FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR), a global provider of semiconductor test and burn-in equipment, has announced receiving $23 million in follow-on orders from its existing customers. These orders are for the company's FOX™ wafer level test and burn-in products, which are integral to the production and engineering qualification processes for silicon carbide devices.
The customers have requested shipments to be scheduled from immediate dispatch to the conclusion of Aehr's fiscal year ending May 31, 2024. The orders comprise a substantial quantity of FOX WaferPak™ Contactors. These are designed for use with the company’s FOX-NP and FOX-XP wafer level test and burn-in systems, which can contact all dies on a wafer simultaneously, potentially numbering in the thousands.
Gayn Erickson, President and CEO of Aehr Test Systems, stated that these orders would support the customers' new design and production capacity requirements. Erickson highlighted the company's ability to expedite the delivery of WaferPaks due to enhanced design resources, optimized supply chain, and improved manufacturing and testing processes. He also expressed confidence in the growth potential of the WaferPak business in terms of revenue and its share of the company's overall revenue.
Aehr's FOX systems and WaferPaks cater to a variety of wafer sizes and can be configured for an extensive range of device applications. These systems are currently being utilized for the functional test and burn-in/cycling of not only silicon carbide but also gallium nitride power semiconductors, silicon photonics, optical devices, sensors, flash memories, and other advanced integrated circuits.
Headquartered in Fremont, California, Aehr Test Systems has been a key player in the semiconductor test solutions market, with a broad portfolio of products that address the increasing demands for quality, reliability, safety, and security in semiconductors used across various applications.
This announcement is based on a press release statement.
InvestingPro Insights
Aehr Test Systems (NASDAQ:AEHR) has recently secured significant follow-on orders, reinforcing the company's growth trajectory in the semiconductor test equipment sector. With an adjusted market capitalization of $488.99 million, Aehr's financial health and performance metrics offer investors a clearer picture of its market position.
InvestingPro data indicates that Aehr's revenue has grown by 33.53% over the last twelve months as of Q2 2024, with an even more impressive quarterly growth rate of 44.66%. This robust growth is a testament to the company's capacity to scale and meet increasing demand, aligning with the recent announcement of follow-on orders for its FOX systems and WaferPaks. Additionally, a high gross profit margin of 50.65% for the same period showcases the company's efficiency and ability to translate sales into profits effectively.
The company's P/E ratio stands at 22.87, which, when paired with a PEG ratio of 0.36, suggests that Aehr is trading at a low price relative to its near-term earnings growth potential. This is an InvestingPro Tip that could be of interest to value investors looking for growth at a reasonable price. Moreover, Aehr's strong return on assets of 24.9% reflects efficient management and a high level of profitability relative to the company's assets.
For those seeking more in-depth analysis, InvestingPro provides additional InvestingPro Tips, such as the company's liquid assets exceeding short-term obligations and its profitability over the last twelve months. Investors can access a comprehensive list of tips, including insights into analysts' revised earnings, stock price volatility, and more at https://www.investing.com/pro/AEHR. For a deeper dive into Aehr's financials and to take advantage of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
These metrics and tips offer a nuanced view of Aehr Test Systems' financial health and market potential, which is particularly relevant for stakeholders considering the company's recent business developments.
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