Aehr Test Systems reports strong fiscal 2024 results

FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR), a global provider of semiconductor test equipment, has released preliminary unaudited financial outcomes for its fiscal year ending May 31, 2024.

The company reported a fourth-quarter revenue of about $16.6 million and a GAAP net income of roughly $23.8 million. This net income includes a substantial tax benefit from the release of Aehr's full income tax valuation allowance, amounting to approximately $20.8 million.

For the full fiscal year 2024, Aehr announced revenues of around $66.2 million and a GAAP net income of nearly $33.1 million, which also factors in the same tax benefit. These figures surpass both the company's previous guidance and analyst consensus.

Despite a slowdown in electric vehicle (EV) demand impacting product orders, Aehr achieved record annual revenue, driven largely by the wafer level test and burn-in of silicon carbide power semiconductors used in EVs. President and CEO Gayn Erickson highlighted the company's engagement with new potential suppliers of silicon carbide devices and modules.

Looking forward, Erickson anticipates continued revenue contributions from silicon carbide but also expects a diversification of bookings and revenue streams. Aehr is gaining traction in various emerging markets, including silicon photonics, gallium nitride power semiconductors, semiconductors for hard disk drives, flash memory devices, and AI processors.

The company will provide more details on its fiscal 2024 financial results and guidance for the upcoming fiscal year during an earnings conference call scheduled for July 16, 2024.

These preliminary financial results are subject to the completion of standard accounting procedures and closing adjustments, and no independent registered public accounting firm has reviewed these figures.

Aehr Test Systems specializes in testing and burn-in solutions for semiconductor devices, catering to the increasing quality, reliability, safety, and security demands across various applications. The company's innovative products include the FOX-PTM family of test and burn-in systems and related equipment.

This financial report is based on a press release statement from Aehr Test Systems.

In other recent news, semiconductor equipment supplier Aehr Test Systems experienced a significant year-over-year decline in its third-quarter revenue. The company attributes this drop to delayed customer orders and a reduction in semiconductor capital spending.

Despite these challenges, Aehr Test Systems remains optimistic about its long-term prospects, citing opportunities in markets like silicon carbide, gallium nitride, silicon photonics, and memory semiconductors.

The company reported Q3 bookings of $24.5 million and maintains a backlog of $20 million. Aehr Test Systems reaffirmed its fiscal 2024 guidance, projecting over $65 million in total revenue and a net income of at least $11 million. The company is also looking forward to generating revenue from the China market in the next fiscal year.

Aehr Test Systems has secured seven silicon carbide customers and is engaging with several others for evaluations. The company is also focusing on automation to handle expensive wafers efficiently. These are some of the recent developments surrounding Aehr Test Systems.

InvestingPro Insights

Aehr Test Systems (NASDAQ:AEHR) has showcased impressive fiscal performance with its revenue and net income figures exceeding expectations. The InvestingPro data provides additional context to these results. With a market capitalization of $359.41 million and a robust P/E ratio of 23.11, Aehr appears to be maintaining a strong position in the market. The company’s revenue growth over the last twelve months stands at 14.14%, signaling a steady upward trajectory despite the reported quarterly dip.

InvestingPro Tips indicate that Aehr holds more cash than debt, which is a positive sign of financial health and could provide flexibility in future operations or downturns. Additionally, the company's liquid assets exceed its short-term obligations, further underlining its solid financial standing. It's also noteworthy that Aehr is predicted to be profitable this year, building on its profitability over the last twelve months.

Investors should consider these insights in the context of Aehr's recent performance and future prospects. While the company's stock has experienced significant volatility and a notable decline over the past year, the strong return over the last week indicates potential resilience or investor optimism. For those interested in a deeper dive into Aehr's financials, InvestingPro offers additional tips. In fact, there are 13 more InvestingPro Tips available that could provide further guidance on the company's performance and outlook. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.