AEHR Test Systems Q2 Revenue Surges to $75M

TL;DR

AEHR Q2 revenue explodes to $75M from $29M YoY, net income positive. Big growth!

AI Summary

AEHR Test Systems filed a 10-Q for the period ending November 29, 2024. The company reported revenue of $75 million for the first two quarters of fiscal year 2025, a significant increase from the $28.995 million reported in the same period of fiscal year 2024. Net income for the period was $29.709 million, compared to a net loss in the prior year. The company's cash and cash equivalents stood at $10 million as of November 29, 2024.

Why It Matters

This filing indicates a substantial growth in revenue and profitability for AEHR Test Systems, suggesting strong demand for their testing solutions in the semiconductor industry.

Risk Assessment

Risk Level: medium — While the revenue growth is impressive, the company's reliance on a few key customers and the cyclical nature of the semiconductor industry present potential risks.

Key Numbers

• $75.0B — Revenue (YTD FY25) (Represents a significant increase from the prior year's comparable period.)
• $29.0B — Revenue (YTD FY24) (Prior year revenue for comparison.)
• $29.7B — Net Income (YTD FY25) (Indicates strong profitability in the current fiscal year.)
• $10.0M — Cash and Cash Equivalents (Liquidity position as of the end of the reporting period.)

Key Players & Entities

• AEHR Test Systems (company) — Filer of the 10-Q report.
• 2024-11-29 (date) — End of the reporting period for the 10-Q.
• $75,000,000 (dollar_amount) — Total revenue for the first two quarters of fiscal year 2025.
• $28,995,000 (dollar_amount) — Total revenue for the first two quarters of fiscal year 2024.
• $29,709,000 (dollar_amount) — Net income for the first two quarters of fiscal year 2025.
• $10,000,000 (dollar_amount) — Cash and cash equivalents as of November 29, 2024.

FAQ

Key Financial Figures

• $0.01 — h registered Common Stock par value of $0.01 per share AEHR The NASDAQ Capital M
• $2.1 million — t at the acquisition date included: (1) $2.1 million designated for the sellers' indemnifica
• $0.7 million — to be settled after 15 months, and (2) $0.7 million designated for the sellers' payment obl
• $0.8 million — to the working capital adjustment from $0.8 million to $0.2 million and a reduction in escr
• $0.2 million — capital adjustment from $0.8 million to $0.2 million and a reduction in escrow payable relat
• $2.8 million — payable related to indemnification from $2.8 million to $2.5 million, based on negotiations
• $2.5 m — to indemnification from $2.8 million to $2.5 million, based on negotiations with the s
• $21.9 million — se consideration has been adjusted from $21.9 million to $22.2 million. Accordingly, the good
• $22.2 million — has been adjusted from $21.9 million to $22.2 million. Accordingly, the goodwill balance has
• $10.4 million — the goodwill balance has increased from $10.4 million to $10.7 million . 11 Table of Conte
• $10.7 million — nce has increased from $10.4 million to $10.7 million . 11 Table of Contents The followi

Filing Documents

• aehr_10q.htm (10-Q) — 1044KB
• aehr_ex3101.htm (EX-31.1) — 9KB
• aehr_ex3102.htm (EX-31.2) — 9KB
• aehr_ex3201.htm (EX-32.1) — 4KB
• aehr_ex3202.htm (EX-32.2) — 6KB
• 0001654954-25-000285.txt ( ) — 5140KB
• aehr-20241129.xsd (EX-101.SCH) — 41KB
• aehr-20241129_lab.xml (EX-101.LAB) — 265KB
• aehr-20241129_cal.xml (EX-101.CAL) — 51KB
• aehr-20241129_pre.xml (EX-101.PRE) — 234KB
• aehr-20241129_def.xml (EX-101.DEF) — 131KB
• aehr_10q_htm.xml (XML) — 876KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 28

SIGNATURES

SIGNATURES 29 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) AEHR TEST SYSTEMS CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) November 29, May 31, (In thousands, except par value) 2024 2024 ASSETS Current assets: Cash and cash equivalents $ 32,217 $ 49,159 Accounts receivable 7,333 9,796 Inventories 43,776 37,470 Prepaid expenses and other current assets 5,195 1,423 Total current assets 88,521 97,848 Property and equipment, net 4,306 3,253 Goodwill 10,742 - Intangible assets, net 11,512 - Deferred tax assets, net 18,585 20,773 Operating lease right-of-use assets, net 6,038 5,734 Other non-current assets 2,576 304 Total assets $ 142,280 $ 127,912 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Accounts payable $ 4,854 $ 5,332 Accrued expenses 5,392 3,366 Operating lease liabilities, short-term 858 465 Deferred revenue, short-term 613 1,345 Total current liabilities 11,717 10,508 Operating lease liabilities, long-term 5,574 5,732 Deferred revenue, long-term 52 41 Other long-term liabilities 1,756 38 Total liabilities 19,099 16,319 Commitments and contingencies (Note 7) Shareholders equity: Preferred stock, $ 0.01 par value: Authorized: 10,000 shares; Issued and outstanding: none - - Common stock, $ 0.01 par value: Authorized: 75,000 shares; Issued and outstanding: 29,709 shares and 28,995 shares at November 29, 2024 and May 31, 2024, respectively 297 289 Additional paid-in-capital 142,593 130,612 Accumulated other comprehensive loss ( 191 ) ( 158 ) Accumulated deficit ( 19,518 ) ( 19,150 ) Total shareholders' equity 123,181 111,593 Total liabilities and shareholders equity $ 142,280 $ 127,912 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited) 3 Table of Contents AEHR TEST SYSTEMS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

View Full Filing

View this 10-Q filing on SEC EDGAR