Stock of Aehr Test Systems experiences a 19% decline in the postmarket following the release of its quarterly results, as concerns about tariff uncertainties persist.
Aehr Test Systems, a leading semiconductor test and burn-in solutions provider, has reported a challenging fiscal year 2025, marked by decreased revenues and net losses. The company's Q4 2025 revenue stood at $14.1 million, a 15.2% decrease compared to the prior year quarter, and the full fiscal year revenue was $59.0 million, a 10.9% decline from fiscal 2024. The company recorded a GAAP net loss of $2.9 million in Q4 and $3.9 million for the full year, contrasting sharply with net income in the previous year driven by a significant tax benefit.
Despite these financial challenges, Aehr Test Systems is strategically expanding its market beyond traditional silicon carbide semiconductors into emerging areas such as AI processors, gallium nitride power semiconductors, data storage devices, and silicon photonics. Notably, the company launched its first production wafer level burn-in system for AI processors and secured a major hyperscaler as a customer following an acquisition.
Regarding tariffs and potential impacts, the company maintains a cautious outlook due to tariff-related uncertainties. These tariff concerns likely contribute to the conservative revenue projections and could affect supply chain costs or pricing pressures. Nonetheless, Aehr expects order growth across most segments in fiscal 2026, except for silicon carbide where stronger growth is anticipated in fiscal 2027.
Aehr Test Systems' stock continued to decline in after-hours trading on Wednesday, following the release of the Q4 2025 results that missed on the top line. The company ended the quarter with cash and cash equivalents of approximately $24.5M, compared to approximately $49.2M at the end of FY24 Q4.
In conclusion, Aehr Test Systems faces near-term financial headwinds with lower revenues and losses in fiscal 2025, partly influenced by tariff-related uncertainties. However, the company is actively diversifying into new semiconductor markets and expects growth in orders moving forward, signaling strategic resilience despite ongoing external challenges.
Diversifying beyond traditional semiconductor markets, Aehr Test Systems is aiming to invest in AI processors, gallium nitride power semiconductors, data storage devices, and silicon photonics, seeking growth opportunities for the future. Despite financial challenges in the personal-finance sector in fiscal 2025, Aehr's business strategy involves expanding its operations to secure new customers and reduce reliance on silicon carbide, anticipating stronger growth in this segment in fiscal 2027.
