TLDR
- AEHR reported a Q3 loss of $0.05 per share, surpassing analyst expectations of -$0.07, though revenue of $10.3M fell short of the $10.8M consensus
- Bookings for the quarter soared to $37.2M with a book-to-bill ratio exceeding 3.5x, a dramatic increase from the previous quarter’s $6.2M
- Total backlog hit a company record of $50.9M on an “effective” basis after incorporating $12.2M in fresh orders during Q4’s first five weeks
- Management now anticipates FY2026 revenue will land at the upper end of its $45M–$50M guidance corridor
- Lake Street Capital increased its price target to $56 from $50; William Blair reaffirmed its Outperform stance
Aehr Test Systems delivered a quarterly report that appeared contradictory at first glance — yet investors focused on the dramatic acceleration in new business rather than top-line shortfalls.
Third-quarter revenue totaled $10.3 million, representing a 44% decline year-over-year and falling slightly below the $10.8M Street projection. The firm recorded a non-GAAP net loss of $1.5 million. However, the loss per share of $0.05 exceeded expectations by two cents.
The standout metric was bookings activity. Aehr disclosed $37.2 million in third-quarter bookings, marking a substantial leap from the preceding quarter’s modest $6.2 million. The book-to-bill ratio climbed above 3.5x — an indicator that typically points to robust future revenue conversion.
The backlog at quarter-end registered $38.7 million. When management included the $12.2 million in fresh contracts secured during the initial five weeks of the fourth quarter, the effective backlog climbed to an all-time high of $50.9 million. Leadership now projects achieving the upper boundary of its $60M–$80M second-half bookings forecast.
CEO Gayn Erickson highlighted that the company is “the first company to successfully demonstrate and ship a wafer level burn-in solution for AI processors.” He referenced a $14 million follow-on production contract from its primary AI accelerator client for FOX-XP systems designed to test nine 300mm wafers simultaneously.
AI and Silicon Photonics Fuel Order Growth
A first-time silicon photonics client submitted an inaugural order for multiple FOX-XP systems aimed at the hyperscale data center optical interconnect sector. These units are slated for delivery in fiscal Q4, which concludes May 29, 2026.
Aehr’s primary silicon photonics partner also secured a follow-on contract for a new high-power FOX-XP WaferPak platform along with an enhancement to its current configuration.
Within the power semiconductor vertical, a new silicon carbide client based in Taiwan — serving the Greater China electric vehicle market — purchased a FOX-XP system for both qualification testing and production use. Erickson acknowledged observing an “uptick in activity” among silicon carbide manufacturers but cautioned that Aehr isn’t yet projecting substantial revenue contributions from this category.
Memory and FY2026 Outlook
The memory segment represents a longer-horizon opportunity. Aehr is currently engaged in discussions with an important supplier regarding specifications for next-generation high-bandwidth flash technology, with a potential development partnership expected to finalize within months. This could initiate a 12–18 month development timeline, potentially leading to order acceleration in fiscal 2028.
For the complete fiscal year, Aehr maintained its FY2026 revenue projection of $45M–$50M and now anticipates performance toward the top of that bandwidth. The company also activated its full $40 million at-the-market authorization and closed Q3 with $37.1 million in cash reserves.
Lake Street Capital elevated its price objective to $56 while maintaining its Buy recommendation, characterizing the bookings inflection as the “headline story.” William Blair analyst Jed Dorsheimer, who maintains an Outperform rating, indicated additional customer announcements are “inbound.”
AEHR stock entered Wednesday trading up 35% for April and over 140% year-to-date, according to Dow Jones Market Data.
