Aehr Test Systems (AEHR) investor relations material

Executive summary

• Q1 fiscal 2026 revenue was $11 million, down from $13.1 million year-over-year, but driven by strong AI and data center demand, with bookings of $11.4 million and a backlog of $15.5 million.

• Net loss was $2.08 million GAAP ($0.07 per share), compared to net income of $0.66–$0.7 million in the prior year, due to lower gross profit and restructuring charges; non-GAAP net income was $0.2–$0.3 million ($0.01 per share).

• Strong momentum in AI processor test and burn-in, with major hyperscaler orders, new customer engagements, and enhanced Sonoma and FoxXP systems.

• Facility renovation completed, increasing manufacturing capacity by at least five times and supporting growth in high-power system production.

• Received $1.3 million Employee Retention Credit refund, net of service fees, recognized in other income.

Financial highlights

• Q1 revenue was $10.97–$11 million, down from $13.1–$13.12 million year-over-year, mainly due to lower consumables and contactor revenue.

• Gross margin was 33.9%–37.5%, down from 54.0%–54.7% year-over-year, impacted by product mix, lower sales, and higher costs.

• Non-GAAP operating expenses rose to $5.9 million, up 8% year-over-year, driven by increased development expenses.

• Cash, cash equivalents, and restricted cash totaled $24.7 million at quarter-end, with no debt.

• Backlog at Q1 end was $15.5 million, with $2 million in net bookings early in Q2, bringing year-to-date backlog to $17.5 million.

Outlook and guidance

• No formal guidance reinstated due to ongoing tariff-related uncertainty, but management expects broad-based order growth across nearly all served markets in fiscal 2026, with silicon carbide growth anticipated to strengthen into fiscal 2027.

• Management expects existing cash resources and anticipated funds from operations to meet obligations for the next twelve months.