Key Takeaways TER expects Q2 revenue of $610M-$680M and EPS of $0.41-$0.64, both down year over year.Weak Memory and Mobile demand are likely to weigh on TER's Q2 revenue and gross margin.Cost of sales and operating expenses are set to rise, while gross margin is projected to decline.Teradyne (TER) is scheduled to report its second-quarter 2025 earnings results on July 29.For the second quarter of 2025, TER expects revenues between $610 million and $680 million. The company anticipates non-GAAP earnings bet ...

Core Insights - Aehr Test Systems' shares surged over 20% following new orders for its AI processor testing solutions [1] - The recent orders come shortly after a cautious earnings report, indicating quicker-than-expected resolution of order delays [2] - The identity of the "world-leading hyperscaler" customer remains speculative, with potential candidates including Google and Microsoft [3] Company Developments - Aehr's CEO expressed cautious optimism regarding financial guidance for 2026, citing tariff-related uncertainties affecting order placements [2] - The new orders represent a significant increase, more than doubling the number of production systems with the identified customer [3] - Aehr is diversifying away from the struggling silicon carbide wafer-level burn-in test solutions market, which is primarily driven by electric vehicle demand [5] Market Outlook - The shift towards AI-driven markets is expected to enhance Aehr's long-term growth prospects [6] - Despite current challenges in the EV sector, there is an anticipation of a rebound in investment, positioning Aehr favorably for future growth [6]

Core Viewpoint - The third-party testing industry is expected to grow due to increasing demand from emerging industries and the expansion of R&D investments in the semiconductor sector, with a recommendation for investment in the third-party semiconductor testing market [1] Industry Overview - The demand for testing services is closely linked to the development cycle of downstream industries, particularly in integrated circuits, where testing is crucial for design, manufacturing yield, and quality control [1] - The integrated circuit industry includes chip design, wafer manufacturing, packaging, and testing, with testing being an essential part of the production process [1] - The shift towards specialized division of labor in the integrated circuit industry is driven by rapid technological advancements and diverse downstream applications, leading to the emergence of the Fabless+Foundry+OSAT model [2] Market Growth Potential - The global semiconductor testing services market is projected to reach $21.02 billion by 2031, with a CAGR of 6.9% over the next few years [2] - The third-party laboratory testing and analysis market is expected to grow from $4.431 billion in 2024 to $10.92 billion by 2031, with a CAGR of 14% from 2025 to 2031 [2] Key Companies in Third-Party Testing - **Victory Nano**: Established in 2012, known for semiconductor third-party testing, projected revenue of 415 million yuan in 2024, a year-on-year increase of 5.4% [3] - **Sutest**: Entered the integrated circuit testing field in 2019, projected revenue of 288 million yuan in 2024, a year-on-year increase of 12.3%, accounting for 14.23% of total revenue [3] - **Guangdian Measurement**: Focused on developing integrated circuit testing and analysis, projected revenue of 256 million yuan in 2024, a year-on-year increase of 26.3%, accounting for 8% of total revenue [3] - **Huace Testing**: Entered the semiconductor testing field in 2022, continuing to expand its focus on failure analysis and material analysis [3]

Core Insights - AEM Holdings Ltd. collaborates with Intel Foundry to enhance access to System-Level Test (SLT) and Burn-In capabilities for advanced computing devices, aiming to accelerate time-to-market for fabless customers [1][2][5] Group 1: Collaboration Details - The partnership leverages decades of collaboration to create a mature SLT and Burn-In ecosystem, essential for high-performance computing (HPC) and artificial intelligence (AI) applications [1][2] - AEM provides device-specific configurable test units, advanced handlers, and software support, complementing Intel Foundry's services such as factory automation and test program development [3][9] Group 2: Customer Benefits - Key benefits for customers include enhanced test coverage, reduced capital expenditure, and faster time-to-market, supported by a scalable platform and local engineering teams [5][6][9] - The collaboration aims to meet rising performance demands and facilitate chiplet-based architectures, ensuring reliability for AI and HPC applications [5][6] Group 3: Company Overview - AEM Holdings Ltd. is a global leader in test innovation with a presence across Asia, Europe, and the United States, offering comprehensive semiconductor and electronics test solutions [7][8]

Core Viewpoint - The company is preparing for its 2024 annual shareholders' meeting, where various proposals will be discussed, including financial reports, profit distribution, and future financing plans. Group 1: Meeting Procedures - The meeting will require attendees to verify their identity and sign in 30 minutes prior to the start [3][4] - Shareholders have the right to speak, inquire, and vote during the meeting, with specific rules governing the order and duration of speeches [4][5] - Voting will be conducted through a combination of on-site and online methods, with results announced after the meeting [5][6] Group 2: Financial Proposals - Proposal 1 involves the approval of the 2024 annual report and its summary, which has been reviewed by the board and supervisory committee [7] - Proposal 4 presents the 2024 financial settlement report, summarizing the company's financial performance for the year [8] - Proposal 5 outlines a profit distribution plan, indicating that no dividends will be distributed for 2024 due to a net loss of approximately 61.62 million yuan [9] Group 3: Compensation Plans - Proposal 6 discusses the compensation plan for non-independent directors for 2025, which will be based on company performance and industry standards [11] - Proposal 7 details the compensation for independent directors, set at 80,000 yuan per year before tax [12] - Proposal 8 outlines the compensation for supervisors, with the chair receiving 50,000 yuan per year before tax [12] Group 4: Financing and Stock Issuance - Proposal 9 seeks approval for a comprehensive credit limit of up to 2 billion yuan for 2025, with various forms of collateral to be used [13][14] - Proposal 10 requests authorization for the board to issue shares to specific investors under simplified procedures, with conditions outlined for the issuance [16][17] - The company aims to use the funds raised from the stock issuance for business-related projects and to supplement working capital [20] Group 5: Business Strategy and Market Position - The company focuses on high-end integrated circuit testing to meet the growing demand in sectors like automotive electronics and AI [27][28] - The shift towards electric and intelligent vehicles is driving the demand for automotive chips, which the company plans to capitalize on [28] - The company has established a comprehensive testing capacity and is adjusting its strategy to focus on market-driven project development [29][30]

Financial Data and Key Metrics Changes - In Q1, revenues were $171.4 million, a decrease of 9.6% from Q4 and an increase of 1.6% year-over-year [16] - Non-GAAP gross margin for Q1 was 39.2%, down from 40.2% in Q4 [18] - Non-GAAP EPS for Q1 was $0.23, down from $0.27 in Q4 [23] - GAAP net income for Q1 was $6.4 million, or $0.08 per diluted share, compared to $9.7 million, or $0.12 per diluted share in Q4 [22] Business Line Data and Key Metrics Changes - Probe card segment revenues were $136.5 million in Q1, a decrease of 9.2% from Q4, driven by lower DRAM and Flash revenues [17] - Foundry and Logic revenues increased by 2.4% to $85 million in Q1, representing 49.8% of total revenues [17] - DRAM revenues were $48.9 million in Q1, down 22.8% from Q4, comprising 28.5% of total revenues [17] - Systems segment revenues were $34.8 million in Q1, a decrease from Q4, but expected to see moderate growth in Q2 [12][17] Market Data and Key Metrics Changes - The company anticipates double-digit sequential revenue growth in Q2, driven by demand from hyperscalers and investments in generative AI [5] - HBM probe card demand is expected to increase due to ongoing shipments for existing HBM3E designs and new HBM4 designs [8] - The company has seen a reduction in revenue from China due to tariffs and export controls, validating its decision to divest operations in that region [7] Company Strategy and Development Direction - The company is focusing on diversifying its customer base and product offerings, particularly in HBM and advanced packaging [38] - A recent acquisition of FICT Limited enhances the company's access to multilayer organic substrates, crucial for advanced foundry and logic probe cards [11] - The company aims to achieve $2 of non-GAAP EPS on $850 million of revenue, with a target gross margin of 47% [15][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the current geopolitical and tariff environment creates uncertainty, impacting revenue and gross margins [5][6] - The anticipated growth in Q2 is not expected to be driven by tariff-related order acceleration, but rather by genuine demand increases [5] - The company is taking a cautious approach to capital investments in light of evolving geopolitical conditions [24] Other Important Information - The company generated free cash flow of $6.3 million in Q1, down from $28.8 million in Q4, primarily due to lower profitability [23] - A new two-year share repurchase program of $75 million has been approved by the Board of Directors [24] Q&A Session Summary Question: Impact of tariffs on revenue and margins - Management confirmed an estimated mid single-digit million dollar reduction in revenues due to tariffs, particularly affecting multinational customers outside free trade zones [29][30] Question: Customer dynamics and revenue contributions - A former top customer has returned to the list, indicating increased activity in the client PC space, which is expected to contribute positively to revenue [36][37] Question: DRAM business outlook - The growth in DRAM revenue is primarily driven by HBM, with expectations for continued strength in HBM3 and new contributions from HBM4 [41][42] Question: Systems sales and demand visibility - While visibility for individual orders is low, there is better long-term visibility for systems demand, particularly related to co-package optics [101]

Core Viewpoint - The company has reported its Q1 2025 financial results, indicating temporary profit pressure but highlighting underlying growth potential driven by a fixed cost structure primarily based on depreciation and amortization, with revenue showing both year-on-year and quarter-on-quarter growth, signaling an inflection point in income and the imminent release of scale effects [1] Group 1: Business Strategy and Focus - The company is focusing on its core business of integrated circuit testing, with a strategic layout described as "one body, two wings," emphasizing independent third-party wafer testing and chip product testing as the mainstay, while also expanding into wafer laser grooving, dicing, thinning, and ultra-wide spectrum layered image sensor chips for applications in autonomous driving and robotics [1] - The company aims to establish itself as a leading independent third-party professional testing service provider in China, driven by technological innovation and unique testing solutions across various fields including high computing power, industrial control, automotive electronics, sensors, AIoT, consumer electronics, storage, and specialty chips [1] Group 2: Technological Advancements - The company possesses industry-leading ultra-thin chip thinning technology capable of processing below 25μm, and its laser grooving and dicing technologies address quality issues in traditional cutting methods, enhancing chip yield and reliability [2] - The company collaborates with Shanghai Dielong Optoelectronics Technology Co., Ltd. to provide unique wafer heterogeneous stacking and testing services, leveraging core technologies in all-weather ultra-wide spectrum layered image sensor chips to improve recognition rates under complex weather and lighting conditions, thus enhancing safety in autonomous driving applications [2] Group 3: Market Expansion and Innovation - The company is actively expanding its relationships with well-known design enterprises and utilizing big data analysis tools to maintain existing customers, which is expected to increase future revenue and enhance overall profitability [3] - The company is embracing technological innovation, focusing on building an intelligent algorithm training system with independent intellectual property rights, integrating cutting-edge general model technology to drive research and development innovation [3] Group 4: Future Projects and Market Opportunities - The company is developing various testing solutions for high-pixel CMOS image sensors, high-performance robotic vision processing chips, AI computing power chips, high-bandwidth RF chip testing, and more, targeting high-demand markets such as automotive electronics, high computing power chips, sensors, and storage [4] - The company’s proactive positioning in high-barrier technology fields is expected to capture industry growth dividends, with ongoing business expansion and revenue growth anticipated to lead to profit recovery and performance breakthroughs in the future [4]

Financial Data and Key Metrics Changes - First quarter sales were $686 million, towards the high end of guidance, with non-GAAP EPS of $0.75 above the high end guide of $0.68 [17] - Non-GAAP gross margins were 60.6%, exceeding expectations due to product mix [17] - Non-GAAP operating expenses were $275 million, up year-over-year but down sequentially due to spending controls [18] Business Line Data and Key Metrics Changes - Semi Test revenue was $543 million, with SOC revenue contributing $406 million and memory revenue at $109 million [19] - Product Test revenue was $74 million, down 4% year-over-year, while wireless test revenue was $29 million, up 20% year-over-year [20] - Robotics revenue was $69 million, declining both sequentially and year-over-year, with UR contributing $49 million and MiR $20 million [20] Market Data and Key Metrics Changes - 19% of revenue was shipped to China, with 12% supporting multinational customers and 7% for indigenous Chinese customers [23] - The company expects a significant sequential decline in memory revenue in Q2 as the market digests installed HBM test capacity [27] Company Strategy and Development Direction - The company is focusing on AI, verticalization, and electrification as primary industry drivers for future growth [5] - A strategic partnership with ADI was announced to deploy UR cobots in AMRs to support collaborative automation initiatives [13] - The company is on track to close the acquisition of Quantify Photonics to enhance its position in silicon photonics testing [10] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of trade policy on end market demand, leading to order pushouts [6] - Despite current uncertainties, management remains confident in long-term growth drivers such as AI and electrification [29] - The company is managing expenses prudently while continuing critical investments to drive growth [12] Other Important Information - The company has increased its share buyback target from $400 million in 2025 to up to $1 billion through the end of 2026 [28] - The restructuring in the robotics division has reduced the operating breakeven revenue from $440 million to $365 million [21] Q&A Session Summary Question: Dynamics of tariff-related pushouts and pull-ins - Management noted that pushouts are primarily from customers in the auto and industrial sectors, with no significant pull-ins observed [33] Question: Clarification on HBM win - The HBM four performance test win is with a new customer, not an existing one, and involves a post-stack test at higher speed [38] Question: Gross margin and OpEx outlook - Management indicated that gross margin guidance for the full year is not provided due to uncertainty, but the first half is expected to align with prior expectations [41] Question: SLT wins and AI accelerators - Management clarified that SLT is expected to be a significant revenue driver in 2026, with current implementations addressing high failure rates in AI accelerator devices [50] Question: Impact of tariffs on competitive positioning - No significant competitive impact has been observed due to tariffs, and the company remains competitive in the market [62] Question: Memory market dynamics - Demand for NAND is expected to increase with mobile phone unit volume and AI-enabled smartphones requiring more local storage [75] Question: Robotics segment growth expectations - The company expects to significantly outgrow traditional industrial automation peers, despite current sluggish end market conditions [92]

Financial Data and Key Metrics Changes - Revenue for Q3 totaled $18.3 million, a 142% increase compared to $7.6 million in Q3 last year, driven primarily by shipments of the new high-power Fox XP solution for AI processors [55][56] - Non-GAAP gross margin for Q3 was 42.7%, slightly up from 42.5% in the same period last year, despite a less favorable product mix and one-time charges [58] - Non-GAAP net income for Q3 was $2.0 million, or $0.07 per diluted share, compared to a net loss of $888,000, or negative $0.03 per diluted share in Q3 fiscal 2024 [62] Business Line Data and Key Metrics Changes - AI processors burn-in now represents over 35% of the company's business, a significant increase from previous years where silicon carbide accounted for over 90% [17][54] - WaferPak revenues were $5.9 million, accounting for 32% of total revenue in Q3, down from 63% in the same period last year [56] - Bookings for Q3 were $24.1 million, compared to $9.2 million in Q2 fiscal 2025, with an effective backlog now standing at $21.8 million [57] Market Data and Key Metrics Changes - The total addressable market for wafer-level and packaged part burn-in markets is projected to exceed $1 billion by 2027, with significant growth opportunities in AI processors and gallium nitride semiconductors [16][45] - The silicon carbide market is expected to exceed $10 billion by 2029, driven by electric vehicles and other industrial applications [41] - The NAND market in 2025 is projected to exceed $80 billion, indicating substantial potential for wafer-level burn-in solutions [37][38] Company Strategy and Development Direction - The company is focused on expanding its total addressable markets, diversifying its customer base, and developing new products to drive growth [16][48] - Strategic expansion into high-growth sectors, including AI processors, gallium nitride power semiconductors, and flash memory, is expected to attract new customers and drive revenue growth [48][65] - The integration of NCAL Technology has enabled the company to scale output significantly, achieving two to three times the previous record shipment volume [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the impact of recent tariff announcements will not significantly affect the company directly, but acknowledged potential secondary effects on customers [11][48] - The company is temporarily withdrawing guidance for the current fiscal year due to uncertainties regarding customer orders and supply chain delivery delays [64] - Management remains optimistic about the long-term growth potential across diverse target markets, particularly in AI and gallium nitride sectors [65] Other Important Information - The company has no debt and continues to invest excess cash in money market funds, with cash and equivalents totaling $31.4 million at the end of Q3 [63] - The integration of the InCal acquisition is progressing well, with plans to complete it by the end of the fiscal year [51][52] Q&A Session Summary Question: Impact of tariffs on end markets - Management indicated that the impact of tariffs is more about specific customers and geographies rather than entire markets, with ongoing assessments to mitigate risks [70][71] Question: Shipping backlog and guidance - Management acknowledged that not all backlog will ship in the current quarter, with some shipments planned for future quarters [88][89] Question: Growth expectations across diversified markets - Management expressed optimism about growth in silicon carbide, AI processors, and gallium nitride, with expectations for increased demand in the coming years [96][100]

Aehr Test Systems (AEHR) Q3 2025 Earnings Conference Call April 08, 2025 05:00 PM ET Company Participants Operator - Conference OperatorJim Byers - Host, Investor Relations at Pondell WilkinsonGane Erickson - President and Chief Executive OfficerChris Tiu - Chief Financial OfficerTyler - Question Asker on behalf of Christian Schwab (Craig Hallam)Jed Dorsheimer - Investor, William BlairLarry Shlebina - Investor, Shlebina CapitalCharles Tao - Private Investor Operator Greetings. Welcome to the Airtest Systems ...