I have run emulator with properties:

Android OS version: 4.0.3
Screen Density: 160
Screen Resolution: HVGA
Device locale: en_us
SD card size: 128M
hw.ramSize: 712
vm.heapSize: 48
hw.audioInput: no

Reset emulator state at start-up
Show emulator window
Use emulator snapshots

If I turn off "Use emulator snapshots" I get the following message:

[android] Installing APK file 'coreTest-debug.apk'
[bin] $ /home/hudson/tools/android-sdk//platform-tools/adb -s localhost:38260 install -r coreTest-debug.apk
534 KB/s (1297259 bytes in 2.370s)
pkg: /data/local/tmp/coreTest-debug.apk

• waiting for device -

After VNCing into the emulator I saw that the attached message had appeared. If I switched "Use emulator snapshots" on again, the job worked on the first run aka installed properly, ran tests properly.