Aehr Test Systems — First Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Record revenue of $33.0 million for the quarter ended September 25, 2026, representing a 200% increase year-over-year from $11.0 million in Q1 Fiscal 2026 and a 75% sequential increase.
• GAAP gross margin was 47.5%; non-GAAP gross margin was 48.5%.
• GAAP net income was $7.2 million ($0.21 per diluted share), compared to a GAAP net loss of $(2.1) million ($(0.07) per diluted share) in Q1 Fiscal 2026.
• Non-GAAP net income was $9.4 million ($0.28 per diluted share), an approximate 163% sequential increase from $0.2 million ($0.01 per diluted share) in Q1 Fiscal 2026.
• Bookings totaled $46.7 million, resulting in a book-to-bill ratio of approximately 1.4.
• Reported backlog was $100.9 million as of September 25, 2026; effective backlog including post-quarter bookings was $109.3 million as of November 1, 2026.
• Cash, cash equivalents, and restricted cash totaled $105.1 million as of September 25, 2026, down from $116.5 million as of May 29, 2026.
• Deferred revenue increased to $8.0 million (short-term) and $0.1 million (long-term) as of September 25, 2026, from $5.2 million and $0.0 million respectively in the prior period.

Guidance and Future Outlook:

• Raised full-year Fiscal 2027 revenue outlook to $150 million, up from the previous range of $130 million to $150 million; this represents triple the revenue of Fiscal 2026.
• Guidance includes an expectation of non-GAAP net income of at least 20% of revenue for Fiscal 2027.
• Management cites substantial backlog, visibility into customer production requirements, and anticipated production schedules as drivers for the increased outlook.

Business Segments and Product Lines:

• FOX™ Wafer-Level Burn-In (WLBI): Demand remains strong; a lead AI processor customer continues to expand capacity following a $22 million follow-on order announced in August 2026.
• New Customer Agreements: A major supplier of AI accelerators, CPUs, and network processors completed a benchmark evaluation and ordered a fully configured FOX-XP WLBI test cell for installation at an OSAT partner in Taiwan in early calendar 2027, with high-volume production decisions anticipated shortly after.
• Sonoma High-Power Package-Level Burn-In (PLBI): Shipping and installing over a dozen systems per month to support a lead hyperscale customer's first AI processor production ramp.
• Product Qualification: The hyperscale customer's second AI processor successfully completed qualification on the Sonoma system, with follow-on orders received for initial production sampling and anticipated 2027 ramp; this second processor is forecasted to reach higher volumes than the first.
• Customer Base Diversification: The potential for significant production orders has expanded from a handful of customers to over a dozen customers spanning AI processors, silicon photonics, silicon carbide, gallium nitride, and other applications.

Market and Competitive Landscape:

• Operating in a market driven by increasing quality, reliability, safety, and security needs for semiconductors used in AI, data centers, automotive, and industrial applications.
• Positioned as a turnkey provider of reliability and test solutions spanning from engineering to high-volume production for AI semiconductor manufacturers.

Risks and Challenges:

• Forward-looking statements are subject to risks including the non-binding nature of customer forecasts, potential order cancellations, rescheduling, or delays.
• Macroeconomic, trade, tariff, and geopolitical conditions, specifically affecting Taiwan and Southeast Asia.
• Volatility in the semiconductor, AI, silicon carbide, GaN, and memory markets.

Management Commentary and Tone:

• President and CEO Gayn Erickson stated that results demonstrate accelerating demand for AI semiconductor test and burn-in solutions and the ability to execute against expanding customer production requirements.
• Management expressed confidence that the company is "exceptionally well positioned" to capitalize on the growing need for advanced semiconductor test and burn-in solutions over the next several years.
• Erickson highlighted that bookings exceeded revenue by over 40%, reflecting continued strong demand for wafer-level and package-level burn-in solutions.

Other Key Points:

• Fiscal year-end changed effective Fiscal 2027 from the Friday nearest May 31 to the Friday nearest June 30; the first quarter reflects the period from June 27, 2026, through September 25, 2026.
• Aehr acquired Incal Technology, Inc., adding the ultra-high-power Sonoma family of test solutions for AI accelerators, GPUs, and HPC processors.
• Shares repurchased for tax withholdings on vesting of restricted stock units totaled $4.5 million during the quarter.
• Proceeds from the issuance of common stock under employee plans were $0.3 million during the quarter.