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Aehr Test Systems Reports Operating Results (10-K)

September 02, 2009 | About:

Aehr Test Systems (AEHR) filed Annual Report for the period ended 2009-05-31.

Aehr Test Systems develops manufactures and sells systems which aredesigned to reduce the cost of testing DRAMs and other memory devices perform reliability screening or burn-in of complex logic and memory devices and enable IC manufacturers to perform test and burn-in of bare die. Leveraging its expertise as a long-time leading provider of burn-in equipment with over 2000 systems installed worldwide the Company has developed and introduced two innovative product families the MTX system and the DiePak-Registered Trademark- carrier. Aehr Test Systems has a market cap of $7.6 million; its shares were traded at around $0.8995 with and P/S ratio of 0.3.

Highlight of Business Operations:

The full wafer contact systems product category accounted for approximately

82%, 86% and 39% of the Company's net sales in fiscal 2009, 2008 and 2007,

respectively.



This packaged part systems product category accounted for approximately

17%, 12% and 54% of the Company's net sales in fiscal 2009, 2008 and 2007,

respectively.



Sales to the Company's five largest customers accounted for approximately

95%, 98%, and 76% of its net sales in fiscal 2009, 2008 and 2007, respectively.

During fiscal 2009 and 2008, one customer, Spansion Inc. ("Spansion"),

accounted for approximately 80% of the Company's net sales. During fiscal

2007, Spansion and Texas Instruments Incorporated accounted for approximately

39% and 23%, respectively, of the Company's net sales. No other customers

accounted for more than 10% of the Company's net sales for any of these

periods. The Company expects that sales of its products to a limited number of

customers will continue to account for a high percentage of net sales for the

foreseeable future. In



Our operations and performance depend significantly on worldwide economic

conditions. The current financial turmoil affecting the banking system and

financial markets has resulted in a tightening of the credit markets and a

weakening global economy which are contributing to slowdowns in the

semiconductor manufacturing industry in which we operate. Specifically, we

have experienced a lengthening of the sales cycle and we have also received

requests from some of our customers to defer delivery of equipment.

Difficulties in obtaining capital and deteriorating market conditions pose a

risk that some of our customers may not be able to obtain necessary financing

on reasonable terms which could result in lower sales for the Company. For

example, prior to the Spansion bankruptcy, Spansion accounted for approximately

80% of our revenues. Since declaring bankruptcy, Spansion has accounted for

less than 1% of our revenues. Customers with liquidity issues may lead to

additional bad debt expense for the Company. These conditions may also

similarly affect our key suppliers, which could impact their ability to deliver

parts and result in delays on our products.



The semiconductor manufacturing industry is highly concentrated, with a

relatively small number of large semiconductor manufacturers and contract

assemblers accounting for a substantial portion of the purchases of

semiconductor equipment. Sales to the Company's five largest customers

accounted for approximately 95% and 98% of its net sales in fiscal 2009 and

2008, respectively. One customer, Spansion, accounted for approximately 80% of

the Company's net sales in fiscal 2009 and 2008. No other customers

represented more than 10% of the Company's net sales for either fiscal 2009 or

fiscal 2008.



Read the The complete Report

Rating: 3.0/5 (3 votes)

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