Executive Summary
Aehr Test Systems reported a challenging yet strategic first quarter of fiscal 2025, with revenue at $13.1 million, down 36% year-over-year. This decline reflects ongoing adjustments in the semiconductor market but is balanced by promising emerging opportunities in silicon carbide and AI semiconductor testing. Management confirmed their commitment to expanding their portfolio following the recent acquisition of Incal Technology, which enhances their capabilities in high-power applications, notably in AI and GPUs. With strong demand for WaferPak products and broadening applications across multiple markets, Aehr remains positioned for long-term growth despite current headwinds.
Key Performance Indicators
QoQ: -20.97% | YoY:-36.39%
QoQ: -16.22% | YoY:-29.09%
QoQ: -93.74% | YoY:-96.14%
QoQ: -97.23% | YoY:-85.88%
QoQ: -97.23% | YoY:-85.81%
Key Insights
Aehr's revenue for Q1 2025 was $13.1 million, down 36.4% YoY and 20.7% QoQ. Gross profit margin was reported at 54.7%, up from 48.7% YoY, reflecting an improved product mix. Operating income starkly contrasts with previous periods at $159,000, plummeting 96% YoY due primarily to reduced revenue. Net income for the quarter stood at $660,000, dropping 85.9% YoY. The company's current ratio is robust at 6.03, indicating strong liquidity, while debt remains non-existent. Cash reserves decr...
Financial Highlights
Aehr's revenue for Q1 2025 was $13.1 million, down 36.4% YoY and 20.7% QoQ. Gross profit margin was reported at 54.7%, up from 48.7% YoY, reflecting an improved product mix. Operating income starkly contrasts with previous periods at $159,000, plummeting 96% YoY due primarily to reduced revenue. Net income for the quarter stood at $660,000, dropping 85.9% YoY. The company's current ratio is robust at 6.03, indicating strong liquidity, while debt remains non-existent. Cash reserves decreased to $40.8 million largely due to investment in Incal, emphasizing their proactive growth strategy.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.12M |
-36.39% |
-20.97% |
| Gross Profit |
7.08M |
-29.09% |
-16.22% |
| Operating Income |
159.00K |
-96.14% |
-93.74% |
| Net Income |
660.00K |
-85.88% |
-97.23% |
| EPS |
0.02 |
-85.81% |
-97.23% |
Key Financial Ratios
operatingProfitMargin
1.21%
operatingCashFlowPerShare
$0.08
freeCashFlowPerShare
$0.08
Management Commentary
1. Market Expansion: CEO Gayn Erickson remarked, "We're successfully executing on our strategy to expand our test and burn-in products into other large and fast-growing markets such as artificial intelligence processors, gallium nitride power semiconductors, hard disk drive components, and flash memory devices." This highlights management's optimism in diversifying revenue streams.
2. Acquisition Insights: The acquisition of Incal Technology has allowed Aehr to enhance its product offerings with capabilities for AI processors, with management stating, "This acquisition greatly expands our addressable market, enabling us to provide a comprehensive turnkey solution for reliability and testing." This positions Aehr uniquely in the rapidly evolving semiconductor landscape.
"We finished the first quarter with revenue and non-GAAP net income ahead of consensus estimates and are off to a good start to our fiscal year." - Gayn Erickson, CEO
â Gayn Erickson
"This acquisition greatly expands our addressable market, enabling us to provide a comprehensive turnkey solution for reliability and testing from engineering to high volume production." - Gayn Erickson, CEO.
â Gayn Erickson
Forward Guidance
Looking ahead, Aehr has reaffirmed its revenue guidance for fiscal 2025, anticipating a total revenue of at least $70 million with a net profit margin of 10%. This optimistic outlook is attributable to expected strong demand from silicon carbide and artificial intelligence markets. The company's focus on expanding its capabilities post-Incal acquisition should yield significant returns in subsequent quarters, but investors are advised to closely watch the execution of key projects and customer onboarding.