On July 8, 2025, Aehr Test Systems (AEHR, Financial) released its 8-K filing detailing the financial results for its fiscal 2025 fourth quarter and full year ended May 30, 2025. Aehr Test Systems, a provider of semiconductor test and burn-in equipment, reported a net revenue of $14.1 million for the fourth quarter, falling short of the analyst estimate of $14.82 million. The company also reported a GAAP net loss of $(2.9) million, or $(0.10) per diluted share, compared to a GAAP net income of $23.9 million, or $0.81 per diluted share, in the same quarter of the previous year.
Company Overview
Aehr Test Systems specializes in designing, manufacturing, marketing, and selling advanced test and burn-in products to the semiconductor manufacturing industry. The company operates in one business segment and provides solutions to improve yield and reliability across the product manufacturing flow. Aehr Test Systems has introduced several innovative products, including the ABTSTM and FOX-PTM families of test and burn-in systems, and the FOX WaferPakTM Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader.
Performance and Challenges
The fiscal fourth quarter results reflect a challenging period for Aehr Test Systems, with net revenue declining from $16.6 million in the same quarter of the previous year. The GAAP net loss of $(2.9) million contrasts sharply with the previous year's net income, highlighting the absence of a significant tax benefit that bolstered last year's results. The company's bookings for the quarter were $11.1 million, with a backlog of $15.2 million as of May 30, 2025. The effective backlog, including bookings since that date, stands at $16.3 million.
Financial Achievements and Industry Importance
Despite the challenges, Aehr Test Systems achieved several milestones, including the successful launch and adoption of its first production wafer level burn-in (WLBI) system for artificial intelligence (AI) processors. This development is crucial as it validates the feasibility and cost benefits of WLBI testing for high-power AI devices, attracting interest from leading processor companies. The company's expansion into new markets, such as gallium nitride power semiconductors and silicon photonics integrated circuits, positions it for future growth opportunities.
Key Financial Metrics
For the full fiscal year, Aehr Test Systems reported net revenue of $59.0 million, compared to $66.2 million in fiscal 2024. The GAAP net loss for the year was $(3.9) million, or $(0.13) per diluted share, compared to a GAAP net income of $33.2 million, or $1.12 per diluted share, in the previous year. Non-GAAP net income was $4.6 million, or $0.15 per diluted share, excluding stock-based compensation and other adjustments. Cash used in operating activities was $7.4 million for fiscal 2025.
| Metric | Q4 2025 | Q4 2024 |
|---|---|---|
| Net Revenue | $14.1 million | $16.6 million |
| GAAP Net Income (Loss) | $(2.9) million | $23.9 million |
| Non-GAAP Net Income (Loss) | $(0.2) million | $24.7 million |
| Bookings | $11.1 million | - |
| Backlog | $15.2 million | - |
Analysis and Commentary
Gayn Erickson, President and CEO of Aehr Test Systems, commented on the company's strategic initiatives:
“Fiscal 2025 was a transformative year for Aehr Test Systems, marked by significant progress on our strategic initiatives to expand our total addressable market, diversify our customer base, and enhance our product portfolio.”
The company's efforts to expand into new markets and diversify its customer base are crucial for long-term growth, especially as it faces challenges in its traditional markets. The strategic investments in AI processors, gallium nitride power semiconductors, and silicon photonics integrated circuits are expected to unlock substantial growth opportunities.
Conclusion
Aehr Test Systems' fiscal 2025 results reflect both the challenges and opportunities facing the company. While the revenue shortfall and net loss highlight current difficulties, the company's strategic initiatives and expansion into new markets position it for potential future growth. Investors will be keen to see how these efforts translate into financial performance in the coming quarters.
Explore the complete 8-K earnings release (here) from Aehr Test Systems for further details.
