StockGist
Back
10-K2026-07-27· merged:deepseek-v4-flash

AEHR · Aehr Test Systems

0001654954-26-006919

SEC filing

Summary

Aehr Test Systems holds $116.4M cash and $41.4M inventory with no debt; operating lease commitments total $13.7M and purchase obligations are immaterial.

Key takeaways

Full analysis

Notes & Operating Detail

Balance Sheet & Liquidity

As of May 29, 2026, Aehr Test Systems held $116.4 million in cash and cash equivalents, a substantial increase from $24.5 million at the end of the prior fiscal year. The company has no short-term or long-term debt, with total liabilities of $27.2 million primarily consisting of operating lease liabilities ($9.9 million) and deferred revenue ($5.2 million). Inventories remained elevated at $41.4 million, which the auditor highlighted as a critical audit matter due to the significant judgment involved in estimating excess and obsolete inventory adjustments. Total shareholders' equity rose to $219.5 million, driven by a $97.1 million net raise from public offerings.

Commitments & Contractual Obligations

The company's only significant contractual commitments are operating leases for real estate. As of May 29, 2026, total future minimum operating lease payments were $13.7 million, with $1.3 million due in fiscal 2027. The weighted average remaining lease term is 9.2 years and the weighted average discount rate is 6.93%. In Note 9, management stated that unconditional purchase obligations with a remaining term in excess of 12 months were not material, so no significant supply or capacity commitments were disclosed.

Capital Allocation (buybacks, dividends, debt, capex)

No share repurchase program or dividend was disclosed; the only share repurchases were for tax withholdings on vested restricted stock units. During fiscal 2026, the company raised $97.1 million net through ATM offerings, which funded the cash balance increase. Capital expenditures were $2.1 million, representing 4.1% of sales, primarily for property and equipment. There was no debt issuance or repayment, and the company continues to operate with zero debt.

Segment / Geographic Mix (if disclosed at note level)

The company operates as a single reportable segment, with the CODM evaluating performance based on consolidated net income (loss). Geographic revenue disaggregation for fiscal 2026: Asia contributed $22.8 million (46%), United States $20.6 million (41%), and Europe/Middle East $6.5 million (13%). Revenue by product category showed systems at $28.7 million, contactors at $14.9 million, and services at $6.4 million. The shift toward systems revenue reflects the strategic focus on wafer-level burn-in solutions, while contactor sales declined sharply from $30.8 million in the prior year.