Day: 10 April 2024

Aehr Test Systems announced financial results for its third quarter of fiscal 2024 ended February 29, 2024.

Fiscal Third Quarter Financial Results:

• Net revenue was $7.6 million, compared to $17.2 million in the third quarter of fiscal 2023.
• GAAP net loss was $(1.5) million, or $(0.05) per diluted share, compared to GAAP net income of $4.1 million, or $0.14 per diluted share, in the third quarter of fiscal 2023.
• Non-GAAP net loss, which excludes the impact of stock-based compensation, was $(0.9) million, or $(0.03) per diluted share, compared to non-GAAP net income of $4.7 million, or $0.16 per diluted share, in the third quarter of fiscal 2023.
• Bookings were $24.5 million for the quarter.
• Backlog as of February 29, 2024 was $20 million.
• Total cash and cash equivalents as of February 29, 2024 were $47.6 million, compared to $50.5 million at November 30, 2023.

Fiscal First Nine Months Financial Results:

• Net revenue was $49.6 million, compared to $42.7 million in the first nine months of fiscal 2023.
• GAAP net income was $9.3 million, or $0.31 per diluted share, compared to GAAP net income of $8.4 million, or $0.29 per diluted share, in the first nine months of fiscal 2023.
• Non-GAAP net income was $11.0 million, or $0.37 per diluted share, which excludes the impact of stock-based compensation, compared to $10.5 million, or $0.36 per diluted share, in the first nine months of fiscal 2023.
• Cash provided by operations was $0.5 million for the first nine months of fiscal 2024.

An explanation of the use of non-GAAP financial measures and a reconciliation of Aehr’s non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying tables.

Gayn Erickson, President and CEO of Aehr Test Systems, commented:

“As we noted in our preliminary earnings release in March, our third quarter results reflect delays in wafer level burn-in system orders for silicon carbide semiconductor devices used in electric vehicles. Due to this, we had revised our guidance for our fiscal 2024 full year ending May 31, 2024 to be greater than $65 million in total revenue and net income of at least $11 million, which we are reiterating today. We still expect to finish this fiscal year with annual revenue that is near or above our full year record.

“Last week we announced an initial order for our FOX-NP solution from a new customer that is a multi-billion dollar per year global semiconductor company, and is entering the silicon carbide market to address several applications that include automotive, industrial, and electrification infrastructure. This is our third straight new customer for silicon carbide that is primarily focused on applications other than electric vehicles, expanding our opportunity within silicon carbide beyond electric vehicles.

“We are still in continued engagements up to and including on-wafer evaluations with well over a dozen silicon carbide suppliers that are focusing on both electric vehicles and other applications and are forecasting production needs for wafer level test and burn-in of their devices with decision timelines that spread out over the next year. We are focused on the qualification process with as many new customers as possible, as once we have demonstrated our FOX wafer level test and burn-in solution using their own wafers, we have not yet lost a potential customer.

“Our discussions with customers indicate that the key markets Aehr is addressing for semiconductor wafer level test and burn-in have significant growth opportunities that will expand this year and throughout this decade, and we are seeing increased customer engagement in each of these markets. We have also seen a recent strengthening in the silicon carbide market for electric vehicles outside the US in what appears to be a shift in the market share of electric vehicle suppliers. This includes Asia where we recently had extensive and very productive and positive visits with a significant number of silicon carbide suppliers and electric vehicle suppliers that we will provide additional details on during our earnings call.

“According to many market forecasts, including the Semiconductor Industry Association, the semiconductor industry is expected to grow from $600 billion in 2022 to over $1 trillion at or around 2030. This acceleration is coming from mega market drivers including artificial intelligence (AI), green energy and decarbonization, and IoT-based digital transformation. Increased reliability concerns about semiconductors, a growing number of mission critical applications, and more multi-chip modules or heterogeneous integration with multiple devices being assembled in a single package are driving the need for wafer level burn-in. At semiconductor industry conferences around the world, we are seeing an increased focus on test and burn-in moving to wafer level before these devices are put into multi-chip packages and modules.

“These favorable macro trends are driving the business that drives Aehr Test and include:

• silicon carbide power devices going into high-density modules for power conversion in electric vehicles;
• gallium nitride power semiconductors going into automotive, solar, and other mission critical industrial applications;
• silicon photonics integrated circuits being put into transceivers for data center infrastructure and optical chip-to-chip communication of CPU, GPU, and AI processors;
• memory devices for solid state disk drives used in enterprise and data storage or for AI processors.

“Our continued investments in the FOX platform like the new 3.5 kW per wafer FOX-XP multi-wafer production system we began shipping last month also position us well to address the requirements of other new market segments that we believe we will be able to discuss over the next several months.

“As we head toward fiscal 2025, we are encouraged by our increasing engagements with current and potential customers and the long-term growth opportunities of all these markets.”

Fiscal 2024 Financial Guidance:

For the fiscal year ending May 31, 2024, Aehr is reiterating its previously provided guidance for total revenue of greater than $65 million and GAAP net income of approximately $11 million or more, or $0.38 per diluted share.

Original – Aehr Test Systems