Aehr Test Systems Reports Q3 Fiscal 2025 Revenue Increase to $18.3 Million

Aehr Test Systems reported its financial results for the third quarter of fiscal 2025, ending February 28, 2025, revealing a significant increase in revenue compared to the same period last year. The company generated total revenue of $18.3 million, up from $7.6 million in the prior year, driven primarily by increased shipments of its FOX-XP systems and contactors to new semiconductor customers, particularly in the artificial intelligence sector. However, for the nine months ended February 28, 2025, revenue decreased to $44.9 million from $49.6 million, attributed to a decline in demand for power semiconductors used in electric vehicles.

The company's gross profit for the quarter rose to $7.2 million, compared to $3.2 million a year earlier, although the gross margin decreased to 39.2% from 41.7%. This decline was primarily due to the amortization of acquired intangible assets and a one-time inventory variance charge. For the nine-month period, gross profit fell to $19.7 million from $24.1 million, with gross margin decreasing to 43.8% from 48.6%. The decrease in gross margin was linked to lower system shipments and changes in product mix.

Aehr Test Systems also made strategic moves during the quarter, including the acquisition of Incal Technology, Inc. on July 31, 2024, which expanded its product offerings to include packaged parts burn-in solutions. The acquisition contributed approximately $3.5 million in revenue during the quarter. The company reported an increase in operating expenses, with research and development costs rising to $3.1 million from $2.1 million, largely due to severance benefits and recruitment costs following the passing of an executive officer. Selling, general, and administrative expenses also increased significantly, reflecting higher legal fees and costs associated with the newly acquired business.

As of February 28, 2025, Aehr Test Systems had cash and cash equivalents of $31.4 million, down from $47.7 million a year earlier, primarily due to cash used for the Incal acquisition and increased capital expenditures. The company reported a net loss of $643,000 for the quarter, compared to a loss of $1.5 million in the same period last year. For the nine months, the net loss was $1.0 million, a significant decline from a net income of $9.3 million in the prior year, reflecting the impact of the acquisition and changes in market conditions.

Looking ahead, Aehr Test Systems anticipates continued demand for its products driven by trends in decarbonization, generative AI, and digitalization, which are expected to increase the need for reliable semiconductor testing solutions. The company remains focused on leveraging its expanded product portfolio and customer base to navigate the current market challenges and capitalize on growth opportunities in the semiconductor industry.