FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR), a global provider of semiconductor test and burn-in equipment, has secured orders worth $12.7 million from a key customer in the electric vehicle sector for multiple WaferPak™ Contactors. The company announced today that these contactors, which are integral to the wafer level burn-in and screening of silicon carbide power semiconductors, are slated for delivery within the next three months.
President and CEO of Aehr Test Systems, Gayn Erickson, expressed enthusiasm over the continued partnership with their customer, which is poised to address the growing demand for wafer level burn-in and screening of new device designs.
Erickson highlighted the customizability of their WaferPak Contactors, which are tailored to each customer's device design and evolve with the increasing number of designs and the need for higher production volumes.
These proprietary contactors are part of Aehr's FOX series of wafer level test and burn-in systems, which include the FOX-NP and FOX-XP models. These systems, along with WaferPak, are designed to test and burn-in a wide array of semiconductor devices, including those used in electric vehicles, on wafers ranging from 4 inches to 12 inches.
The orders underscore Aehr's active engagement in the silicon carbide market for electric vehicles—a sector that the company views as a significant opportunity. Erickson noted the growing commitment of auto suppliers to incorporate silicon carbide in their electric vehicles, which in turn benefits Aehr's business prospects.
Aehr Test Systems, headquartered in Fremont, California, has a long-standing presence in the semiconductor testing market, with thousands of its systems in use worldwide. The company's solutions cater to a broad spectrum of applications beyond electric vehicles, such as solar and wind power, telecommunications, computing, and solid-state memory and storage.
This recent development is based on a press release statement and reflects the company's anticipation of future needs and orders from both new and existing customers. While this announcement provides a positive outlook for Aehr Test Systems, it remains subject to the usual risks and uncertainties associated with the semiconductor industry.
In other recent news, Aehr Test Systems reported a substantial increase in its fiscal 2024 earnings, with a GAAP net income of roughly $33.1 million on revenues of around $66.2 million. This financial performance exceeded both the company's previous guidance and analyst consensus. The company also reported a fourth-quarter revenue of about $16.6 million and a GAAP net income of approximately $23.8 million.
In addition to its financial results, Aehr has announced a definitive agreement to acquire Incal Technology, Inc., a specialist in reliability and burn-in test solutions for AI semiconductors, for $21 million. This acquisition aims to integrate Incal's high-power test solutions into Aehr's product offerings, targeting the artificial intelligence semiconductor sector.
These recent developments follow a year-over-year decline in Aehr's third-quarter revenue, attributed to delayed customer orders and a reduction in semiconductor capital spending. Still, Aehr Test Systems remains optimistic about its long-term prospects, citing opportunities in markets like silicon carbide, gallium nitride, silicon photonics, and memory semiconductors.
The company also reaffirmed its fiscal 2024 guidance, projecting over $65 million in total revenue and a net income of at least $11 million.
InvestingPro Insights
Aehr Test Systems (NASDAQ:AEHR) has recently made headlines with its substantial orders from the electric vehicle sector, which aligns with the company's strong performance metrics. According to InvestingPro data, Aehr holds a market capitalization of approximately $486.35 million USD, underlining its significant presence in the semiconductor testing market. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, stands at 31.19, reflecting investor expectations of future earnings growth.
InvestingPro Tips suggest that Aehr Test Systems has a robust financial position, holding more cash than debt on its balance sheet, which may provide flexibility and stability in the dynamic semiconductor industry. Moreover, the company's liquid assets exceed its short-term obligations, further highlighting its financial health. With a notable return of 32.39% over the last week, Aehr's stock price movements have been quite volatile, which could be of interest to investors looking for short-term gains.
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