The semiconductor test equipment provider AEHR Test Systems (AEHR.US) shares plummet after weaker than expected fiscal Q2 2025 results. The company maintained its full-year guidance, but markets were unpleased with numbers inside the report.
- The adjusted earnings per share of $0.02, below the analyst estimates of $0.03. Also, sales came in at $13.5 million, well below the $15 million estimate, down 37% YoY from $21.4 million fiscal Q2 2024.
- Aehr Test reported GAAP net loss of $1.0M vs $6.1M profit year ago, with the company facing IP infringement and trade risks in Chinese market
- The Aehr Test backlog came in at $12.4 million as of November 29, 2024, with an effective backlog of $26.6 million including bookings since that date.
- The company ended the quarter with $35.2 million in cash and equivalents, almost 15% down from $40.8 million at the end of the fiscal Q1 2025.
- AEHR still projects full year 10% + profit margin with full-year revenue of at least $70 million, vs $70.8 million awaited on Wall Street. The Board commented that the company expands new markets, making overall product progress, securing its first artificial intelligence (AI) processor customer Also, AEHR landed its first gallium nitride (GaN) customer for production wafer level burn-in.
The company anticipates AI processors could comprise up to 40% of revenue, from virtually 0% of sales last year. Despite that, the business slowed down, with the company enterprise value of 5.5x the calendar 2026 revenue estimate, almost 70% higher than its peer. The strong side of the company is almost zero debt, which makes it potentially less vulnerable even to unpleased market conditions. However, Aehr Test Systems shares price dropped from $53 in July 2023 to $11 USD.
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