Aehr Test Systems (NASDAQ:AEHR) Faces Financial Strain but Eyes Future Growth

Core Insights - Aehr Test Systems reported a decline in net revenue to $9.9 million for Q2 fiscal 2026, down from $13.5 million in the same quarter of the previous year, indicating financial challenges [1][6] - The company experienced a GAAP net loss of $3.2 million, or $0.11 per diluted share, compared to a loss of $1.0 million, or $0.03 per diluted share, in the prior year [2] - Despite current financial difficulties, Aehr anticipates bookings between $60 million and $80 million in the second half of the fiscal year, suggesting potential for strong growth in fiscal 2027 [3][6] Financial Performance - Gross profit for the quarter was reported at $2.55 million, but the company faced an operating loss of $4.87 million [1] - Non-GAAP net loss was $1.3 million, or $0.04 per diluted share, contrasting with a non-GAAP net income of $0.7 million, or $0.02 per diluted share, in the previous year [2] - EBITDA for the quarter was a negative $5.37 million, reflecting the financial strain the company is under [2] Market Position and Strategy - Aehr is expanding its presence in wafer-level burn-in (WLBI) and packaged-part burn-in (PPBI) segments, with increased engagements and production installations across multiple markets [3] - The company is diversifying into markets such as AI processors, gallium nitride power semiconductors, and silicon photonics integrated circuits, which is expected to expand its total addressable market [4] - Aehr reinstated its guidance for the second half of fiscal 2026, expecting revenue between $25 million and $30 million and a non-GAAP net loss per diluted share between $0.09 and $0.05 [4] Analyst Outlook - Craig-Hallum maintained a "Hold" rating for Aehr Test Systems, with the stock priced at approximately $24.30, reflecting a cautious outlook on the company's financial performance [5] - The company is positioning itself for future growth through strategic partnerships and increased demand for its new Sonoma ultra-high-power PPBI systems [5]