Revenue Performance - Revenue increased to $18.3 million for the three months ended February 28, 2025, up 142% from $7.6 million for the same period in 2024, driven by increased shipments to a new semiconductor customer[112]. - Revenue for the nine months ended February 28, 2025, decreased to $44.9 million, down 10% from $49.6 million for the same period in 2024, primarily due to decreased shipments in the power semiconductor sector[113]. - Revenue from the United States increased by 544% to $10.6 million for the three months ended February 28, 2025, compared to $1.6 million for the same period in 2024[114]. - Asia's revenue decreased by 36% to $27.9 million for the nine months ended February 28, 2025, compared to $43.3 million for the same period in 2024, primarily due to softness in power semiconductor demand[114]. Profitability - Gross profit for the three months ended February 28, 2025, increased to $7.2 million, a 128% increase from $3.2 million for the same period in 2024, despite a decrease in gross margin to 39.2%[118]. - Gross profit for the nine months ended February 28, 2025, decreased to $19.7 million, down 18% from $24.1 million for the same period in 2024, with gross margin decreasing to 43.8%[119]. Expenses - Research and development expenses increased to $3.1 million for the three months ended February 28, 2025, a 47% increase from $2.1 million for the same period in 2024[120]. - Selling, general and administrative expenses rose to $5.2 million for the three months ended February 28, 2025, a 69% increase from $3.1 million for the same period in 2024[122]. Acquisitions - The company completed the acquisition of Incal Technology, Inc. on July 31, 2024, contributing to revenue growth in package parts burn-in products[111]. - Net cash used in investing activities increased by $30.5 million for the nine months ended February 28, 2025, primarily due to the acquisition of Incal for $11.1 million and increased spending on property and equipment[132]. Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash decreased to $31.4 million as of February 28, 2025, from $47.7 million as of February 29, 2024[128]. - Net cash used in operating activities decreased by $5.6 million for the nine months ended February 28, 2025, compared to the prior period, driven by a net loss and lower revenue[130]. - Net cash provided by financing activities increased by $0.7 million for the nine months ended February 28, 2025, due to a reduction in shares repurchased for tax withholdings[133]. Other Financial Information - The company has not recorded any impairment charges during the three and nine months ended February 28, 2025[109]. - Interest and other income, net decreased by 58% to $245,000 for the three months ended February 28, 2025, and by 35% to $1,168,000 for the nine months ended February 28, 2025, primarily due to lower interest income from reduced cash balances and lower yields from investments[124][125]. - The company recognized an income tax benefit of $(231,000) for the three months ended February 28, 2025, compared to an expense of $7,000 for the same period in 2024, reflecting losses in the U.S.[126][127]. - The company does not have any off-balance sheet arrangements or undisclosed borrowings[134]. - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk[135].

Financial Data and Key Metrics Changes - Revenue for Q3 totaled $18.3 million, a 142% increase compared to $7.6 million in Q3 last year, driven primarily by shipments of the new high-power Fox XP solution for AI processors [55][56] - Non-GAAP gross margin for Q3 was 42.7%, slightly up from 42.5% in the same period last year, despite a less favorable product mix and one-time charges [58] - Non-GAAP net income for Q3 was $2.0 million, or $0.07 per diluted share, compared to a net loss of $888,000, or negative $0.03 per diluted share in Q3 fiscal 2024 [62] Business Line Data and Key Metrics Changes - AI processors burn-in now represents over 35% of the company's business, a significant increase from previous years where silicon carbide accounted for over 90% [17][54] - WaferPak revenues were $5.9 million, accounting for 32% of total revenue in Q3, down from 63% in the same period last year [56] - Bookings for Q3 were $24.1 million, compared to $9.2 million in Q2 fiscal 2025, with an effective backlog now standing at $21.8 million [57] Market Data and Key Metrics Changes - The total addressable market for wafer-level and packaged part burn-in markets is projected to exceed $1 billion by 2027, with significant growth opportunities in AI processors and gallium nitride semiconductors [16][45] - The silicon carbide market is expected to exceed $10 billion by 2029, driven by electric vehicles and other industrial applications [41] - The NAND market in 2025 is projected to exceed $80 billion, indicating substantial potential for wafer-level burn-in solutions [37][38] Company Strategy and Development Direction - The company is focused on expanding its total addressable markets, diversifying its customer base, and developing new products to drive growth [16][48] - Strategic expansion into high-growth sectors, including AI processors, gallium nitride power semiconductors, and flash memory, is expected to attract new customers and drive revenue growth [48][65] - The integration of NCAL Technology has enabled the company to scale output significantly, achieving two to three times the previous record shipment volume [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the impact of recent tariff announcements will not significantly affect the company directly, but acknowledged potential secondary effects on customers [11][48] - The company is temporarily withdrawing guidance for the current fiscal year due to uncertainties regarding customer orders and supply chain delivery delays [64] - Management remains optimistic about the long-term growth potential across diverse target markets, particularly in AI and gallium nitride sectors [65] Other Important Information - The company has no debt and continues to invest excess cash in money market funds, with cash and equivalents totaling $31.4 million at the end of Q3 [63] - The integration of the InCal acquisition is progressing well, with plans to complete it by the end of the fiscal year [51][52] Q&A Session Summary Question: Impact of tariffs on end markets - Management indicated that the impact of tariffs is more about specific customers and geographies rather than entire markets, with ongoing assessments to mitigate risks [70][71] Question: Shipping backlog and guidance - Management acknowledged that not all backlog will ship in the current quarter, with some shipments planned for future quarters [88][89] Question: Growth expectations across diversified markets - Management expressed optimism about growth in silicon carbide, AI processors, and gallium nitride, with expectations for increased demand in the coming years [96][100]

Company Performance - Aehr Test Systems reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, compared to a loss of $0.03 per share a year ago, representing an earnings surprise of 600% [1] - The company posted revenues of $18.31 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 4.02%, and compared to year-ago revenues of $7.56 million [2] - Over the last four quarters, Aehr Test Systems has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Aehr Test Systems shares have declined approximately 56.6% since the beginning of the year, while the S&P 500 has decreased by 13.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on $22.8 million in revenues, and $0.23 on $67 million in revenues for the current fiscal year [7] Industry Outlook - The Electronics - Measuring Instruments industry, to which Aehr Test Systems belongs, is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

Financial Performance - Net revenue for Q3 fiscal 2025 was $18.3 million, a 141% increase from $7.6 million in Q3 fiscal 2024[6] - GAAP net loss was $(0.6) million, or $(0.02) per diluted share, compared to a loss of $(1.5) million, or $(0.05) per diluted share in Q3 fiscal 2024[6] - Non-GAAP net income was $2.0 million, or $0.07 per diluted share, compared to a non-GAAP net loss of $(0.9) million, or $(0.03) per diluted share in Q3 fiscal 2024[6] - Total revenue for the three months ended February 2025 was $18,307,000, a 36.5% increase from $13,453,000 in the same period of 2024[20] - Gross profit for the three months ended February 2025 was $7,183,000, compared to $5,400,000 for the same period in 2024, representing a 33.0% increase[20] - Operating expenses for the three months ended February 2025 totaled $8,302,000, up from $6,913,000 in the same period of 2024, indicating a 20.1% increase[20] - Net loss for the three months ended February 2025 was $643,000, an improvement from a net loss of $1,028,000 in the same period of 2024[20] - Non-GAAP net income for the three months ended February 2025 was $1,981,000, compared to $691,000 in the same period of 2024[21] - The diluted net income (loss) per share for the three months ended February 2025 was $(0.02), compared to $(0.03) for the same period in 2024[21] Revenue Sources and Market Opportunities - The company has diversified its revenue sources, with SiC wafer level burn-in (WLBI) accounting for less than 40% of business, down from over 90% in fiscal 2024[7] - The SiC market remains a significant opportunity, with recovery in utilization rates and customer forecasts, driven by electric vehicles and adjacent sectors[10] - Aehr is strategically expanding into high-growth sectors, including AI processors, GaN power semiconductors, and flash memory, to drive revenue growth[13] Technological Advancements - The new high-power FOX-XP WLBI system can test up to nine 300mm AI processor wafers simultaneously, marking a significant technological advancement[8] - Aehr has expanded into production PPBI for AI processors and has shipped multiple Sonoma production burn-in systems to a leading hyperscaler[9] Guidance and Future Outlook - The company is temporarily withdrawing its fiscal 2025 guidance due to ongoing tariff uncertainty, but remains optimistic about future growth[12] Expenses and Investments - Research and development expenses for the three months ended February 2025 were $3,140,000, an increase from $2,276,000 in the same period of 2024, reflecting a 37.9% rise[20] - Total cost of revenue for the three months ended February 2025 was $11,124,000, up from $8,053,000 in the same period of 2024, marking a 38.5% increase[20] - The company incurred stock-based compensation expenses of $218,000 for the three months ended February 2025, compared to $69,000 in the same period of 2024[21] - Stock-based compensation expense increased to $3,741,000 from $1,744,000, indicating a rise of approximately 114.3%[26] - The company invested $11,075,000 in business acquisitions during the nine months ended February 28, 2025[26] Balance Sheet and Cash Flow - Total assets increased to $145,607,000 as of February 28, 2025, up from $127,912,000 on May 31, 2024, representing a growth of approximately 13.8%[25] - Cash and cash equivalents decreased to $29,411,000 from $49,159,000, reflecting a decline of approximately 40.3%[25] - Total current liabilities rose to $16,064,000, an increase of 52.9% from $10,508,000 in the previous period[25] - Shareholders' equity increased to $124,210,000 from $111,593,000, marking an increase of approximately 11.3%[25] - Cash flows from operating activities resulted in a net outflow of $5,098,000 for the nine months ended February 28, 2025, compared to a net inflow of $532,000 in the prior year[26] Inventory and Receivables - Inventories increased to $42,329,000 from $37,470,000, reflecting a growth of approximately 12.4%[25] - The company reported a decrease in accounts receivable to $11,991,000 from $9,796,000, an increase of approximately 22.3%[25]

Aehr Test Systems, Inc. AEHR will release earnings results for the third quarter, after the closing bell on Tuesday, April 8.Analysts expect the Fremont, California-based company to report quarterly earnings at 4 cents per share, versus a year-ago loss of 3 cents per share. According to data from Benzinga Pro, Aehr Test Systems projects quarterly revenue at $17.76 million, compared to $7.56 million a year earlier.On March 13, Aehr said it secured initial $4.7 million in follow-on production orders for FOX-C ...

Core Insights - The article emphasizes the importance of creating engaging and educational financial content for various audiences, particularly for financial advisors and investment firms [1] Group 1: Content Creation - The company specializes in producing written content in multiple formats, including articles, blogs, emails, and social media [1] - There is a focus on thematic investing, market events, and client education to make financial data accessible and relevant [1] - The use of empirical data and charts is highlighted as a method to create evidence-based narratives [1] Group 2: Market Analysis - The company expresses enthusiasm for analyzing stock market sectors, ETFs, economic data, and broad market conditions [1] - Macro drivers of asset classes such as stocks, bonds, commodities, currencies, and crypto are identified as key areas of interest [1] - The content aims to communicate complex financial concepts in a simple and engaging manner [1]

Group 1 - The DJS Law Group is reminding investors of a class action lawsuit against Aehr Test Systems, Inc. for violations of federal securities laws [1] - Shareholders who purchased Aehr's securities between January 9, 2024, and March 24, 2024, are encouraged to contact the firm [1] - The lawsuit alleges that Aehr made false and misleading statements regarding significant delays in customer orders, which likely impacted the Company's revenue growth [2] Group 2 - DJS Law Group specializes in securities class actions, corporate governance litigation, and M&A appraisals, focusing on enhancing investor returns [3] - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Aehr Test Systems, Inc. regarding a class action lawsuit due to alleged misleading statements and undisclosed delays in customer orders that negatively impacted the company's revenue growth [1][2]. Group 1: Allegations and Impact - The complaint alleges that during the class period from January 9, 2024, to March 24, 2024, Aehr Test Systems continued to experience substantial delays in customer orders, contrary to prior representations [1]. - These delays are likely to have a material negative impact on the company's revenue growth, suggesting that the company's business and financial prospects were overstated [1]. - As a result, the company's public statements were materially false and misleading throughout the relevant period [1]. Group 2: Class Action Details - Shareholders who purchased shares of Aehr during the specified class period are encouraged to register for the class action, with a deadline set for February 3, 2025 [2]. - Once registered, shareholders will be enrolled in a portfolio monitoring software to receive status updates throughout the lifecycle of the case [2]. - There is no cost or obligation for shareholders to participate in this case [2]. Group 3: Law Firm's Mission - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered due to deceit, fraud, and illegal business practices [3]. - The firm aims to ensure that companies adhere to responsible business practices and engage in good corporate citizenship [3]. - The firm seeks recovery for investors who incurred losses due to false or misleading statements that led to artificial inflation of the company's stock [3].

Core Insights - Aehr Test Systems' shares fell by 8.6% in response to the release of updated AI models by Chinese start-up DeepSeek [1] - The company recently signed its first AI customer, indicating a strategic shift towards the AI processor market to mitigate weaknesses in its core silicon carbide chip market [2] Market Context - DeepSeek's low-cost AI solutions pose a threat to U.S. AI companies and the infrastructure providers, including those supplying AI processors that require Aehr's wafer-level burn-in test equipment [3] - Aehr's primary market, which traditionally accounts for about 90% of its revenue, is the silicon carbide wafer-level test and burn-in equipment market, heavily driven by electric vehicle (EV) demand [4] Challenges and Opportunities - The near-term growth in the silicon carbide market is hindered by disappointing EV sales attributed to high interest rates, with management indicating that growth outside of China will remain challenging until 2026 [5] - Despite the setback from DeepSeek's AI developments, there is potential for increased adoption of AI applications, which could positively impact AI processor companies and benefit Aehr's market position [5]

NEW YORK, Jan. 31, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Aehr Test Systems, Inc. ("Aehr" or the "Company") (NASDAQ: AEHR) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Aehr investors who were adversely affected by alleged securities fraud between January 9, 2024 and March 24, 2024. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/aehr-lawsuit-submission-form?prid ...