Aehr Test Systems Q2 Earnings Call Highlights

Core Insights - Aehr Test Systems reported a non-GAAP net loss of $1.3 million, or $(0.04) per diluted share, compared to a non-GAAP net income of $0.7 million, or $0.02 per diluted share, in the same quarter last year [1] - The company experienced a significant decline in revenue, with second-quarter revenue at $9.9 million, down 27% from $13.5 million year-over-year, primarily due to lower wafer pack shipments [3][6] - Management reinstated guidance for the second half of fiscal 2026, expecting revenue between $25 million and $30 million and non-GAAP loss per share between $(0.09) and $(0.05) [6][9] Financial Performance - Non-GAAP gross margin decreased to 29.8% from 45.3% a year ago, attributed to lower overall volume and an unfavorable revenue mix [2] - Non-GAAP operating expenses were $5.7 million, slightly down from $5.9 million, with lower personnel costs offset by increased R&D spending related to AI initiatives [2] Revenue Breakdown - Contact revenue from wafer packs and burn-in modules was $3.4 million, representing 35% of total revenue, down from $8.6 million or 64% of revenue a year earlier [3] - Bookings for the second quarter were $6.2 million, down from $11.4 million in the first quarter, with an effective backlog of $18.3 million after additional bookings in the first six weeks of the fiscal third quarter [7] Market Engagement and Outlook - The company noted significant progress in wafer-level and package-part burn-in markets, driven by AI and data center infrastructure demand [4] - Aehr expects second-half bookings to be much higher than revenue, targeting between $60 million and $80 million, primarily driven by AI processor demand [6][8] Product Development and Innovations - Aehr reported over $5.5 million in recent orders for Sonoma systems, including a new 2,000W automated Sonoma system [5][15] - The company is engaged in multiple wafer-level burn-in programs across AI processors, flash memory, and silicon photonics, with ongoing benchmark evaluations [10][12][13] Cash Position and Funding - The company ended the quarter with $31.0 million in cash, up from $24.7 million, largely due to proceeds from its at-the-market equity program [19] - Aehr raised $10 million in gross proceeds through the sale of approximately 384,000 shares during the second quarter [20]