AEHR Stock Increased 21%: Why It Happened

By Amit Chowdhry ● July 18, 2021
  • The stock price of Aehr Test Systems (NASDAQ: AEHR) increased 21% on Friday, July 16. This is why it happened.

The stock price of Aehr Test Systems (NASDAQ: AEHR) – a worldwide supplier of semiconductor test and reliability qualification equipment – increased 21% on Friday, July 16, going from a previous close of $2.81 to $3.40. Investors responded positively to the company announcing the financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021.

These were the Q4 financial results:

— Net sales were $7.6 million, up 102% from $3.8 million in the fourth quarter of fiscal 2020.

— GAAP net income was $567,000, or $0.02 per diluted share, compared to a GAAP net loss of $2.9 million, or $0.13 per diluted share — which included approximately $1.9 million in inventory and restructuring charges, or $0.08 per share, in the fourth quarter of 2020.

— Non-GAAP net income was $870,000, or $0.04 per diluted share, which excludes the impact of stock-based compensation, compared to a non-GAAP net loss of $720,000, or $0.03 per diluted share, which excludes the impact of stock-based compensation expense and inventory and restructuring charges, in the fourth quarter of 2020.

— Bookings were $5.5 million for the quarter, up 113% from $2.6 million in the fourth quarter of fiscal 2020.

— Backlog as of May 31, 2021 was $1.6 million. Effective backlog, which includes backlog at the end of the fourth quarter plus orders since the end of the fourth quarter, is $7 million.

Fiscal Year Financial Results:

— Net sales were $16.6 million, compared to $22.3 million in fiscal 2020.

— GAAP net loss was $2 million, which included the impact of a non-cash net gain of $2.2 million and tax benefit of $215,000 related to the closure of Aehr’s Japan subsidiary in the first quarter, or $0.09 per diluted share, compared to a GAAP net loss of $2.8 million, or $0.12 per diluted share, which included approximately $1.9 million in inventory and restructuring charges, or $0.08 per share, in fiscal 2020.

— Non-GAAP net loss was $3.3 million, or $0.14 per diluted share, which excludes the impact of stock-based compensation and the $2.4 million related to the closure of Aehr’s Japan subsidiary. And this compares to non-GAAP net loss of $27,000, or $0.00 per diluted share, which excludes the impact of stock-based compensation expense and inventory and restructuring charges, in fiscal 2020.

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