Connect with us

Hi, what are you looking for?

Uncategorized

Earnings call: Aehr Test Systems reports record first quarter, anticipates growth in silicon carbide market

© Reuters.

Aehr Test Systems (NASDAQ:AEHR) reported a record-breaking first quarter for fiscal 2024 during its recent earnings call. The company posted revenues of $20.6 million and a non-GAAP net income of $5.2 million, marking the strongest first quarter in its history. Aehr Test Systems also anticipates significant growth, expecting to increase its full-year revenue by at least 50% to over $100 million and its profit by over 90% year-over-year to at least $28 million.

Key takeaways from the call include:

  • Aehr Test Systems reported record shipments of its FOX WaferPak Contactors, which accounted for over half of the total revenues for the quarter.
  • The company is expanding its operations in the Philippines to support its growing customer base in Asia.
  • Aehr Test Systems has secured multiple new customers in the silicon carbide market, expanding its market opportunity to include industrial, solar, and other power applications.
  • The company anticipates benefiting from the increasing number of electric vehicles being sold and the significant increase in silicon carbide demand in the coming years.
  • Aehr Test Systems reported a backlog of $24 million and a GAAP gross margin of 48.4%, up from 42% in the same quarter last year.
  • The company ended the quarter with cash and cash equivalents of $51 million, a 6% increase from the previous quarter.

Aehr Test Systems’ CEO, Gayn Erickson, clarified the revenue recognition process for their new product offerings during the call. He mentioned that revenue will be recognized upon shipment going forward. Erickson also highlighted the growing demand for specific inverter designs in electric vehicles (EVs) and the impact on the company’s WaferPak offerings. He noted that different automakers have varying requirements for chip size, thermal trade-offs, voltage trade-offs, power trade-offs, and efficiency.

Aehr Test Systems is also engaged with multiple gallium nitride suppliers and expects to make further announcements in the near future. Erickson expressed confidence in the company’s ability to enter the memory space and mentioned ongoing discussions with a three-year-long development company that aims to start with an NP before progressing to an XP (NASDAQ:).

The company plans to sell shares against their ATM offering of up to $25 million this fiscal year and reaffirmed their guidance for full-year total revenue to be at least $100 million and GAAP net income of at least $28 million. The company also mentioned upcoming investor conferences and their Annual Shareholders’ Meeting.

The conference concluded with Erickson expressing gratitude to the participants and mentioning an upcoming shareholders meeting.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Read the full article here

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Videos

Watch full video on YouTube

Videos

Watch full video on YouTube

Videos

Watch full video on YouTube

Videos

Watch full video on YouTube