Shares of Aehr Take a look at Methods (AEHR -12.39%) fell on Wednesday, ending the day down 12.6%. The drop got here because the S&P 500 and Nasdaq Composite gained 0.5% and 0.9%, respectively.
Aehr, a world provider of “burn-in” methods, a key check for semiconductors that catches defective chips earlier than they make it out of the manufacturing facility, reported its newest quarterly earnings yesterday.
A disappointing quarter
Aehr’s outcomes for the fourth quarter of fiscal 2025, ended Could 30, upset traders. The corporate reported a year-over-year decline in each income ($14.1 million, down from $16.6 million) and earnings per share (a internet lack of $0.10 per share, down from internet earnings of $0.81 per share).
The corporate’s full-year outcomes have been comparable, reporting income of $59 million, in comparison with the earlier yr’s $66.2 million, and a internet lack of $0.13 per share in comparison with EPS of $1.12 the yr earlier than.
Picture supply: Getty Pictures.
Regardless of the efficiency, administration struck a optimistic tone, specializing in the corporate’s “transformation,” saying the yr was “marked by important progress on our strategic initiatives to broaden our whole addressable market, diversify our buyer base, and improve our product portfolio.”
Nonetheless, administration admitted there have been important challenges and informed traders, “We’re sustaining our cautious strategy and are usually not reinstating particular steerage past what we’ve already acknowledged.”
Progress potential
The transformation Aehr administration was alluding to is the corporate’s growth past its give attention to testing Silicon Carbide semiconductors, a substitute for conventional Silicon chips, and a relatively small market. Critically, the corporate says it has efficiently examined a burn-in system for synthetic intelligence (AI) chips, a large and rising market that would present the corporate a path to important progress.
Nonetheless, there’s plenty of uncertainty forward for Aehr. For traders with a excessive threat tolerance, Aehr might repay if it could efficiently acquire a foothold in AI.
Johnny Rice has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
