Aehr Test(AEHR) - 2026 Q1 - Quarterly Results

Fiscal 2026 First Quarter Financial Results Overview 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 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] CEO Commentary and Business Highlights 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] - 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] AI Processor Momentum 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] - 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] Product and Technology Enhancements 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] - 10 companies visited Aehr to review the Sonoma system and its new enhancements, with positive customer feedback[7] Wafer Level Burn-in (WLBI) and Strategic Partnerships 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] - 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] - 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] Other Market Segments and Industry Trends 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] - Macro-trends like generative AI and accelerating electrification are driving enormous growth in semiconductor demand and increasing reliability requirements[12][13] Outlook and Guidance 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] - The company remains cautious due to tariff-related uncertainty and has not reinstated formal guidance[15] Key Financial Highlights (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 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] About Aehr Test Systems 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] - 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] - The company's solutions address increasing quality, reliability, safety, and security needs across applications like electric vehicles, AI processors, and data infrastructure[16] Safe Harbor Statement 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] - Forward-looking statements are subject to risks and uncertainties described in Aehr's Form 10-K, 10-Q, and other SEC reports[18] Financial Tables 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) 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 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][24][25] Condensed Consolidated Balance Sheets 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 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) |