Aehr Test Systems (AEHR) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached a record $66.2 million, up 2% year-over-year, despite customer order pushouts in silicon carbide due to slower EV demand in the second half.

• GAAP net income was $33.2 million, or $1.12 per share, including a $20.8 million tax benefit from the release of a full income tax valuation allowance.

• Non-GAAP net income was $35.8 million, or $1.21 per diluted share, up from $17.3 million, or $0.59 per share, in fiscal 2023.

• Major acquisition of Incal Technology announced, expanding into ultra-high-power semiconductor test solutions, especially for AI processors.

• WaferPak consumable revenue grew to 57% of total revenue as system orders slowed but new device designs increased.

Financial highlights

• Full year GAAP gross margin was 49.1%, down from 50.4% the prior year.

• Non-GAAP net income for the year was $35.8 million, or $1.21 per diluted share, up from $17.3 million, or $0.59 per share, in fiscal 2023.

• Fourth quarter revenue was $16.6 million, down 25% year-over-year; WaferPak revenues were $12.4 million, 75% of Q4 revenue.

• Operating cash flow for the year was $10.0 million; cash and equivalents at year-end were $49.2 million, with zero debt.

• Fiscal 2024 bookings were $49 million, down from $78.3 million the prior year, mainly due to silicon carbide order delays.

Outlook and guidance

• Fiscal 2025 revenue is expected to be at least $70 million, including Incal Technology, with net profit before taxes of at least 10% of revenue.

• Anticipates revenue and bookings from a broader range of customers and markets, with silicon carbide, AI processor, and gallium nitride markets as key contributors.