Aehr Test Systems F4Q09 (Qtr End 07/28/09) Earnings Call Transcript

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2009-07-28 18:14:14.0

Tags: Asset, Call Transcript, Earnings, Spansion Inc., Aehr Test Systems, Rhea Posedel Sunnyvale, Asset Management, Operational Planning, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Jeffrey Scott - Scott Asset Management.

Jeffery Scott - Scott Asset Management

A couple of questions; your claim against Spansion is a claim against Spansion Inc. US, is that correct?

Gary Larson

The large majority of our claim against Spansion is in the US bankruptcy action, yes and then we do have a claim also in the Japanese courts against Spansion Japan but it is a smaller claim.

Jeffery Scott - Scott Asset Management

How much smaller is it..?

Gary Larson

Three to four million dollars in that range and the claim that we filed in the US courts against Spansion is approximately $18 million.

Jeffery Scott - Scott Asset Management

So, 18 against Spansion Inc. and $4 million against Spansion Japan?

Gary Larson

Roughly, yes.

Jeffery Scott - Scott Asset Management

Okay. You said that there was a FOX-1 upgrade. Was that for Spansion Japan or Spansion Austin?

Rhea Posedel

Actually, it was for Spansion Sunnyvale.

Jeffery Scott - Scott Asset Management

For Sunnyvale.

Rhea Posedel

Sunnyvale has an R&D center with a new development and they have a couple of FOX-1 systems there.

Jeffery Scott - Scott Asset Management

Okay.

Rhea Posedel

It is possible that upgrade would also later on be purchased by the Austin Fab.

Jeffery Scott - Scott Asset Management

Okay, have you heard anything about claims against Spansion Japan or when those will be resolved?

Gary Larson

We have not heard anything formally. I know that claims have been submitted there. They actually had an earlier cutoff in Japan than they did in the US but we are not getting much feedback as far as the process there.

Jeffery Scott - Scott Asset Management

Yes, I am getting no feedback. How many of your FOX-1 machines are in Japan rather than physically in the United States?

Rhea Posedel

I think somewhere around 25 in Japan and maybe 6 in the US.

Jeffery Scott - Scott Asset Management

And those were in Sunnyvale?

Rhea Posedel

Sunnyvale and Fab 25 in Austin.

Jeffery Scott - Scott Asset Management

Yes, okay. For the yearend, are you going to have any discussions with the auditors over going concern inclusion?

Gary Larson

Since our audit is still on going and it will be until our 10-K gets filed in late August, I do not have any answer for you there.

Jeffery Scott - Scott Asset Management

 

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