Fiscal First Quarter Financial Results:
- Record revenue was
$33.0 million , up 200% from$11.0 million in the first quarter of fiscal 2026 and 75% sequentially. - GAAP gross margin was 47.5%, and non-GAAP gross margin was 48.5%.
- GAAP net income was
$7.2 million , or$0.21 per diluted share, compared with a GAAP net loss of$(2.1) million , or$(0.07) per diluted share, in the first quarter of fiscal 2026. - Non-GAAP net income, which excludes stock-based compensation and acquisition-related adjustments, was
$9.4 million , or$0.28 per diluted share, compared with non-GAAP net income of$0.2 million , or$0.01 per diluted share, in the first quarter of fiscal 2026. Non-GAAP net income increased approximately 163% sequentially. - Bookings were
$46.7 million , representing a book-to-bill ratio of approximately 1.4. - Backlog was
$100.9 million as ofSeptember 25, 2026 . Effective backlog, including bookings received after quarter end, was$109.3 million as ofNovember 1, 2026 . - Cash, cash equivalents and restricted cash totaled
$105.1 million as ofSeptember 25, 2026 , compared to$116.5 million as ofMay 29, 2026 .
An explanation of the use of non-GAAP financial measures and a reconciliation to the most directly comparable GAAP financial measures are included in the accompanying financial tables.
"Our fiscal first quarter results demonstrate the accelerating demand for our AI semiconductor test and burn-in solutions and our ability to execute against expanding customer production requirements. Revenue increased 200% year over year and 75% sequentially to a record
"Based on our first quarter performance, substantial backlog, and visibility into customer production requirements, we are raising our fiscal 2027 revenue outlook to
"Demand for our FOX™ wafer-level burn-in (WLBI) solutions remains strong. Our lead AI processor WLBI production customer continues to expand capacity, supported by the
"Our
"Another important development is the significant diversification of our customer base. Historically, we had only a handful of customers with the potential to generate significant production orders. Today, we see that potential across more than a dozen customers spanning AI processors, silicon photonics, silicon carbide, gallium nitride, and other applications.
"With existing customers expanding production, new AI processor programs advancing toward high-volume production, and an increasingly diversified pipeline of opportunities, we believe Aehr is exceptionally well positioned to capitalize on the growing need for advanced semiconductor test and burn-in solutions over the next several years."
Financial Guidance
For fiscal 2027 ending
- Revenue of
$150 million , compared with its previous guidance range of$130 million to$150 million . - Non-GAAP net income of at least 20% of revenue.
The updated revenue outlook represents 200% growth over fiscal 2026.
The increased outlook reflects Aehr's strong first quarter performance, substantial backlog, increasing visibility into existing customer production programs, and anticipated production and delivery schedules. Aehr continues to pursue additional opportunities with existing and prospective customers that could support additional growth in fiscal 2027 and beyond.
Management Conference Call and Webcast:
About
Headquartered in
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Aehr's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "forecasts." "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern Aehr's expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding future bookings, backlog, benchmark evaluations and product development from Aehr's new and existing customers; future applications and orders for AI processors, test solutions for AI semiconductor manufacturers and the
Contacts:
Chief Financial Officer csiu@aehr.com | Investor Contact tkehrli@pondel.com |
-Financial Tables to Follow-
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | One Month Ended | |||||||||||||||
(In thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | ||||||||||||
Revenue | $ | 33,007 | $ | 18,835 | $ | 10,969 | $ | 638 | ||||||||
Cost of revenue | 17,344 | 10,816 | 7,250 | 1,650 | ||||||||||||
Gross profit (loss) | 15,663 | 8,019 | 3,719 | (1,012 | ) | |||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 4,143 | 3,645 | 2,849 | 1,164 | ||||||||||||
Selling, general and administrative | 5,473 | 5,580 | 4,717 | 1,819 | ||||||||||||
Restructuring charges | - | - | 219 | - | ||||||||||||
Total operating expenses | 9,616 | 9,225 | 7,785 | 2,983 | ||||||||||||
Income (loss) from operations | 6,047 | (1,206 | ) | (4,066 | ) | (3,995 | ) | |||||||||
Interest income, net | 899 | 748 | 179 | 301 | ||||||||||||
Other income (expense), net | (19 | ) | 3 | 1,051 | 21 | |||||||||||
Income (loss) before income tax expense (benefit) | 6,927 | (455 | ) | (2,836 | ) | (3,673 | ) | |||||||||
Income tax benefit | (254 | ) | (1,846 | ) | (752 | ) | (930 | ) | ||||||||
Net income (loss) | $ | 7,181 | $ | 1,391 | $ | (2,084 | ) | $ | (2,743 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.22 | $ | 0.04 | $ | (0.07 | ) | $ | (0.08 | ) | ||||||
Diluted | $ | 0.21 | $ | 0.04 | $ | (0.07 | ) | $ | (0.08 | ) | ||||||
Shares used in per share calculations: | ||||||||||||||||
Basic | 32,619 | 31,881 | 29,923 | 32,485 | ||||||||||||
Diluted | 33,520 | 33,170 | 29,923 | 32,485 | ||||||||||||
Effective fiscal 2027, the Company changed its fiscal year-end from the Friday nearest
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Unaudited)
| Three Months Ended | One Month Ended | |||||||||||||||
(In thousands, except per share data) | 2026 | 2026 | 2025 | 2026 | ||||||||||||
Reconciliation of GAAP to non-GAAP gross profit (loss) | ||||||||||||||||
GAAP gross profit (loss) | $ | 15,663 | $ | 8,019 | $ | 3,719 | $ | (1,012 | ) | |||||||
Special items: | ||||||||||||||||
a) Stock-based compensation expense | 171 | 216 | 159 | 36 | ||||||||||||
b) Acquisition-related adjustments | 190 | 191 | 237 | 63 | ||||||||||||
Non-GAAP gross profit (loss) | $ | 16,024 | $ | 8,426 | $ | 4,115 | $ | (913 | ) | |||||||
Reconciliation of GAAP to non-GAAP operating expenses | ||||||||||||||||
GAAP operating expenses | $ | 9,616 | $ | 9,225 | $ | 7,785 | $ | 2,983 | ||||||||
Special items: | ||||||||||||||||
a) Stock-based compensation expense | (1,709 | ) | (1,649 | ) | (1,512 | ) | (412 | ) | ||||||||
b) Acquisition-related adjustments | (106 | ) | (105 | ) | (105 | ) | (35 | ) | ||||||||
c) Restructuring charges | - | - | (219 | ) | - | |||||||||||
Non-GAAP operating expenses | $ | 7,801 | $ | 7,471 | $ | 5,949 | $ | 2,536 | ||||||||
Reconciliation of GAAP to non-GAAP income (loss) from operations | ||||||||||||||||
GAAP income (loss) from operations | $ | 6,047 | $ | (1,206 | ) | $ | (4,066 | ) | $ | (3,995 | ) | |||||
Special items: | ||||||||||||||||
a) Stock-based compensation expense | 1,880 | 1,865 | 1,671 | 448 | ||||||||||||
b) Acquisition-related adjustments | 296 | 296 | 342 | 98 | ||||||||||||
c) Restructuring charges | - | - | 219 | - | ||||||||||||
Non-GAAP income (loss) from operations | $ | 8,223 | $ | 955 | $ | (1,834 | ) | $ | (3,449 | ) | ||||||
Reconciliation of GAAP to non-GAAP income (loss) before income tax benefit | ||||||||||||||||
GAAP income (loss) before income tax benefit | $ | 6,927 | $ | (455 | ) | $ | (2,836 | ) | $ | (3,673 | ) | |||||
Special items: | ||||||||||||||||
a) Stock-based compensation expense | 1,880 | 1,865 | 1,671 | 448 | ||||||||||||
b) Acquisition-related adjustments | 296 | 296 | 365 | 98 | ||||||||||||
c) Restructuring charges | - | - | 219 | - | ||||||||||||
Non-GAAP income (loss) before income tax benefit | $ | 9,103 | $ | 1,706 | $ | (581 | ) | $ | (3,127 | ) | ||||||
Reconciliation of GAAP to non-GAAP net income (loss) | ||||||||||||||||
GAAP net income (loss) | $ | 7,181 | $ | 1,391 | $ | (2,084 | ) | $ | (2,743 | ) | ||||||
Special items: | ||||||||||||||||
a) Stock-based compensation expense | 1,880 | 1,865 | 1,671 | 448 | ||||||||||||
b) Acquisition-related adjustments | 296 | 296 | 365 | 98 | ||||||||||||
c) Restructuring charges | - | - | 219 | - | ||||||||||||
Non-GAAP net income (loss) | $ | 9,357 | $ | 3,552 | $ | 171 | $ | (2,197 | ) | |||||||
Reconciliation of GAAP to non-GAAP income (loss) per diluted share | ||||||||||||||||
GAAP income (loss) per diluted share | $ | 0.21 | $ | 0.04 | $ | (0.07 | ) | $ | (0.08 | ) | ||||||
Special items: | ||||||||||||||||
a) Stock-based compensation expense | 0.06 | 0.06 | 0.06 | 0.01 | ||||||||||||
b) Acquisition-related adjustments | 0.01 | 0.01 | 0.01 | 0.00 | ||||||||||||
c) Restructuring charges | - | - | 0.01 | - | ||||||||||||
Non-GAAP income (loss) per diluted share | $ | 0.28 | $ | 0.11 | $ | 0.01 | $ | (0.07 | ) | |||||||
a) Represents compensation expense for equity awards granted to employees and directors.
b) Represents amortization of acquired intangible assets and accretion expense of escrow payable.
c) Represents employee termination benefits.
Non-GAAP measures should not be considered a replacement for GAAP results. The non-GAAP measures indicated above are financial measures the Company uses to evaluate the underlying results and operating performance of the business. The limitation of these measures are that they exclude items that impact the Company's current period GAAP measures. This limitation is best addressed by using these measures in combination with the most directly comparable GAAP financial measures. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies.
We believe these measures enhance investors' ability to review the Company's business from the same perspective as the Company's management and facilitate comparisons of this period's results with prior periods.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value) | 2026 | 2026 | 2026 | |||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 104,902 | $ | 112,308 | $ | 116,358 | ||||||
Accounts receivable | 26,630 | 15,946 | 17,473 | |||||||||
Inventories | 53,120 | 44,410 | 41,354 | |||||||||
Prepaid expenses and other current assets | 11,225 | 9,745 | 9,263 | |||||||||
Total current assets | 195,877 | 182,409 | 184,448 | |||||||||
Property and equipment, net | 8,820 | 8,814 | 8,940 | |||||||||
| 10,719 | 10,719 | 10,719 | ||||||||||
Intangible assets, net | 9,157 | 9,453 | 9,552 | |||||||||
Deferred tax assets, net | 25,120 | 24,766 | 23,829 | |||||||||
Operating lease right-of-use assets, net | 8,812 | 8,838 | 8,901 | |||||||||
Other non-current assets | 277 | 306 | 305 | |||||||||
Total assets | $ | 258,782 | $ | 245,305 | $ | 246,694 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 12,504 | $ | 6,353 | $ | 6,754 | ||||||
Accrued expenses and other current liabilities | 6,295 | 5,214 | 5,283 | |||||||||
Operating lease liabilities, short-term | 653 | 592 | 626 | |||||||||
Deferred revenue, short-term | 7,944 | 6,698 | 5,192 | |||||||||
Total current liabilities | 27,396 | 18,857 | 17,855 | |||||||||
Operating lease liabilities, long-term | 9,151 | 9,202 | 9,256 | |||||||||
Deferred revenue, long-term | 86 | 56 | 34 | |||||||||
Other long-term liabilities | 37 | 38 | 38 | |||||||||
Total liabilities | 36,670 | 28,153 | 27,183 | |||||||||
Shareholders' equity: | ||||||||||||
Preferred stock, | ||||||||||||
Issued and outstanding: none | - | - | - | |||||||||
Common stock, | ||||||||||||
Issued and outstanding: 32,663 shares, 32,491 shares and 32,480 shares at | 327 | 325 | 325 | |||||||||
Additional paid-in capital | 247,669 | 249,888 | 249,477 | |||||||||
Accumulated other comprehensive loss | (136 | ) | (132 | ) | (105 | ) | ||||||
Accumulated deficit | (25,748 | ) | (32,929 | ) | (30,186 | ) | ||||||
Total shareholders' equity | 222,112 | 217,152 | 219,511 | |||||||||
Total liabilities and shareholders' equity | $ | 258,782 | $ | 245,305 | $ | 246,694 | ||||||
CONDENSED CONSOLIDATED SATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended | One Month Ended | |||||||||||
(In thousands) | 2026 | 2025 | 2026 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 7,181 | $ | (2,084 | ) | $ | (2,743 | ) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Stock-based compensation expense | 1,880 | 1,671 | 448 | |||||||||
Depreciation and amortization | 707 | 743 | 228 | |||||||||
Deferred income taxes | (354 | ) | (761 | ) | (937 | ) | ||||||
Amortization of operating lease right-of-use assets | 200 | 179 | 63 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (10,686 | ) | 1,140 | 1,492 | ||||||||
Inventories | (9,037 | ) | 218 | (3,035 | ) | |||||||
Prepaid expenses and other current assets | (1,367 | ) | 1,576 | (484 | ) | |||||||
Accounts payable | 6,230 | (2,401 | ) | (219 | ) | |||||||
Accrued expenses | 998 | 505 | (76 | ) | ||||||||
Deferred revenue | 1,275 | (863 | ) | 1,529 | ||||||||
Operating lease liabilities | (164 | ) | (215 | ) | (88 | ) | ||||||
Income taxes payable | 83 | 10 | 10 | |||||||||
Net cash used in operating activities | (3,054 | ) | (282 | ) | (3,812 | ) | ||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (49 | ) | (1,391 | ) | (4 | ) | ||||||
Net cash used in investing activities | (49 | ) | (1,391 | ) | (4 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of common stock under employee plans | 337 | 170 | 13 | |||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (4,474 | ) | (328 | ) | (71 | ) | ||||||
Payments for common stock issuance costs related to the public offering | (161 | ) | - | (176 | ) | |||||||
Net cash used in financing activities | (4,298 | ) | (158 | ) | (234 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5 | ) | 9 | - | ||||||||
Net decrease in cash, cash equivalents and restricted cash | (7,406 | ) | (1,822 | ) | (4,050 | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of period(1) | 112,458 | 26,480 | 116,508 | |||||||||
Cash, cash equivalents and restricted cash, end of period (1) | $ | 105,052 | $ | 24,658 | $ | 112,458 | ||||||
Supplemental disclosure of non-cash flow information: | ||||||||||||
Net transfer of equipment between inventory and property and equipment | $ | 367 | $ | - | $ | - | ||||||
Right-of-use assets obtained in exchange for operating leases liabilities | $ | 174 | $ | - | $ | - | ||||||
(1) Includes restricted cash within prepaid expenses and other current assets and other non-current assets.
SOURCE:
View the original press release on ACCESS Newswire