Aehr Test Systems announced financial results for its first quarter of fiscal 2026 ended August 29, 2025.

Fiscal First Quarter Financial Results:

  • Net revenue was $11.0 million, compared to $13.1 million in the first quarter of fiscal 2025.
  • GAAP net loss was $(2.1) million, or $(0.07) per diluted share, compared to GAAP net income of $0.7 million, or $0.02 per diluted share, in the first quarter of fiscal 2025.
  • Non-GAAP net income, which excludes stock-based compensation, acquisition-related adjustments and restructuring charges, was $0.2 million, or $0.01 per diluted share, compared to non-GAAP net income of $2.2 million, or $0.07 per diluted share, in the first quarter of fiscal 2025.
  • Bookings were $11.4 million for the quarter.
  • Backlog as of August 29, 2025 was $15.5 Effective backlog, including bookings since August 29, 2025, is $17.5 million.
  • Total cash, cash equivalents and restricted cash as of August 29, 2025 was $24.7 million, compared to $26.5 million at May 30, 2025.

Gayn Erickson, President and CEO of Aehr Test Systems, commented:

“We are pleased with the start to this fiscal year, with revenues across several market segments and momentum in sales and customer engagements in both wafer level and packaged part test and burn-in of artificial intelligence (AI) processors. While we had not provided guidance for the quarter, we did finish ahead of the street consensus estimates for both revenue and our bottom line.

“Momentum in packaged part qualification and production burn-in for AI processors continued to drive growth in our new Sonoma ultra-high-power packaged part burn-in systems and consumables. During the quarter, our lead production customer, a world-leading hyperscaler, placed multiple follow-on volume production orders for Sonoma systems and requested shorter lead times to support higher-than-expected volumes as they ramp up development of their own advanced AI processors. This customer has already outlined plans to expand capacity for this device and introduce new AI processors over the coming year to be tested and burned in on our Sonoma platform at one of the world’s leading test houses. We are also collaborating with them on future generations of processors to ensure we can meet their long-term production needs for both package and even wafer level burn-in.

“Since the acquisition of Incal Technology last year, Aehr has introduced several enhancements to the Sonoma system to address both qualification and production test and burn-in requirements across a broad range of AI processor suppliers, test labs, and Outsourced Assembly and Test Houses (OSATs). Key upgrades include expanding power-per-device to 2000W, increased parallelism, and full automation with an integrated package device handler. Over just the last quarter, including an open house held recently at our headquarters in Fremont, California, we have had 10 companies visit Aehr to review our Sonoma system and its new enhancements, including a fully automated device handler that we have installed at our Fremont facility. Customer feedback on these enhancements and the device handler has been very positive, and we anticipate these new features to drive new applications and orders this fiscal year. Our acquisition of Incal Technology has provided us with intimate visibility into the long-term needs of a large number of leading AI processor companies.

“This past year, we delivered the world’s first production wafer level burn-in (WLBI) systems for AI processors. Importantly, these systems are installed at one of the premier global OSATs, creating a highly visible showcase to other potential AI customers and strengthening our position in the market. We expect follow-on orders from this cutting-edge AI customer as volumes increase, and other AI processor suppliers have already approached us about the feasibility of WLBI for their devices.

“We are also developing a strategic partnership with this world’s leading OSAT to provide advanced wafer level test and burn-in solutions for high-performance computing (HPC) and AI processors. This joint solution, already in operation at their facility, marks a significant milestone for the industry. By combining Aehr’s technological leadership with this OSAT’s global reach we can showcase our unique capabilities to the world. This model offers a complete turnkey solution from design to high-volume production, and several customers have already visited Aehr to see these systems in action.

“Additionally, we launched a benchmark evaluation program with a top tier AI processor supplier to validate our FOX-XPTM production systems for WLBI and functional test of their high-performance, high-power AI processors. This paid evaluation, which includes a custom high-power WaferPakTM and development of a production WLBI test program, is a significant step toward adoption of WLBI as an alternative to later-stage burn-in and into future generations of their products.

“Beyond AI processors, we are seeing signs of increasing demand across the other segments we serve, including silicon photonics, hard disk drives, gallium nitride, and silicon carbide. For silicon photonics, we upgraded another one of our major silicon photonics customer’s FOX-XPs to the new higher-power configuration this quarter, doubling their device test parallelism with up to 3.5kW power per wafer in a nine-wafer configuration. This latest system shipment includes our fully integrated and automated WaferPak Aligner configured for single touchdown test and burn in of all devices on their 300mm wafers.  We expect additional orders and shipments this fiscal year to meet their production capacity needs for wafer level test and burn-in of their optical I/O silicon photonics integrated circuits. In hard disk drives, AI-driven applications are generating unprecedented amounts of data, creating new demand for our WLBI systems, with our lead production customer that is one of the world’s top storage suppliers already planning additional purchases. Gallium nitride devices are increasingly being used for data center power efficiency, automotive systems, and electrical infrastructure, with multiple new engagements underway. Moreover, although silicon carbide growth is expected to be weighted toward the second half of the year, we continue to see opportunities for upgrades, WaferPaks, and capacity expansion as that market rebounds.

“The rapid advancement of generative AI and the accelerating electrification of transportation and global infrastructure represent two of the most significant macro-trends impacting the semiconductor industry today. These transformative forces are driving enormous growth in semiconductor demand while fundamentally increasing the performance, reliability, safety, and security requirements of the devices used across computing and data infrastructure, telecommunications networks, hard disk drive and solid-state storage solutions, electric vehicles, charging systems, and renewable energy generation.

“As these applications operate at ever-higher power levels and in increasingly mission-critical environments, the need for comprehensive test and burn-in has become more essential than ever. Semiconductor manufacturers are turning to advanced wafer level and package level burn-in systems to screen for early-life failures, validate long-term reliability, and ensure consistent performance under extreme electrical and thermal stress. This growing emphasis on reliability testing reflects a fundamental shift in the industry – from simply achieving functionality to guaranteeing dependable operation throughout a product’s lifetime, a requirement that continues to expand alongside the scale and complexity of next-generation semiconductor devices.

“We are excited about the year ahead and believe nearly all our served markets will see order growth in the fiscal year, with silicon carbide growth expected to strengthen further into fiscal 2027. Although we remain cautious due to ongoing tariff-related uncertainty and are not yet reinstating formal guidance, we are confident in the broad-based growth opportunities ahead across AI and our other markets.”

Original – Aehr Test Systems