AEHR TEST SYSTEMS SEC 10-Q Report

AEHR TEST SYSTEMS, a leading provider of semiconductor test and burn-in solutions, has released its Form 10-Q report for the third quarter. The report outlines significant financial and operational challenges faced by the company, including a notable decrease in revenue and increased operating expenses. Despite these hurdles, the company is focusing on future growth opportunities driven by the demand for semiconductor devices in generative AI and electrification trends.

Financial Highlights

• Revenue: $10.969 million, decreased by 16% compared to the same period in the prior year, primarily driven by lower shipments of contactors due to ongoing softness in demand for electric vehicles.
• Gross Profit: $3.719 million, decreased by 47% compared to the same period in the prior year, primarily due to lower revenue levels and a change in product mix.
• Income (loss) from operations: $(4.066) million, compared to $0.159 million in the same period in the prior year, reflecting increased operating expenses and restructuring charges.
• Net income (loss): $(2.084) million, compared to $0.660 million in the same period in the prior year, primarily due to lower revenue and increased operating expenses.
• Net income (loss) per share - Basic: $(0.07), compared to $0.02 in the same period in the prior year, reflecting the net loss incurred during the period.

Business Highlights

• Revenue Segments: The company experienced a decrease in contactor revenue by $9.5 million, which was partially offset by an increase in systems revenue of $6.7 million and service revenue of $0.6 million. This shift reflects changes in product demand and sales mix.
• Geographical Performance: Revenue in Asia decreased significantly due to ongoing softness in demand for electric vehicles, while the United States and Europe and Middle East saw increases in FOX-P systems sales. The United States revenue increased by 820%, and Europe and Middle East revenue increased significantly from a low base.
• Product Portfolio Expansion: The acquisition of Incal Technology, Inc. expanded the company's product portfolio to include the Sonoma, Tahoe, and Echo series for packaged parts burn-in solutions, addressing a range of power and complexity needs in integrated circuits.
• Operational Challenges: The company faced higher assembly and warranty costs, increased tariffs on imported parts, and amortization of acquired intangible assets, impacting gross margins.
• Workforce Restructuring: A workforce reduction was implemented to align resources with business needs, resulting in restructuring charges primarily related to employee termination benefits.
• Future Outlook: The company is focusing on the growing demand for semiconductor devices driven by generative AI and electrification trends, emphasizing the need for comprehensive test and burn-in solutions to ensure reliability and performance.

SEC Filing: AEHR TEST SYSTEMS [ AEHR ] - 10-Q - Oct. 08, 2025