Aehr Test(US:AEHR)2025-01-13 21:37Financial Performance - Net revenue for Q2 fiscal 2025 was $13.5 million, a decrease of 37.5% from $21.4 million in Q2 fiscal 2024[7]. - GAAP net loss for Q2 fiscal 2025 was $(1.0) million, or $(0.03) per diluted share, compared to a net income of $6.1 million, or $0.20 per diluted share in Q2 fiscal 2024[7]. - Non-GAAP net income for Q2 fiscal 2025 was $0.7 million, or $0.02 per diluted share, down from $6.7 million, or $0.23 per diluted share in Q2 fiscal 2024[7]. - The company reported a net loss of $1.028 million for the quarter, compared to a net income of $660,000 in the previous quarter[27]. - Non-GAAP net income for the quarter was $691,000, compared to $2.153 million in the previous quarter, indicating a decline in profitability[30]. - The diluted net income per share was $(0.03), compared to $0.02 in the previous quarter, reflecting the company's financial challenges[30]. - Net income for the six months ended November 29, 2024, was a loss of $368,000, a significant decline from a profit of $10,763,000 in the same period last year[36]. Revenue and Bookings - Bookings for the quarter were $9.2 million, with a backlog of $12.4 million as of November 29, 2024[7]. - Total revenue for the second quarter of fiscal 2025 was $13.453 million, a 2.5% increase from $13.119 million in the previous quarter[26]. - Product revenue was $11.985 million, while service revenue was $1.468 million, indicating a strong performance in product sales[26]. - The company is reiterating its fiscal year 2025 revenue guidance of at least $70 million and a non-GAAP net profit before taxes of at least 10% of revenue[19]. Cash Flow and Liquidity - Total cash and cash equivalents as of November 29, 2024, was $35.2 million, down from $40.8 million as of August 30, 2024[7]. - Cash used in operating activities for the first six months of fiscal 2025 was $3.5 million[7]. - Cash and cash equivalents decreased to $32,217,000 from $49,159,000, reflecting a decline of approximately 34.4%[33]. - The company reported a net cash used in operating activities of $3,493,000 for the six months ended November 29, 2024, compared to cash provided of $3,356,000 in the prior year[36]. - The company incurred $10,615,000 in payments for business acquisition during the period, impacting cash flows from investing activities[36]. Expenses and Costs - Operating expenses totaled $6.913 million, slightly down from $6.919 million in the previous quarter, with R&D expenses at $2.276 million[27]. - Research and development expenses increased to $2.276 million, highlighting the company's commitment to innovation and new product development[27]. - Stock-based compensation expense rose to $1,945,000, up from $1,160,000, indicating an increase of approximately 67.4%[36]. Market and Product Insights - AI processors are projected to account for up to 40% of total revenue for the fiscal year, compared to effectively zero revenue last year[15]. - The gallium nitride (GaN) market is expected to exceed $2 billion in annual device sales by 2029, with a CAGR exceeding 40%[11]. - The acquisition of Incal Technology has accelerated market diversification, particularly in AI processors, contributing to new revenue opportunities[8]. - The company anticipates long-term demand for its products and aims to enter new markets, as indicated in its forward-looking statements[24]. - The company expects to generate bookings and revenue from its proprietary WaferPak and DiePak consumables in emerging markets[24]. Balance Sheet Highlights - Total assets increased to $142,280,000 as of November 29, 2024, up from $127,912,000 on May 31, 2024, representing a growth of approximately 11%[33]. - Current liabilities rose to $11,717,000, compared to $10,508,000 in the previous period, indicating an increase of about 11.5%[34]. - Total shareholders' equity increased to $123,181,000 from $111,593,000, marking an increase of about 10.4%[34]. - Accounts receivable decreased by $3,718,000, compared to a decrease of $12,037,000 in the previous year, showing a significant change in collection efficiency[36]. - The company reported a total of 29,709,000 shares issued and outstanding as of November 29, 2024, compared to 28,995,000 shares in the previous period[34].