Aehr Test Systems Reports Q1 Beat, But Outlook Unchanged, Shares Plunge 14%

Aehr Test Systems, Inc. (NASDAQ: AEHR) is a global provider of semiconductor test and burn-in equipment. The company recently reported its financial results for the fourth quarter of fiscal 2025, ending May 30, 2025. Despite facing challenges, AEHR managed to report an earnings per share (EPS) of -$0.01, which was better than the estimated EPS of -$0.015. However, the company generated a revenue of $14.1 million, falling short of the estimated $14.8 million.

During the Q4 2025 earnings conference call on July 8, 2025, key company figures such as CFO Chris P. Siu and CEO Gayn Erickson discussed the financial results. Analysts from Craig-Hallum Capital Group LLC and William Blair & Company L.L.C. also participated. The call highlighted AEHR's net revenue of $14.1 million for the fourth quarter, a decrease from $16.6 million in the same quarter of fiscal 2024.

Aehr Test Systems reported a GAAP net loss of $2.9 million, or $0.10 per diluted share, contrasting with a GAAP net income of $23.9 million, or $0.81 per diluted share, in the previous year. This previous year's income included a significant tax benefit of approximately $20.7 million. On a non-GAAP basis, excluding certain adjustments, the company reported a net loss of $0.2 million, or $0.01 per diluted share, compared to a non-GAAP net income of $24.7 million, or $0.84 per diluted share, in the fourth quarter of fiscal 2024.

Despite these challenges, AEHR is expanding its total addressable market and diversifying its customer base. The company has a price-to-sales ratio of about 7.35. Its enterprise value to sales ratio is around 6.97. AEHR maintains a low debt-to-equity ratio of about 0.052, indicating a conservative use of debt. Additionally, the company has a strong current ratio of approximately 5.71, suggesting a robust ability to cover its short-term liabilities with its short-term assets.

Aehr Test Systems, trading on the NASDAQ under the symbol AEHR, is a company that specializes in semiconductor testing equipment. It is known for its innovative solutions in the semiconductor industry, which is a highly competitive market. AEHR's competitors include companies like Teradyne and Advantest, which also provide testing equipment for semiconductor manufacturers.

AEHR is set to release its quarterly earnings on January 13, 2025. Wall Street analysts expect the company to report earnings per share of $0.03 and revenue of approximately $15.04 million. This upcoming earnings report is crucial for investors as it provides insights into the company's financial health and future prospects.

Recently, AEHR's stock experienced a significant rally, climbing 9.3% despite a downturn in the broader tech market, as highlighted by Fool.com. This surge indicates strong investor confidence in the company's performance and potential growth, even in a challenging market environment.

The company's financial metrics provide further insights into its market valuation. AEHR has a price-to-earnings (P/E) ratio of 17.76, which suggests that investors are willing to pay $17.76 for every dollar of earnings. Its price-to-sales ratio of 8.97 and enterprise value to sales ratio of 8.44 reflect the market's valuation relative to its revenue and sales.

AEHR's financial stability is evident from its low debt-to-equity ratio of 0.007, indicating minimal leverage. The company also boasts a strong current ratio of 6.03, suggesting it has ample liquidity to cover short-term liabilities. However, its enterprise value to operating cash flow ratio is notably high at 2109.41, which may raise concerns about cash flow efficiency.

Aehr Test Systems, trading on the NASDAQ under the symbol AEHR, is a company that specializes in semiconductor testing equipment. It is known for its innovative solutions in the semiconductor industry, which is a highly competitive market. AEHR's competitors include companies like Teradyne and Advantest, which also provide testing equipment for semiconductor manufacturers.

AEHR is set to release its quarterly earnings on January 13, 2025. Wall Street analysts expect the company to report earnings per share of $0.03 and revenue of approximately $15.04 million. This upcoming earnings report is crucial for investors as it provides insights into the company's financial health and future prospects.

Recently, AEHR's stock experienced a significant rally, climbing 9.3% despite a downturn in the broader tech market, as highlighted by Fool.com. This surge indicates strong investor confidence in the company's performance and potential growth, even in a challenging market environment.

The company's financial metrics provide further insights into its market valuation. AEHR has a price-to-earnings (P/E) ratio of 17.76, which suggests that investors are willing to pay $17.76 for every dollar of earnings. Its price-to-sales ratio of 8.97 and enterprise value to sales ratio of 8.44 reflect the market's valuation relative to its revenue and sales.

AEHR's financial stability is evident from its low debt-to-equity ratio of 0.007, indicating minimal leverage. The company also boasts a strong current ratio of 6.03, suggesting it has ample liquidity to cover short-term liabilities. However, its enterprise value to operating cash flow ratio is notably high at 2109.41, which may raise concerns about cash flow efficiency.

Aehr Test Systems (NASDAQ:AEHR) saw its stock price drop by over 14% intro-day today following the release of its Q1/24 results, despite beating expectations for the quarter. The company reported Q1 EPS of $0.18, surpassing the Street estimate of $0.16. They also achieved a 93% year-over-year revenue growth, reaching $20.6 million, compared to the Street estimate of $19.23 million.

CEO Gayn Erickson expressed satisfaction with the Q1 performance, calling it the strongest first quarter in the company's history, even though traditionally it has been their weakest season. Erickson stated that they are off to a strong start for the fiscal year and reaffirmed their expectation to achieve at least a 50% year-over-year revenue growth and over 90% profit growth for the full fiscal year.

Despite the beat, the company kept its previous full-year guidance unchanged, aiming for total revenue of at least $100 million (compared to a Street estimate of $102.93 million).