Aehr Test(AEHR) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue increased to $18.3 million for the three months ended February 28, 2025, up 142$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$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$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$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$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$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$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].