Aehr Test Systems announced preliminary financial results for its third quarter of fiscal 2024 ended February 29, 2024. Preliminary results reflect delays in wafer level burn-in system orders for semiconductor devices used in electric vehicles that have created a short-term gap in revenue and profitability. Additionally, Aehr provided updated revenue guidance for its full fiscal year ending May 31, 2024.
For the fiscal third quarter ended February 29, 2024, Aehr expects:
- Revenue of approximately $7.6 million
- GAAP net loss of approximately $1.5 million to $1.8 million, or $0.05 to $0.06 per diluted share
- Non-GAAP net loss of approximately $0.9 million to $1.2 million, or $0.03 to $0.04 per diluted share, which excludes the impact of stock-based compensation
- Bookings of $24.5 million
- Backlog as of February 29, 2024, of $20 million
For the fiscal 2024 full year ending May 31, 2024, Aehr expects:
- Total revenue of at least $65 million
- GAAP net income of approximately $11 million or more, or $0.38 per diluted share
- Non-GAAP net income of approximately $14 million or more, or $0.48 per diluted share, which excludes the impact of stock-based compensation
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 will be included when Aehr releases its full financial results for the fiscal 2024 third quarter on April 9, 2024.
Aehr Test Systems President and CEO Gayn Erickson commented: “As we discussed in our second quarter earnings call, we had seen several push outs of forecasted orders by current and new customers that impacted our fiscal year revenue. We believe that this was due to two key factors. There is clearly softness in the overall semiconductor capital spending, particularly in automotive applications, related to a glut in inventory driving down near-term orders to these companies and has caused them to push out capital spending and drive cost reductions. Multiple companies including the companies we had expected orders from have publicly discussed inventory related headwinds in their public earnings calls and press releases. In addition, we have seen specific shifts in order timing of our equipment used for wafer level test and burn-in of silicon carbide power semiconductors used in electric vehicles. In just the last two weeks of the quarter, we saw delays in orders for silicon carbide systems with customer-requested ship dates within the quarter as well as a last-minute push out by a customer of a system in our backlog. The net effect of this was a significant shift in revenues out of the third and fourth quarters. Until this time, we had been hearing from those customers that their silicon carbide-based capital investments were not being impacted.
“It is now clear that the recent overall softness in semiconductors and the impact of shifts in electric vehicle introductions and ramps are impacting our bookings and revenue forecasts more than we understood only two months ago at our last earnings call. We now expect this to last for another quarter or two before the orders resume based on the latest roll up of direct forecasts from over a dozen silicon carbide companies. We are now forecasting revenue for the full fiscal year to be $65 million or more, representing revenue of at least $15.4 million in our fiscal fourth quarter. We still expect to finish the year with near or above record annual revenue for the year.
“Our discussions with customers indicate to us that the key markets Aehr is addressing for semiconductor wafer level test and burn-in have significant long-term growth opportunities that will continue to expand throughout this decade. Despite what we believe are temporary delays in current and new customer orders, we believe Aehr will experience significant order, revenue, and earnings growth from these market opportunities. Our unique, proprietary wafer level test and burn-in offering for semiconductors addresses the need for the critical reliability testing and screening of semiconductors used in the worldwide electrification infrastructure, battery and hybrid electric vehicles, data and telecommunications and data storage, machine learning and Artificial Intelligence processors and communications chips, and in the large and growing semiconductor memory market. We look forward to discussing the impact and timing of these markets and the increase in customer engagements in all these markets on our earnings call planned for April 9th.”
The foregoing preliminary financial information reflects management’s current views with respect to the Company’s financial results. These preliminary results remain subject to the completion of normal quarter-end accounting procedures and closing adjustments. Aehr plans to release its full financial results for the fiscal 2024 third quarter on April 9, 2024, and will provide the time and conference call details in a later press release. No independent registered public accounting firm has reviewed, examined, or performed any procedures with respect to, nor have they expressed any form of assurance on, these preliminary estimated results.
Original – Aehr Test Systems
