Aehr Test Systems

Revenue in the fiscal fourth quarter was $18.8 million, up 34% from $14.1 million a year ago. Non-GAAP gross margin was 45%, up 1,000 basis points from 35% last year, and non-GAAP net income was $3.6 million, or $0.11 per diluted share, versus a $200 thousand non-GAAP net loss, or negative $0.01 per diluted share, last year. Full-year fiscal 2026 revenue was $50 million, down 15% year over year; full-year non-GAAP gross margin was 38.5% versus 44% in fiscal 2025; and full-year non-GAAP net income was $900 thousand, or $0.03 per diluted share, versus $4.6 million, or $0.15 per diluted share. Cash, cash equivalents and restricted cash ended at $116.5 million, up from $26.5 million a year earlier, after roughly $100 million raised mainly through the ATM. For fiscal 2027, management guided total revenue to $130 million-$150 million, implying about 160% to 200% year-over-year growth, and non-GAAP pretax profitability of 18%-22% of revenue.

Gayn Erickson emphasized that Aehr has moved from a company concentrated in silicon carbide for EVs to one increasingly tied to AI, data center infrastructure, silicon photonics, and other markets. He highlighted benchmark wins, customer ramps, a record backlog, and the potential for upside if additional orders materialize, especially from AI wafer-level burn-in and silicon photonics. His tone was notably upbeat but still cautious on memory, repeatedly saying that no memory revenue is assumed in guidance yet.

Chris Siu said fourth-quarter bookings of $60.7 million were driven by Sonoma package-level and FOX wafer-level systems, WaferPaks, and burn-in boards, while backlog reached $80.6 million and effective backlog about $100.6 million after subsequent orders. He noted Q4 revenue of $18.8 million, gross margin of 45%, operating expenses of $7.5 million, and non-GAAP net income of $3.6 million. He also highlighted liquidity of $116.5 million in cash, cash equivalents and restricted cash, only $2.1 million of capex in fiscal 2026, and about $100 million raised through the ATM to strengthen the balance sheet and support growth.

Analysts focused on how the $130 million-$150 million guide breaks down by AI, silicon photonics, power, and memory, and management said the guide is mostly AI at roughly 70%, silicon photonics around 15%-20%, with the rest in power/miscellaneous; memory is not included. They also pressed on capacity, and management said Fremont plus Asian contract manufacturing can support very large output, with one outsourced Sonoma line capable of about 20 systems per month and Fremont capable of around 20 package- or wafer-level systems per month in total, though not all at once. Questions on the major hyperscale customer clarified that the April $41 million order is for package-level Sonoma systems, while wafer-level burn-in for a third device is still being evaluated and may not contribute this fiscal year; management also said memory engagement is with 2-3 flash suppliers and 2 DRAM suppliers, but revenue is still uncertain.