AEHR · Aehr Test Systems

Aehr Test Systems' fiscal Q4 2026 results capped a transformative year, with revenue of $18.8 million beating the prior-year quarter's $14.1 million, driven by record quarterly bookings of $60.7 million. The company's effective backlog of $100.6 million, including post-quarter orders, provides exceptional forward visibility. Management guided fiscal 2027 revenue to $130-$150 million, implying 160%-200% year-over-year growth, and non-GAAP net income margin of 18%-22%, signaling a significant operating leverage inflection.

The strong performance was underpinned by accelerating demand in AI processor burn-in, both wafer-level and package-level. The lead AI production customer is transitioning to all wafer-level burn-in, and a major AI accelerator supplier completed benchmark testing, moving toward pilot production. In silicon photonics, two major customers are ramping orders for optical interconnect applications. Additionally, approximately $8 million in new silicon carbide WaferPak orders were received in the last month, signaling recovery in the electric vehicle market.

Financially, the cash position surged to $116.5 million from $37.1 million, bolstered by a public equity offering, providing ample resources to scale production. GAAP net income for the quarter was $1.4 million, reversing a $2.9 million loss a year ago, while non-GAAP net income reached $3.6 million. For the full year, GAAP net loss widened to $7.1 million due to elevated operating expenses, but non-GAAP net income was $0.9 million, demonstrating underlying profitability. Operating cash flow was negative $3.3 million, but the strong balance sheet and order momentum mitigate liquidity concerns.

Overall, Aehr is entering fiscal 2027 with accelerating backlog, diversified end-market exposure across AI, silicon photonics, and power semiconductors, and a clear path to substantial revenue growth and margin expansion as guided. The key risk remains execution on production ramps and potential customer concentration, but the record backlog and multiple new program engagements de-risk the outlook significantly.