Aehr Test Systems Q2 Earnings Center on AI Bookings

Aehr Test Systems reported a 27% year-over-year revenue decline and margin compression for the quarter ended Nov. 28, 2025. On Jan. 8, management reinstated second-half guidance tied to expected demand for AI processors and data-center testing.

Quarter Results and Margins

Aehr Test Systems (NASDAQ: AEHR) posted net revenue of $9.9 million for the quarter, down from $13.5 million a year earlier. The decline mainly reflected lower shipments of wafer packs—consumables used in wafer-level burn-in—partially offset by stronger demand for its Sonoma packaged-part systems. Contact (consumables) revenues fell to $3.4 million, or 35% of sales, from $8.6 million, or 64%, a year earlier. Operational setbacks and order delays in legacy silicon-carbide electric-vehicle markets also contributed to the shortfall.

Non-GAAP gross margin dropped to 29.8% from 45.3% in the prior-year quarter, pressured by lower volumes and an unfavorable product mix. Non-GAAP operating expenses declined slightly to $5.7 million from $5.9 million, reflecting lower personnel costs partly offset by higher research and development spending on AI and memory programs. The company swung to a non-GAAP net loss of $1.3 million, or -$0.04 per diluted share, compared with non-GAAP net income of $0.7 million, or $0.02 per diluted share, in the prior-year quarter. The quarter included an income-tax benefit of $1.2 million, with an effective tax rate of 27.3%.

Bookings for the quarter totaled $6.2 million, down from $11.4 million in the prior quarter. Backlog stood at $11.8 million at Nov. 28, 2025. Including bookings in the first six weeks of fiscal Q3, management said “effective backlog” rose to $18.3 million.

Guidance and AI Bookings

On Jan. 8, Aehr reinstated guidance for the second half of fiscal 2026, forecasting revenue of $25 million to $30 million and a non-GAAP net loss per diluted share between -$0.09 and -$0.05. Management tied the outlook to anticipated AI processor burn-in and data-center test demand.

The lead wafer-level burn-in customer for AI processors requested additional capacity and plans to transition to Aehr’s fully integrated automatic WaferPak aligner for 300mm wafers. Management expects this customer to continue scaling.

Management said it expects second-half bookings to total $60 million to $80 million based on customer forecasts, describing that range as an internal expectation rather than formal guidance. They said this level of bookings would set the stage for a very strong fiscal 2027 if converted to shipments.

In a separate Jan. 8 release, Aehr disclosed more than $5.5 million of Sonoma ultra-high-power packaged-part burn-in system orders in fiscal Q3 to date, including initial orders from a Silicon Valley test services lab for a next-generation fully automated Sonoma platform. These Q3-to-date Sonoma orders already exceed all Sonoma orders in Q2.

Aehr is diversifying beyond its historical silicon-carbide electric-vehicle exposure into silicon photonics, gallium-nitride power devices, data-center storage, and flash memory. It is pursuing wafer-level and package-level burn-in opportunities in those markets. Management said a silicon-photonics customer has firmed a production ramp expected to begin early in fiscal 2027, with some customers likely to place orders in calendar 2026 for delivery in late 2026 and early 2027. The company also highlighted its August 2024 acquisition of Incal Technology as the source of its Sonoma high-power burn-in line and noted a strategic partnership with ISE Labs to provide advanced wafer-level test and burn-in services for high-performance computing and AI applications.

Cash Position and Capital Actions

Aehr ended the quarter with $31.0 million in cash, cash equivalents, and restricted cash, up from $24.7 million at the end of the first quarter. The increase followed a $10.0 million gross proceeds raise in Q2 through an at-the-market (ATM) equity offering that sold roughly 384,000 shares. About $30.0 million remained available under the $40.0 million ATM program, alongside a $100.0 million Form S-3 shelf registration. Management said it would use the ATM selectively based on market conditions and shareholder value. Operating activities used $1.2 million of cash during the quarter.

Management said the ATM proceeds helped offset near-term operating cash burn, but margin recovery and the company’s financial runway depend on the timing and convertibility of expected AI-related bookings.