AEHR TEST SYSTEMS Earnings Per Share Disclosure
14. NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is determined using the weighted average number of common shares outstanding during the period. Diluted net income per share is determined using the weighted average number of common shares and potential common shares (representing the hypothetical number of incremental shares issuable under the assumed exercise of outstanding stock options, and vesting of outstanding RSUs and ESPP shares) during the period using the treasury stock method. The calculation of dilutive shares outstanding excludes securities that would have an antidilutive effect on net income per share.
The following table presents the computation of basic and diluted net income (loss) per share:
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| Year Ended |
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| May 30, |
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| May 31, |
|
| May 31, |
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(In thousands, except per share data) |
| 2025 |
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| 2024 |
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| 2023 |
| |||
| Numerator: |
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|
|
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| |||
| Net income (loss) |
| $ | (3,910 | ) |
| $ | 33,156 |
|
| $ | 14,557 |
|
| Denominator: |
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|
|
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| Basic weighted average shares outstanding |
|
| 29,581 |
|
|
| 28,818 |
|
|
| 27,785 |
|
| Dilutive effect of common equivalent shares outstanding |
|
| - |
|
|
| 799 |
|
|
| 1,430 |
|
| Diluted weighted average shares outstanding |
|
| 29,581 |
|
|
| 29,617 |
|
|
| 29,215 |
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|
|
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|
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|
|
|
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| Net income (loss) per share - Basic |
| $ | (0.13 | ) |
| $ | 1.15 |
|
| $ | 0.52 |
|
| Net income (loss) per share - Diluted |
| $ | (0.13 | ) |
| $ | 1.12 |
|
| $ | 0.50 |
|
|
|
|
|
|
|
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|
|
|
|
|
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| Antidilutive employee share-based awards, excluded |
|
| 1,781 |
|
|
| 351 |
|
|
| 5 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 28, 2025 | Showing above |
| 2024 | Jul 30, 2024 | |
| 2023 | Aug 28, 2023 | |
| 2022 | Aug 26, 2022 | |
| 2021 | Aug 27, 2021 | |
| 2020 | Aug 28, 2020 | |
| 2019 | Aug 28, 2019 | |
| 2018 | Aug 28, 2018 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.