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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
Nextest Systems Corporation
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(Name of Issuer)
Common Stock, par value $0.001 per share
--------------------------------------------------------------------------------
(Title of Class of Securities)
653339101
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(CUSIP Number)
December 31, 2006
--------------------------------------------------------------------------------
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[_] Rule 13d-1(b)
[_] Rule 13d-1(c)
[X] Rule 13d-1(d)
----------
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
CUSIP No. 653339101
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Needham Capital Management, LLC
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,021,750
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,021,750
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,021,750
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.8%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
HC, OO
--------------------------------------------------------------------------------
CUSIP No. 653339101
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Needham Capital Partners III, L.P.
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
924,125
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
924,125
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
924,125
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.2%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------------------------------------------------------------------------------
CUSIP No. 653339101
--------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
George A. Needham
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,200,000
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,200,000
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,200,000
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.8%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------------------------------------------------------------------------------
CUSIP No. 653339101
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thomas P. Shanahan
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,200,000
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,200,000
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,200,000
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.8%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
CUSIP No. 653339101
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
John J. Prior, Jr.
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,200,000
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,200,000
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,200,000
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE
INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.8%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------------------------------------------------------------------------------
CUSIP No. 653339101
---------------------
Item 1(a). Name of Issuer:
Nextest Systems Corporation
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(b). Address of Issuer's Principal Executive Offices:
1901 Monterey Road
San Jose, California 95112
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Item 2(a). Name of Person Filing:
Needham Capital Management, LLC
Needham Capital Partners III, L.P.
George A. Needham
Thomas P. Shanahan
John J. Prior, Jr.
--------------------------------------------------------------------
(b). Address of Principal Business Office, or if None, Residence:
Needham Capital Management, LLC
Needham Capital Partners III, L.P.
George A. Needham
Thomas P. Shanahan
John J. Prior, Jr.
445 Park Avenue
New York, NY 10022
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(c). Citizenship:
Needham Capital Management, LLC - Delaware
Needham Capital Partners III, L.P. - Delaware
George A. Needham - United States
Thomas P. Shanahan - United States
John J. Prior, Jr. - United States
--------------------------------------------------------------------
(d). Title of Class of Securities:
Common Stock, par value $0.001 per share
--------------------------------------------------------------------
(e). CUSIP Number:
653339101
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Item 3. If This Statement is filed pursuant to ss.240.13d-1(b) or
240.13d-2(b), or (c), check whether the person filing is a:
(a) [_] Broker or dealer registered under Section 15 of the Exchange Act
(15 U.S.C. 78c).
(b) [_] Bank as defined in Section 3(a)(6) of the Exchange Act (15 U.S.C.
78c).
(c) [_] Insurance company as defined in Section 3(a)(19) of the Exchange
Act (15 U.S.C. 78c).
(d) [_] Investment company registered under Section 8 of the Investment
Company Act of 1940 (15 U.S.C. 80a-8).
(e) [_] An investment adviser in accordance with
s.240.13d-1(b)(1)(ii)(E);
(f) [_] An employee benefit plan or endowment fund in accordance with
s.240.13d-1(b)(1)(ii)(F);
(g) [_] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G);
(h) [_] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C.1813);
(i) [_] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3);
(j) [_] Group, in accordance with s.240.13d-1(b)(1)(ii)(J).
Item 4. Ownership.
(a) Amount beneficially owned:
Needham Capital Management, LLC - 1,021,750
Needham Capital Partners III, L.P. - 924,125
George A. Needham - 1,200,000
Thomas P. Shanahan - 1,200,000
John J. Prior, Jr. - 1,200,000
---------------------------------------------------------------------
(b) Percent of class:
Needham Capital Management, LLC - 5.8%
Needham Capital Partners III, L.P. - 5.2%
George A. Needham - 6.8
Thomas P. Shanahan - 6.8%
John J. Prior, Jr. - 6.8%
---------------------------------------------------------------------
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote
Not Applicable
(ii) Shared power to vote or to direct the vote
Needham Capital Management, LLC - 1,021,750 Needham Capital
Partners III, L.P. - 924,125 George A. Needham - 1,200,000
Thomas P. Shanahan - 1,200,000 John J. Prior, Jr. - 1,200,000
(iii) Sole power to dispose or to direct the disposition of
Not Applicable
(iv) Shared power to dispose or to direct the disposition of
Needham Capital Management, LLC - 1,021,750 Needham Capital
Partners III, L.P. - 924,125 George A. Needham - 1,200,000
Thomas P. Shanahan - 1,200,000 John J. Prior, Jr. - 1,200,000
Item 5. Ownership of Five Percent or Less of a Class.
Not Applicable
Item 6. Ownership of More Than Five Percent on Behalf of Another Person.
Not Applicable
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on by the Parent Holding Company or Control
Person.
Not Applicable
Item 8. Identification and Classification of Members of the Group.
Not Applicable
Item 9. Notice of Dissolution of Group.
Not Applicable
Item 10. Certification.
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not
held for the purpose of or with the effect of changing or influencing
the control of the issuer of the securities and were not acquired and
are not held in connection with or as a participant in any transaction
having such purpose or effect.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Needham Capital Management, LLC*
By: /s/ Glen W. Albanese
-----------------------------
Name: Glen W. Albanese
Title: Chief Financial Officer
Needham Capital Partners III, L.P.*
By: /s/ Glen W. Albanese
-----------------------------
Name: Glen W. Albanese
Title: Chief Financial Officer
/s/ George A. Needham*
---------------------------
Name: George A. Needham
/s/ Thomas P. Shanahan*
---------------------------
Name: Thomas P. Shanahan
/s/ John J. Prior, Jr.*
---------------------------
Name: John J. Prior, Jr.
Date: February 6, 2007
*The Reporting Persons disclaim beneficial ownership in the shares reported
herein except to the extent of their pecuniary interest therein.
Exhibit A
AGREEMENT
The undersigned agree that this Schedule 13G dated February 6, 2007 relating to
the Common Stock, of Nextest Systems Corporation shall be filed on behalf of the
undersigned.
Needham Capital Management, LLC*
By: /s/ Glen W. Albanese
-----------------------------
Name: Glen W. Albanese
Title: Chief Financial Officer
Needham Capital Partners III, L.P.*
By: /s/ Glen W. Albanese
-----------------------------
Name: Glen W. Albanese
Title: Chief Financial Officer
/s/ George A. Needham*
---------------------------
Name: George A. Needham
/s/ Thomas P. Shanahan*
---------------------------
Name: Thomas P. Shanahan
/s/ John J. Prior, Jr.*
---------------------------
Name: John J. Prior, Jr.
*The Reporting Persons disclaim beneficial ownership in the shares reported
herein except to the extent of their pecuniary interest therein.
SK 22312 0001 744798