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 strong momentum in sales and customer engagement in the AI processor market, with a lead production customer placing multiple follow-on volume production orders for Sonoma systems [5][6] - There is increasing demand in the silicon photonics market, driven by the adoption of optical chip-to-chip communication and optical network switching [14] 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] - 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 with OSATs 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 expressed confidence in broad-based growth opportunities across AI and other markets, despite ongoing tariff-related uncertainties [23][30] - 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 facility, which has significantly upgraded manufacturing capabilities [26][30] - The company has no debt and continues to invest excess cash in money market funds [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 lead AI wafer-level burn-in production customer, which could lead to increased bookings and revenue this year [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 [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 [66] Question: How does the company view the cost-effectiveness of wafer-level burn-in compared to system-level burn-in? - Management emphasized that wafer-level burn-in is more cost-effective and efficient, reducing the risk of failures at the system level [74][76]

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] - 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] Business Line Data and Key Metrics Changes - Contactor revenues totaled $2.6 million, making up 24% of total revenue in the first quarter, 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 the quarter [24] Market Data and Key Metrics Changes - Continued momentum in the qualification and production burn-in of packaged parts for AI processors, with a leading hyperscaler placing multiple follow-on volume production orders for Sonoma systems [5][6] - Increased interest in wafer-level burn-in capabilities from AI processor companies, with ongoing customer engagements [10][11] 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] - 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 expressed confidence in broad-based growth opportunities across AI and other markets, despite ongoing tariff-related uncertainties [23] - 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 completed a facility renovation that significantly upgraded manufacturing capabilities, increasing overall manufacturing capacity by at least five times [29] - The company has no debt and continues to invest excess cash in money market funds [29] Q&A Session Summary Question: When will there be a material improvement in bookings to drive revenue? - Management indicated that they anticipate additional capacity needs from their first AI wafer-level burn-in production customer, which could lead to increased bookings and revenue [32] Question: Do you have a target number of customers for shipping by the end of the fiscal year? - Management confirmed that they have discrete quantity targets and are focused on capturing multiple customers in both packaged and wafer-level segments [41] Question: What is the qualification process like for new customers? - Management stated that they do not need a new product cycle to engage customers and are working closely with them to validate capabilities [50] Question: What are the gating factors for customers transitioning from Sonoma to wafer-level burn-in? - Management explained that customers are currently using Sonoma for packaged part burn-in and are gradually moving towards wafer-level burn-in as they see the benefits [58]