Aehr Take a look at Techniques inventory tumbles 20% on earnings miss

FREMONT, California – Aehr Take a look at Techniques (NASDAQ:AEHR) noticed its inventory plummet 20% after reporting second quarter fiscal 2025 outcomes that fell wanting analyst expectations, regardless of reaffirming its full-year steerage. Analysts pointed to weak SiC as the motive force of the weak spot.

The semiconductor check gear provider posted adjusted earnings per share of $0.02, lacking the analyst consensus of $0.03. Income for the quarter got here in at $13.5 million, beneath the $15 million estimate and down 37% YoY from $21.4 million.

Regardless of the disappointing quarter, Aehr maintained its fiscal 2025 outlook, projecting full-year income of not less than $70 million. This steerage compares to the analyst consensus of $70.84 million.

Gayn Erickson, President and CEO of Aehr Take a look at Techniques, highlighted the corporate’s progress in increasing into new markets. “We achieved vital progress on the important thing aims we outlined at first of the fiscal 12 months, most notably increasing our product attain into extra massive and fast-growing markets,” Erickson acknowledged.

The corporate secured its first synthetic intelligence (AI) processor buyer for wafer degree burn-in and its first quantity manufacturing orders from an AI processor buyer for package deal half burn-in. Moreover, Aehr landed its first gallium nitride (GaN) buyer for high-volume manufacturing wafer degree burn-in.

Aehr’s backlog stood at $12.4 million as of November 29, 2024, with an efficient backlog of $26.6 million together with bookings since that date. The corporate ended the quarter with $35.2 million in money and equivalents, down from $40.8 million on the finish of the earlier quarter.

Whereas silicon carbide is predicted to account for lower than half of Aehr’s whole income this fiscal 12 months, the corporate anticipates AI processors might comprise as much as 40% of income, up from just about zero final 12 months.

“The vital half is the corporate maintained its year-end information for $70 million, though we see some danger right here given income recognition and the timing of recent buyer ramp-ups exterior SiC,” William Blair analyst Jed Dorsheimer mentioned following the outcomes. The analyst reiterated a Market Carry out ranking, noting Aehr trades at an enterprise worth of 5.5x the agency’s calendar 2026 gross sales estimate, a premium to its peer group at 3x.

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