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Nov 29, 2024

Aehr Q2 2025 Earnings Report

Announced second quarter fiscal 2025 financial results and reiterated full year financial guidance.

Key Takeaways

Aehr Test Systems reported their Q2 2025 financial results, achieving progress on key objectives by expanding product reach into AI processors, gallium nitride power semiconductors, data storage devices, silicon photonics integrated circuits, and flash memory. They secured their first AI processor customer for wafer level burn-in and package part burn-in, and also received their first gallium nitride (GaN) semiconductor production order.

Secured first AI processor customer for wafer level burn-in with initial volume production orders for FOX-XP systems.

Received initial volume production orders for multiple Sonoma ultra-high-power systems from a large-scale data center hyperscaler for package part burn-in.

Expanded production wafer level burn-in market to include GaN semiconductors, with a first production order received.

Customer for hard disk drives is ramping and expected to purchase multiple production systems to support their new product rollout.

Total Revenue
$13.5M
Previous year: $21.4M
-37.2%
EPS
$0.02
Previous year: $0.23
-91.3%
Gross Profit
$5.8M
Previous year: $11M
-47.1%
Cash and Equivalents
$24.8M
Previous year: $50.5M
-50.8%
Free Cash Flow
-$6.19M
Previous year: -$612K
+912.1%
Total Assets
$142M
Previous year: $101M
+40.6%

Aehr

Aehr

Forward Guidance

Aehr Test Systems reiterated its previously provided guidance for the fiscal year ending May 30, 2025.

Positive Outlook

  • Total revenue of at least $70 million.
  • Non-GAAP net profit before taxes of at least 10% of revenue.
  • Expanding market opportunities for products.
  • Strong customer engagements.
  • Innovative products designed to meet evolving demands.

Challenges Ahead

  • Quarterly revenue can experience significant variability if system orders anticipated by quarter-end are delayed.
  • Silicon carbide sales outside of China should remain challenging before recovering in calendar 2026.
  • Geopolitical, trade, and intellectual property risks associated with the Chinese market.
  • Recent trade-related developments in the U.S. have heightened the risk associated with bookings and revenue from Chinese customers.
  • Emergence of competitive offerings in China that may infringe on Aehr’s intellectual property.