•
Nov 30, 2023

Aehr Q2 2024 Earnings Report

Reported strong revenue and earnings growth, but revised full-year fiscal 2024 guidance due to slowing electric vehicle market growth and shifts in customer product mix.

Key Takeaways

Aehr Test Systems reported a 45% increase in revenue to $21.4 million and a 63% increase in GAAP net income to $6.1 million for the second quarter of fiscal 2024. However, the company revised its full-year revenue guidance to $75 million to $85 million and GAAP net income to 20% to 25% of revenue, reflecting a more conservative outlook due to order delays.

Net revenue increased by 45% year-over-year to $21.4 million.

GAAP net income rose by 63% year-over-year to $6.1 million, or $0.20 per diluted share.

Non-GAAP net income increased by 49% year-over-year to $6.7 million, or $0.23 per diluted share.

Revised full-year fiscal 2024 revenue guidance to $75 million - $85 million and GAAP net income of 20% - 25% of revenue.

Total Revenue
$21.4M
Previous year: $14.8M
+44.7%
EPS
$0.23
Previous year: $0.16
+43.8%
Effective backlog
$3M
Quarterly bookings
$2.2M
Gross Profit
$11M
Previous year: $7.91M
+38.5%
Cash and Equivalents
$50.5M
Previous year: $18.9M
+167.6%
Free Cash Flow
-$612K
Previous year: -$210K
+191.4%
Total Assets
$101M
Previous year: $67.5M
+49.8%

Aehr

Aehr

Forward Guidance

Aehr is revising its expected full year total revenue to be between $75 million and $85 million, representing growth of 15% to 30% year over year, and GAAP net income of between 20% and 25% of revenue.

Positive Outlook

  • Company expects continued strong demand for wafer level burn-in solutions.
  • Company anticipates increased demand from new market opportunities.
  • Company believes it is poised for continued strong growth for years to come.
  • Company is seeing a pick-up in opportunities for SiC wafer level burn-in for applications outside of the electric vehicle market, including industrial, solar, and commuter electric trains
  • Company expects to ship its first FOX production system in its third fiscal quarter for silicon photonic optical I/O

Challenges Ahead

  • Slowing growth rate of the electric vehicle market has had a negative impact on the timing of several current and new customer orders.
  • Company is experiencing the impact of shifts in customers’ product mix.
  • Company expects a delay in the timing of new orders from current and new customers that will most likely impact this fiscal year’s revenue.
  • Uncertainty on the timing of customer orders.
  • Automotive qualification of wafer level burn-in is taking longer than anticipated.