Aehr Test Systems Reports 16% Revenue Decline and Net Loss in Latest Quarter

Aehr Test Systems reported a decline in financial performance for the three months ended August 29, 2025, with total revenue of $10.97 million, down 16% from $13.12 million in the same period last year. The decrease was primarily attributed to lower shipments of contactors, which saw a significant drop in demand due to ongoing softness in the electric vehicle market. While revenue from systems increased by $6.76 million, this was not enough to offset the $9.5 million decline in contactor sales. Gross profit also fell to $3.72 million, a 47% decrease compared to $7.08 million a year earlier, resulting in a gross margin of 33.9%, down from 54.0%.

Operating expenses rose to $7.79 million, up from $6.92 million in the prior year, driven by increased research and development costs, which rose by 21% to $2.85 million. This increase was largely due to higher employment-related expenses and stock-based compensation resulting from an expanded workforce. Selling, general, and administrative expenses remained relatively stable at $4.72 million, reflecting a slight increase of 3%. The company recorded a net loss of $2.08 million, compared to a net income of $660,000 in the same quarter last year, resulting in a basic and diluted loss per share of $0.07.

In terms of operational developments, Aehr Test Systems has continued to expand its product offerings, including the introduction of new systems such as the FOX-P family of test and burn-in systems. The company also completed the acquisition of Incal Technology, which has enhanced its portfolio with additional burn-in solutions for integrated circuits. The company’s cash and cash equivalents stood at $22.71 million as of August 29, 2025, a decrease from $24.53 million at the end of the previous quarter, reflecting a net cash decrease of $1.82 million during the period.

Geographically, revenue from the United States surged to $4.81 million, a significant increase from $523,000, while revenue from Asia plummeted to $2.48 million from $12.58 million, indicating a shift in market dynamics. The company’s total assets decreased to $144.09 million from $148.51 million, with total liabilities also declining to $21.70 million from $25.64 million. The company’s employee headcount has increased, contributing to higher operational costs, but specific figures were not disclosed.

Looking ahead, Aehr Test Systems anticipates that the demand for its products will continue to be influenced by macro trends in the semiconductor industry, particularly the growing need for reliability testing in advanced semiconductor devices. The company remains focused on its strategic initiatives to enhance product offerings and improve operational efficiencies, although it acknowledges the challenges posed by market conditions and customer demand fluctuations.