Aehr Test Systems Reports 10.9% Revenue Decline to $58.97 Million for Fiscal Year Ending May 30, 2025

Aehr Test Systems, a provider of semiconductor test solutions, reported a decline in revenue for the fiscal year ending May 30, 2025, with total revenues of $58.97 million, down 10.9% from $66.22 million in the previous year. The decrease was primarily attributed to reduced shipments of systems and contactors, particularly due to a slowdown in demand for power semiconductors used in electric vehicles. Product revenue fell by $8.9 million, although this was partially offset by a rise in packaged parts burn-in product revenue following the acquisition of Incal Technology, which contributed $18.6 million in revenue since its acquisition date.

The company's gross profit also decreased to $23.93 million, resulting in a gross margin of 40.6%, down from 49.1% in the prior year. This decline was influenced by several factors, including the amortization of acquired intangible assets, inventory variance charges, and lower manufacturing efficiencies due to reduced system shipments. Aehr's operating expenses rose significantly, with research and development costs increasing to $10.46 million and selling, general, and administrative expenses rising to $18.28 million, largely due to expenses associated with the Incal acquisition and higher legal fees.

Aehr's customer base remains concentrated, with its five largest customers accounting for approximately 77% of total revenues in fiscal 2025, a decrease from 93% in the previous year. The company reported a backlog of $15.2 million as of May 30, 2025, up from $7.3 million a year earlier, indicating potential future revenue growth. The company employed 136 individuals as of the end of the fiscal year, with a focus on maintaining a skilled workforce to support its operations.

Looking ahead, Aehr Test Systems anticipates continued demand for its products driven by the growth of artificial intelligence and electric vehicle markets. The company is committed to investing in research and development to enhance its product offerings and maintain competitiveness in the semiconductor equipment industry. However, it also faces challenges, including potential fluctuations in customer demand and the need to navigate a highly competitive market landscape. The company has not provided specific revenue guidance for the upcoming fiscal year but remains optimistic about its strategic positioning and growth opportunities.