Why Aehr Test Systems Stock Is Plummeting Today

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].