Shares of electric vehicle makers Tesla (TSLA 6.39%), Rivian (RIVN 3.90%), and Aehr Test Systems (AEHR 14.58%) rallied on Wednesday, up 5.2%, 4.7%, and 15.8%, respectively, as of 11:30 a.m. ET.There wasn't much company-specific news today, so the across-the-board rally likely had to do with today's important inflation report.CPI runs hot, but the important "core" CPI coolsInflation is a critical factor in demand for autos, as a car is a large-ticket item that is often financed by customers. But interest rat ...

Core Viewpoint - Aehr Test Systems experienced significant stock sell-offs following disappointing quarterly results and forward guidance, indicating potential challenges ahead for the company [1][2]. Financial Performance - The company reported non-GAAP earnings per share of $0.02 on sales of $13.45 million for the second quarter, falling short of Wall Street's expectations of $0.03 per share on revenue of $15.03 million [3]. - Revenue decreased approximately 37% year-over-year, while earnings per share dropped around 91% compared to the prior-year period [3]. Market Outlook - Aehr recorded bookings of only $9.2 million in the quarter, suggesting a bearish outlook for near-term sales performance [4]. - For the remainder of the fiscal year, the company maintained its guidance for sales of at least $70 million and an adjusted net profit before taxes margin of at least 10%, but expressed caution regarding demand outlook [5]. Product and Geopolitical Considerations - The CEO indicated that growth for silicon carbide products outside of China is expected to be challenging until 2026, with geopolitical risks potentially impacting market performance in China [6]. - The company anticipates that testing products and solutions for artificial intelligence processors will represent a significant portion of its revenue this year [6].

Summary of Key Points Core Viewpoint - U.S. stock futures are showing positive movement, with Dow futures increasing by over 150 points, while Aehr Test Systems, Inc. reported disappointing financial results leading to a significant drop in its stock price. Company Performance - Aehr Test Systems reported quarterly earnings of 2 cents per share, missing the analyst consensus estimate of 4 cents per share [2] - Quarterly revenue was reported at $13.45 million, which also fell short of the analyst consensus estimate of $15.03 million and represents a decrease from $21.43 million in the same period last year [2] - Following the earnings report, Aehr Test Systems shares fell by 19.3% to $12.90 in pre-market trading [2] Other Stocks Movement - FTAI Infrastructure Inc. shares dropped by 12.4% to $7.04 in pre-market trading [3] - Crown LNG Holdings Limited shares decreased by 7.2% to $0.90 [3] - Embecta Corp. shares fell by 6% to $18.71 [3] - Ardent Health Partners, Inc. shares declined by 5.5% to $15.17 [3] - Trump Media & Technology Group Corp. shares fell by 5.3% to $40.64 after a previous increase of over 21% [3] - Intrepid Potash, Inc. shares decreased by 4.7% to $24.01 after a rise of more than 10% [3] - Bausch + Lomb Corporation shares fell by 2.1% to $17.01 [3]

Core Viewpoint - A class action securities lawsuit has been filed against Aehr Test Systems, Inc. alleging securities fraud that negatively impacted investors between January 9, 2024, and March 24, 2024 [1][2]. Group 1: Allegations and Impact - The lawsuit claims that Aehr made false statements and concealed significant delays in customer orders, which were contrary to prior representations [2]. - These delays are expected to have a material negative impact on the Company's revenue growth, leading to overstated business and financial prospects [2]. - As a result, the Company's public statements were deemed materially false and misleading throughout the relevant period [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until February 3, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this role [3]. - Class members may be entitled to compensation without incurring any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers and transitioned to day trading nearly 20 years ago [2] - The experience includes navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4][5] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4][5] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4][5] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3][4][5] Management Commentary on Operating Environment and Future Outlook - Management will be making forward-looking statements based on current information and estimates, which are subject to risks and uncertainties that could cause actual results to differ materially [4] Other Important Information - The Q2 2025 earnings conference call is being broadcast live over the Internet and will be archived on the company's Investor Relations page [2] - The press release announcing the second quarter fiscal 2025 results is available on the company's website [2] Q&A Session Summary - No Q&A session details provided in the content [1][2][3][4][5]

Group 1 - Aehr Test Systems reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.03 per share, and down from $0.23 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $13.45 million for the quarter ended November 2024, missing the Zacks Consensus Estimate by 7.86%, and down from $21.43 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Group 2 - The stock has lost about 1.4% since the beginning of the year, compared to the S&P 500's decline of -0.9% [3] - The current consensus EPS estimate for the coming quarter is $0.08 on $20 million in revenues, and $0.31 on $70.9 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Electronics - Measuring Instruments is currently in the top 8% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

EX-99.1 2 aehr_ex991.htm PRESS RELEASE EXHIBIT 99.1 Contacts: Aehr Test Systems PondelWilkinson, Inc. Chris Siu Todd Kehrli or Jim Byers Chief Financial Officer Analyst/Investor Contact csiu@aehr.com tkehrli@pondel.com jbyers@pondel.com Aehr Test Systems Reports Fiscal 2025 Second Quarter Financial Results and Reiterates Full Year Financial Guidance Fremont, CA (January 13, 2025) – Aehr Test Systems (NASDAQ: AEHR), a worldwide supplier of semiconductor test and burn- in equipment, today announced financial ...

Revenue Performance - Revenue decreased to $26.6 million for the six months ended November 29, 2024 from $42.1 million for the six months ended November 30, 2023, driven by a decline in power semiconductor demand for electric vehicles[110] - Asia revenue decreased by 48% to $9.83 million for the three months ended November 29, 2024 compared to $18.92 million for the same period in 2023[111] - United States revenue increased by 412% to $3.46 million for the three months ended November 29, 2024 compared to $0.68 million for the same period in 2023, driven by contributions from Incal customers[111] - Asia region net revenues for Q3 2024 were $9.825 million, a 48.1% decrease from $18.922 million in Q3 2023[76] - United States net revenues for Q3 2024 were $3.462 million, a 412.1% increase from $676 thousand in Q3 2023[76] - Europe net revenues for Q3 2024 were $166 thousand, a 90.9% decrease from $1.833 million in Q3 2023[76] - Systems product category net revenues for Q3 2024 were $3.410 million, a 68.1% decrease from $10.685 million in Q3 2023[76] - Contactors product category net revenues for Q3 2024 were $8.575 million, a 6.3% decrease from $9.152 million in Q3 2023[76] - Services net revenues for Q3 2024 were $1.468 million, a 7.9% decrease from $1.594 million in Q3 2023[76] - Total net revenues for Q3 2024 were $13.453 million, a 37.2% decrease from $21.431 million in Q3 2023[76] - Asia region net revenues for H1 2024 were $22.403 million, a 41.3% decrease from $38.153 million in H1 2023[76] - United States net revenues for H1 2024 were $3.984 million, a 172.0% increase from $1.465 million in H1 2023[76] - Europe net revenues for H1 2024 were $185 thousand, a 92.4% decrease from $2.437 million in H1 2023[76] Gross Profit and Margin - Gross profit decreased by 51% to $5.4 million for the three months ended November 29, 2024 compared to $10.96 million for the same period in 2023[112] - Gross margin decreased to 40.1% for the three months ended November 29, 2024 from 51.1% for the same period in 2023[112] Cash and Investments - Cash, cash equivalents, and restricted cash decreased to $35.2 million as of November 29, 2024 from $50.7 million as of November 30, 2023[121] - Net cash used in investing activities increased by $28.7 million for the six months ended November 29, 2024 compared to the same period in 2023, primarily due to the $10.6 million acquisition of Incal[125] Tax and Financial Impact - The company recognized an income tax benefit due to quarter-to-date and year-to-date losses in the U.S. for the three and six months ended November 29, 2024[120] Geopolitical Risks - Geopolitical tensions between the United States and China could create barriers to selling products and services in China, potentially impacting the company's growth prospects and financial condition[133] Systems Revenue - The company's systems revenue decreased by $15.3 million for the six months ended November 29, 2024 compared to the same period in 2023, partially offset by a $5.0 million increase in package parts burn-in systems revenue from the Incal acquisition[110]

Class Action Notice - The Gross Law Firm is issuing a notice to shareholders of Aehr Test Systems, Inc (NASDAQ: AEHR) who purchased shares during the class period from January 9, 2024, to March 24, 2024 [1] - Shareholders are encouraged to contact the firm regarding possible lead plaintiff appointment, with no obligation to partake in any recovery [1] - The deadline for shareholders to register for this class action is February 3, 2025 [2] Allegations - The complaint alleges that during the class period, Aehr Test Systems issued materially false and/or misleading statements and/or failed to disclose substantial delays in customer orders [1] - These delays were likely to have a material negative impact on the company's revenue growth, leading to overstated business and financial prospects [1] - As a result, the company's public statements were materially false and misleading at all relevant times [1] Next Steps for Shareholders - Shareholders who register will be enrolled in a portfolio monitoring software to receive status updates throughout the lifecycle of the case [2] - There is no cost or obligation for shareholders to participate in this case [2] About The Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investor rights against deceit, fraud, and illegal business practices [3] - The firm seeks recovery on behalf of investors who incurred losses due to false and/or misleading statements or omissions of material information by companies [3]