Aehr Test Systems, based in Fremont, California, is a supplier of semiconductor testing and burn-in equipment. The company provides solutions for testing and verifying the reliability of semiconductor devices throughout their production processes.

For the second quarter of fiscal 2025, which ended on November 29, 2024, Aehr reported a decline in revenue, totaling $13.5 million, down 37% from $21.4 million in the same period last year. The company’s GAAP net loss was $1.0 million, or $(0.03) per diluted share, compared to GAAP net income of $6.1 million, or $0.20 per diluted share, in the prior year’s second quarter. Non-GAAP net income for the quarter was $0.7 million, or $0.02 per diluted share, a decrease from $6.7 million, or $0.23 per diluted share, year-over-year.

Bookings for the quarter were $9.2 million, down from $16.7 million in the first quarter of fiscal 2025. As of November 29, 2024, Aehr’s backlog stood at $12.4 million, and with additional bookings received after the quarter, the effective backlog reached $26.6 million.

In terms of product performance, revenue from WaferPaks reached $8.6 million, representing 64% of total revenue for the quarter, compared to 43% in the same period last year. The company also noted significant contributions from system sales associated with its Sonoma ultra-high-power systems, which were acquired through Aehr’s acquisition of Incal Technology.

Non-GAAP gross margin decreased to 45.3% for the quarter from 51.6% in the same period last year. Non-GAAP operating expenses rose 19% to $5.9 million from $5.0 million in Q2 of fiscal 2024. The cash balance at the end of the quarter totaled $35.2 million, down from $40.8 million at the close of the previous quarter.

Looking forward, Aehr Test Systems affirmed its financial guidance for the fiscal year, projecting total revenue of at least $70 million, which would still reflect a slight year-on-year decline. Non-GAAP net profit before taxes is expected to be no less than 10% of revenue.

The decline in performance appears to stem from a challenging environment and overall softness in the silicon carbide-powered semiconductor market, which has significantly impacted Aehr’s traditional revenue streams. Nonetheless, the company continues to diversify into sectors such as artificial intelligence (AI) processors, where it expects to capture a larger share of the market moving forward.