Aehr Test Systems Shatters Expectations with Impressive Q3 Earnings

March 31, 2022

In a world where semiconductor testing is becoming as crucial as a morning cup of coffee, Aehr Test Systems (NASDAQ: AEHR) has stepped up its game in a big way. The company has just announced its financial results for the third quarter of fiscal 2022, and let me tell you, it?s not just the caffeine talking?these figures are strong enough to keep investors awake and alert.

Record Revenue and Eye-Popping Growth

Let?s dive into the numbers. Aehr reported net sales of $15.3 million, a staggering 190% increase from the same quarter last year when it posted just $5.3 million. This performance not only exceeds the EPS consensus but also signals a robust demand for their wafer test and burn-in sales?especially driven by the surging electric vehicle market.

Profitability Takes Center Stage

On the profitability front, Aehr posted a GAAP net income of $2.2 million, translating to $0.08 per diluted share. This is a significant turnaround from a GAAP net loss of $735,000, or $0.03 per diluted share, recorded in the third quarter of fiscal 2021. Non-GAAP net income also made a strong showing at $4.1 million, or $0.14 per diluted share, which is a remarkable leap from a non-GAAP net loss of $360,000 last year. Clearly, this earnings surprise is more than just a blip on the radar; it?s a clear indicator that Aehr is capitalizing on the growing semiconductor market.

Bookings and Backlog: A Promising Outlook

But wait, there?s more! Aehr reported bookings of $6.0 million for the quarter, with a backlog soaring to $26.9 million as of February 28, 2022. The effective backlog, which includes all orders since the quarter?s end, is over $30 million. This backlog bodes well for the company?s revenue forecast, suggesting that the momentum is not just a flash in the pan.

A Closer Look: Fiscal Year Performance

When we zoom out and look at the fiscal first nine months, Aehr?s net sales jumped to $30.5 million, a remarkable 241% increase from $9.0 million during the same period last year. GAAP net income also improved significantly to $3.7 million, or $0.13 per diluted share, compared to a GAAP net loss of $2.6 million. The numbers here are not just climbing; they?re scaling mountains!

The Industry Context

For context, Aehr operates in a sector where rapid advancements in technology are both a challenge and an opportunity. The semiconductor industry is experiencing explosive growth, especially with the increasing demand for electric vehicles and IoT devices. This positions Aehr not just as a participant but as a potential leader in semiconductor test solutions.

Conclusion: A Bright Future Ahead

So, what does this all mean? Aehr Test Systems is not just aiming for the stars; they?re already orbiting them. With robust sales growth, strong profitability metrics, and an impressive backlog, it?s clear that Aehr is not only meeting but exceeding expectations. As the semiconductor sector continues to evolve, Aehr is well-poised to leverage its innovative solutions to capture a larger market share. For investors, this earnings report is a clear signal to keep an eye on AEHR as it continues to push the boundaries of what?s possible in semiconductor testing.