Aehr Test Systems (NASDAQ:AEHR) stock plummets 17% (As on January 10, 11:33:40 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the second quarter of FY 24 but lowered its financial outlook. Last month, the company had announced the first order for a FOXTM wafer level test and burn-in system to be used for gallium nitride (GaN) applications. This customer is a leading global supplier of semiconductor devices used in electric vehicles and power infrastructure and adds another major customer to the list of companies using Aehr’s FOX products for wafer level test and burn-in of wide bandgap compound semiconductors. The company continues to make great progress with our previously announced benchmarks and engagements with prospective new customers, including the significant automotive qualification of wafer level burn-in we have been doing with one of the market leaders in silicon carbide (SiC). The company has made significant progress in expanding the customer base for SiC and GaN wafer level burn-in for a wide variety of applications. The company currently have a total of seven customers purchasing our solutions for SiC and GaN devices and are also actively engaged with more than two dozen SiC and GaN companies to address their needs for wafer level test and burn-in of these devices. The company is also excited about the potential for the new silicon photonic optical I/O or co-packaged optics market and are expecting to ship the first FOX production system in our third fiscal quarter. This FOX-XP system with new high-power WaferPaks is configured to enable cost-effective production test of up to 3,500 watts of power per wafer and up to nine full wafers in parallel. It also enables the customers to easily dock to the new FOX WaferPak Auto Aligner for hands free operation of 6” to 12” wafers using industry standard wafer cassettes and FOUPs including robotic and overhead transport of wafers in FOUPs.

AEHR in the second quarter of FY 24 has reported the adjusted earnings per share of 23 cents, beating the analysts’ estimates for the adjusted earnings per share of 18 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 45 percent to $21.43 million in the second quarter of FY 24, beating the analysts’ estimates for revenue by 6.62%.

For the fiscal year ending May 31, 2024, Aehr is  reducing the revenue expectations of at least $100 million this fiscal year by 15% to 25% to a range of $75 million to $85 million dollars, representing growth of 15% to 30% year over year, and GAAP net income to be of between 20% and 25% of revenue.