Aehr Test Posts First Profit in Five Quarters
The semiconductor-equipment supplier swung to a $1.4 million GAAP net income after four straight losses.
Aehr Test Systems (AEHR) reversed a year-long slide in its fiscal fourth quarter, reporting its first profitable period in five quarters as demand for artificial-intelligence processors surged. Revenue rose 33% from the prior-year quarter to $18.8 million, ending a streak of three consecutive declines.
The turnaround was driven by record bookings and a sharp rebound in wafer-level burn-in systems for AI accelerators. Bookings reached $60.7 million, up 63% sequentially and nearly five times the year-earlier level, pushing backlog to $80.6 million—more than double the prior quarter and 5.3 times the year-ago figure. Effective backlog, including post-quarter orders, hit a new high of $100.6 million.
GAAP net income was $1.4 million, or $0.04 a share, compared with a $2.9 million loss, or $0.10 a share, in the prior-year quarter. Non-GAAP net income swung to $3.6 million, or $0.11 a share, from a $0.2 million loss. Gross margin expanded for the third straight quarter, reaching 42.6% on a GAAP basis and 46.8% non-GAAP, up from 30.3% and 34.7%, respectively, a year earlier.
The company said a lead AI production customer shifted from system-level to all-wafer burn-in for AI accelerators, driving demand for its FOX WLBI solutions. Benchmark testing with a major AI processor supplier also advanced, with the supplier expressing interest in moving to pilot production for a high-volume device. Separately, Aehr received $8 million in new orders for silicon carbide WaferPaks, including expanded production orders from a lead customer and a direct order from a major automotive company.
For fiscal 2027, the company projected revenue of $130 million to $150 million, representing 160% to 200% growth from the $50 million reported for fiscal 2026. Non-GAAP net income is targeted at 18% to 22% of revenue. The guidance marks the first formal outlook for the year after a period of no guidance in prior quarters.
Cash and cash equivalents surged to $116.5 million at quarter-end, up 214% sequentially and 375% year-over-year, driven by $97.4 million in net proceeds from a public stock offering. Operating expenses rose 21% sequentially to $9.2 million, reflecting higher research and development and sales and marketing costs.