Aehr Test Systems reported a significant decline in financial performance for the three and nine months ended February 27, 2026, as detailed in its latest 10-Q filing. The company generated revenues of $10.3 million for the third quarter, a decrease of 44% compared to $18.3 million in the same period last year. For the nine-month period, revenues fell by 31% to $31.2 million from $44.9 million. The decline was primarily attributed to reduced shipments of wafer-level burn-in systems and contactors, particularly in the electric vehicle sector, which has seen continued softness in demand.
The company's gross profit also suffered, dropping to $3.4 million for the third quarter, down 53% from $7.2 million a year earlier. The gross margin decreased to 32.7% from 39.2%, reflecting a shift in product mix towards lower-margin package-level burn-in products and increased costs associated with assembly, warranties, and tariffs. For the nine-month period, gross profit decreased by 51% to $9.6 million, with gross margin declining from 43.8% to 30.9%.
In terms of operational developments, Aehr Test Systems has expanded its product offerings through the acquisition of Incal Technology, which has enhanced its portfolio with additional burn-in solutions for integrated circuits. The company has also introduced new products, including the FOX-P family of test systems, which cater to the growing demand for reliability testing in semiconductor devices, particularly in AI applications. Despite the challenges in revenue, the company reported an increase in research and development expenses, which rose by 1% to $3.2 million for the third quarter, reflecting ongoing investments in product development.
Aehr Test Systems' cash position improved, with cash and cash equivalents increasing to $36.9 million as of February 27, 2026, compared to $24.5 million at the end of the previous fiscal year. The company raised approximately $19.6 million through the issuance of common stock under its ATM offering program during the nine months ended February 27, 2026. Looking ahead, the company anticipates that demand for its products will be influenced by macro trends in the semiconductor industry, including the rise of generative AI and the electrification of transportation. However, it remains cautious about the potential impact of market conditions and customer investment cycles on future performance.
About AEHR TEST SYSTEMS
Aehr Test Systems is a California-based provider of advanced test solutions for semiconductor devices, focusing on testing, burn-in, and stabilization. Its innovative products, including the FOX-P family of systems, cater to critical applications in AI, electric vehicles, and renewable energy. With a growing market opportunity driven by the demand for reliable semiconductors, Aehr targets semiconductor manufacturers and contract assemblers, enhancing quality and efficiency in production processes.
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