Aehr Test Systems Revenue Misses; Bookings Signal Recovery

Aehr Test Systems reported fiscal fourth-quarter revenue that missed the company's own guidance range, though a sharp rebound in bookings pointed to a demand recovery that management said is already underway.

Revenue for the quarter ended May 31 came in at $11.2 million, below the $14 million to $16 million range Aehr had forecast in April. The shortfall reflected delayed customer acceptances on wafer-level burn-in systems, Chief Executive Gayn Erickson said on the earnings call. Gross margin narrowed to 42.3% from 47.6% a year earlier, partly on lower factory utilization.

Bookings, however, totaled $17.1 million in the quarter, more than double the prior period and the highest level in a year. Erickson said the order pipeline is broadening beyond Aehr's traditional automotive and memory base into new applications including artificial intelligence accelerators and silicon photonics.

"We are seeing a meaningful uptick in demand across multiple end markets," Erickson said. "The bookings number is a better indicator of where we are headed."

For the current quarter, Aehr forecast revenue of $12 million to $14 million, below the $15.5 million analysts had expected, according to data compiled by Bloomberg. The company did not provide a full-year outlook.

Aehr ended the quarter with $27.3 million in cash and equivalents, down from $32.1 million three months earlier, as it built inventory ahead of expected shipments. The company said it expects gross margin to improve through the year as volumes pick up.

The stock fell 8% in after-hours trading following the release.