What happened
Fueled by a post-earnings share price surge, Aehr Test Systems (AEHR 1.50%) was quite the outperforming stock this week. According to data compiled by S&P Global Market Intelligence, it ended the week with a nearly 14% gain.
So what
After market hours on Thursday, Aehr reported its fiscal 2023 second-quarter results, and they were impressive. The company, which is doing a brisk business with its testing products for manufacturers in the hot electric vehicle (EV) market, trounced analysts' consensus estimates for both revenue and net income. It also posted a robust 54% year-over-year top-line increase, and guided for continued strong profitability across the remainder of its fiscal year.
As if to bolster the argument that it's a company on the move, Aehr concurrently announced that it had scored a follow-on production order from one of its customers. It will provide this entity, which was identified only as its "second major silicon carbide semiconductor customer," with its FOX-XP multi-wafer test and burn-in system.
Now what
In the press release announcing the deal, Aehr CEO Gayn Erickson said that there's more business where that came from. "They have told us, and we believe they will order, a significant number of FOX-XP systems for volume production of their silicon carbide devices at facilities around the world to meet the exploding forecasted market demand for silicon carbide devices for electric vehicles and other industrial markets," he said.
Although the EV market has struggled to overcome the supply chain challenges that have lately plagued many industrial companies, demand for such vehicles appears to be holding up. That, plus Aehr's momentum, bodes quite well for the company's future.
