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Aehr Test Systems Reports Operating Results (10-Q)

January 13, 2010 | About:
10qk

10qk

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Aehr Test Systems (AEHR) filed Quarterly Report for the period ended 2009-11-30.

Aehr Test Systems has a market cap of $11.7 million; its shares were traded at around $1.37 with and P/S ratio of 0.5.
This is the annual revenues and earnings per share of AEHR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AEHR.


Highlight of Business Operations:

Approximately 81%, 15% and 4% of our net sales for fiscal 2009 were

denominated in U.S. Dollars, Japanese Yen and Euros, respectively. Although a

large percentage of net sales to European customers is denominated in U.S.

Dollars, substantially all sales to Japanese customers are denominated in Yen.



Net sales. . . . . . . . . . . . . . . . 100.0 % 100.0 % 100.0 % 100.0 %

Cost of sales. . . . . . . . . . . . . . 78.8 50.3 90.0 49.8

- - - -

Gross profit . . . . . . . . . . . . . . 21.2 49.7 10.0 50.2

- - - -

Operating expenses:

Selling, general and administrative. . 98.6 19.8 100.8 20.7

Research and development . . . . . . . 65.4 17.1 69.3 16.1

Gain on sale of bankruptcy claim . . . - - (112.9) -

- - - -

Total operating expenses . . . . . 164.0 36.9 57.2 36.8

- - - -

(Loss) income from operations. . . . . . (142.8) 12.8 (47.2) 13.4



Income tax (benefit) expense . . . . . . (10.0) 8.1 (5.6) 6.8

- - - -

Net (loss) income. . . . . . . . . . . . (131.1)% 9.4 % (41.1)% 9.2 %

= = = =





RESEARCH AND DEVELOPMENT. R&D expenses decreased to $2.0 million for the

six months ended November 30, 2009 from $3.1 million for the six months ended

November 30, 2008, a decrease of 33.9%. The decrease in R&D expenses was

primarily due to expense reduction initiatives the Company has taken of

$1,038,000 and a reduction of project materials expense of $136,000. This

reduction was partially offset by an increase in stock-based compensation

expense of approximately $125,000 due primarily to the impact of forfeited

options by the Company's officers. As a percentage of net sales, R&D expenses

increased to 69.3% for the six months ended November 30, 2009 from 16.1% for

the six months ended November 30, 2008, reflecting lower net sales.



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 87% and 73% of its net sales in the three and six

months ended November 30, 2009, respectively. Four customers accounted for

approximately 31%, 18%, 16% and 14% of the Company's net sales in the three

months ended November 30, 2009, respectively. Four customers accounted for

approximately 20%, 18%, 16% and 10% of the Company's net sales in the six

months ended November 30, 2009. Sales to the Company's five largest customers

accounted for approximately 99% and 97% of its net sales in the three and six

months ended November 30, 2008, respectively. One customer, Spansion Inc.,

accounted for approximately 93% and 91% of the Company's net sales in the

three and six months ended November 30, 2008, respectively. No other

customers represented more than 10% of the Company's net sales for either

fiscal 2010 or fiscal 2009.



Approximately 81%, 15% and 4% of our net sales for fiscal 2009 were

denominated in U.S. Dollars, Japanese Yen and Euros, respectively. Although a



Read the The complete Report

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