used in non-GAAP diluted 10,635          10,367          9,166
shares calculation


Non-GAAP net income is a non-GAAP measure and should not be considered a
replacement for GAAP results.Non-GAAP net income 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.This limitation is best
addressed by using this measure in combination with net income (the most
comparable GAAP measure).



AEHR TEST SYSTEMS AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
                                                            
                                                  August 31, May 31,
                                                   2013       2013
ASSETS                                                       
                                                            
Current assets:                                              
Cash and cash equivalents                          $2,435   $2,324
Accounts receivable, net                           2,860      2,632
Inventories                                        5,369      5,369
Prepaid expenses and other                         456        197
Total current assets                               11,120     10,522
                                                            
Property and equipment, net                        246        301
Other assets                                       78        152
Total assets                                       $11,444  $10,975
                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                         
                                                            
Current liabilities:                                         
Line of credit                                     $947     $1,101
Accounts payable                                   1,403      1,188
Accrued expenses                                   1,437      1,440
Customer deposits and deferred revenue, short-term 2,413      1,972
Total current liabilities                          6,200      5,701
                                                            
Income tax payable                                 76         109
Deferred lease commitment, net of current portion  80         103
Deferred revenue, long-term                        36         68
Total liabilities                                  6,392      5,981
                                                            
Aehr Test Systems shareholders' equity             5,073      5,014
Noncontrolling interest                            (21)       (20)
Total shareholders' equity                         5,052      4,994
Total liabilities and shareholders' equity         $11,444  $10,975

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