Q3 2024 Aehr Test Systems Earnings Call Transcript
Key Points
- Aehr Test Systems reported solid bookings in the third quarter of fiscal 2024, totaling $24.5 million.
- The company has a healthy backlog of $20 million, with the majority expected to be recognized as revenue in the fourth quarter of fiscal 2024.
- Aehr Test Systems maintains a strong balance sheet with $47.6 million in cash and cash equivalents and no debt.
- Interest income earned during the higher interest rate environment was $584,000 in the third quarter, showing effective cash management.
- The company has secured a total of seven silicon carbide customers for its FOX-P family of systems and is engaged with over a dozen additional silicon carbide players.
- Total revenue for the third quarter was down 56% from the same period last year, at $7.6 million.
- The decrease in revenue was attributed to delays in significant customer orders and a last-minute pushout by a customer of a system in the backlog.
- Gross margin for the third quarter decreased to 41.7%, down from 51.6% in the previous year's third quarter.
- Operating expenses in the third quarter slightly increased due to higher R&D expenses.
- The company faced challenges due to softness in the overall semiconductor capital spending and shifts in electric vehicle introductions and ramps, impacting bookings and revenue forecasts.
Greetings and welcome to the Aehr Test Systems third quarter fiscal 2024 financial results call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I would now turn the conference over to your host, Jim Byers of MKR Investor Relations. You may begin.
Thank you, operator. Good afternoon, and welcome to Aehr Test Systems third quarter fiscal 2024 financial results conference call. With me on today's call are Aehr Test Systems' President and Chief Executive Officer, Gayn Erickson, and Chief Financial Officer, Chris Siu. Before I turn the call over to Jane and Chris, I'd like to cover a few quick items this afternoon right after the market closed, Aehr Test issued a press release announcing its fiscal 2024 third quarter financial results. That release is available on the Company's website at
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