Aehr Test Systems AEHR shares are trading lower in Tuesday’s after-hours session following the release of the company’s second-quarter earnings report.

Thriving Financials

What To Know: Aehr Test Systems reported quarterly earnings of 23 cents per share, beating analyst expectations of 19 cents, a 43.75% increase over earnings of 16 cents per share from the same period last year. The company reported quarterly sales of $21.40 million, exceeding the analyst consensus estimate of $20.89 million, a 44.45% increase over sales of $14.81 million in the same period last year.

Fiscal Concerns

Total cash and cash equivalents as of Nov. 30 were $50.5 million, compared to $51.0 million at Aug. 31. Aehr Test Systems revised its full-year total revenue expectations to be between $75 million and $85 million, representing growth of 15% to 30% year-over-year. Estimated GAAP net income is between 20% and 25% of revenue. The company also stated that full-year revenue will likely be impacted by an anticipated delay in the timing of new orders from current and new customers.

The CEO’s Perspective

“We had another solid quarter with strong year-over-year growth in revenue and net income as we continue to see increased demand for our wafer level test and burn-in products. Revenue for the quarter was $21.4 million, an increase of 45% year over year, and we generated non-GAAP net income of $6.7 million, slightly over 31% net profit. For the first half of the fiscal year, we grew revenue 65% over the same period last year,” said Gayn Erickson, president and CEO of Aehr Test Systems.

Stock Reaction

AEHR Price Action: Shares of Aehr Test Systems were down 18.5% at $18.21 in the after-hours session at the time of publication Tuesday, according to Benzinga Pro.

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