AEM Holdings has reported earnings of $19.7 million, a drop of 76.2% y-o-y, on lower demand for its chips testing services.
Revenue in the same period was down by nearly half, or 49.1%, to $275.2 million, as the semiconductor down cycle persists and the industry works through excess inventory.
The company now expects revenue for whole of FY2023 to be between $460 million and $490 million, given an expected delay in product rollout of a key customer.
AEM had earlier guided for FY2023 revenue of around $500 million.
"The past several quarters have seen the industry going through a period of inventory digestion," says AEM on Aug 11.
"Industry players have looked to weather the storm by delaying their roadmap device releases, reducing their capex spend, and renewing their focus on operational efficiency.
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AEM adds that the slowdown has resulted in a short-term reduction in demand for new test capability and capacity. On the other hand, it has provided test development groups the "breathing room" to plan and devise their test strategies so that they can better ride the coming AI-fuelled boom that will help drive the industry to a trillion-dollars, says AEM.
AEM shares closed at $3.42 on Aug 11, down 0.87% for the day and down 1.16% year to date.
