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Shares of Aehr Test Systems (AEHR, Financials) plummeted 26.3% to $11.78 as of 12:55 p.m. ET on Jan. 14, 2025, after the company reported disappointing fiscal second-quarter results.
The supplier of semiconductor testing equipment reported $13.45 million in income, a 37.23% drop from the same quarter a year before and $1.58 million less than analyst estimates.
Comparatively to net income of $6.1 million, or $0.20 per share, the firm recorded a GAAP net loss of $1 million, or $(0.03) per share. Down from $6.7 million, or $0.23 per share, a year ago, net income came in at $0.7 million, or $0.02 per share, on a non-GAAP basis.
As of Nov. 29, 2024, the backlog was $12.4 million; bookings for the quarter came to $9.2 million. Including post-quarter bookings, the effective backlog came to $26.6 million. End of the first quarter total cash, cash equivalents, and restricted cash declined from $40.8 million to $35.2 million.
With fresh orders from AI processor and gallium nitride semiconductor consumers, CEO Gayn Erickson said the business is broadening the spectrum of market presence. But he pointed out that geopolitical concerns and competitive pressures slowed down development in the silicon carbide industry.
Aehr reaffirmed its fiscal 2025 projection despite the poor results: at least $70 million in income and a non-GAAP profit margin before taxes of 10% or higher. The business wants to become more visible in high-growth semiconductor industries including data storage systems, gallium nitride devices, and artificial intelligence computers.
This article first appeared on GuruFocus.