The semiconductor shortage is continuing to rage worldwide. Since nearly everything in our tech-saturated lives makes use of chips, we are at the will of manufacturers. New cars, new computers, even new appliances are being slowed in terms of production as manufacturers struggle to maintain a steady supply of chips. As companies continue to catch up to the rabid demand for chips, Aehr Test Systems (NASDAQ:AEHR) is one of the few companies to benefit from the frenzy. And with its new earnings report flexing a return to pre-pandemic fiscal normalcy, AEHR stock is up big.
Aehr Test Systems is based in California and specializes on the manufacturing of semiconductor testing equipment. The company is behind the development of multiple different robust systems for testing wafers. Wafers are thin slices of silicon that play a big part in the production of chips. Since they perform very exact and complex functions, the manufacturing of these semiconductor wafers is precise. As such, there is a high demand for testing equipment that is detailed and top-of-the-line.
AEHR Stock Gains as Revenue Returns to Pre-Pandemic Levels
Aehr’s 2021 fiscal year ended on May 31. Yesterday, the company reported its Q4 earnings, and investors are enjoying what they are seeing. Net sales for the year are at $16.6 million, which is less than 2020’s earnings of $22.3 million. However, net sales for the quarter are at $7.6 million, representing nearly half of the entire year’s revenue. The Q4 earnings are flexing a 102% growth over Q4 2020.
This is only the beginning of an optimistic fiscal 2022 for the company. President and CEO Gayn Erickson is teasing a promising 2022 Q1 with the report, saying “we are off to a strong start for fiscal 2022 with $5.4 million in bookings and an effective backlog of $7 million quarter to date.” The company is expecting full-year revenue for 2022 to be over $28 million, which would be a year-over-year increase of over 70%.
The news is translating into a big win for AEHR stock. AEHR is up 22% on the day, and trading volume is flying high. 71 million shares are changing hands today against the company’s daily average volume of just over 400,000.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.