| AEHR TEST SYSTEMS AND SUBSIDIARIES | |||||||||||||||
| Reconciliation of GAAP and Non-GAAP Results | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| Feb 28, | Nov 30, | Feb 28, | Feb 28, | Feb 28, | |||||||||||
| 2023 | 2022 | 2022 | 2023 | 2022 | |||||||||||
| GAAP net income | $ | 4,132 | $ | 3,725 | $ | 2,243 | $ | 8,446 | $ | 3,656 | |||||
| Stock-based compensation expense | 592 | 793 | 880 | 2,095 | 2,186 | ||||||||||
| Gain from forgiveness of PPP loan | - | - | - | - | (1,698 | ) | |||||||||
| Non-GAAP net income | $ | 4,724 | $ | 4,518 | $ | 3,123 | $ | 10,541 | $ | 4,144 | |||||
| GAAP net income per diluted share | $ | 0.14 | $ | 0.13 | $ | 0.08 | $ | 0.29 | $ | 0.13 | |||||
| Non-GAAP net income per diluted share | $ | 0.16 | $ | 0.16 | $ | 0.11 | $ | 0.36 | $ | 0.15 | |||||
| Shares used in GAAP diluted shares calculation | 29,373 | 29,080 | 28,854 | 29,080 | 27,510 | ||||||||||
| Shares used in non-GAAP diluted shares calculation | 29,373 | 29,080 | 28,854 | 29,080 | 27,510 | ||||||||||
| 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 directly comparable GAAP financial measure). These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. | |||||||||||||||
| We believe these measures enhance investors’ ability to review the company’s business from the same perspective as the Company’s management and facilitate comparisons of this period’s results with prior periods. | |||||||||||||||
