FREMONT, California – Aehr Test Systems (NASDAQ:AEHR) saw its stock plummet 20% after reporting second quarter fiscal 2025 results that fell short of analyst expectations, despite reaffirming its full-year guidance. Analysts pointed to weak SiC as the driver of the weakness.
The semiconductor test equipment supplier posted adjusted earnings per share of $0.02, missing the analyst consensus of $0.03. Revenue for the quarter came in at $13.5 million, below the $15 million estimate and down 37% YoY from $21.4 million.
Despite the disappointing quarter, Aehr maintained its fiscal 2025 outlook, projecting full-year revenue of at least $70 million. This guidance compares to the analyst consensus of $70.84 million.
Gayn Erickson, President and CEO of Aehr Test Systems, highlighted the company’s progress in expanding into new markets. “We achieved significant progress on the key objectives we outlined at the start of the fiscal year, most notably expanding our product reach into additional large and fast-growing markets,” Erickson stated.
The company secured its first artificial intelligence (AI) processor customer for wafer level burn-in and its first volume production orders from an AI processor customer for package part burn-in. Additionally, Aehr landed its first gallium nitride (GaN) customer for high-volume production wafer level burn-in.
Aehr’s backlog stood at $12.4 million as of November 29, 2024, with an effective backlog of $26.6 million including bookings since that date. The company ended the quarter with $35.2 million in cash and equivalents, down from $40.8 million at the end of the previous quarter.
While silicon carbide is expected to account for less than half of Aehr’s total revenue this fiscal year, the company anticipates AI processors could comprise up to 40% of revenue, up from virtually zero last year.
“The important part is the company maintained its year-end guide for $70 million, although we see some risk here given revenue recognition and the timing of new customer ramp-ups outside SiC,” William Blair analyst Jed Dorsheimer said following the results. The analyst reiterated a Market Perform rating, noting Aehr trades at an enterprise value of 5.5x the firm’s calendar 2026 sales estimate, a premium to its peer group at 3x.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
