Aehr Test Systems (NASDAQ:AEHR), a supplier of semiconductor test and burn-in equipment, stock plunges 21.50% (As on October 7, 11:33:36 AM UTC-4, Source: Google Finance) after the company reported first quarter fiscal 2026 revenue that fell short of analyst expectations. Non-GAAP net income, which excludes stock-based compensation, acquisition-related adjustments and restructuring charges, was $0.2 million compared to non-GAAP net income of $2.2 million in the first quarter of fiscal 2025. Bookings were $11.4 million for the quarter. Backlog as of August 29, 2025 was $15.5 Effective backlog, including bookings since August 29, 2025, is $17.5 million. Total cash, cash equivalents and restricted cash as of August 29, 2025 was $24.7 million, compared to $26.5 million at May 30, 2025.

Meanwhile, the momentum in packaged part qualification and production burn-in for AI processors continued to drive growth in the new Sonoma ultra-high-power packaged part burn-in systems and consumables. During the quarter, the lead production customer, a world-leading hyperscaler placed multiple follow-on volume production orders for Sonoma systems and requested shorter lead times to support higher-than-expected volumes as they ramp up development of their own advanced AI processors. This customer has already outlined plans to expand capacity for this device and introduce new AI processors over the coming year to be tested and burned in on the Sonoma platform at one of the world’s leading test houses. Further, during the year, the company has delivered the world’s first production wafer level burn-in (WLBI) systems for AI processors. The company expects follow-on orders from this cutting-edge AI customer as volumes increase, and other AI processor suppliers have already approached them about the feasibility of WLBI for their devices. The company is also developing a strategic partnership with this world’s leading OSAT to provide advanced wafer level test and burn-in solutions for high-performance computing (HPC) and AI processors. Additionally, although silicon carbide growth is expected to be weighted toward the second half of the year, AEHR continues to see opportunities for upgrades, WaferPaks, and capacity expansion as that market rebounds.

AEHR in the first quarter fiscal 2026 has reported the adjusted earnings per share of $0.01, beating the analysts’ estimates for the adjusted earnings per share of break even. The company had reported the adjusted revenue decline of 16 percent to $11 million in the first quarter fiscal 2026, missing the analysts’ estimates for revenue of $11.48 million.