By Sabela Ojea
Aehr Test Systems swung to a loss in its fiscal second quarter and said it expects growth in silicon carbide sales outside of China to remain challenging this year.
Shares fell 11% to $14.25 in after-hours trading. Through Monday's close, the stock has fallen 8.5% over the past 12 months.
The semiconductor burn-in equipment maker on Monday posted a loss for the three months ended Nov. 29 of $1.03 million, or a loss of 3 cents a share, compared with a profit of $6.09 million, or 20 cents a share, for the same period a year earlier.
Revenue dropped to $13.5 from $21.4 million a year ago.
Chief Executive Gayn Erickson said that the company doesn't expect to see a recovery in silicon carbide sales until 2026 and said these sales account for less than half its total revenue as it expands into additional markets.
"While we remain cautiously optimistic about the opportunities in China, we also recognize the geopolitical, trade, and intellectual property risks associated with this market," Erickson said.
Aehr kept its guidance for fiscal 2025 unchanged, expecting revenue of at least $70 million.
Overall, Erickson expects market diversification into artificial intelligence processors, gallium nitride power semiconductors, data storage devices, silicon photonics integrated circuits, and flash memory to drive new opportunities in terms of customers and revenue.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
January 13, 2025 16:51 ET (21:51 GMT)
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