Aehr Test Systems (AEHR) Q4 2026 Earnings Call Highlights: Record Bookings and Strong Backlog ...

Despite a dip in full-year revenue, Aehr Test Systems (AEHR) projects significant growth in fiscal 2027, driven by robust demand and expanded manufacturing capacity.

This article first appeared on GuruFocus. - Revenue (Q4 2026): $18.8 million, up 34% from $14.1 million in the prior year quarter. - Full Year Revenue (2026): $50 million, down 15% year over year.

- Bookings (Q4 2026): $60.7 million, up more than 500% from $11.1 million in the prior year quarter. - Backlog (End of Q4 2026): $80.6 million, up from $15.2 million at the end of fiscal 2025. - Non-GAAP Gross Margin (Q4 2026): 45%, up 1,000 basis points from 35% in the prior year quarter.

- Non-GAAP Net Income (Q4 2026): $3.6 million or $0.11 per share, compared with a non-GAAP net loss of $0.2 million or $0.01 per share in Q4 2025. - Full Year Non-GAAP Gross Margin (2026): 38.5%, compared with 44% in the prior year. - Full Year Non-GAAP Net Income (2026): $0.9 million or $0.03 per share, compared with $4.6 million or $0.15 per share in fiscal 2025.

- Cash, Cash Equivalents, and Restricted Cash (End of Q4 2026): $116.5 million, compared with $26.5 million at the end of fiscal 2025. - Fiscal 2027 Revenue Guidance: $130 million to $150 million, representing expected growth of approximately 160% to 200% year-over-year. - Fiscal 2027 Pre-tax Non-GAAP Net Income Guidance: 18% to 22% of total revenue.

Release Date: July 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points - Aehr Test Systems (NASDAQ:AEHR) reported record quarterly bookings and a strong backlog, indicating robust demand across AI processors, silicon photonics, and power semiconductors.

- The company expects significant revenue growth in fiscal 2027, with guidance set between $130 million and $150 million, representing a 160% to 200% increase from fiscal 2026. - Aehr Test Systems has successfully diversified its revenue streams, with 95% of fiscal 2026 revenue coming from markets other than electric vehicles, silicon carbide. - The company has expanded its manufacturing capacity, including shipping Sonoma systems from a contract manufacturer in Southeast Asia, adding capacity for more than 20 additional systems per month.

- Aehr Test Systems has a strong financial position with $116.5 million in cash and cash equivalents, providing flexibility to pursue larger customer opportunities and scale production. Negative Points - Despite the positive outlook, Aehr Test Systems' full-year revenue for fiscal 2026 was down 15% year over year.

- The company continues to face legal expenses related to ongoing patent litigation against Semit in China, which could impact future financial results. - Aehr Test Systems' guidance does not include any potential revenue from memory markets, indicating uncertainty in this segment. - The company acknowledges the cyclical nature of its business and the challenges of scaling capacity without building up excessive fixed infrastructure.

- There is a risk of supply chain challenges, particularly with components like power supplies, which have seen price increases and could affect production timelines.