Financial Data and Key Metrics Changes - First quarter revenue was $11 million, a decrease of $2.1 million from $13.1 million in the same period last year, primarily driven by demand for FoxXP and FoxCP products [24][25] - Non-GAAP gross margin for the first quarter was 37.5%, down from 54.7% year-over-year, mainly due to lower sales volume and a less favorable product mix [25] - Non-GAAP net income for the first quarter was $0.3 million or $0.01 per share, compared to $2.2 million or $0.07 per share for the first quarter of fiscal 2025 [27] - Backlog at the end of Q1 was $15.5 million, with $2 million net bookings received in the first five weeks of the second quarter [28] Business Line Data and Key Metrics Changes - Contactor revenues, which include wafer packs for wafer-level burn-in business, totaled $2.6 million, significantly lower than $12.1 million or 92% of the previous year's first quarter revenue [25] - The company shipped multiple FoxCP single-wafer production test and burn-in systems during Q1, indicating ongoing demand in the hard disk drive industry [24] Market Data and Key Metrics Changes - The company is experiencing ongoing growth in the silicon photonics market, driven by the adoption of optical chip-to-chip communication and optical network switching [14] - Demand for gallium nitride devices is increasing, particularly in data center power efficiency, solar energy, and automotive systems [16] - The market for NAND flash is in a state of flux, with a transition to hybrid bonding technologies driving new requirements for higher parallelism and power [19] Company Strategy and Development Direction - The company is focusing on semiconductor test and burn-in markets, particularly related to the expansion of data center infrastructure and AI [4][21] - Aehr Test Systems is positioned to assist customers with both wafer-level and packaged part burn-in systems, enhancing its market position [10] - The company is developing strategic partnerships to provide advanced wafer-level test and burn-in solutions for high-performance computing and AI processors [11] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to ongoing tariff-related uncertainty and has not reinstated formal guidance, but is confident in broad-based growth opportunities across AI and other markets [23][31] - The company anticipates order growth in nearly all served markets for the fiscal year, with silicon carbide growth expected to strengthen further into fiscal 2027 [23] Other Important Information - The company successfully closed the InCal facility and consolidated operations into its Fremont, California facility, incurring a one-time restructuring charge of $219,000 [26] - The facility renovation has significantly upgraded manufacturing capabilities, increasing overall manufacturing capacity by at least five times [30] Q&A Session Summary Question: When will there be a material improvement in bookings to drive revenue? - Management anticipates additional capacity needs from their first AI wafer-level burn-in production customer, which could lead to increased bookings and revenue this year, but timing is uncertain [34] Question: Do you have a target number of customers for shipping by the end of the fiscal year? - Management has discrete quantity targets for additional packaged part and wafer-level customers, but is cautious about setting expectations regarding timelines [44] Question: What is the gating factor for customers transitioning from Sonoma to wafer-level burn-in? - The transition does not require a new product, but customers need to validate that the company can meet their specific requirements for power delivery and design for testability [66] Question: How does the company view the cost-effectiveness of wafer-level burn-in compared to system-level burn-in? - Wafer-level burn-in is preferred as it is more cost-effective and efficient, allowing for accelerated testing without the inefficiencies of system-level testing [74][76] Question: What is the outlook for high-bandwidth flash and memory? - There is significant interest in high-bandwidth flash and memory, with ongoing discussions about the need for burn-in processes to ensure reliability before shipping [81]