Aehr Test Systems (NASDAQ: AEHR), a leading provider of semiconductor test and burn-in equipment, saw its stock tumble approximately 19% in after-hours trading Tuesday following the announcement of its fiscal 2025 fourth-quarter results, which missed top-line expectations and included a cautionary note regarding the potential impact of tariffs.
The company reported a non-GAAP net loss per diluted share of ($0.01) for the quarter ending May 30, 2025, which was in line with analyst consensus but marked a significant decline from the $0.84 income per share reported in the prior-year period. This swing to a loss was primarily attributed to a decrease in revenue and an increase in total operating costs. Aehr’s revenue for Q4 FY2025 came in at $14.089 million, missing the analyst consensus estimate of $14.823 million by nearly 5% and representing a 15.13% decrease from $16.600 million in the same period last year. For the full fiscal year 2025, total revenue decreased 11% to $59 million, with non-GAAP net income plummeting from $35.8 million in fiscal 2024 to $4.6 million.
A significant factor contributing to the cautious outlook is the ongoing uncertainty surrounding tariffs. “While we remain confident in Aehr’s long-term growth prospects, we continue to experience some timing-related delays in order placements due to tariff-related uncertainty, particularly in our first quarter,” stated CEO Gayn Erickson in a news release. He further elaborated, “Accordingly, we are maintaining our cautious approach and are not reinstating specific guidance beyond what we have already stated, which is that we anticipate order growth across all our segments this fiscal year with the possible exception of silicon carbide.”
The impact of tariffs on the semiconductor industry is a growing concern. Experts note that tariffs can raise input costs for manufacturers, disrupt critical supply chains, and potentially lead to higher prices for end products, ultimately impacting demand. For companies like Aehr that operate in a globally interconnected industry, such uncertainties can directly affect order timelines and investment decisions by customers.
Aehr’s financial position also showed a decrease in cash and cash equivalents, ending the quarter with approximately $24.5 million, down from $49.2 million at the end of fiscal 2024 Q4.
Company Background: A Pioneer in Semiconductor Testing
Founded in 1977 by Rhea J. Posedel and headquartered in Fremont, California, Aehr Test Systems has established itself as a vital player in the semiconductor manufacturing industry. The company designs, manufactures, markets, and sells advanced test and burn-in products that are crucial for ensuring the quality, reliability, and performance of semiconductor devices.
Aehr’s product portfolio includes innovative solutions such as its FOX-P™ and FOX-NP™ families of test and burn-in systems, which are designed for both high-volume production and engineering applications. These systems are capable of testing thousands of devices simultaneously, including complex devices like microprocessors, microcontrollers, and advanced AI processors. Their offerings also extend to WaferPak™ contactors and DiePak® carriers, which are essential consumables in the testing process.
The company’s solutions are vital for a diverse range of applications, including electric vehicles, AI accelerators, 5G technology, data and telecommunications infrastructure, and solid-state memory. While silicon carbide has been a significant segment for Aehr, recent reports indicate a strategic diversification, with AI processors now constituting a substantial portion of the company’s revenue, demonstrating its adaptability to evolving market demands. Aehr’s acquisition and integration of Incal Technology, Inc. also expanded its capabilities in high-power packaged part reliability/burn-in test solutions, particularly for AI semiconductor manufacturers.
Despite the current headwinds, Aehr Test Systems’ long-term prospects are tied to the increasing demand for high-quality and reliable semiconductors across numerous growth markets. However, the immediate future appears to be navigating the complexities of fluctuating demand in certain segments and the challenging landscape shaped by global trade policies. Investors will be closely watching for any signs of resolution in tariff-related uncertainties and the company’s progress in securing new orders, particularly in the promising AI semiconductor testing market.