FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR), a provider of semiconductor test solutions, released its financial results for the first quarter of fiscal 2025, revealing a decrease in net revenue to $13.1 million from $20.6 million in the same period last year. The company's GAAP net income for the quarter ended August 30, 2024, also fell to $0.7 million, or $0.02 per diluted share, from $4.7 million, or $0.16 per diluted share in the prior year.
Non-GAAP net income, which adjusts for stock-based compensation and other selected items, was $2.2 million, or $0.07 per diluted share, compared to the first quarter of fiscal 2024's $5.2 million, or $0.18 per diluted share. The company's bookings for the quarter were reported at $16.8 million, with a backlog of $16.6 million.
Total cash, cash equivalents, and restricted cash as of August 30, 2024, were reported at $40.8 million, a decrease from $49.3 million at the end of the previous quarter, reflecting a cash outflow of $10.6 million for the acquisition of Incal Technology, Inc.
Aehr's President and CEO, Gayn Erickson, expressed optimism about the company's start to the fiscal year, highlighting the potential of silicon carbide wafer level burn-in test systems and full wafer contactors as key revenue contributors. Erickson also noted the company's expansion into markets such as artificial intelligence processors and gallium nitride power semiconductors.
The company has seen positive developments within the silicon carbide power semiconductor market, particularly with electric vehicle suppliers moving towards silicon carbide in integrated modules. Aehr anticipates momentum in its silicon carbide business over the coming quarters, with customers forecasting capacity expansion needs in calendar 2025.
Aehr also reported progress in engaging with new silicon carbide customers and its first gallium nitride semiconductor customer for volume production wafer level test and burn-in of devices. The company sees gallium nitride as a significant emerging technology for power semiconductors.
For the fiscal year ending May 30, 2025, Aehr is reiterating its guidance for total revenue of at least $70 million and net profit before taxes of at least 10% of revenue.
This financial update is based on a press release statement from Aehr Test Systems.
In other recent news, Aehr Test Systems reported a robust fiscal 2024 performance, with a fourth-quarter revenue of approximately $16.6 million and a GAAP net income of about $23.8 million. For the entire fiscal year, Aehr's revenues were around $66.2 million, and the GAAP net income was nearly $33.1 million, exceeding both the company's previous guidance and analyst consensus. The company also finalized the acquisition of Incal Technology, enhancing its product offerings and market reach with a total consideration of $21 million.
Craig-Hallum upgraded Aehr Test Systems' stock from Hold to Buy, reflecting a positive outlook on the company's growth potential. In addition, Aehr Test Systems updated its executive compensation agreements, offering enhanced benefits for qualifying terminations surrounding a change in control of the company.
Recent developments also include orders from a major data center operator for Aehr's Sonoma ultra-high-power system, designed for volume production testing and burn-in of AI processors. Looking ahead, the company is targeting a minimum of $70 million in total revenue for fiscal year 2025, including contributions from Incal Technology, and highlighted its strong cash position with $47.9 million in short-term investments and no debt.
InvestingPro Insights
Aehr Test Systems' recent financial results reflect a challenging quarter, but InvestingPro data provides additional context to the company's current position. Despite the reported decrease in revenue, Aehr maintains a market capitalization of $394.06 million, indicating continued investor confidence in its long-term prospects.
The company's P/E ratio of 11.58 suggests that the stock may be reasonably valued relative to its earnings, especially considering the growth potential in silicon carbide and gallium nitride markets highlighted in the earnings report. This valuation metric aligns with the company's optimistic outlook for future quarters.
InvestingPro Tips reveal that Aehr "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors support the company's financial stability as it navigates the current market conditions and invests in new technologies and acquisitions, such as Incal Technology, Inc.
It's worth noting that while the stock has experienced a "significant return over the last week" with a 1-week price total return of 8.53%, it has also seen a substantial decline over the past year, with a 1-year price total return of -67.08%. This volatility is consistent with the InvestingPro Tip indicating that "stock price movements are quite volatile."
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Aehr Test Systems, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.