Aehr Test Systems 2009 Q2 Results

Aehr Test Systems (NASDAQ:AEHR) , a supplier of semiconductor test and burn-in equipment, today announced financial results for the second quarter of fiscal 2009 ended November 30, 2008.

Net sales were $9.2 million in the second quarter of fiscal 2009, compared with $9.7 million in the second quarter of fiscal 2008. Pre-tax income was $1.6 million in the second quarter of fiscal 2009, compared with $1.6 million in the second quarter of fiscal 2008. Aehr Test reported net income of $872,000, or $0.10 per diluted share, in the second quarter of fiscal 2009, compared with net income of $1.4 million, or $0.16 per diluted share, in the second quarter of fiscal 2008. Net income for the second quarter of fiscal 2009 reflects a significantly higher effective tax rate than the same period of the prior year, as the Company now expects to accrue tax expense at close to the statutory rates for the countries in which it generates income.

"Our net sales for the second quarter of fiscal 2009 came in lower than we originally expected, as we saw customers delay new orders or defer delivery on existing orders in light of the current economic slowdown," said Rhea Posedel, chairman and chief executive officer of Aehr Test Systems. "During this slowdown we are focusing on two strategies. First, we hope to maintain our strong financial position by maximizing our cash balance and keeping expenses low. In response to the challenging business conditions, we implemented a two-week shutdown of our facilities in December, and are actively exploring other measures to control or reduce our expenses until capital spending in the semiconductor equipment industry returns to more normal levels. Second, we are aggressively introducing new products, such as our ABTS system, which are targeting new test and burn-in market segments. We believe that our aggressive product development and marketing efforts during this time will position us well to win additional business with new and existing customers as the semiconductor industry begins to recover."

Net sales were $18.9 million in the first six months of fiscal 2009, an increase of 9% when compared with $17.3 million in the first six months of fiscal 2008. Net income for the six months ended November 30, 2008 was $1.7 million, or $0.20 per diluted share, compared with net income of $2.1 million, or $0.26 per diluted share, in the same period of the prior fiscal year.

At November 30, 2008, cash and cash equivalents and short-term investments were $13.7 million, an increase of $4.3 million from the balance at the end of the prior quarter. Aehr Test closed the second quarter of fiscal 2009 with no outstanding debt and shareholders' equity of $40.8 million, or $4.83 per share outstanding, at November 30, 2008.

Commenting on the outlook for Aehr Test Systems, Gary Larson, vice president and chief financial officer, said, "We are not expecting a meaningful improvement in this difficult operating environment until the second half of calendar 2009 at the earliest. Accordingly, due to the uncertainties in our market, we find it imprudent to provide guidance for the next several quarters."