Aehr Test Systems (NASDAQ:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, stock fell 13.57% (As on July 9, 11:20:14 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter revenue that missed analyst expectations, as the company continues to face order delays amid market uncertainty. Aehr’s quarterly performance was impacted by timing-related delays in order placements, which the company attributed partly to tariff-related uncertainty. The semiconductor test equipment provider reported bookings of $11.1 million for the quarter and a backlog of $15.2 million as of May 30, 2025. The company ended the quarter with $26.5 million in cash, cash equivalents and restricted cash, compared to $31.4 million at the end of the previous quarter. While maintaining a cautious approach and not providing specific guidance, management expressed optimism about growth opportunities across all market segments in fiscal 2026, with the possible exception of silicon carbide, where customer forecasts indicate stronger growth expected in fiscal 2027.
Moreover, the company has expanded into packaged part qualification and production burn-in for AI processors this year through the acquisition of Incal Technology, enabling the company to offer both wafer level and packaged part reliability burn-in and test solutions. In gallium nitride (GaN) power semiconductors, the company has secured the first production order from a leading automotive semiconductor supplier for the FOX-XP high-power multi-wafer production system with high voltage for volume production of GaN devices. the company saw solid momentum in the silicon photonics market this year with the adoption of optical chip-to-chip communication and optical network switching. The company expects to see not only revenue from system upgrades and WaferPaks but also for incremental FOX-XP system and WaferPak orders to meet the capacity needs of the silicon photonics market this year.
Meanwhile, fiscal 2025 was a transformative year for Aehr Test Systems, marked by significant progress on the strategic initiatives to expand the total addressable market, diversify the customer base, and enhance the product portfolio. The company expanded into new markets for test and burn-in, including artificial intelligence processors for both wafer and package level, gallium nitride power semiconductors, data storage devices, and silicon photonics integrated circuits.
AEHR in the fourth quarter of FY25 has reported the adjusted loss per share of 1 cent, which is inline with the analysts’ estimates for the adjusted loss per share of 1 cent. The company had reported the adjusted revenue decline to $14.1 million in the fourth quarter of FY25 compared to $16.6 million in the fourth quarter of fiscal 2024, missing the analysts’ estimates for revenue of $14.8 million.