Aehr Test Systems (NASDAQ:AEHR) Receives $2.7 Million Purchase Order

Aehr Test Systems (NASDAQ:AEHR)

Shares of Aehr Test Systems (NASDAQ:AEHR) gained 11% after the worldwide supplier of semiconductor test and burn equipment announced a $2.7 million follow-on order. The purchase order is for the supply of the company’s OX-XP system, multiple DiePak® Carriers. In addition to the $2.7 million order, Aehr Test System has reported a 31% increase in Q1 revenue.

AEHR Stock Performance

Investors reacted to the news by pushing the stock to $3.52, which happens to be a key resistance level, in a falling trend line. Should Aehr Test Systems (NASDAQ:AEHR) rise above the $3.60, it could make a push to $4, which happens to be another key resistance level.

While Aehr Test Systems (NASDAQ:AEHR) is up by more than 10% for the year, it is still down by more than 30% from its April highs of $6 a share. The stock has been trading in a downtrend in recent months after struggling to rise above the $5 a share mark.

Aehr Test Systems (NASDAQ:AEHR)

The $2.7 million order should strengthen investor confidence on the stock as it continues to bounce back from multi-year lows.

The contract validates FOX –XP system unique capability of delivering thousands of test resources that has made it appropriate for volume test/burn in production.

“We are excited to receive these additional follow-on orders from this large multinational customer for their production test/burn-in requirements. The new orders build on an existing device test/burn-in implementation at this customer now moving into volume production, which continues to expand our production presence for multiple generations of devices,” said CEO Gayn Erickson.

Aehr Q1 Earnings

The $2.7 million FOX-XP orders follow reports that Aehr Test Systems (NASDAQ:AEHR) generated net sales of $7 million for the first quarter of 2017, up from $5.3 million reported the previous year. Non-GAAP net income came in at $226,000 or $0.01 a share compared to a net loss of (-$436,000) for the corresponding period last year.

During the quarter, the company received a $900,000 order for the supply of additional testing capability and power handling capacity to test and burn-in new silicon photonics. Late last month the company announced a volume production order worth more than $3 million

Taking into consideration the $2.7 million order, Aehr Test Systems (NASDAQ:AEHR) entered the second quarter with a backlog of $18 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Aehr Test Systems (NASD:AEHR) How Long Can This Last?

Aehr Test Systems (NASD:AEHR)

Aehr Test Systems (NASD:AEHR), a global supplier of semiconductor test and burn-in equipment, today announced that it has received an order in excess of $4 million from a subcontractor to its lead customer for the FOX-XP Test and Burn-in System. Shares responded to the news by gaining over 20% and closing at $4.99. Volumes were heavy – over five times the average daily volume exchanged hands. This recent order comes less than a month after another order sent AEHR shares soaring 37.5%.

Gayn Erickson, President and CEO of Aehr Test Systems, commented, “We have been working closely with the end customer of this application for more than a year and are very excited to receive this first system order. We expect that this application will drive incremental capacity in the near term and over the next year or two. This order is further endorsement of our unique test and burn in technology and represents our second major customer for the FOX-XP Test and Burn-in System for a high-volume manufacturing application.”

While trading saw shares of Aehr Test Systems (NASD:AEHR) close at close to $5, earlier this year the stock was trading below $2.50 – so the stock has essentially doubled in less than a month. For the year, Aehr Test Systems (NASD:AEHR) has tripled in value. The catalyst is easy to see. In 2016 Aehr Test Systems (NASD:AEHR) posted sales of $14.5 million. Less than 60 days into the new year, the company already can be seen to achieve at least half of their 2016 sales figures.

Only one firm follows Aehr Test Systems (NASD:AEHR) and they rate the shares as a “Strong Buy”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Marc has a degree in economics and a MSc. in Finance. Over his 20 year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

2/21/2017
Ticker Symbol AEHR
Last Price a/o 5:47 PM EST  $                      4.65
Average Volume                    254,900
Market Cap (mlns)  $                    81.84
Sales (mlns) $12.80
Shares Outstanding (mlns) 16.4
Share Float (mlns) 14.13
Shortable Yes
Optionable No
Inside Ownership 3.40%
Short Float 0.96%
Short Interest Ratio 0.53
Quarterly Return 64.14%
YTD Return 107.05%
Year Return 309.02%