Aehr Test Systems Reports 15.2% Revenue Decline and $7.1 Million Net Loss for Fiscal Year Ending May 29, 2026

Aehr Test Systems, a provider of semiconductor test solutions, reported a decline in financial performance for the fiscal year ending May 29, 2026. The company generated total revenues of $50.0 million, a decrease of 15.2% from $58.9 million in the previous fiscal year. This decline was primarily attributed to a significant drop in wafer-level contactor revenue, which fell by $19.9 million due to reduced shipments amid ongoing softness in demand for electric vehicle power semiconductors. However, the company saw a $10.4 million increase in revenue from wafer-level burn-in systems, particularly from customers in the silicon photonics market.

In terms of profitability, Aehr Test reported a net loss of $7.1 million, compared to a loss of $3.9 million in the prior year. The gross profit also decreased to $17.7 million, down from $23.9 million, resulting in a gross margin of 35.3%, a decline from 40.6% in the previous year. The decrease in gross margin was attributed to higher assembly and warranty costs, increased freight expenses, and tariffs on imported parts. Research and development expenses rose to $12.6 million, reflecting a 20.7% increase due to higher employment-related costs and increased headcount.

Operationally, Aehr Test's customer base remains concentrated, with its five largest customers accounting for approximately 70% of total revenues in fiscal 2026. The company reported a backlog of $80.6 million as of May 29, 2026, a significant increase from $15.2 million the previous year, indicating strong future demand. The company also expanded its workforce, employing 138 individuals as of the end of the fiscal year, with a focus on enhancing its research and development capabilities.

Strategically, Aehr Test has made significant advancements in its product offerings, including the introduction of the FOX-P family of test and burn-in systems and the acquisition of Incal Technology, which has expanded its portfolio to include package-level burn-in solutions. The company anticipates that the growing demand for AI and silicon photonics will drive future growth, particularly as it continues to innovate and enhance its product lines. Looking ahead, Aehr Test expects to leverage its backlog and market position to improve its financial performance in the upcoming fiscal year.