Aehr Test Systems jumps 30% on record backlog, doubled revenue outlook

Aehr Test Systems reported Q4 revenue of $18.8M and swung to a profit, while forecasting fiscal 2027 revenue of $130M to $150M — more than double the prior year.

"We believe Aehr is well-positioned for multiple years of strong revenue growth," Chief Executive Officer Gayn Erickson said, citing a record backlog and expanding AI production programs.

Fourth-quarter bookings reached a record $60.7M, up more than 500% from $11.1M a year earlier. Year-end backlog hit $80.6M, and effective backlog stood at $100.6M after including post-quarter orders. Non-GAAP gross margin improved to 45% from 35%.

Shares surged about 30% in after-hours trading. The guidance dramatically exceeded the $70M bull-case threshold investors had been watching, supported by expanding AI processor burn-in programs and silicon photonics demand.

AI and Data Center Demand Drive Growth

AI processors and silicon photonics burn-in accounted for more than 80% of Q4 revenue, up from 56% in the prior-year period. For the full year, AI accelerators, CPUs and network processors represented about 71% of revenue, while optical device test and burn-in for data center infrastructure contributed another 20%.

The company has diversified sharply away from electric-vehicle silicon carbide. Nearly 95% of fiscal 2026 revenue came from non-EV SiC markets, compared with more than 95% tied to EV silicon carbide just two years ago.

Aehr's lead AI processor wafer-level burn-in customer doubled its systems over the past year and moved all production burn and screening to wafer-level burn-in on Aehr systems, Erickson said. The customer is forecasting significant increases in wafer allocation from its foundry.

On the package-level side, Erickson highlighted record follow-on production orders from Aehr's lead hyperscale customer for Sonoma systems used in high-volume AI processor production burn-in. That customer is forecasting a substantial expansion of Sonoma purchases for a second device with twice the power per package.

Silicon Carbide Returns With $8M in Orders

Aehr received more than $8M in new silicon carbide WaferPak orders during the past month, including expanded orders from its lead SiC customer and an order from one of the world's largest automakers for qualification of silicon carbide devices for new electric vehicles.

The company also completed the world's first 300-millimeter gallium nitride wafer-level burn-in solution and sold its first FOX system for a silicon MOSFET wafer-level burn-in application.

Guidance and Capacity

For fiscal 2027, Aehr expects non-GAAP pretax net income of 18% to 22% of revenue, implying roughly $23.4M to $33M in profit. The company raised approximately $100M during fiscal 2026 through its at-the-market program and held $116.5M in cash at year-end.

Chief Financial Officer Chris Siu said Aehr continues to scale manufacturing capacity, including its Fremont expansion and the start of Sonoma system shipments from a contract manufacturer in Southeast Asia, adding capacity for more than 20 additional Sonoma systems per month. Erickson said the company does not believe it is capacity-limited at the $150M revenue level.

The guidance raise signals management expects AI-driven demand to accelerate through fiscal 2027. Investors will watch the pace of Sonoma follow-on orders from the lead hyperscale customer and any expansion into memory burn-in, which Erickson said remains an upside opportunity not included in current guidance.

This article is for informational purposes only and does not constitute investment advice.