Aehr Test Systems (AEHR) Reports Substantial Growth in Q2 Fiscal 2024
Revenue Growth: Q2 net revenue surged by 45% year-over-year to $21.4 million.
Earnings Increase: GAAP net income rose by 63% to $6.1 million, or $0.20 per diluted share.
Non-GAAP Performance: Non-GAAP net income climbed 49% to $6.7 million, or $0.23 per diluted share.
First Half Fiscal 2024: Revenue for the first six months up by 65% to $42.1 million, with GAAP net income more than doubling.
Revised Guidance: Fiscal 2024 revenue forecast adjusted to $75 million to $85 million, with GAAP net income expected to be 20-25% of revenue.
Operational Highlights: Total cash and cash equivalents stood at $50.5 million, with a backlog of $3.0 million as of November 30, 2023.
On January 9, 2024, Aehr Test Systems (NASDAQ:AEHR) released its 8-K filing, announcing its financial results for the second quarter of fiscal 2024 ended November 30, 2023. The company, a global provider of semiconductor test and burn-in equipment, reported a significant increase in revenue and earnings for the quarter and the first half of the fiscal year, driven by heightened demand for its wafer level test and burn-in products.
Financial Highlights and Company Performance
Aehr Test Systems (NASDAQ:AEHR) has demonstrated a robust financial performance in the second quarter, with net revenue reaching $21.4 million, a 45% increase from the same period last year. This growth is attributed to the rising demand for the company's wafer level test and burn-in products. GAAP net income for the quarter was $6.1 million, or $0.20 per diluted share, marking a 63% increase from the second quarter of fiscal 2023. The non-GAAP net income, which excludes stock-based compensation, was $6.7 million, or $0.23 per diluted share, up 49% compared to the previous year.
For the first six months of fiscal 2024, Aehr Test Systems (NASDAQ:AEHR) reported net revenue of $42.1 million, a 65% increase from the first half of fiscal 2023. GAAP net income for this period was $10.8 million, or $0.36 per diluted share, representing a significant 149% increase from the prior year. The company's non-GAAP net income for the first half was $11.9 million, or $0.40 per diluted share, up 105% compared to the same period last year.
Challenges and Revised Guidance
Despite the strong performance, Aehr Test Systems (NASDAQ:AEHR) has faced challenges due to the slowing growth rate of the electric vehicle market, impacting the timing of customer orders and capacity increases for silicon carbide devices. The company has revised its full-year fiscal 2024 guidance, reducing revenue expectations from at least $100 million to a range of $75 million to $85 million, which still represents a year-over-year growth of 15% to 30%. GAAP net income is expected to be between 20% and 25% of revenue.
"We had another solid quarter with strong year-over-year growth in revenue and net income as we continue to see increased demand for our wafer level test and burn-in products," said Gayn Erickson, President and CEO of Aehr Test Systems. "Despite this uncertainty in the timing of orders, we remain confident about the future demand for our unique semiconductor test solutions and the markets they address."
The company's balance sheet remains strong with total cash and cash equivalents of $50.5 million as of November 30, 2023. The backlog stood at $3.0 million, indicating a pipeline of future revenue. Cash provided by operations was $3.4 million for the first six months of fiscal 2024, reflecting the company's ability to generate cash from its core operations.
Outlook and Strategic Movements
Aehr Test Systems (NASDAQ:AEHR) continues to progress in expanding its customer base for silicon carbide and gallium nitride wafer level burn-in, with seven customers currently purchasing solutions and engagements with over two dozen companies. The company has also announced its first order for a FOX wafer level test and burn-in system for gallium nitride applications, marking a significant milestone in its expansion into new semiconductor markets.
The company's strategic focus on inventory, infrastructure, and process improvements positions it well to meet the anticipated demand from both current and new customers. Aehr Test Systems (NASDAQ:AEHR) remains optimistic about the long-term prospects for its wafer level burn-in solutions, despite the near-term market uncertainties.
Investors and stakeholders can access a replay of the conference call and webcast discussing the second quarter fiscal 2024 results on the company's website, providing further insights into the company's performance and outlook.
For detailed financial tables and a deeper understanding of Aehr Test Systems (NASDAQ:AEHR)'s performance, readers are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Aehr Test Systems for further details.
This article first appeared on GuruFocus.
