Aehr Test Systems, Inc.

What they do

Aehr builds systems that test, burn-in, and stabilize semiconductor devices at wafer level, singulated die, and package level, and has installed thousands of systems worldwide. Its FOX-P family (FOX-XP, FOX-NP, FOX-CP) uses FOX WaferPak Contactors, DiePak Carriers, Aligners, and Loaders to test full wafers up to 300mm and up to 1,024 devices in parallel per DiePak. Following the Incal acquisition, it also sells package-level burn-in lines: Sonoma for ultra-high-power devices up to 1600W or more, Tahoe for medium-power, and Echo for low-power high-parallelism testing. Customers are concentrated among semiconductor manufacturers, contract test and assembly companies, and independent test and burn-in labs.

Revenue drivers

• Wafer-level burn-in (WLBI) systems and contactors — Sales of FOX-P systems plus recurring FOX WaferPak Contactors; historically the largest revenue source, and the segment most exposed to electric vehicle power semiconductor demand. In the nine months ended February 27, 2026, wafer-level contactor revenue fell $21.2 million year over year on lower EV-related shipments.
• Package-level burn-in systems (Sonoma, Tahoe, Echo) — Acquired with Incal; Sonoma targets AI accelerators, GPUs, and HPC processors up to 1600W or more, while Tahoe and Echo serve logic, SoC, and mixed-signal devices. Package-level systems revenue rose $2.5 million in the first nine months of fiscal 2026 versus the prior-year period.
• Package-level burn-in boards and modules — Consumable board and module revenue tied to installed package-level burn-in systems. This line increased $3.6 million in the first nine months of fiscal 2026, driven by AI-related customer demand.
• Service, fixtures, upgrades, and spare parts — Service contracts, test fixtures, upgrades, spare parts, and non-recurring engineering charges sold alongside systems; smaller than systems revenue but service revenue increased $0.5 million in the first nine months of fiscal 2026.

Recent performance

Fiscal 2026 revenue was $50.0 million, down from $59.0 million in fiscal 2025, with a GAAP net loss of $(7.1) million, or $(0.23) per diluted share, versus a $(3.9) million loss in fiscal 2025. The fourth quarter was stronger: revenue of $18.8 million versus $14.1 million a year earlier, GAAP net income of $1.4 million ($0.04 per diluted share), and non-GAAP net income of $3.6 million ($0.11 per diluted share). Fiscal fourth-quarter bookings were a record $60.7 million, and backlog at May 29, 2026 was $80.6 million, or $100.6 million including bookings after year end. Cash, cash equivalents and restricted cash rose to $116.5 million at May 29, 2026 from $37.1 million at February 27, 2026, while cash used in operating activities for fiscal 2026 was $3.3 million.

Strategy

Management is positioning Aehr around AI, silicon photonics, data center, automotive, and industrial test demand, with wafer-level burn-in for AI accelerators as the lead growth vector. The company says its lead AI production customer is shifting burn-in from system-level to all wafer-level for AI accelerators used in training and inference and is significantly ramping capacity. It also reported completing benchmark testing of its WLBI solution on a processor from a major AI accelerator, CPU, and network processor supplier, which expressed interest in pilot production validation. The Incal acquisition extended the portfolio into package-level burn-in (Sonoma, Tahoe, Echo) to cover the full range of device power and complexity. Management continues to pursue additional orders from existing and prospective customers and cited record bookings and backlog as visibility into fiscal 2027.

Risks

• Customer concentration — Sales to the five largest customers were approximately 70% of net sales in fiscal 2026, with three customers at roughly 26%, 14%, and 11%, so losing or a slowdown at one customer would materially hurt results.
• EV power semiconductor softness — Fiscal 2025 and 2026 operating performance was negatively affected by continued softness in electric vehicle power semiconductor demand, which drove the $21.2 million decline in wafer-level contactor revenue in the first nine months of fiscal 2026.
• Lumpy, high-value system sales — A substantial portion of revenue comes from a small number of high-value system sales, so the number, type, and selling price of systems shipped in a period can materially swing revenue, gross margin, earnings, and operating cash flow.
• Deferred tax asset realizability — After releasing a $21.9 million valuation allowance in fiscal 2024, Aehr incurred pretax losses in fiscal 2025 and through the nine months ended February 27, 2026, and management reassesses each reporting date whether a new valuation allowance may be required, which could materially affect the tax provision.

Outlook

Management projects fiscal 2027 revenue of $130 million to $150 million, representing roughly 160% to 200% growth over fiscal 2026, based on current backlog, anticipated customer demand, and a record effective backlog of $100.6 million entering the year. The outlook leans on accelerating AI-related wafer-level burn-in demand from the lead AI production customer and interest from additional AI processor suppliers evaluating WLBI. Management states it continues to pursue additional orders from existing and prospective customers. It notes its results remain dependent on customer order timing and the pace of technology adoption.