Aehr Test(US:AEHR)2025-07-08 22:00Financial Data and Key Metrics Changes - The company reported revenue of $59 million for fiscal year 2025, down 11% year-over-year [46] - Non-GAAP gross margin for the full year was 44%, compared to 49.6% in the prior year [47] - Non-GAAP net income for fiscal year 2025 was $4.6 million, or $0.15 per diluted share, down from $35.8 million, or $1.21 per diluted share in fiscal year 2024 [47] - Fourth quarter revenue totaled $14.1 million, a 15% decrease compared to $16.6 million in Q4 last year [48] - Non-GAAP gross margin for Q4 was 34.7%, down from 51.5% in the same period last year [50] Business Line Data and Key Metrics Changes - AI processor burn-in accounted for over 35% of total revenue in fiscal year 2025, compared to 0% in the previous year [48] - WaferPak revenues were $4.2 million, accounting for 30% of total revenue in Q4 [49] - Sales of Sonoma, Tahoe, and Echo package part burn-in systems accounted for 44% of Q4 revenue [50] Market Data and Key Metrics Changes - The company has diversified its market focus, with silicon carbide devices making up less than 40% of revenue in fiscal year 2025, down from over 90% in fiscal year 2024 [6] - The company is expanding into new markets such as gallium nitride power semiconductors and silicon photonics integrated circuits [29][33] Company Strategy and Development Direction - The company aims to increase research and development investment to support product enhancements and expand R&D resources [40] - The focus for fiscal year 2026 includes securing and executing orders across various segments, with expectations for order growth [41] - The company plans to leverage its unique technology in wafer-level burn-in solutions to capture a significant share of the AI processor market [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities across diverse markets despite uncertainties related to tariffs [54] - The company is confident in its ability to meet potential demand in the AI market and other high-growth sectors [54] - Management noted that the silicon carbide market may experience stronger growth in fiscal year 2027, despite current forecasts suggesting a slowdown [41] Other Important Information - The company completed the integration of InCal, which is expected to create synergies and reduce facility costs by over $800,000 per year [45] - The company has no debt and continues to invest excess cash in money market funds [52] - A class action lawsuit against the company was voluntarily dismissed, with no related proceedings currently pending [53] Q&A Session Summary Question: Clarification on customer list in investor deck - The customer list includes current customers from the InCal package part burn-in side of the business, not prospects [60] Question: Will the 10% customers be named in the K filing? - The new SEC rules do not require naming customers unless prior agreements exist [62] Question: Insights on AI market potential compared to silicon carbide - The AI market is projected to be significantly larger than the silicon carbide market, with estimates suggesting three to five times the size [66]