Record Bookings and Backlog
Q3 bookings of $37.2M (vs $6.2M in Q2, ~+500%) with book-to-bill >3.5x; quarter-end backlog $38.7M and effective backlog of $50.9M after $12.2M of additional bookings in the first 5 weeks of Q4 (new company record).
Aehr Test Systems
· AEHR
April 7th, 2026
Summary
- Earnings Call Date:
- 2026-04-07
- Change Since:
- +89.45%
- Next Earnings Date:
- 2026-07-21
Earnings Call Sentiment
PositiveThe call presented a mix of strong commercial momentum and near-term financial softness. Positive takeaways include a dramatic bookings surge (Q3 $37.2M vs $6.2M in Q2), a record effective backlog ($50.9M), multiple large customer wins across wafer-level AI, silicon photonics, package-level hyperscaler production, and expanded manufacturing capacity (>20 Sonoma/month). These items underpin management's guidance for fiscal '26 revenue to be on the high side of prior guidance and a return to non-GAAP profitability in Q4. Offsetting these positives are a sizable YOY revenue decline (-44% to $10.3M), gross margin contraction (-6.2 percentage points), a non-GAAP net loss in the quarter versus prior-year profit, lumpy timing of large orders, and some technical delays in benchmark evaluations. Overall, the forward-looking bookings, backlog and customer engagements are substantial and suggest meaningful future growth potential, while near-term operational and margin pressures create short-term risk.
Company Guidance
Management reiterated FY‑2026 guidance, expecting full‑year revenue to be on the high side of the $45–$50 million range and second‑half bookings to be on the high side of the $60–$80 million range; Q3 bookings were $37.2 million (management said >$37M) with a book‑to‑bill >3.5x and an effective backlog of $50.9 million (Q3 backlog $38.7M plus $12.2M in the first five weeks of Q4). Q3 revenue was $10.3M (down 44% YoY from $18.3M), non‑GAAP gross margin was 36.5% (vs. 42.7% a year ago), non‑GAAP operating expenses were $6.3M, and management expects gross margin to improve and to return to non‑GAAP profitability in Q4 while guiding FY‑26 non‑GAAP net loss per diluted share of negative $0.13 to negative $0.09. Cash at quarter‑end was $37.1M (up from $31.0M), operating cash used in Q3 was $3.7M, and the company has drawn $40M from its ATM program (over 1.13M shares sold at an average $35.38, including $10.5M in Q3 and $19.5M post‑quarter).
Major Wafer-Level AI Production Order
Received a $14M follow-on production order from lead wafer-level AI accelerator customer for multiple FOX-XP wafer-level burn-in systems (nine 300mm wafers parallel configuration) plus WaferPak contactors and auto-aligners, expanding installed base and automation in production.
Silicon Photonics Customer Win and Production Ramp
Won a major new silicon photonics customer with initial order for multiple high-power FOX-XP and FOX-NP wafer-level burn-in systems (engineering qualification and high-volume production); systems scheduled to ship in fiscal Q4 and customer forecasted additional production systems over the next year.
Hyperscaler Package-Level Production Win
Key production win with lead package-level hyperscale customer for next-generation higher-power AI processor using Sonoma systems with initial production order and forecasted substantial expansion of Sonoma purchases beginning H2 calendar 2026 and into 2027.
New Silicon Carbide & GaN Customer Momentum
New silicon carbide customer in Taiwan placed an order for a FOX-XP system; continued progress with lead GaN production customer on wafer-level burn-in for multiple device types across automotive, data center and infrastructure markets.
Capacity Expansion to Support Growth
Began shipping Sonoma systems from contract manufacturers, adding capacity of more than 20 Sonoma systems per month to better support anticipated production ramps.
Improved Cash Position and Financing Activity
Ended Q3 with $37.1M in cash (up from $31.0M in Q2, +19.7%), raised gross proceeds of $10.5M in Q3 via ATM and an additional $19.5M since quarter-end (total $40M utilized under ATM program across ~1.13M shares at average $35.38).
Forward Guidance and Path to Profitability
Company expects full-year fiscal '26 revenue on the high side of prior $45M–$50M guidance, second-half bookings on the high side of $60M–$80M guidance, and a return to non-GAAP profitability in Q4 fiscal '26; full-year non-GAAP net loss per diluted share expected between -$0.13 and -$0.09.
Long-Term Consumables Opportunity
Management reiterates belief consumables (WaferPaks, burn-in boards/modules) should grow to ~30%+ of revenue over time, supporting higher margins as installed base expands.
Operator
Greetings. Welcome to the Aehr Test Systems Fiscal 2026 Third Quarter Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Jim Byers of PondelWilkinson Investor Relations. You may begin.
Jim Byers
Thank you, operator. Good afternoon, and welcome to Aehr Test Systems Third Quarter Fiscal 2026 Financial Results Conference Call. With me on today's call are Aehr Test Systems' President and Chief Executive Officer, Gayn Erickson; and Chief Financial Officer, Chris Siu. Before I turn the call over to Gayn and Chris, I'd like to cover a few quick items. This afternoon, right after market closed, Aehr Test issued a press release announcing its third quarter fiscal 2026 results. That release is available on the company's website at aehr.com. This call is being broadcast live over the Internet for all interested parties, and the webcast will be archived on the Investor Relations page of the company's website. And I'd like to remind everyone that on today's call, management will be making forward-looking statements that are based on current information and estimates and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
These factors are discussed in the company's most recent periodic and current reports filed with the SEC. These forward-looking statements, including guidance provided during today's call, are only valid as of this date, and Aehr Test Systems undertakes no obligation to update th...
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