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Bookings and backlog surged:<\/strong> Aehr posted Q3 bookings of $37.2 million<\/strong> with a book-to-bill above 3.5x, ended the quarter with a $38.7 million<\/strong> backlog and an “effective backlog” of $50.9 million<\/strong> after subsequent orders, and expects to reach the high end of its $60M\u2013$80M<\/strong> second-half bookings range.<\/p>\n<\/li>\n
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AI and hyperscaler demand driving product wins:<\/strong> The company secured a $14 million<\/strong> follow-on production order for FOX\u2011XP wafer-level burn-in systems (nine 300mm wafers in parallel), won Sonoma package-level production orders from a major hyperscaler, and reported new silicon photonics and power\u2011semiconductor engagements.<\/p>\n<\/li>\n
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Near-term financials mixed but liquidity strengthened:<\/strong> Q3 revenue fell 44% to $10.3 million<\/strong> and non\u2011GAAP net loss was $1.5 million<\/strong>, but Aehr raised the full $40 million<\/strong> ATM authorization (ending Q3 with $37.1 million<\/strong> cash) and expects FY revenue on the high side of $45M\u2013$50M<\/strong> with a return to non\u2011GAAP profitability in fiscal Q4.<\/p>\n<\/li>\n
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Aehr Test Systems (NASDAQ:AEHR) reported fiscal 2026 third-quarter results and described what CEO Gayn Erickson called \u201cstrong momentum\u201d across wafer-level and package-level burn-in markets, driven largely by AI data center infrastructure demand. Management highlighted sharply higher bookings and record backlog, while results for the quarter reflected lower year-over-year revenue and a non-GAAP net loss.<\/p>\n
Erickson said the company delivered more than $37 million in quarterly bookings and a book-to-bill ratio \u201cexceeding 3.5x.\u201d CFO Chris Siu quantified third-quarter fiscal 2026 bookings at $37.2 million<\/strong>, up from $6.2 million<\/strong> in the prior quarter, and said the company ended the quarter with a $38.7 million<\/strong> backlog.<\/p>\n
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Siu added that in the first five weeks of the fiscal fourth quarter, Aehr received another $12.2 million<\/strong> in bookings, lifting \u201ceffective backlog\u201d (quarter-end backlog plus subsequent bookings) to a record $50.9 million<\/strong>. Erickson said the company now expects to land on the high end of the $60 million to $80 million<\/strong> second-half bookings range discussed last quarter.<\/p>\n
On wafer-level burn-in, Erickson said interest is accelerating as devices become more complex and power-hungry, making burn-in increasingly important for reliability in \u201cmission-critical AI, networking, automotive, and industrial applications.\u201d<\/p>\n<\/p><\/div>\n
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Erickson disclosed a $14 million follow-on production order<\/strong> from Aehr\u2019s \u201clead wafer level AI accelerator processor customer\u201d for multiple fully automated FOX-XP<\/strong> wafer-level burn-in systems configured to test nine 300-millimeter wafers in parallel<\/strong>, along with proprietary FOX WaferPak<\/strong> full-wafer contactors and integrated WaferPak Auto Aligners<\/strong> to enable hands-free operation. The order also included additional Auto Aligners to upgrade the customer\u2019s installed base to full automation.<\/p>\n
Erickson said Aehr is \u201cthe first company to successfully demonstrate and ship a wafer level burn-in solution for AI processors,\u201d and described the FOX-XP as capable of delivering \u201cup to thousands of amperes of current per wafer\u201d for high-power AI devices. He said the company is also engaged with multiple additional AI processor companies on benchmark evaluations, while noting one top-tier benchmark program has taken longer than expected due to \u201ca technical misunderstanding on the clock configurations,\u201d requiring WaferPak redesign work over the coming months.<\/p>\n
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Erickson said Aehr recently announced a \u201cmajor new silicon photonics customer\u201d with an initial order for multiple high-power FOX-XP wafer-level burn-in systems aimed at the hyperscale data center optical interconnect market. He said the systems\u2014spanning engineering qualification and high-volume production and including both FOX-XP and FOX-NP configurations plus WaferPak contactors\u2014are scheduled to ship in fiscal Q4 ending May 29, 2026, and that the customer provided a forecast for additional FOX-XP production systems over the next year.<\/p>\n
Erickson also said Aehr received a follow-on order from its \u201clead silicon photonics customer\u201d for a new high-power FOX-XP WaferPak system and an upgrade of an existing system to the company\u2019s latest high-power, fully automated configuration. He noted Aehr has integrated its systems with the customer\u2019s autonomous guided robots for \u201cfully lights out, hands-free operation.\u201d<\/p>\n
In power semiconductors, Erickson said Aehr continues to work with its lead gallium nitride (GaN) production customer on new devices across markets including automotive and data centers, adding that the company believes it has \u201csolved the key challenges with full wafer burn-in of GaN devices on silicon.\u201d He also reported a new silicon carbide customer in Taiwan focused on the \u201cGreater China EV market,\u201d which ordered a smaller configured FOX-XP system for qualification and production. While Erickson said he is seeing an \u201cuptick in activity and forecast\u201d from silicon carbide players, he emphasized the company remains conservative and is \u201cnot yet counting on significant revenue from this segment to return yet.\u201d<\/p>\n
For memory, Erickson said a key supplier engagement is progressing and that Aehr has achieved the correlation the customer requested. He said discussions are now focused on specifications for next-generation flash, particularly high-bandwidth flash, with the hope of closing in the next few months on a development agreement that would involve a 12- to 18-month<\/strong> development of \u201cmemory-optimized blades\u201d for the FOX-XP and FOX-NP platforms. He also said Aehr is in discussions with other memory suppliers that produce high-bandwidth memory used in AI GPUs, framing memory as a potential driver of orders in fiscal 2027 with ramps in fiscal 2028.<\/p>\n
Erickson spent part of the call clarifying terminology, saying Aehr is shifting its language from \u201cpackage part burn-in\u201d to \u201cpackage-level burn-in\u201d<\/strong> to reflect the industry\u2019s evolution toward advanced packaging and multi-die modules.<\/p>\n
During the quarter, he said Aehr announced \u201ca key production win\u201d with its lead package-level hyperscale customer, described as a \u201cpremier large-scale data center provider,\u201d for production burn-in of the customer\u2019s next-generation, \u201csignificantly higher power AI processor\u201d with an initial production order of high-power Sonoma<\/strong> systems. He added Aehr expects a \u201csignificant near-term follow-on order\u201d for package-level systems supporting the customer\u2019s current high-volume AI processor, and said the customer is forecasting \u201ca substantial expansion\u201d of Sonoma purchases starting in the second half of calendar 2026 and continuing into 2027.<\/p>\n
In the Q&A, Erickson told William Blair\u2019s Mark Schutter he has been \u201csurprised at how many devices are not yet doing production burn-in,\u201d but said a common theme is that customers are \u201call moving to burn-in\u201d as processor power rises. Erickson also said the hyperscaler is asking Aehr about design-for-test (DFT) features for a future device to potentially enable wafer-level burn-in, suggesting a progression where customers may adopt wafer-level screening when it is feasible and cost-effective.<\/p>\n
Erickson also said Aehr received an order from a brand-new customer for Sonoma for reliability qualification of a new AI processor, with potential for production burn-in on the same platform.<\/p>\n
Siu reported fiscal Q3 revenue of $10.3 million<\/strong>, which he said was in line with internal expectations \u201cdue to delayed orders,\u201d but was down 44%<\/strong> from $18.3 million<\/strong> in the prior-year quarter. He attributed the decline primarily to lower shipments of FOX systems and WaferPaks in wafer-level burn-in, partially offset by stronger Sonoma and burn-in module (BIM) demand from the hyperscale customer.<\/p>\n
Contactor revenue\u2014including WaferPaks as well as BIMs and burn-in boards (BIBs)\u2014was $3.0 million<\/strong>, or 29%<\/strong> of revenue, compared with $5.9 million<\/strong> (32%) a year ago. Non-GAAP gross margin was 36.5%<\/strong>, down from 42.7%<\/strong>, with Siu citing lower volume and a less favorable mix versus the prior year when WaferPak revenue was higher. Non-GAAP operating expenses were $6.3 million<\/strong>, flat year over year, as the company continued investing in AI benchmark and memory projects.<\/p>\n
On a non-GAAP basis, Aehr posted a net loss of $1.5 million<\/strong>, or ($0.05) per diluted share<\/strong>, compared with non-GAAP net income of $2.0 million, or $0.07 per diluted share, in the year-ago quarter.<\/p>\n
Aehr used $3.7 million<\/strong> in operating cash flow during the quarter and ended Q3 with $37.1 million<\/strong> in cash, cash equivalents, and restricted cash, up from $31.0 million at the end of Q2. Siu said the increase was primarily due to proceeds from the company\u2019s at-the-market (ATM) equity program. Aehr raised $10.5 million<\/strong> in gross proceeds in Q3 from about 269,000 shares, and since quarter-end raised another $19.5 million<\/strong> from about 477,000 shares. Including $9.9 million<\/strong> raised in Q2, Siu said Aehr fully utilized the $40 million<\/strong> ATM authorization, selling more than 1.13 million shares<\/strong> at an average price of $35.38<\/strong>.<\/p>\n
Looking ahead, Siu said Aehr expects full-year fiscal 2026 revenue to be on the high side of the previously provided $45 million to $50 million<\/strong> range, and non-GAAP net loss per diluted share of ($0.13) to ($0.09)<\/strong>. He said the company expects gross margin to improve as manufacturing activity increases and expects to return to non-GAAP profitability in fiscal Q4.<\/p>\n
Siu also announced Aehr will change its fiscal year end from the last Friday of May to the last Friday of June, effective after fiscal 2026 ends on May 29, 2026, with a one-month transition period to be reported alongside the first quarter ending Sept. 25, 2026.<\/p>\n
Aehr Test Systems develops, manufactures and sells semiconductor test and burn-in equipment used by device manufacturers to ensure quality and reliability of integrated circuits. Its products are designed for wafer-level reliability assessment, functional test and stress screening of memory devices, system-on-chips, optical components and power semiconductors. By focusing on wafer-level burn-in and testing processes, the company helps reduce cost and improve yield for high-volume semiconductor production.<\/p>\n
The company’s product portfolio includes FOX series wafer probe test and burn-in systems as well as ABTS burn-in ovens.<\/p>\n
The article “Aehr Test Systems Q3 Earnings Call Highlights” was originally published by MarketBeat.<\/p>\n<\/p><\/div>\n
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