Aehr Test Systems shares slump after chip equipment tester cuts annual forecast

Investing.com -- Shares of Aehr Test Systems (NASDAQ:AEHR) slumped in early trading in New York on Wednesday after the chip equipment tester slashed its annual revenue expectations.

In a statement released on Tuesday, the Fremont, California-based company warned that a slowdown in the growth rate of the electric vehicle market over the last sixty days has negatively impacted the timing of several current and new customer orders.

Nasdaq-listed Aehr added that it expects that this delay will "most likely" dent revenue in its 2024 fiscal year.

"Given the latest forecasts from our customers and the uncertainty on the timing of their orders, we believe it makes sense to take a more conservative approach to our fiscal year forecast," said Chief Executive Gayn Erickson in a statement.

Projections for twelve-month revenue were subsequently slashed by as much as 25% to a range of $75 million-$85 million, well below average analysts estimates of $103.1 million, according to LSEG data cited by Reuters.

However, net revenue in Aehr's fiscal second quarter jumped by 45% compared to the same period last year to $21.4M, pushing adjusted net income up by nearly 50% to $6.7M. Erickson noted that the business still sees "tremendous opportunity" in the years ahead.

"We continue to hear from our current customers as well as companies we are engaged in evaluations with that wafer level burn-in is critical to their product roadmaps to address multiple large and growing markets," Erickson said.