Aehr Test(US:AEHR)2025-07-08 22:02Financial Data and Key Metrics Changes - The company reported revenue of $59 million for the fiscal year, down 11% year-over-year [46] - Non-GAAP gross margin for the full year was 44%, compared to 49.6% in the prior year [46] - Non-GAAP net income for the fiscal year was $4.6 million, or $0.15 per diluted share, down from $35.8 million, or $1.21 per diluted share, in the previous year [46] - Fourth quarter revenue totaled $14.1 million, a 15% decrease compared to $16.6 million in Q4 last year [47] - Non-GAAP gross margin for Q4 was 34.7%, down from 51.5% in the same period last year [49] Business Line Data and Key Metrics Changes - AI processor burn-in now accounts for over 35% of total revenue, up from 0% last year [47] - WaferPak revenues were $4.2 million, representing 30% of total revenue in Q4 [48] - Sales of packaged part burn-in systems accounted for 44% of Q4 revenue [49] Market Data and Key Metrics Changes - The company has diversified its revenue sources, with silicon carbide devices making up less than 40% of revenue this fiscal year, down from over 90% last year [8] - The company is expanding into new markets, including gallium nitride power semiconductors and silicon photonics integrated circuits [29][33] Company Strategy and Development Direction - The company aims to increase research and development investments to support product enhancements and expand its AI customer base [40][55] - The focus for the upcoming fiscal year includes securing and executing orders across various market verticals, with expectations of order growth [41] - The company has completed the integration of InCal, which is expected to create synergies and reduce facility costs by over $800,000 per year [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook despite temporary withdrawal of financial guidance due to tariff-related uncertainties [41][54] - The company anticipates growth opportunities in diverse markets, particularly in AI processors and gallium nitride power semiconductors [54] Other Important Information - The company has no debt and continues to invest excess cash in money market funds [52] - The class action claims against the company were voluntarily dismissed, with no related proceedings currently pending [53] Q&A Session Summary Question: Clarification on customer list in investor deck - The updated customer list reflects current customers from the InCal package part burn-in side of the business, not prospects [58][60] Question: AI market potential compared to silicon carbide - The AI market is expected to be significantly larger than the silicon carbide market, with estimates suggesting it could be three to five times larger [63][66] Question: Gross margin decline explanation - The decline in gross margin is attributed to a mix issue, with lower-margin packaged part systems contributing to the overall decrease [72][73]