Aehr Test Systems (NASDAQ:AEHR) stock surges 10.50% (As on October 11, 11:14:56 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 25. Silicon carbide wafer level burn-in test systems and full wafer contactors are poised to be key contributors to revenue again this year. The company is also forecasting material bookings and revenue contributions from several other markets this fiscal year, as the company is successfully executing on the strategy to expand the test and burn-in products into other large and fast-growing markets such as artificial intelligence processors, gallium nitride power semiconductors, hard disk drive components and flash memory devices. The company have been seeing a stabilization and increasingly positive discussions within the silicon carbide power semiconductor market over the past quarter. Electric vehicle (EV) suppliers are clearly moving towards silicon carbide in integrated modules, combining silicon carbide MOSFETs into single packages to meet the industry’s power, efficiency, and cost-effectiveness demands. Due to the need for extensive test and burn-in of these devices to ensure reliability for mission-critical applications like EVs, the benefits of conducting this screening at the wafer level before integrating them into modules, which may sometimes contain 32 or more other devices, are becoming clear. The process improves yields and reduces costs, driving demand for wafer level burn-in, an area where Aehr Test stands as the low-cost leader and proven solution for this critical testing. The silicon carbide customers are forecasting capacity expansion needs in calendar 2025, with several anticipating purchases of one or two systems in early 2025, followed by production volumes in the second half of the year, and ramping further into 2026.

AEHR in the first quarter of FY 25 has reported the adjusted earnings per share of 5 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue of $13.1 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $12.18 million. Non-GAAP net income, which excludes the impact of stock-based compensation, acquisition-related costs, and amortization of intangible assets, was $2.2 million compared to non-GAAP net income of $5.2 million, in the first quarter of fiscal 2024. Bookings were $16.8 million for the quarter. Backlog as of August 30, 2024 was $16.6 million. Total cash, cash equivalents and restricted cash as of August 30, 2024 were $40.8 million, compared to $49.3 million at May 31, 2024, reflecting $10.6 million in net cash paid during the quarter for the acquisition of Incal Technology, Inc.