Aehr Test Systems (NASDAQ:AEHR) is a key player in the semiconductor industry, providing test and burn-in solutions globally. The company recently reported its financial results for the second quarter of fiscal 2026, revealing a decline in net revenue to $9.9 million from $13.5 million in the same quarter of the previous year. Despite generating a gross profit of $2.55 million, Aehr faced an operating loss of $4.87 million, highlighting the challenges in maintaining profitability.
The company's GAAP net loss widened to $3.2 million, or $0.11 per diluted share, compared to a loss of $1.0 million, or $0.03 per diluted share, in the prior year. This was reflected in the earnings per share (EPS) loss of $0.11. The non-GAAP net loss was $1.3 million, or $0.04 per diluted share, contrasting with a non-GAAP net income of $0.7 million, or $0.02 per diluted share, in the previous year. The EBITDA for the quarter was a negative $5.37 million, indicating the financial strain the company is experiencing.
Despite the softer revenue, Aehr Test Systems is making strides in its wafer-level burn-in (WLBI) and packaged-part burn-in (PPBI) segments. The company anticipates bookings between $60 million and $80 million in the second half of the fiscal year, setting the stage for a strong fiscal 2027. Aehr expanded its engagements and completed production installations for WLBI across multiple markets, with its lead customer for AI processors requesting additional capacity.
Aehr's diversification into markets such as AI processors, gallium nitride power semiconductors, and silicon photonics integrated circuits is expanding its total addressable market. The company reinstated its guidance for the second half of fiscal 2026, expecting revenue between $25 million and $30 million and a non-GAAP net loss per diluted share between $0.09 and $0.05. This strategic move is expected to support the growth of its AI processor customers and drive substantial growth in 2026 and beyond.
On January 9, 2026, Craig-Hallum maintained its rating for Aehr Test Systems at "Hold," with the stock priced at approximately $24.30. This reflects a cautious outlook, considering the company's current financial performance. However, with strategic partnerships and increased demand for its new Sonoma ultra-high-power PPBI systems, Aehr is positioning itself for future growth. The company secured key new device wins on the Sonoma platform, expected to drive additional capacity at test houses.
