Aehr Test Systems reported fiscal 2026 second‑quarter revenue of $9.9 million, a 27% decline from $13.5 million in the same period a year earlier, missing the consensus estimate of $11.8 million by roughly $1.9 million. The company’s non‑GAAP net loss of $0.04 per diluted share also fell short of the analyst estimate of a $0.037 loss, underscoring the revenue shortfall.
Gross‑margin compression was the most pronounced driver of the miss. Non‑GAAP gross margin fell to 29.8% in Q2 2026 from 45.3% in Q2 2025, a 15.5‑percentage‑point decline. The drop reflects a combination of lower overall sales volume and a shift toward lower‑margin system and service revenue, as the company invested heavily in expanding manufacturing capacity for its high‑power AI‑processor testing line.
Segment analysis shows that wafer‑level burn‑in (WLBI) revenue – the high‑margin “contact” segment – fell sharply to $3.4 million, down from $8.6 million a year earlier, accounting for 35% of total revenue versus 64% previously. In contrast, system revenue rose $6.7 million and service revenue grew $0.6 million, reflecting stronger demand for the new Sonoma high‑power AI systems and related support services.
The company’s backlog grew from $11.8 million at the end of the quarter to $18.3 million after recent orders, and management reiterated its second‑half guidance of $25 million to $30 million in revenue, with projected bookings of $60 million to $80 million. The guidance signals confidence that the AI‑processor testing market will accelerate, offsetting the current revenue and margin weakness.
President and CEO Gayn Erickson emphasized that the company “made significant progress in both wafer‑level burn‑in and packaged‑part burn‑in segments” and highlighted the growing backlog as a foundation for a strong fiscal 2027. CFO Chris Siu noted that the backlog expansion to $18.3 million “positions the company to capture the anticipated surge in AI demand.”
Investors reacted negatively to the earnings release, citing the revenue miss, margin contraction, and continued net loss as key concerns, while noting the company’s renewed guidance and backlog growth as mitigating factors.
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