3. EARNINGS PER SHARE

9 Months Ended

Feb. 29, 2016

Earnings Per Share [Abstract]

3. EARNINGS PER SHARE

3.  EARNINGS PER SHARE

    Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, and employee stock purchase plan shares) outstanding during the period using the treasury stock method.

    The following table presents the computation of basic and diluted net loss per share attributable to Aehr Test Systems common shareholders (in thousands, except per share data):

	Three Months Ended						Nine Months Ended
	Feb. 29,			Feb. 28,			Feb. 29,			Feb. 28,
	2016			2015			2016			2015
Numerator: Net loss	$	(2,975	)	$	(1,726	)	$	(3,729	)	$	(4,747	)
Denominator for basic net loss per share:
Weighted-average shares outstanding		13,164			12,677			13,058			11,931
Shares used in basic net loss per share calculation		13,164			12,677			13,058			11,931
Effect of dilutive securities		--			--			--			--
Denominator for diluted net loss per share		13,164			12,677			13,058			11,931
Basic net loss per share	$	(0.23	)	$	(0.14	)	$	(0.29	)	$	(0.40	)
Diluted net loss per share	$	(0.23	)	$	(0.14	)	$	(0.29	)	$	(0.40	)

    For the purpose of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair value of the Company’s common stock for the period, as the effect would be anti-dilutive.  In the three and nine months ended February 29, 2016 and February 28, 2015, potential common shares have not been included in the calculation of diluted net loss per share as the effect would be anti-dilutive.  As such, the numerator and the denominator used in computing both basic and diluted net loss per share for these periods are the same.  Stock options to purchase 3,286,000 shares of common stock and ESPP rights to purchase 131,000 ESPP shares were outstanding as of February 29, 2016 but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.  Stock options to purchase 3,402,000 shares of common stock and ESPP rights to purchase 175,000 ESPP shares were outstanding as of February 28, 2015, but were not included in the computation of diluted net loss per share, because the inclusion of such shares would be anti-dilutive.