● Aehr Test Systems to Present at The LD Micro Main Event XVII Investor Conference in Los Angeles on October 29, 2024 October 21, 2024 4:05 PM EDT | Source: LD Micro Fremont, California--(Newsfile Corp. - October 21, 2024) - Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced that President and CEO Gayn Erickson will be presenting at the 17th annual LD Micro Main Event Conference on Tuesday, October 29, 2024 at 2:30 pm PT at the Luxe Sunset Bou ...

Core Viewpoint - Investing in small-cap stocks can be rewarding but carries inherent risks [1] Group 1 - The discussion focuses on two small-cap stocks, each with a market capitalization of under $500 million [1] - Stock prices referenced are from the trading day of October 18, 2024 [1] - The video was published on October 20, 2024 [1]

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year. With a focus on tech and "the Great Energy Transition (including uranium)", Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outst ...

[PART I FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 FY2025 financial statements reflect significant revenue and net income declines, balance sheet growth from the Incal acquisition, and reduced operating cash flow [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$145.9 million** driven by the Incal acquisition's goodwill and intangible assets, while cash decreased and liabilities and equity grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Aug 30, 2024 | May 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $37,830 | $49,159 | | Inventories | $42,973 | $37,470 | | Goodwill | $10,353 | $0 | | Intangible assets, net | $11,854 | $0 | | **Total assets** | **$145,862** | **$127,912** | | **Liabilities & Equity** | | | | Total current liabilities | $15,420 | $10,508 | | Total liabilities | $23,379 | $16,319 | | Total shareholders' equity | $122,483 | $111,593 | | **Total liabilities and shareholders' equity** | **$145,862** | **$127,912** | [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2025 saw a **36%** revenue decline to **$13.1 million** and an **85.9%** drop in net income to **$0.7 million**, with diluted EPS falling to **$0.02** Quarterly Statement of Operations (in thousands, except per share data) | Metric | Q1 FY2025 (ended Aug 30, 2024) | Q1 FY2024 (ended Aug 31, 2023) | Change YoY | | :--- | :--- | :--- | :--- | | Total Revenue | $13,119 | $20,624 | -36.4% | | Gross Profit | $7,078 | $9,981 | -29.1% | | *Gross Margin* | *54.0%* | *48.4%* | *+5.6 p.p.* | | Income from Operations | $159 | $4,115 | -96.1% | | Net Income | $660 | $4,674 | -85.9% | | Diluted EPS | $0.02 | $0.16 | -87.5% | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to **$2.4 million**, while investing activities used **$10.8 million** primarily for the Incal acquisition, resulting in an **$8.5 million** net cash decrease Quarterly Cash Flow Summary (in thousands) | Cash Flow Category | Three Months Ended Aug 30, 2024 | Three Months Ended Aug 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,380 | $3,901 | | Net cash provided by (used in) investing activities | $(10,812) | $17,716 | | Net cash used in financing activities | $(106) | $(694) | | **Net increase (decrease) in cash** | **$(8,529)** | **$20,901** | - The primary use of cash in investing activities was **$10.6 million** for the acquisition of Incal Technology, Inc., net of cash acquired[10](index=10&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the **$21.9 million** Incal acquisition, significant customer concentration, a major product mix shift, and a change in fiscal year-end - On July 31, 2024, the Company acquired Incal Technology, Inc. for a total consideration of approximately **$21.9 million**, consisting of cash, restricted common stock, and an escrow payable. The acquisition resulted in the recognition of **$10.4 million** in goodwill and **$12.0 million** in intangible assets[29](index=29&type=chunk)[33](index=33&type=chunk) - The company exhibits significant customer concentration, with a single customer (Customer A) accounting for **90.8%** of total revenues for the three months ended August 30, 2024, up from **88.0%** in the prior-year period[25](index=25&type=chunk) Revenue by Product Category (in thousands) | Product Category | Q1 FY2025 | Q1 FY2024 | Change YoY | | :--- | :--- | :--- | :--- | | Systems | $60 | $8,093 | -99.3% | | Contactors | $12,094 | $11,264 | +7.4% | | Services | $965 | $1,267 | -23.8% | | **Total** | **$13,119** | **$20,624** | **-36.4%** | - Beginning June 1, 2024, the Company changed its fiscal year to a 52- or 53-week period ending on the Friday nearest May 31[15](index=15&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **36%** revenue decline to EV market softness, notes improved gross margin due to product mix, and highlights increased operating expenses from the Incal acquisition [Results of Operations](index=17&type=section&id=Results%20of%20Operations) Revenue declined **36%** to **$13.1 million** due to EV market softness, while gross margin improved to **54.0%** from product mix, and SG&A expenses rose due to acquisition costs - The decrease in revenue was attributed to a decline in system and service shipments, driven by recent overall softness in the demand for electric vehicles[99](index=99&type=chunk) - The increase in gross margin was primarily due to a decrease in material cost as a percentage of revenue, driven by a product mix shift toward more contactor sales[102](index=102&type=chunk) - The increase in SG&A expenses was primarily driven by **$0.5 million** in acquisition-related costs and **$0.4 million** in additional expenses from the newly acquired Incal business[104](index=104&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) Cash, cash equivalents, and restricted cash totaled **$40.8 million**, with a net decrease of **$8.5 million** primarily due to the **$10.6 million** Incal acquisition and lower operating cash flow - Cash, cash equivalents, and restricted cash were **$40.8 million** as of August 30, 2024[108](index=108&type=chunk) - The decrease in cash from investing activities was primarily due to the **$10.6 million** payment to acquire Incal and the absence of maturing short-term investments, which had provided **$18.0 million** in the prior-year period[111](index=111&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risk - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of August 30, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of August 30, 2024[114](index=114&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[115](index=115&type=chunk) [PART II OTHER INFORMATION](index=20&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=20&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings but anticipates no material adverse effect on its financial position or results - The company accrues for litigation losses when a loss is probable and can be reasonably estimated, but is not currently aware of any proceedings expected to have a material adverse effect[116](index=116&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the significant risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to the risk factors previously disclosed in the Form 10-K for the fiscal year ended May 31, 2024, have occurred[116](index=116&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=20&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[116](index=116&type=chunk) [Item 6. Exhibits](index=21&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files

Core Insights - Aehr Test Systems reported earnings that exceeded expectations, leading to an 18% increase in share price [1] - The company is expanding into new markets, particularly in artificial intelligence (AI) accelerators, which is a significant growth opportunity [1][3] Financial Performance - For the fiscal first quarter ending in August, revenue decreased by 36.5% to $13.1 million, but this was above analyst expectations [2] - Non-GAAP earnings per share (EPS) was reported at $0.07, significantly higher than the expected $0.01 [2] Market Dynamics - Aehr's testing devices are designed for high-voltage semiconductor testing, which is increasingly relevant for power-hungry chips like silicon carbide (SiC) used in electric vehicles [2] - Despite a decline in electric vehicle sales impacting investment in Aehr's systems, there are signs of stabilization and positive discussions with SiC customers [3] Growth Potential - The company has received its first orders for testing AI accelerators, which are anticipated to experience rapid growth in the coming years [3] - Management projects at least $70 million in revenue for the fiscal year ending next May, with earnings before taxes expected to be at least 10% of revenue [4] - The current market cap of $450 million may seem high, but potential recovery in the electric vehicle market and new applications in GaN and AI could lead to significant revenue growth [4]

Group 1 - The focus has shifted from primarily tech stocks to include offshore drilling, supply industry, and shipping sectors such as tankers, containers, and dry bulk [1] - There is an emerging interest in the fuel cell industry, which is still in its nascent stage [1] - The experience includes navigating significant market events like the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers, which adds credibility to the research conducted [1] - The trading strategy involves both long and short bets, indicating a flexible approach to market conditions [1] - The research aims to provide high-quality insights to the Seeking Alpha community despite language barriers [1]

Aehr Test Systems, Inc. (NASDAQ:AEHR) Q1 2025 Earnings Conference Call October 10, 2024 5:00 PM ET Company Participants Jim Byers - IR, MKR Investor Relations Inc. Gayn Erickson - President and CEO Chris Siu - CFO Conference Call Participants Christian Schwab - Craig-Hallum Capital Group Jed Dorsheimer - William Blair Matt Winthrop - Equitable Operator Greetings. Welcome to the Aehr Test Systems Fiscal 2025 First Quarter Financial Results Call. At this time, all participants are in a listen-only mode. A que ...

Aehr Test Systems (AEHR) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 600%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.84, delivering a surprise of 663.64%. Over the last four quarters, the compa ...

EX-99.1 2 aehr_ex991.htm PRESS RELEASE EXHIBIT 99.1 Contacts: Aehr Test Systems MKR Investor Relations Inc. Chris Siu Chief Financial Officer csiu@aehr.com Todd Kehrli or Jim Byers Analyst/Investor Contact (323) 468-2300 aehr@mkr-group.com Aehr Test Systems Reports Fiscal 2025 First Quarter Financial Results and Reaffirms Full-Year Guidance Fremont, CA (October 10, 2024) – Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of semiconductor test and burnin equipment, today announced financial results for ...

Shares of Aehr Test Systems (AEHR, Financial) surged 2.90% in mid-day trading on Oct 2. The stock reached an intraday high of $12.75, before settling at $12.62, up from its previous close of $12.26. This places AEHR 72.68% below its 52-week high of $46.17 and 28.33% above its 52-week low of $9.83. Trading volume was 245,888 shares, 29.4% of the average daily volume of 836,038.Wall Street Analysts ForecastBased on the one-year price targets offered by 1 analysts, the average target price for Aehr Test System ...