Aehr Test Systems (AEHR) Q4 2023 Earnings Call Transcript Summary

1. Aehr Test Systems reported record financial performance in Q4 and fiscal year 2023 with revenue increasing by 28% YoY to $65 million.

2. The company generated a record $10 million in operating cash flow in fiscal 2023, up more than 500% from the prior year, and expects full year total revenue to be at least $100 million in fiscal 2024, representing growth of over 50% YoY.

3. Aehr's strong financial position includes a cash balance of $47.9 million at year-end, up 52% YoY, and zero debt, allowing them to invest excess cash in short-term investments to take advantage of higher interest rates.

Aehr Test Systems has reported record financial performance for both the fourth quarter and the fiscal year 2023. Revenue increased by 28% to a record $65 million on a year-over-year basis, while non-GAAP net income increased by 62% to a record $17.3 million. The company generated a record $10 million in operating cash flow in fiscal 2023, up more than 500% from the prior year.

Demand for Aehr's products was very strong in fiscal 2023, with record annual bookings of $78.3 million, up 30% from the prior fiscal year. Bookings in the fourth quarter were $15.2 million, and backlog as of yearend was $24.5 million, up 121% from a year ago. The company now has an effective backlog of nearly $40 million, thanks to more than $15 million bookings received in the first six weeks of the first quarter of fiscal 2024.

In Q4 2023, Aehr delivered record quarterly revenue of $22.3 million, up 10% from $20.3 million year-over-year. The company's FOX-P systems drove the record revenue in the quarter, with WaferPak and DiePak consumables revenue accounting for 38% of total revenue. GAAP gross margin for the quarter came in at 51.5%, compared to 51.6% last year, while operating expenses were $5.8 million, up 26% from $4.6 million year-over-year, driven by increased headcount related expenses to support sales initiatives and R&D programs.

Aehr finished the year with a strong cash position, with cash, cash equivalents, and short-term investments of $47.9 million at year-end, up 52% from $31.5 million year-over-year. The company generated $5.8 million in operating cash flow during the quarter, up more than 800% year-over-year, and has zero debt. Aehr expects full year total revenue to be at least $100 million in fiscal 2024, representing growth of over 50% year-over-year, and GAAP net income of at least $28 million, representing earnings growth of greater than 90% year-over-year.