Aehr Test Systems (AEHR) Q1 Earnings call transcript Oct 10, 2025

In Aehr Test Systems' fiscal 2025 first quarter earnings call, executives discussed the company's strong financial performance and optimistic outlook for the year ahead. The call provided valuable insights into the company's strategy, growth opportunities, and market trends across key markets, including silicon carbide, gallium nitride power semiconductors, artificial intelligence processors, and hard disk drives.

Silicon Carbide Market

Aehr Test Systems is experiencing positive momentum in the silicon carbide market, which is poised for significant growth in the electric vehicle sector. The company has seen a stabilization in the market, with electric vehicle suppliers increasingly focusing on silicon carbide modules to meet efficiency and cost-effectiveness demands. Aehr is well-positioned to capitalize on this trend, with its wafer-level burn-in technology offering advantages in yield improvement, cost reduction, and reliability testing for silicon carbide devices. The company's recent acquisitions, such as Incal Technology, further strengthen its position in this market by expanding its product portfolio and capabilities.

Gallium Nitride Power Semiconductors

Gallium nitride power semiconductors represent another promising market for Aehr Test Systems. The company has been working closely with a leading gallium nitride customer, with discussions centered around volume production wafer level test and burn-in of their devices. This partnership could lead to substantial revenue contributions, as gallium nitride power semiconductors are expected to grow rapidly in the power electronics market.

Artificial Intelligence Processors

Aehr Test Systems is making strides in the artificial intelligence processor market, with an AI accelerator company actively evaluating its FOX solution for wafer level test and burn-in. This collaboration could potentially displace traditional package and system-level testing for AI processes, offering cost and scalability benefits. The company's high-power FOX-XP system, capable of delivering over 3,500 watts of power, is well-suited for this market's demanding requirements.

Hard Disk Drive Market

The hard disk drive market is another area of focus for Aehr Test Systems, with a key customer forecasting a production ramp-up this fiscal year. This customer's move towards high-volume data storage devices aligns with the growing demand for data storage and 5G expansion, offering significant opportunities for Aehr's wafer level test and burn-in solutions.

Financial Performance and Outlook

Aehr Test Systems' financial performance in the first quarter was robust, with revenue and non-GAAP net income surpassing consensus estimates. The company's focus on expanding its product portfolio, such as the acquisition of Incal Technology, positions it well for future growth. Aehr reaffirmed its financial guidance for fiscal 2025, with a revenue target of at least $70 million and a net profit before taxes of at least 10%.

Conclusion

Aehr Test Systems' fiscal 2025 first quarter earnings call underscored the company's strong financial performance and strategic initiatives across key markets. With a focus on silicon carbide, gallium nitride power semiconductors, artificial intelligence processors, and hard disk drives, Aehr is well-positioned to capitalize on the growing demand for advanced semiconductor solutions. The company's strategic acquisitions, such as Incal Technology, further enhance its capabilities and position it for long-term growth. Aehr Test Systems' optimistic outlook and robust financial performance bode well for its future success in the evolving semiconductor market.