Investing.com — Shares of Aehr Take a look at Programs (NASDAQ:) slumped in early buying and selling in New York on Wednesday after the chip tools tester slashed its annual income expectations.

In an announcement launched on Tuesday, the Fremont, California-based firm warned {that a} slowdown within the progress price of the electrical automobile market during the last sixty days has negatively impacted the timing of a number of present and new buyer orders.

Nasdaq-listed Aehr added that it expects that this delay will “almost definitely” dent income in its 2024 fiscal 12 months.

“Given the most recent forecasts from our prospects and the uncertainty on the timing of their orders, we imagine it is sensible to take a extra conservative strategy to our fiscal 12 months forecast,” mentioned Chief Government Gayn Erickson in an announcement.

Projections for twelve-month income have been subsequently slashed by as a lot as 25% to a variety of $75 million-$85 million, properly under common analysts estimates of $103.1 million, in accordance with LSEG information cited by Reuters.

Nonetheless, web income in Aehr’s fiscal second quarter jumped by 45% in comparison with the identical interval final 12 months to $21.4M, pushing adjusted web revenue up by practically 50% to $6.7M. Erickson famous that the enterprise nonetheless sees “large alternative” within the years forward.

“We proceed to listen to from our present prospects in addition to firms we’re engaged in evaluations with that wafer degree burn-in is essential to their product roadmaps to deal with a number of giant and rising markets,” Erickson mentioned.