Financial Data and Key Metrics Changes - First quarter revenue was $11 million, a decrease of $2.1 million from $13.1 million in the same period last year, primarily driven by demand for FoxXP and FoxCP products [24] - Non-GAAP gross margin for the first quarter was 37.5%, down from 54.7% year-over-year, mainly due to lower sales volume and a less favorable product mix [25] - Non-GAAP net income for the first quarter was $0.3 million or $0.01 per share, compared to $2.2 million or $0.07 per share for the first quarter of fiscal 2025 [27] Business Line Data and Key Metrics Changes - Contactor revenues totaled $2.6 million, making up 24% of total revenue in the first quarter, significantly lower than $12.1 million or 92% of the previous year's first quarter revenue [25] - The company shipped multiple FoxCP single-wafer production test and burn-in systems during the quarter [24] Market Data and Key Metrics Changes - Continued momentum in the qualification and production burn-in of packaged parts for AI processors, with a leading hyperscaler placing multiple follow-on volume production orders for Sonoma systems [5][6] - Increased interest in wafer-level burn-in capabilities from AI processor companies, with ongoing customer engagements [10][11] Company Strategy and Development Direction - The company is focusing on semiconductor test and burn-in markets, particularly related to the expansion of data center infrastructure and AI [4] - Aehr Test Systems is positioned to assist customers with both wafer-level and packaged part burn-in systems, enhancing its market position [10] - The company is developing strategic partnerships to provide advanced wafer-level test and burn-in solutions for high-performance computing and AI processors [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in broad-based growth opportunities across AI and other markets, despite ongoing tariff-related uncertainties [23] - The company anticipates order growth in nearly all served markets for the fiscal year, with silicon carbide growth expected to strengthen further into fiscal 2027 [23] Other Important Information - The company completed a facility renovation that significantly upgraded manufacturing capabilities, increasing overall manufacturing capacity by at least five times [29] - The company has no debt and continues to invest excess cash in money market funds [29] Q&A Session Summary Question: When will there be a material improvement in bookings to drive revenue? - Management indicated that they anticipate additional capacity needs from their first AI wafer-level burn-in production customer, which could lead to increased bookings and revenue [32] Question: Do you have a target number of customers for shipping by the end of the fiscal year? - Management confirmed that they have discrete quantity targets and are focused on capturing multiple customers in both packaged and wafer-level segments [41] Question: What is the qualification process like for new customers? - Management stated that they do not need a new product cycle to engage customers and are working closely with them to validate capabilities [50] Question: What are the gating factors for customers transitioning from Sonoma to wafer-level burn-in? - Management explained that customers are currently using Sonoma for packaged part burn-in and are gradually moving towards wafer-level burn-in as they see the benefits [58]

[Fiscal 2026 First Quarter Financial Results Overview](index=1&type=section&id=Fiscal%202026%20First%20Quarter%20Financial%20Results%20Overview) This section provides an overview of Aehr Test Systems' financial results for the first quarter of fiscal 2026, highlighting key financial and business aspects [Company Information and Announcement](index=1&type=section&id=Company%20Information%20and%20Announcement) Aehr Test Systems announced its financial results for the first quarter of fiscal 2026, ended August 29, 2025, highlighting strong activity in AI and data center-related semiconductor test and burn-in - Aehr Test Systems (NASDAQ: AEHR) reported Q1 fiscal 2026 financial results for the period ended August 29, 2025[1](index=1&type=chunk) [CEO Commentary and Business Highlights](index=1&type=section&id=CEO%20Commentary%20and%20Business%20Highlights) CEO Gayn Erickson expressed satisfaction with the fiscal year's start, noting revenues across multiple segments and strong sales momentum in AI processors, exceeding street consensus estimates - Aehr finished ahead of street consensus estimates for both revenue and bottom line in Q1 fiscal 2026[4](index=4&type=chunk) - Momentum in packaged part qualification and production burn-in for AI processors continued to drive growth for new Sonoma ultra-high-power systems and consumables[5](index=5&type=chunk) [AI Processor Momentum](index=1&type=section&id=AI%20Processor%20Momentum) The company's lead production customer, a world-leading hyperscaler, placed multiple follow-on volume production orders for Sonoma systems, requesting shorter lead times due to higher-than-expected volumes for their advanced AI processors - A world-leading hyperscaler placed multiple follow-on volume production orders for Sonoma systems and requested shorter lead times for AI processors[5](index=5&type=chunk) - The lead customer plans to expand capacity and introduce new AI processors to be tested on the Sonoma platform, with collaboration on future generations[5](index=5&type=chunk) [Product and Technology Enhancements](index=2&type=section&id=Product%20and%20Technology%20Enhancements) Aehr introduced several enhancements to the Sonoma system, including expanding power-per-device to 2000W, increased parallelism, and full automation with an integrated package device handler, receiving positive customer feedback - Sonoma system enhancements include expanding power-per-device to 2000W, increased parallelism, and full automation with an integrated package device handler[7](index=7&type=chunk) - **10 companies** visited Aehr to review the Sonoma system and its new enhancements, with positive customer feedback[7](index=7&type=chunk) [Wafer Level Burn-in (WLBI) and Strategic Partnerships](index=2&type=section&id=Wafer%20Level%20Burn-in%20(WLBI)%20and%20Strategic%20Partnerships) Aehr delivered the world's first production wafer level burn-in (WLBI) systems for AI processors to a premier global OSAT, establishing a strategic partnership for advanced WLBI solutions for HPC and AI processors - Aehr delivered the world's first production wafer level burn-in (WLBI) systems for AI processors to a premier global OSAT[8](index=8&type=chunk) - A strategic partnership with a leading OSAT provides advanced wafer level test and burn-in solutions for high-performance computing (HPC) and AI processors[9](index=9&type=chunk) - A benchmark evaluation program was launched with a top-tier AI processor supplier to validate FOX-XP™ production systems for WLBI and functional test[10](index=10&type=chunk) [Other Market Segments and Industry Trends](index=2&type=section&id=Other%20Market%20Segments%20and%20Industry%20Trends) Beyond AI, Aehr is observing increasing demand in silicon photonics, hard disk drives, gallium nitride, and silicon carbide, driven by macro-trends like generative AI and electrification, which necessitate enhanced semiconductor reliability and performance - Increasing demand is observed in silicon photonics, hard disk drives, gallium nitride, and silicon carbide segments[11](index=11&type=chunk) - Macro-trends like generative AI and accelerating electrification are driving enormous growth in semiconductor demand and increasing reliability requirements[12](index=12&type=chunk)[13](index=13&type=chunk) [Outlook and Guidance](index=3&type=section&id=Outlook%20and%20Guidance) Aehr anticipates order growth across nearly all served markets in the fiscal year, with silicon carbide expected to strengthen into fiscal 2027, despite ongoing tariff-related uncertainty preventing formal guidance reinstatement - Aehr expects order growth in nearly all served markets in fiscal 2026, with silicon carbide growth strengthening into fiscal 2027[15](index=15&type=chunk) - The company remains cautious due to tariff-related uncertainty and has not reinstated formal guidance[15](index=15&type=chunk) [Key Financial Highlights (Summary)](index=1&type=section&id=Key%20Financial%20Highlights%20(Summary)) Aehr Test Systems reported a net revenue of **$11.0 million** for Q1 fiscal 2026, a decrease from **$13.1 million** in Q1 fiscal 2025, resulting in a GAAP net loss of **$(2.1) million** Fiscal First Quarter 2026 Key Financial Highlights | Metric | Q1 Fiscal 2026 (Ended Aug 29, 2025) (in millions) | Q1 Fiscal 2025 (Ended Aug 30, 2024) (in millions) | Change (YoY) (in millions) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------------------- | | Net Revenue | $11.0 million | $13.1 million | $(2.1) million (-16.0%) | | GAAP Net Income (Loss) | $(2.1) million | $0.7 million | $(2.8) million | | GAAP Diluted EPS | $(0.07) | $0.02 | $(0.09) | | Non-GAAP Net Income | $0.2 million | $2.2 million | $(2.0) million (-90.9%) | | Non-GAAP Diluted EPS | $0.01 | $0.07 | $(0.06) | | Bookings | $11.4 million | N/A | N/A | | Backlog (as of Aug 29, 2025) | $15.5 million | N/A | N/A | | Effective Backlog (incl. post-Aug 29 bookings) | $17.5 million | N/A | N/A | | Total Cash, Cash Equivalents & Restricted Cash (as of Aug 29, 2025) | $24.7 million | $26.5 million (May 30, 2025) | $(1.8) million (-6.8%) | [Management Conference Call and Webcast](index=3&type=section&id=Management%20Conference%20Call%20and%20Webcast) Aehr Test Systems hosted a conference call and webcast on October 6, 2025, at 5:00 p.m. Eastern (2:00 p.m. PT) to discuss its fiscal 2026 first quarter operating results, with replay options available - A conference call and webcast were held on October 6, 2025, at 5:00 p.m. Eastern to discuss Q1 fiscal 2026 results[15](index=15&type=chunk) [About Aehr Test Systems](index=3&type=section&id=About%20Aehr%20Test%20Systems) Aehr Test Systems, headquartered in Fremont, California, is a leading global provider of semiconductor test solutions, offering products like the FOX-P™ families, WaferPak™, and Sonoma systems for various applications including AI processors, EVs, and data infrastructure - Aehr Test Systems is a leading provider of test solutions for semiconductor devices in wafer level, singulated die, and packaged part form[16](index=16&type=chunk) - Key products include FOX-P™ families, FOX WaferPak™ Aligner, FOX DiePak® Carrier, and the ultra-high-power Sonoma family for AI accelerators, GPUs, and HPC processors[16](index=16&type=chunk) - The company's solutions address increasing quality, reliability, safety, and security needs across applications like electric vehicles, AI processors, and data infrastructure[16](index=16&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This section contains forward-looking statements regarding future customer orders, market applications, bookings, and revenue, which are subject to risks and uncertainties detailed in Aehr's SEC filings, with the company disclaiming any obligation to update these statements - The press release contains forward-looking statements concerning future customer orders, AI processor applications, bookings, and revenue from emerging markets[17](index=17&type=chunk) - Forward-looking statements are subject to risks and uncertainties described in Aehr's Form 10-K, 10-Q, and other SEC reports[18](index=18&type=chunk) [Financial Tables](index=4&type=section&id=Financial%20Tables) This section presents Aehr Test Systems' detailed GAAP and non-GAAP financial statements, encompassing operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations (GAAP)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) The GAAP condensed consolidated statements of operations show a net revenue of **$10,969 thousand** for Q1 fiscal 2026, a gross profit of **$3,719 thousand**, and a net loss of **$(2,084) thousand**, or **$(0.07)** per diluted share Condensed Consolidated Statements of Operations (GAAP) - Key Figures | Metric (in thousands) | Three Months Ended Aug 29, 2025 | Three Months Ended May 30, 2025 | Three Months Ended Aug 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | :------------------------------ | | Revenue | $10,969 | $14,089 | $13,119 | | Cost of revenue | $7,250 | $9,817 | $6,041 | | Gross profit | $3,719 | $4,272 | $7,078 | | Total operating expenses | $7,785 | $7,476 | $6,919 | | Income (loss) from operations | $(4,066) | $(3,204) | $159 | | Net income (loss) | $(2,084) | $(2,899) | $660 | | Diluted EPS | $(0.07) | $(0.10) | $0.02 | [Reconciliation of GAAP to Non-GAAP Results](index=4&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20RESULTS%20(Unaudited)) This section reconciles GAAP financial measures to non-GAAP measures, excluding stock-based compensation, acquisition-related adjustments, and restructuring charges, with non-GAAP net income for Q1 fiscal 2026 at **$171 thousand**, or **$0.01** per diluted share Reconciliation of GAAP to Non-GAAP Net Income (Loss) | Metric (in thousands) | Three Months Ended Aug 29, 2025 | Three Months Ended May 30, 2025 | Three Months Ended Aug 30, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | | GAAP net income (loss) | $(2,084) | $(2,899) | $660 | | Stock-based compensation expense | $1,671 | $1,421 | $870 | | Acquisition-related adjustments | $365 | $389 | $146 | | Restructuring charges | $219 | $864 | $- | | Acquisition-related costs | $- | $- | $477 | | Non-GAAP net income (loss) | $171 | $(225) | $2,153 | | Non-GAAP net income (loss) per diluted share | $0.01 | $(0.01) | $0.07 | - Non-GAAP measures exclude stock-based compensation, acquisition-related adjustments, restructuring charges, and acquisition-related costs to provide insight into underlying business performance[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS%20(Unaudited)) As of August 29, 2025, Aehr Test Systems reported total assets of **$144,092 thousand**, a decrease from **$148,508 thousand** at May 30, 2025, with total liabilities at **$21,698 thousand** and total shareholders' equity at **$122,394 thousand** Condensed Consolidated Balance Sheets - Key Figures | Metric (in thousands) | August 29, 2025 | May 30, 2025 | Change | | :-------------------- | :-------------- | :----------- | :----- | | Total current assets | $84,052 | $88,778 | $(4,726) | | Total assets | $144,092 | $148,508 | $(4,416) | | Total current liabilities | $11,913 | $15,638 | $(3,725) | | Total liabilities | $21,698 | $25,637 | $(3,939) | | Total shareholders' equity | $122,394 | $122,871 | $(477) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20SATEMENTS%20OF%20CASH%20FLOWS%20(Unaudited)) For the three months ended August 29, 2025, net cash used in operating activities was **$(282) thousand**, a decrease from **$2,380 thousand** provided in the prior year period, with net cash used in investing activities at **$(1,391) thousand** primarily due to purchases of property and equipment Condensed Consolidated Statements of Cash Flows - Key Figures | Metric (in thousands) | Three Months Ended Aug 29, 2025 | Three Months Ended Aug 30, 2024 | Change | | :-------------------------------- | :------------------------------ | :------------------------------ | :----- | | Net cash provided by (used in) operating activities | $(282) | $2,380 | $(2,662) | | Net cash provided by (used in) investing activities | $(1,391) | $(10,812) | $9,421 | | Net cash provided by (used in) financing activities | $(158) | $(106) | $(52) | | Net decrease in cash, cash equivalents and restricted cash | $(1,822) | $(8,529) | $6,707 | | Cash, cash equivalents and restricted cash, end of period | $24,658 | $40,780 | $(16,122) |

Core Viewpoint - Aehr Test Systems reported a decline in net revenue for the first quarter of fiscal 2026 compared to the same period in the previous fiscal year [1] Financial Results - The net revenue for the first quarter of fiscal 2026 was $11.0 million, down from $13.1 million in the first quarter of fiscal 2025 [1]

Group 1: Economic Context - The U.S. government shutdown is now in its second week, prompting investors to seek alternative economic reports to assess the economy's state [3] - The shutdown has implications for various sectors, as it may affect government services and economic data releases [3] Group 2: Company Developments - AMD has secured a multi-year deal to supply AI chips to Microsoft-backed OpenAI, resulting in a surge in AMD's stock price [4] - Boeing is preparing to increase the output of its 737 MAX aircraft this month, indicating a potential recovery in the aviation sector [9] - Stellantis is planning a $10 billion investment into its U.S. operations, reflecting confidence in the American market [8] Group 3: International Trade Dynamics - China is reportedly using barter trade to acquire Iranian oil and metals, circumventing Western sanctions, with state-backed companies involved in infrastructure projects in Iran [5][6] - The barter system involves Chinese state-owned insurer Sinosure and a financing mechanism called Chuxin, facilitating significant oil payments for infrastructure development [6] - Additionally, half-built cars from China are being shipped to Iran in exchange for Iranian copper and zinc, showcasing a complex trade relationship [7]

Market Overview - U.S. stock markets are showing a cautiously optimistic start to the week, with futures pointing higher despite the ongoing government shutdown, which has now entered its sixth day [1] - Investors are navigating a landscape marked by delayed economic data, anticipation of Federal Reserve policy decisions, and a flurry of corporate news [1] Premarket Activity and Index Futures - U.S. stock index futures are posting gains, with Nasdaq futures leading the advance; S&P 500 futures are up approximately 0.3% to 0.45%, Nasdaq 100 futures have climbed between 0.5% and 0.50%, and Dow Jones Industrial Average futures are rising around 0.2% to 0.26% [2] - Last week, all three major indices reached fresh record highs, with the S&P 500 and Dow both advancing around 1.1%, and the Nasdaq climbing 1.32% for the week [2] Major Market Indexes Performance and Trends - The S&P 500 is currently trading near its all-time high of 6754.26 points, having climbed 3.82% over the past month and 18.38% compared to the same time last year [3] - The Nasdaq Composite is in a rising trend channel, signaling increasing optimism, while the Dow Jones Industrial Average also shows strong development within a rising trend channel [3] - Positive sentiment is largely attributed to a "risk-on" trade around artificial intelligence (AI) and expectations of accommodative monetary policy [3] Upcoming Market Events - Key events this week include the release of the Federal Open Market Committee (FOMC) minutes on October 8, which will provide insights into the Federal Reserve's thinking following its September meeting [4] - The Fed is widely expected to cut rates again at its next meeting on October 28-29, potentially bringing the Federal Funds rate to a range of 3.75% to 4% [4] Economic Data Releases - Important economic data releases this week include consumer credit data on October 7 and the preliminary University of Michigan Consumer Sentiment index on October 10 [5] Earnings Season - The third-quarter earnings season is set to begin, with major banking giants such as JPMorgan Chase, Citigroup, and Wells Fargo among the first to report [6] - Several companies are scheduled to release earnings on October 6, including Constellation Brands, VinFast, and others [6] Major Stock News and Developments - Tesla has teased a possible new model ahead of an October 7 reveal, following strong vehicle delivery figures [11] - Apple saw its stock fall in premarket trading after a downgrade by Jefferies, citing overly high expectations for the forthcoming foldable iPhone [11] - Applied Materials announced that new U.S. export rules would reduce its fourth-quarter revenue and its 2026 revenue outlook [11] - Boeing may face further delays in the commercial service of its 777X aircraft, potentially pushing it back to 2027 [11] - Palantir Technologies' shares sank following a report indicating security problems in a new battlefield communications network [11] - Nvidia continues to be recognized as the best-performing stock in the S&P 500 over the last 10, 15, and 20 years [11] - Quantum Computing Inc. plans to utilize proceeds from a new offering to fund its commercialization efforts [11] - Firefly Aerospace's stock jumped after announcing a strategic acquisition of SciTec, Inc. [11] - Nikon Corporation announced a change in its major shareholder, with EssilorLuxottica increasing its stake to up to 20% [11] - Rio Tinto is set to roll out new technology in its pursuit of more metals, indicating strategic investments in operational efficiency [11]

Group 1 - Constellation Brands Inc. (NYSE:STZ) is expected to report quarterly earnings of $3.42 per share with revenue of $2.48 billion [2] - SkyWater Technology (NASDAQ:SKYT) has filed for a $350 million mixed shelf offering, with shares declining by 0.4% to $18.29 in after-hours trading [2] - Analysts predict Aehr Test Systems (NASDAQ:AEHR) will report a quarterly loss of 1 cent per share on revenue of $10.77 million, with shares increasing by 0.7% to $31.25 in after-hours trading [2] - Oruka Therapeutics Inc. (NASDAQ:ORKA) has filed for a mixed shelf offering of up to $500 million, with shares falling by 0.8% to $19.63 in after-hours trading [2] - VCI Global Ltd. (NASDAQ:VCIG) is projected to report results for the first half of the year, with shares decreasing by 0.9% to close at $6.37 [2]

Market Overview - The stock market opened higher on Friday, with Wall Street remaining unfazed by the ongoing U.S. government shutdown [2] - The Nasdaq Composite and S&P 500 reached new intraday record highs despite the shutdown entering its second day [2] - The prediction market Kalshi indicates a 69% chance that the shutdown will last more than 10 days [2] Economic Reports - Investors are closely monitoring upcoming economic reports, although the reliability of government data is in question due to the shutdown [3] - Key reports expected next week include the CB Employment Trends Index, Exports, Imports, Trade Balance, Atlanta Fed GDP, and Consumer Credit [3] - Additional reports on FOMC Minutes, MBA Mortgage Applications, Construction Spending, Gasoline Production, Jobless Claims, and Wholesale Inventories are also anticipated [3] Earnings Reports - Several companies are scheduled to report earnings next week, including Constellation Brands, PepsiCo, Delta Air Lines, Levi Strauss, Tilray, and Unity Bancorp [4] - Specific earnings spotlight dates include Constellation Brands and Aehr Test Systems on October 6, and McCormick & Co on October 7 [5]

Core Viewpoint - Aehr Test Systems, Inc. (NASDAQ: AEHR) is viewed positively due to a significant order from a leading AI processor, although the specific company is not disclosed [1]. Company Analysis - Aehr Test Systems is positioned in the technology sector, focusing on innovation and sustainability [1]. - The company is associated with emerging technologies and has a strong emphasis on the intersection of innovation and finance [1]. Industry Insights - The article highlights the importance of understanding complex problems in the technology sector to identify overlooked investment opportunities [1]. - There is a growing trend towards sustainable investing within the technology industry, which is becoming increasingly relevant for investors [1].

Core Viewpoint - Aehr Test Systems will report its financial results for the first quarter of fiscal 2026 on October 6, 2025, after market close [1] Company Summary - Aehr Test Systems is a global supplier of semiconductor test and burn-in equipment [1] - The financial results will cover the period ended August 30, 2025 [1] - A conference call and webcast will be held at 5:00 p.m. on the same day as the financial report [1]

Core Insights - Aehr Test Systems will participate in the 17th Annual CEO Investor Summit 2025 on October 7th in Phoenix, Arizona [1] - The company's President and CEO, Gayn Erickson, aims to engage with investors and shareholders regarding Aehr's innovative solutions in semiconductor testing [1] - Aehr's focus is on wafer-level test and packaged part burn-in solutions for next-generation semiconductor devices across various markets [1]