Aehr Test Systems Reports Strong Third Quarter Results with Net Income of $4.7 Million
Quarterly Revenue Reaches $20.6 Million
SANTA CLARA, Calif., August 31, 2023 - AEHR TEST SYSTEMS [AEHR] (NASDAQ: AEHR), a leading provider of semiconductor test and burn-in equipment, announced its financial results for the third quarter of fiscal year 2023. The company reported a net income of $4.7 million for the quarter, reflecting the successful execution of its growth strategies and the strong demand for its products in the semiconductor industry. Quarterly revenue reached $20.6 million, representing a significant increase compared to the same period last year.
Financial Performance
The company's gross profit for the quarter was $9.9 million, with a gross margin of 48.4%. This demonstrates the company's ability to efficiently manage its cost of revenue while delivering high-quality products and services. Operating expenses for the quarter were $5.9 million, reflecting the company's commitment to invest in research and development and expand its sales and marketing efforts.
Revenue Growth
Aehr Test Systems experienced solid revenue growth across its product and service segments. Product revenue for the quarter was $19.4 million, a substantial increase from $9.6 million in the same period last year. Cost of product revenue during the quarter was $9.9 million. Service revenue reached $1.3 million, while the cost of service revenue was $0.7 million. This growth can be attributed to the strong demand for the company's advanced semiconductor test and burn-in equipment.
Financial Stability
The company's balance sheet remains strong, with total assets of $105.5 million and total shareholders' equity of $80.1 million. Aehr Test Systems has a healthy cash position, with cash and cash equivalents of $51.1 million. The company continues to invest in property and equipment to support its growth and has a solid long-term operating lease position. With a strong financial foundation, the company is well-positioned to capitalize on opportunities in the semiconductor market.
Earnings Per Share
Basic earnings per share for the quarter were $0.16, compared to $0.02 in the same period last year. Diluted earnings per share for the quarter were also $0.16, compared to $0.02 in the previous year. The increase in earnings per share reflects the company's improved financial performance and efficient cost management.
Outlook
Looking ahead, Aehr Test Systems remains optimistic about its future growth prospects. The company expects continued strong demand for its semiconductor test and burn-in equipment, driven by trends such as the increasing adoption of advanced driver-assistance systems (ADAS) and autonomous vehicles. Additionally, the company continues to invest in research and development to enhance its product offerings and expand its customer base.
In conclusion, Aehr Test Systems delivered a strong performance in the third quarter of fiscal year 2023, achieving significant revenue growth and profitability. The company's solid financial position, along with its focus on innovation and customer satisfaction, positions it for continued success in the dynamic semiconductor industry.
