Aehr Test Systems (AEHR) Q4 2026 Earnings Call Transcript

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DATE

Tuesday, July 14, 2026 at 5:00 p.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer - Gayn Erickson
• Chief Financial Officer - Chris Siu
• Investor Relations - Jim Byers

TAKEAWAYS

• Revenue -- $18.8 million in the fourth quarter, representing a 34% increase from $14.1 million driven by demand for FOX systems and WaferPaks from AI and data center customers.
• Non-GAAP EPS -- $0.11 per diluted share in the fourth quarter, compared to a loss of $0.01 per share reflecting improved operating leverage and revenue levels.
• Bookings -- $60.7 million in the fourth quarter, increasing more than 500% from $11.1 million due to large orders for Sonoma and FOX systems for AI and silicon photonics applications.
• Effective Backlog -- $100.6 million as of mid-July 2026, including a record $80.6 million year-end backlog plus $20 million in new bookings received shortly after the fiscal year ended.
• Fiscal 2027 Revenue Guidance -- $130 million to $150 million, representing expected growth of 160% to 200% as customers ramp production of AI and silicon photonics devices.
• Fiscal 2027 Profitability Guidance -- 18% to 22% non-GAAP pretax net income, assuming the achievement of stated revenue targets.
• AI and Data Center Revenue Mix -- 71% of total annual revenue, driven by accelerating demand for wafer-level burn-in for AI accelerators, CPUs, and network processors.
• Optical and Data Center Transceiver Mix -- 20% of total annual revenue, as hyperscale data center deployments increase the need for silicon photonics reliability screening.
• Silicon Carbide Revenue Concentration -- Under 5% of fiscal 2026 revenue, a significant decrease from over 95% two years ago as the company diversified into AI markets.
• Contactor Revenue -- $5.8 million in the fourth quarter, representing 31% of total quarterly revenue as customers deploy new WaferPak designs for specific device applications.
• Non-GAAP Gross Margin -- 45% in the fourth quarter, an increase of 10 percentage points from 35% in the prior year quarter due to favorable product mix and higher manufacturing utilization.
• Non-GAAP Operating Expenses -- $7.5 million in the fourth quarter, up from $5.4 million due to higher employment costs for R&D and commissions on record bookings.
• Fiscal 2026 Annual Revenue -- $50 million, a 15% decrease from $59 million in fiscal 2025 reflecting the transition period and timing of customer orders.
• Fiscal 2026 Non-GAAP Net Income -- $900,000 or $0.03 per diluted share, compared to $4.6 million or $0.15 per diluted share in the previous fiscal year.
• Cash and Equivalents -- $116.5 million at fiscal year-end, up from $26.5 million following the completion of an at-the-market equity offering.
• Sonoma Manufacturing Capacity -- 20 systems per month from a contract manufacturer in Southeast Asia, providing flexibility to scale independently of the Fremont facility.
• At-The-Market Offering Proceeds -- Approximately $100 million raised during fiscal 2026 to provide working capital for larger customer opportunities.
• Recent Silicon Carbide Orders -- Approximately $8 million in new orders received in the month prior to the call, signaling signs of recovery in global electric vehicle programs.
• Capital Expenditures -- $2.1 million in fiscal 2026, maintaining the company's capital-light operational model.
• Q4 Revenue Concentration -- More than 80% of quarterly revenue was derived from AI processors and silicon photonics burn-in, up from 56% in the prior year quarter.
• Customer Concentration -- Three customers each accounted for more than 10% of total revenue in the fourth quarter, targeting AI and data center optical markets.

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RISKS

• Erickson stated, "Some of the power supply manufacturers that we use in Sonoma are supplying to NVIDIA and others. And they have come back, they have raised their prices 40%," noting significant supply chain cost pressure and long lead times for critical components.
• Siu stated, "We continue to incur legal fees during the fourth quarter to support our claims," referring to ongoing patent litigation against SemiNexus Test in China.
• Erickson noted, "one of the challenges in our business is that it is always going to be lumpy," warning that results can be cyclical and difficult to manage with fixed infrastructure.

SUMMARY

Management reported that **Aehr Test Systems, Inc.** (NASDAQ:AEHR) completed a transition year, shifting its primary revenue base from electric vehicle silicon carbide applications to AI and data center infrastructure. The company provided fiscal 2027 revenue guidance of $130 million to $150 million, supported by a record effective backlog of over $100 million. Strategic focus has moved toward wafer-level burn-in for AI accelerators and silicon photonics, which together accounted for the majority of fourth quarter revenue. The company is scaling its manufacturing capacity through partnerships in Southeast Asia and facility upgrades in Fremont to support anticipated volume ramps for its FOX and Sonoma platforms.

• CEO Erickson reported the successful completion of benchmark testing with a top-tier AI processor supplier, stating the results "produced results better than they can get at the package level."
• The company secured its first silicon carbide customer in Taiwan, winning the contract over a competitor based on technical superiority and reputation in the automotive industry.
• Management is evaluating a development agreement for high-bandwidth memory (HBM) and NAND flash, with CEO Erickson noting that "HBM, new standards that are coming out... have embedded BIST capabilities in it" which may favor Aehr's architecture.
• Aehr's lead AI production customer is shifting all production burn-in screening to wafer-level on Aehr systems, eliminating the need for separate system-level screening.
• The company introduced an enhanced Sonoma high-power configuration capable of managing up to 2,000W per device for next-generation GPUs and CPUs.
• Management expects renewed demand for silicon carbide and gallium nitride power semiconductors in fiscal 2027, driven by automotive electrification and AI data center power needs.
• The patent office in Beijing upheld two of Aehr's Chinese patents, a development the company considers critical to its ongoing litigation against SemiNexus Test.

INDUSTRY GLOSSARY

• BIST (Built-In Self-Test): A mechanism that allows a chip to test its own circuits, reducing the need for complex external test equipment.
• GaN (Gallium Nitride): A wide-bandgap semiconductor material used in high-efficiency power electronics for data centers and electric vehicles.
• HBM (High Bandwidth Memory): A high-speed computer RAM interface used in AI GPUs and high-performance computing.
• OSAT (Outsourced Semiconductor Assembly and Test): Third-party vendors that provide packaging and testing services to semiconductor companies.
• Silicon Photonics: A technology that uses silicon as an optical medium to transmit data at high speeds via light rather than electrical signals.
• Wafer-level burn-in (WLBI): A reliability testing process performed on all individual dies while they are still part of a whole semiconductor wafer.
• WaferPak: Aehr's proprietary full-wafer contactor that enables the testing and burn-in of up to 300mm wafers.

Full Conference Call Transcript

Operator: Good afternoon. Thank you for holding your conference will begin very shortly. Please remain on the line. Your conference will begin in just a couple of minutes. Good day. Welcome to the Aehr Test Systems Fiscal 26 Fourth Quarter and Full Year Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Jim Byers, at Pondel Wilkinson Investor Relations. Jim, you may begin.

Jim Byers: Thank you, operator. Good afternoon, and welcome to Aehr Test Systems Fiscal 26 Fourth Quarter and Full Year Financial Results Conference Call. With me on today's call are Aehr Test Systems President and Chief Executive Officer, Gayn Erickson and Chief Financial officer, Chris Siu. Before I turn the call over to Chris and Gayn, I would like to cover a few quick items. This afternoon, right after market close, Aehr Test issued a press release announcing its fiscal 26 fourth quarter and full-year results. That release is available on the company's website at aehr.com. This call is being broadcast live over the Internet.

For all interested parties and the webcast will be archived on the Investor Relations page of the company's website. And I would like to remind everyone that on today's call, management will be making forward looking statements. That are based on current information and estimates and are subject to a number of risks and uncertainties, that could cause actual results to differ materially from those in the forward looking statements. These factors are discussed in the company's most recent periodic and current reports filed with the SEC. These forward looking statements, including guidance provided during today's call, are only valid as of this date, and Aehr Test Systems undertakes no obligation to update the forward looking statements.

Now with that said, I would like to turn the call over to Gayn Erickson, President and CEO.

Gayn Erickson: Thanks, Jim, and good afternoon, everyone, and welcome to our fiscal 2026 fourth quarter and full year earnings conference call. I will start with an update on the key markets driving our business, including the strong demand we are seeing in the AI and data center infrastructure markets. As well as the significant progress we made this year in diversifying and expanding our end markets. Chris will then go over our and review our financial results and open up the call for questions. We are very pleased with our fiscal fourth quarter, which exceeded consensus street expectations and capped the year of significant bookings and revenue diversification for Aehr.

Record quarterly bookings a very strong and record backlog, and growing demand across AI processors, silicon photonics, and power semiconductors for both our wafer level and package level burn-in solutions positions us well for significant growth in 2027 and moving forward. Fiscal 27 that is. With strong momentum and a record backlog heading into fiscal 2027, we are expecting revenue of between $130 million and $150 million representing 2.6x to 3x the just-completed fiscal 26 revenue. Non GAAP pretax profitability at these levels is expected to come in between 18% to 22%.

With current customer forecasts that we are seeing across our wafer level and package level burn in platforms, we see the opportunity to increase our revenue guidance even higher as additional orders materialize. We believe we are not capacity limited even at the $150 million revenue level. To illustrate the progress we have made in diversifying its additional high growth markets. Just 2 years ago, over 95% of our business was tied to silicon carbide for electric vehicles. Whereas today, almost 95% of our fiscal year 2020 revenue came from markets other than electric vehicles silicon carbide. Reliability and production wafer-level burn-in and screening for AI accelerators, CPUs, and network processors were our fastest growing markets this year.

Representing approximately 71% of our total annual revenue. Optical device test and burn in for data center infrastructure transceivers chip to chip IO, and hard disk drives accounted for another 20%. We expect both of these markets to grow significantly in fiscal 27 and we are seeing encouraging signs of recovery in the silicon carbide market as well as new growth opportunities. Opportunities for power semiconductors such as in gallium nitride and even silicon based power MOSFETs used in both automotive and AI data center applications. So let me provide an update on several of the key markets and customer initiatives. And I will start with wafer level burn in.

Demand from AI related applications continues to accelerate, Our lead AI processor wafer-level burn-in customer is significantly ramping their products driving an increase in forecasted capacity needs for our FOX systems in proprietary WaferPak full wafer contactors this year and over the next few years. This past year, they have ordered our fully automated WaferPak aligners to integrate with their installed base. Doubled their systems from us, and are forecasting significant increases in wafer allocation from their foundry this year and into the future. This had been a challenge to their growth over the last year. We are happy to see them move all production burn in screening to wafer level burn in on our system this past year.

They no longer need to perform any system-level screening of their products. This customer sees Aehr as a critical supplier, and we are working to ensure we can meet all their capacity needs as they forecast significant growth in system purchases and WaferPaks this year and over the next few years. In addition, we are engaged with additional AI processor customers who are evaluating wafer level burn in to improve their product reliability and reduce yield loss from production burn-in of their devices later in the manufacturing process. This includes 1 of our largest package-level burn-in customers who is now asking us about a wafer level burn in evaluation for future production of 1 of their AI accelerators and CPUs.

This is in parallel with ensuring we can meet their package-level burn-in needs with our Sonoma systems. A key advantage of our proprietary WaferPak contactor technology is its ability to manage individual die temperatures enabling significantly better thermal management than conventional package-level approaches. Our systems can process up to 1/4 of a wafer at a time with as many as 9 wafers tested in parallel, delivering a compelling combination of throughput and cost efficiency. So let me provide an update on our wafer level burn in evaluation with a major supplier of AI accelerators, CPUs, and network processors. We are excited to report that we successfully completed the benchmark testing of our wafer-level burn-in solution on 1 of their processors.

Achieving results that exceeded their expectations and, in their words, produced results better than they can get at the package level. This top tier AI processor supplier has now expressed interest in moving to pilot production test validation at their semiconductor contract manufacturer in Taiwan for their current high volume device. Which we just completed the benchmark on. Originally, this benchmark was to evaluate wafer level burn in for their next-generation device. Instead, they indicated that based on the results, they are interested to pull this device in and to consider wafer level burn in on this current device as well.

They told us this current device is expected to be ramping and achieve significant volumes over the next year or more. In addition, they also requested that we evaluate a second device in parallel. The potential revenue opportunity from 1 of these devices is significant to Aehr in terms of near and long term revenue streams related to the wafer level burn in systems and proprietary Aehr WaferPak contactors. Turning to wafer level burn in for silicon photonics devices. As we have anticipated for the last year, silicon photonics devices and the need for production burn in are now seeing strong momentum as AI data center architectures increasingly rely on optical I/O and high-speed optical interconnects.

Our lead silicon photonics customer is ramping. With follow on orders over the past year and more already in this fiscal year, for fully automated wafer level burn in systems powering AI optical IO data center interconnects. These systems are fully integrated with their automated wafer handling equipment enabling fully automated high volume production burn in with hands free operation using automatic guided vehicles. This marked another important milestone with this long term customer. In addition, our newest major silicon photonics customer, a global leader in networking products and solutions, has provided us with a forecast for additional systems this calendar year as it ramps capacity to support next-generation hyperscale data center deployments.

This customer first engaged with us just last November and has since ordered 2 of our 9 wafer FOX test cells and 2 of our FOX NPs. This engagement prod progress progressed quickly from initial contact to their first order and our first delivery of fully integrated test cell. We believe our sales process is shortening over time as our wafer level burn in solutions are becoming more pervasive across multiple industries, customers, and countries. We believe the silicon photonics and optical test and burn in market has substantial growth potential and can be a meaningful long term growth driver for Aehr.

So now let me share some highlights of our progress in power semiconductors and wafer-level burn-in, in the past year. We completed more than a dozen designs for gallium nitride WaferPaks which are now being sampled by potential customers. Many, if not all, are expected to move to volume production on our wafer level burn in systems. Driving the need for systems and WaferPaks this year and going forward. We also just completed the world's first 300mm GaN wafer level burn in solution using our high voltage WaferPaks to stress and test the critical high temperature reverse bias test needed to screen for GaN MOSFET defects in production.

Just recently, we closed the sale of our first FOX system for a silicon MOSFET wafer level burn in application. Prior to this, customers had purchased our FOX wafer level burn in systems only for nonsilicon MOSFETs, such as silicon carbide and gallium nitride. We are working with this customer to determine test times and quality screening modes that we hope will lead to production burn-in capacity needs as the customer has indicated. We also captured our first silicon carbide customer in Taiwan This customer works closely with several automotive manufacturers in Taiwan and China. In Taiwan and China as well as other international companies.

Securing this win was especially important to us because they chose Aehr over Semi, a Chinese company that recently reincorporated in Malaysia as Nexus Test, for their silicon carbide wafer-level burn-in products. As some of you know, Aehr Test is currently suing SemiNexus Test for patent infringement on their silicon carbide focused wafer level burn in system. We believe they are violating our IP and patents that we hold in many countries around the world including China, Taiwan, Japan, Korea, Singapore, the EU, and The United States. We were chosen over Semi due to technical superiority, cost, and our reputation in the automotive industry for production wafer level burn in of silicon carbide devices for EVs.

We are seeing encouraging signs of recovery in the silicon carbide power semiconductors, and are actively engaged to meet the wafer level burn in needs of several of the world's largest automotive OEM manufacturers. the car and EV suppliers, And several of their silicon carbide suppliers for their new electric vehicles. We also announced today that we received approximately $8 million in new orders in just the last month for silicon carbide wafer level burn-in and WaferPaks as global electric vehicle programs accelerate.

These include expanded production orders from our lead silicon carbide customer for WaferPak full wafer contactors and a key order directly from 1 of the largest automotive companies in the world for multiple WaferPaks to be used in the qualification of silicon carbide devices from suppliers for the new generation of electric vehicles using Aehr's FOX wafer level burn in systems. This year, we expect renewed demand for both silicon carbide and GaN power semi test and burn-in driven by automotive electrification and AI data center. data center power infrastructure. Let me talk a little bit about wafer level burn in for memory.

We also continue to pursue opportunities in memory, including NAND flash and potential high bandwidth memory DRAM applications. as part of our wafer-level burn-in solutions roadmap. The growth of these 2 memory markets may be stronger than ever with massive capacity increases planned for this decade. With our wafer level burn in benchmark with a global leader in NAND flash completed, we are in discussions on how to move forward. As we said last quarter, we hope to close on discussions about test system specifications needed for next-generation flash memories. And in particular, their high bandwidth flash devices.

Which would lead to a development agreement to supply systems and WaferPaks to them over a 12- to 18-month development and deployment of our new memory-optimized blades, For our FOX XP and MP multi wafer test and burn in platform. We are also in ongoing discussions with other key memory suppliers that produce high bandwidth memory the new DRAM standard used in AI GPUs, as well as standard DRAM and flash memories to align our solutions with the production needs of these companies' new capacity coming online.

As we have noted before, this is a key focus for Aehr this year with the goal of reaching an agreement with these customers to develop the enhancements needed to extend our FOX system into these markets. We believe this market could drive orders in fiscal 27 with ramps in fiscal 28. Now turning to package-level burn-in. Our package-level burn-in business for AI processors also gained momentum over the year highlighted by record follow on production orders from our lead hyperscale customer for Sonoma Systems for supporting high volume AI processor production burn-in.

This customer is a premier large scale data center provider and is forecasting a substantial expansion of Sonoma system purchases for a second device which is twice the power per package as the first device they are using Sonoma systems for today. As their current and next generation devices ramp, we believe Sonoma systems and consumables can become an increasingly important contributor to Aehr's revenue. This past year, we secured key new device wins on the Sonoma platform. For high-temperature operating life qualification. We are also engaged with multiple current and prospective customers for package-level reliability qualification and production burn-in of AI accelerators, ASICs, network processors, and also for edge AI processors for automotive and robotics.

Which represent significant opportunities for Aehr over the next few years. Recently, we introduced an enhanced Sonoma high power configuration designed for next generation CPUs, GPUs, and high-performance network processors used in AI data center and communications applications. This enhanced system expands the Sonoma product family's capabilities with per device power up to 2,000W or more increasing total system power capacity, and improved device counts scalability. It also includes an optional, fully integrated auto-aligner and a high throughput automated loader/unloader that enables completely hands free operation in the production environment. Unlike traditional batch flow burn-in, the Sonoma high power configuration with its ALU is designed for continuous flow operation. Enabling devices to begin testing immediately upon insertion.

The automation and thermal systems run continuously, maximizing equipment utilization, throughput, and return on investment for both engineering qualification and high volume manufacturing environments. Our Sonoma systems deliver what we believe is the industry's lowest cost solution enabling customers to transition seamlessly from early reliability characterization to full production burn in and early life failure screening. This approach helps reduce costs, improve quality, and accelerate time to market. To meet anticipated demand, we have been expanding manufacturing capacity for both our systems and consumables. that is both on the wafer level and on the package level. This additional capacity positions us to support expected customer ramp ups and provides flexibility if demand exceeds our current outlook.

Looking ahead, we are very excited about our positioning entering fiscal 27 We have multiple customers who began production over the past 12 months and are now ramping up. Creating the potential for meaningful follow on demand for systems and consumables. With multiple customers entering or expanding production, a record backlog, and additional opportunities under discussion for both wafer level and package level burn in we believe we are as well positioned for multiple years of strong revenue growth. With that, I will turn it over to Chris.

Chris Siu: Thank you, Gayn. Before I review our financial results, I would like to provide a brief update on the steps we are taking to expand our manufacturing capacity. and consumer support infrastructure to support our growing backlog and future growth opportunities. As Gay mentioned in the last conference call, we continue to scale our manufacturing capacity to support growing demand. In addition to our Fremont expansion, we began shipping Sonoma systems from 1 of our existing contract manufacturers in Southeast Asia. This adds capacity for more than 20 additional Sonoma systems per month. And gives us greater flexibility as we scale to meet customer demand.

With the recent record $41 million purchase order we received from our hyperscale customer in April, We are very active operationally as we build Sonoma systems to meet the customer's delivery schedule. This system is expected to be delivered this year to the OSAT of our hyperscale customer. Which is based in Taiwan. Kain also reported today that we successfully completed benchmark testing of our wafer level burn in solution with a major supplier of AI accelerators, CPUs, and network processors. The testing was completed on 1 of their processors, and achieved results that exceeded their expectations. This top tier AI processor supplier has now expressed interest in moving to pilot production test validation for its current high volume device.

Anticipation of next stage of this project, we have recently signed a new lease to expand our office in Hsinchu, Taiwan. This expansion will allow us to increase our local sales and customer support personnel deepen our engagement with customers and ecosystem partners in the region. And strengthen our ability to support future production ramps. With recent manufacturing capacity enhancements, and an increased presence in Taiwan, we believe we are well positioned to support significant growth in both wafer level and package level burning systems. As customers ramp production. Now to our financial results. Bookings in the fourth quarter of fiscal 26 were $60.7 million up more than 500% from $11.1 million in the prior year quarter.

The increase was primarily driven by purchase orders for Sonoma package level and FOX wafer-level burn-in systems, WaferPaks, and burn-in boards for AI and silicon photonics processor burn in. Partially offset by lower customer orders for silicon carbide wafer packs. Backlog at year-end was a record $80.6 million up from $15.2 million at the end of fiscal 25. Subsequent to year end, we received an additional $20 million in bookings during the 4-week transition period and the first 2 weeks of fiscal 27. As a result, our effective backlog increased to approximately $100.6 million before taking into account minimal shipments during the transition period ended June 26, 2026. Which is not part of fiscal year 27.

Turning to our Q4 performance, we are excited about our continued momentum in the artificial intelligence and data center markets. AI processors and silicon photonics burn-in accounted for more than 80% of our fourth quarter revenue. Compared with 56% in the prior year period. For the fourth quarter, we had 3 customers representing more than 10% of total revenue. 2 of these customers target the AI market and the third focuses on the data center optical transceiver market. Revenue for the fourth quarter totaled $18.8 million up 34% from $14.1 million in the prior year quarter. The increase was primarily driven by strong demand from AI and data center customers for our FOX systems, WaferPak Aligners, and WaferPaks.

Contactor revenue was $5.8 million representing 31% of our total fourth quarter revenue. Compared with 30% in the prior year quarter. This remains a sizable revenue stream for Aehr driven by demand for new WaferPak designs. As existing and new customers deploy FOX systems for additional device applications. Non-GAAP gross margin for the fourth quarter was 45% up 1 thousand basis points compared with 35% in the same period last year. The increase was primarily due to high revenue levels improved manufacturing capacity utilization, and more favorable product mix. In the fourth quarter of fiscal 25, our revenue was driven primarily by the sale of package level burn in systems, which had lower product margins.

Non-GAAP operating expenses in the fourth quarter were $7.5 million compared with $5.4 million in the prior year quarter. The year over year increase was primarily attributable to higher employment costs as we added headcount to support our R&D projects, as well as higher commissions related to record bookings from customers in the AI and data center markets. As an update on our patent litigation against Semi in China we continue to incur legal fees during the fourth quarter to support our claims. We are encouraged that the patent office in the Beijing district of the People's Republic of China has upheld 2 of our Chinese patents. Which is critical to our litigation against Semi.

The case is still ongoing and we anticipate incurring additional legal expenses in upcoming quarters. As we continue to protect our intellectual property rights in China. Non-GAAP net income for the fourth quarter, excluding the impact of stock based compensation and amortization of intangible assets, was $3.6 million or $0.11 per diluted share. Well above Street consensus. This compares with a non GAAP net loss of $200 thousand or negative $0.01 per diluted share in the fourth quarter of fiscal 25. Turning to the full year results, we reported revenue of $50 million down 15% year over year. Full-year non-GAAP gross margin was 38.5% compared with 44% in the prior year.

Full-year non-GAAP net income was $900 thousand or $0.03 per diluted share. Compared with non GAAP net income of $4.6 million or $0.15 per diluted share in fiscal 25. At the end of the fourth quarter, cash, cash equivalents and restricted cash totaled $116.5 million compared with $26.5 million at the end of fiscal 2025. During fiscal 26, we raised approximately $100 million primarily through our ATM program. Significantly strengthening our balance sheet. Although Aehr remains a capital light company, with only $2.1 million in capital expenditures in fiscal 26, This enhanced financial position provides the working capital and flexibility to pursue larger customer opportunities and scale production to meet customer demand. Now, I will share our guidance.

For the fiscal year ending June 25, 2027. We expect total company revenue to be between $130 million and $150 million representing expected year over year growth of approximately 160% to 200%. This outlook is based on the information available to us today. Including our current backlog and anticipated customer demand. We continue to pursue additional orders from existing and prospective customers. We also expect pretax non GAAP net income to be 18% to 22% of total revenues. Lastly, looking at our investor relations calendar. Aehr Test will be participating in 3 upcoming investor conferences. Over the next couple of months.

We will meet with investors virtually at the Needham Sixth Annual Semiconductor and Semi-Cap 1 on 1 Conference on Wednesday, August 20. The following week, we will meet with investors in person on Tuesday, August 26, at the Jefferies Technology Summit Conference in Chicago. On September 10, we will meet with investors in person at the Lake Street Capital's Annual Big Ideas Growth Conference in New York City. We hope to see some of you at these conferences. This concludes our prepared remarks. Operator, we are now ready to take questions.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. Confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, please press 1 on your phone at this time. if you wish to ask a question. And please hold while we poll for questions. And the first question today is coming from Christian Schwab from Craig Hallum Capital Group. Chris, your line is live.

Christian Schwab: Thank you. Congratulations on the fantastic outlook. Gayn, I know you gave some description of revenue by application. For the last fiscal year. But as we are thinking about the $100 million to $150 million, not obviously asking by wafer-level burn-in. Or the Sonoma systems. But can you just give a rough idea of the assumption as far as product mix between AI chips silicon photonics, power, and if there will be any memory revenue, which sounds like that is fiscal 28.

Gayn Erickson: So we will. And the only challenge, of course, is we have never done that before. And so in reality, our ability to always predict. But in our current kind of roll-up right now, it is pretty similar to last year. In terms of AI, 70-ish percent The silicon photonics maybe 15% to 20%, maybe in that same range. And then the power semiconductor and miscellaneous, it is kind of the rest. But there is some pretty good and by the way, and I will state, we currently do not anticipate any memory revenue in even the 150 number.

So upside on any potential revenue from memory would be in addition to that, but right now, we are not assuming any of that. And the bulk of that if not the majority of all of that range of $130 million to $150 million is coming from current customers. So not really even including I want to give myself a little leeway of this new benchmark customer that we just completed with amazing results. That would be upside to that as well. So you know, I think last year, talked about, the silicon carbide customers a year ago were all talking about how great it is going to be and this is going to be a turnaround year.

They did not really give us really detailed forecasts. So I think I shared a year ago. I am kind of in a wait and see mode. I will just believe it when I see the orders. This year seems a little bit more specific. You know, we see some people with real numbers, some real forecasts, some real targets. We are seeing the population of our installed base be at pretty well at full capacity. So it does feel more real this year, and so I am more optimistic. But we still have a pretty small number-- yeah, a pretty small number. I think we might have just exceeded it.

So that will that is probably 1 day till Chris is looking at me like I am cheering too much. Alright? So those orders we just got in, I think, exceed what we were already planning. So we will see how this goes. there is just a lot of opportunity, but AI is going to be a big, a big chunk of our business this year. Both in dollars and a percentage. Fantastic. Thanks for that clarity. And then just on the memory, it sounds like you feel more confident in the development program.

Last quarter, you did mention kind of roughly the same words that you know, that it could lead to orders in 2027 and revenue in 2028 But it sounded like you were more confident that you will get orders at some point in fiscal 27 for revenue in 2028. Did I hear that right, or did I-- I hope I am more confident than last-- I am not sure I am more confident than last quarter. I mean, I was moderately confident last quarter as well. We have more detail We have actually started to spend money on it.

So we have hired some people and redirected some people, and we are doing architectural schematics and assessment. there is some software that started, you know, physical board layouts as part of the proposals to the customers. And, but we really believe you need a committed customer to a project. You know, there is a sort of whether it be a PO or a sponsorship, but you need to make sure you are aligned with what they want and what they are gonna buy at the price point you are willing to sell them at. And that is the piece that we still need to get ourselves resolved. To. there is been some dynamics during the last year.

Look in the last 12 months. what is kinda changed The introduction of high bandwidth flash is a doozy. Right? That has really put, at least a couple of them, it is publicly known, on their heels in terms of what they were gonna do, how they could test it, and it broke a lot of things. The other piece is the new HBM, which is a DRAM. Right? High bandwidth memory is DRAM. High bandwidth flash is, of course, flash. But HBM, new standards that are coming out, and I do not wanna get too carried away here, some of which driven by specific end users. Have embedded BIST capabilities in it.

Which means that the testability changes dramatically and we think could be in our favor. So it is given me some additional optimism with respect to our ability to maybe do HBM sooner than we were thinking, certainly 6 months ago. But I am gonna just keep a optimistic attitude that we are going after this business, but I would be hesitant for you to build models with a lot of revenue in that yet. Certainly not next year. Great. And then I will just slip in 1 more if I could. There was a lot of different discussions regarding capacity, and I guess I could not write all the answers down quick enough to kind of do the math.

But as you sit here today, as far as top line revenue capacity, what do you believe it is? Yeah. So we have talked about some different pinch points. Okay? So people that have visited us know that until recently, all of our systems and our consumable WaferPaks came out of our Fremont facility. But the supply chain of our chambers our blades, and all the subsystems and printed circuit boards are, of course, built by contract manufacturers. For the, 150 employees or thereabouts that Aehr has, We have probably another 250 people in direct contract manufacturers building stuff for us in low cost regions around the world.

We have increased our capability in our facility maybe tenfold with the remodel and the other things that we have done. But we still are only running 1 shift from an operational perspective. We do not have the people to ship 10-fold. But the capacity is here to be able to do that. People go, well, that is crazy. Why would you do that? Well, as of the deals we are talking about, if a customer comes to us and said, 'I want 100 systems,' you have to be able to say, 'I can do that, and it will not take me 3 years to build it for you.' Okay?

In parallel, we talked about this in more detail last quarter. We pulled the trigger last September with 1 of the contract manufacturers in Asia that does assemblies of 1 of our chamber suppliers. And they upgraded their facility to near clean room space. In anticipation of some of the projects that we wanted to outsource to them. We then initiated and gave them orders and worked with them to build our Sonoma systems. And then the last quarter, we shipped our first Sonoma systems directly to a customer out of that facility. Our team was there working with them, bringing them up, qualifying everything, demonstrating, then observing, then qualifying, the tools.

But those systems are actually being installed, I think, last week or this week. At our large hyperscaler customer. And their entire backlog is expected to ship directly out of there. We think the capacity out of that is probably upwards of 20 Sonoma systems a month. And that would basically not impact any of our capacity here. So our capacity is significant, measured in hundreds of millions of dollars for sure. And we are doing some things to even potentially increase that. Not that we would then ship a billion dollars a year, but what happens if we have to ship a couple hundred million in a quarter? Think of it that way.

So 1 of the challenges in our business is that it is always going to be lumpy. And do not wanna put money in place and infrastructure that is permanent because, the business is cyclical. And, you know, 5 to 8 years from now, what is this thing look like? We do not want to have built up into a you know, an enormous business. And if there is a softer year that we start losing money or not making as much profit. So I know that is a negative tone on this thing, but the discipline is how do you build up massive amounts of capacity without building up massive amounts of just fixed infrastructure?

Got it. that is, fantastically clear. Thanks. No other questions.

Chris Siu: Thanks, Chris.

Operator: Thank you. Thank you. The next question is coming from Jed Dorsheimer from William Blair. Jed, your line is live.

Jed Dorsheimer: Hey, thanks. Thanks for taking my question. And big congratulations to you, Gayn and Chris. I know how long it is been coming in terms of this inflection. So few questions for you. I guess, first 1, maybe just to piggyback off your last response, Gayn, to Chris there.

Gayn Erickson: Did I hear you correctly? 20 Sonoma systems per month. And if that is the case, that is about $100 million for Sonoma. Is that the right way to think about that in terms of the $140 million midpoint of guide? So let me make sure I understand. So at our $140 million midpoint, that is nowhere near 20 Sonoma systems a month. The production Sonoma systems that we have in backlog, we have shared this in with different people. Including the consumable elements are somewhere in the, you know, $600 thousand to $700 thousand apiece. They are actually smaller configurations by times quantity.

And I think that we have done a pretty good job of announcing orders along the way. So package-level burn-in Sonoma revenues are-- making sure I do this. I have them in front of me right now. probably $50 million something along that range. I think that is good. Larry, guys. I should have it in front of me. So, that is-- think of the math of that, whatever, that 60 to 70 systems or so. So but we are actually shipping those. The customers actually ask for those kind of in a small period of time. You know, very much centered around our second quarter. And so that is gonna be 1 of the challenges.

We are actually building them right now. We are gonna start shipping them here during this quarter, and then the bulk of them actually get delivered in the second quarter. That is, that is helpful. And then on the wafer level, if we took that midpoint, what are the are you mixing in? I am trying to separate consumables from package and wafer level. Can you give some framework in terms of that breakdown?

Chris Siu: Well, let me answer that question, Jed. So if you heard me, I mentioned about-- we are roughly in the 30%. Contribution. Or-- yeah, wafer packs and-- in revenue. Yeah, in revenue. And that is WaferPaks and BIMs? Yeah. Yeah. And Oh, I think that is a good assumption.

Gayn Erickson: it is about 30%. That sounds right to me as well. Yep.

Jed Dorsheimer: Okay. that is super helpful. And then 2 more from me. Just, you know, along the lines or maybe 3 more. Larry. But your largest processor -- GPU, TPU, CPU -- customer, your AI customer, I think, is how you describe it. In addition to the benchmark testing, I am just curious, they are going with package level, but could you update on the discussions around wafer-level?

Gayn Erickson: I am assuming that they are also engaged in kind of-- yeah. You know, that, that opened the door if you will. So, just an update on that. it is a bit of a lookup table. So we when I think what you are talking about is our lead AI production package-level burn-in customer, Who we have identified as 1 of the big hyperscalers. Okay? Alright. They use Sonoma for all their qualification. They had never done production burn-in before, and they moved to production burn-in as we acquired InCal. And that is been a great win for everybody because of our capabilities to support them and, obviously, to meet their capacity needs.

That customer the first device that ever went to production was on Sonoma. The second device is also going to be on Sonoma. They already bought some of the systems for it. That particular device has been a little bit delayed in terms of its timing, but it is still expected to ramp, or at least start the ramp during our fiscal year at this point. that is the 1 I described that has twice the power, and they are expecting higher volumes off of it. Right? And then that same customer talked to us, what, maybe 6 months ago, first time. The third device they really wanna consider wafer-level burn-in.

And 1 way you might wanna think about it is if there is a progression of number of compute in a single package, as they get higher, wafer-level burn-in has a huge advantage because the devices fail during burn in, and if you fail 1 of the compute chips, you throw away the other compute chips and all of the memory. And so at that point, it gets extremely, expensive from a yield loss to continue to do package-level burn-in. So that would be where you would wanna cut in that wafer-level burn-in.

So they have actually recently, again, this quarter, you know, again, they are just bringing up their second device, but the third 1, been talking to us about, okay. What DFT do we need to do? What do we need to put in? How do we optimize it around the Fox system? So it is pretty encouraging. Got it. that is helpful. And just shifting gears, silicon photonics and copackaged optics, I know you mentioned activities. The gallium nitride really had struggled with reliability in that, in the auto. Auto requirements are far lower than in data center. by about 5x, in terms of mean time to failure.

So, I think that would be a good thing for you guys, but I am just curious how you are thinking about market adoption, timing, and then your role in GaN specifically. I know what you have got for silicon carbide. Just curious in terms of activity around GaN and the higher failure rates there.

Chris Siu: Okay.

Gayn Erickson: You actually mentioned silicon photonics. You mentioned silicon carbide, and GaN. Let me just think through that window. GaN has been interesting. If you remember a year and a half ago or so when we were in discussions with the first GaN customer, we did not know if they were gonna go to production burn-in or not. Since then, we have been able to verify they are, and they are going to a major qualification with a bunch of industrial automotive, and infrastructure, and data center applications. it is unlike Silicon Carbide that is, like, 2 or 3 big applications. GaN, we have done like 12 different types of devices.

So they are, like, different voltages and power and requirements that they go through all, you know, from solar to data center to electric switches in infrastructure and homes. To automotive. They are all over the place. So they all have different kind of requirements, But so far as we can tell, every 1 of them needs a production burn in screening to meet the reliability requirements. And it is been a learning process for us. Silicon GaN is extremely difficult to actually test and burn in at wafer level. We have learned, but it is now been debugged and fully working through, and things are going really well for us right now. So we think that will grow.

Now the GaN market, by the forecasters is you know, just dollar wise is measured in, you know, single to tens of billions of dollars over this decade. Whereas, you know, AI or memory is 10x that. So they can just they simply could never spend as much money as some of the other markets. From a reliability perspective, it is very clear the value of burn-in, and we have been proving and validating the value of wafer-level burn-in of GaN similar to silicon carbide. And then silicon photonics similarly, that is been the big debate is as the data centers really need to go to burn-in or to silicon photonics, you know, optical transceivers for fiber optic communication, basically.

The burn in requirements are kind of very clear in front and center. So the hyperscalers, the big data center guys are all talking about this, and it is, you know, sort of cool to be in burn-in, if you will, right now. That sounds kind of funny, a play on words. I have actually Chris is laughing. I have never said that before. But it is. it is just right now it is a lot of people are talking about burn in as the kind of the place. I believe that burn-in is by far the fastest growing segment in all of semiconductor test right now. And wafer level burn in particular. Awesome.

Jed Dorsheimer: Last question for me. I promise. Chris, can you just help with cadence in terms of as you look at the year? How are you thinking? I mean, Gayn mentioned second quarter in terms of some concentration on the package level burn in systems. Is there some way to think about there is a pretty big shift year over year in terms of the uplift, how to think about that flow as we go through the year. Any thoughts there? Or, not specific guidance but just general seasonality or run-rate kind of thing. Exactly.

Chris Siu: So if you know historically, we kind of said, hey. Our first half is softer than the second half. But I would say this year, it is hard to say that because as Gayn mentioned, we are going to ship a lot of the package level Sonoma systems in the second quarter. Right. So, second quarter is going to be a big quarter.

Gayn Erickson: So First part is looking pretty good. Yeah. Pretty good. Gonna be bigger. Maybe third quarter is flattish than fourth quarter is up from there.

Chris Siu: So there is a high likelihood that the first half might be the same or even better than the second half, but second quarter is gonna be a good very strong quarter for us.

Jed Dorsheimer: Got it. I will jump back in queue. Thanks, guys.

Gayn Erickson: Alright.

Chris Siu: Thank you. Thanks, Jed.

Operator: Thank you. Once again, as a reminder, if you have any questions please press 1 on your phone at any time. Next question is coming from Maxwell Michaelis from Lake Street Capital Markets. Maxwell, your line is live.

Maxwell Michaelis: Hey, guys. Few questions for me. 1 is a clarification question. So that April order you put out, I think it was a $41 million production follow-on order with the lead hyperscaler. I think that was a production order for the Sonoma systems Just to be clear, that they are not transferring over to wafer-level burn-in. This is a completely different customer. Correct?

Gayn Erickson: Oh, that is the 1 we are talking about that is currently on package. Then the second part is package, and the third part is wafer-level or potentially being evaluated for wafer level. It gets kind of interesting because they wanna make sure we can also do the package for the third 1. So we have to you know, we kind of-- I guess we have 2 dogs in that race, and it is a 2 dog race. So Yeah. Okay. But by the way, that third device we think is not even this fiscal year. Okay.

I guess kind of my follow-up to that would you expect sort of a similar order size, I mean, for the on the wafer level side for them.

Maxwell Michaelis: Good question.

Gayn Erickson: If they do the same capacity, it would be higher. Our wafer level systems do in fact cost more per die than the package level today. Margins are better too, but the value proposition is different because you get the yield advantage which more than makes up for the price of the machine. So just from a product positioning and a price-- I mean, we have a lot more IP in it. there is a lot more R&D people. We have enormous investments. We recover through the wafer level. And we have all this IP that is worth it.

So customers come to us not just to cost-effectively do burn-in, but at wafer level, it is because the device does not even exist in another form, or they put the device in with something else, and then if they burn it in and it fails, then the something else gets thrown away. And so the wafer level burn in value proposition has more to do with the yield improvement which can be measured in you know, 1% of all products if they have you know, 8 devices in a package, it is equivalent of 8% yield advantage. The cost to test might be 0.1% or 0.01%. So the price does not really come into effect.

Maxwell Michaelis: Okay. And then last 1 for me, and I do not know. I you might have mentioned it, but that second a major AI processor, that just completed the benchmark testing, I mean, what is sort of the ramp up there? I mean, I mean, I know you kind of left it open-ended with the guidance range of being a $130 million to a $150 million Could you take it higher? I mean, could you see a major order come in fiscal year 2027 be able to complete that?

Gayn Erickson: Yes. Pretty brief. Yeah, we can. I mean, as we have been adding capacity and, you know, we have multiple AI customers that are engaged with. To some extent, we can build to forecast. We are having discussions about what if you throw a party and everybody comes. Right? What does that look like? And we are trying to meet at very high levels with the customers and potential customers and make sure we get an idea of what kind of capacity they look like. These systems have a lot of capacity, though.

I mean, when you think about a tester that in the same footprint of a competitive ATE machine, like a 93K from Advantest, I am testing, you know, 9 AI wafers in parallel I would say a quarter of the 60 devices that are in that are running. there is a lot of capacity. that you put in place. So if we say, oh, I am gonna go ship 20 machines, right? it is 180 blades. 1 hundred 80 wafers of capacity. A 180-wafer test floor is a big test floor.

And we could put 18. you know, we put 20 of these and it is in the size of 20 parking stalls in the garage out in your parking lot. Think of 20 cars out there that is more than enough to support 20 of our machines. Now think of 180 of our competitors in the same garage. And these are state of the art clean room space. These are bunny suited test floors. Awesome. And I have to remember that when someone says, oh, you can ship, you know, 5 XPs a month. You know, if there are 18-blade machines, that is 100 testers a month of capacity.

And, like, in silicon carbide, testing all 3 thousand die in parallel in 1 insertion. Per wafer. These are very high volume, very capable machines. it is why we get several million dollars apiece for them. Upwards of 6 including wafer packs. Okay?

Maxwell Michaelis: Oh, we lost you, Maxwell. Good for now. Thanks. Okay.

Operator: Thank you, Maxwell. Thank you. The next question is coming from Larry Chlebina from Chlebina Capital. Larry, your line is live.

Larry Chlebina: Hi, Gayn. I just wanna quantify the capacity in Fremont. You mentioned 1 shift, 2 shifts. So on the Sonoma side that what I call Sonoma-Max, I guess those are fully automated What is the throughput capacity expected on the in Fremont?

Gayn Erickson: Is it still 20 Sonoma-Maxes per month? So if you were to come and look at our if you were to come and look at our facility, as many shareholders have, 1 of the what we did in our big modification upgrade a couple years ago was add enormous amount of additional cooling and power capacity. That gives us drop locations for upwards of potentially 16 physical locations for the equipment to be plugged in, another 4 mechanically. Plus the test labs. What does that mean? That means that theoretically, you could have 16 of these machines plugged in and be powered up and going through different levels of test.

Now the depending on the tool, they could take from, you know, several days to several weeks to be on that floor. What we have been doing in parallel is bringing up the CMs to be doing most of that work so that when it comes into the facility, maybe they only sit there for 1 week. So if you do that math, you are like, well, wait a minute. You could do 16 a week and 4 per week. Wow. that is a lot.

What I have shared with people is, you know, we can reasonably see the ability to do say, 20 combination of package or wafer level systems a month out of this facility within the supply chain infrastructure that we have But we have not initiated all of that. But in certain cases, we have. Like chambers. We have been talking to the CMs about auto aligners. At for both the package and also the wafer level. And so you know, if those were, say, million-dollar Sonoma-Maxes as you call them, we actually call them Ultras. Okay? it is $20 million a month of Sonomas.

If you were 20 wafer-level burn-in systems a month, they have an ASP closer with the WaferPaks, $5 million. They are $100 million a month. So people are like, oh my gosh. You have a billion dollars' worth of capacity Conceptually, yes. So for my employees that are listening, we need to hire more people, and there is a lot more work that needs to be done. But with a running head start and a customer forecast, we could do enormous amounts relative to our current size just out of this facility. So actually, the number would be 20 Sonoma Ultras per month or 20 XPs per month, not both, not 20 each. Yeah. Okay.

Larry Chlebina: So you are right.

Gayn Erickson: You caught me on something. Except we just initiated the 20 Sonomas outside of our facility. No. I know. I know about that. But I know about that. But what it means, Larry, is we could run the 20 Ultras shipping directly from Southeast Asia. And then still do 20 XPs here. A month.

Larry Chlebina: Okay. Alright.

Gayn Erickson: So, and by the way, I need to put some disclaimers for all the attorneys listening. Know, some of these challenges would be they are, you know, particular material or getting access to some of the challenges that we have seen on the power supplies, for example, on Sonomas is that some of the power Supply Manufacturers That We Use In Sonoma are supplying to NVIDIA and others. And they have come back, they have raised their prices 40%. If you wanna get them. And so we have been buying components with long lead time items and things like that.

So you know, if we make it sound easy that we are overstating, it is actually quite difficult to do what we are doing right now. But so far, we are able to keep ahead And then I think almost everything in my backlog we could ship before the customer has requested it. I am thinking, like, all the Sonomas, Chris, you know, all my silicon photonics customers, So far, we have been on top of that, and our goal is to stay ahead of that. So customers, if they want it, we could ship it within the-- as soon as they would like it. Okay.

Larry Chlebina: Then on the paid evaluator, did you say that in your guide for the full year, you do not really have any revenues in there from this particular potential customer? Is that did you say that-- call it little to none. You know, at this point. You know, it is in the noise level. So that is potential big upside, assuming that gets kicked off. And then lastly, in your written release, you mentioned on the memory side that, you work with you are working with multiple memory suppliers. Does that mean more than 1 HBM? I mean, how far are you engaged with the HBM potential customers?

Gayn Erickson: You have had specific conversations with suppliers. Okay. Let me make sure I do this right. 2 to 3 on Flash and 2 on DRAM. Okay. And the and the primary for that are listening that are not aware, there is literally, like, 4 memory manufacturers in the whole world that matter, so apologize. So and if you are not if for those that are in the 5th and 6th, they might be offended by that. But of the top ones, I am listing it from those.

Larry Chlebina: Okay. And then the primary flash you engaged them over 2 years ago. And yet they have any revenue or orders from them? Is that nothing gonna happen there unless HBF gets kicked off? Or as far as you can see or I do not know.

Gayn Erickson: You know, that was a huge change amongst some other organizational things that happened to them pretty dramatically about a year and a few months ago. So at this point, feedback recently has been, you know, they really need something for the HBF, but they really want something for their standard flash. HBF architecturally is way more power, more power supplies. it is technically a more expensive tester. But they really like the price point of the current test capability, and so we are kinda working through that. We got to find the math for that.

And you know, we need their help to sort of get the ball going because, you know, we obviously have a lot of opportunities ahead. In all kinds of markets, and we would just as soon have them sort of help us help them.

Larry Chlebina: Yep. But on a memory side, that would still be the first potential sale revenue for any of the 4 memory people you are talking to.

Gayn Erickson: They would be-- I think so, Larry. I am going to-- I would put some bet on a wild card.

Larry Chlebina: Because this new HBM has a logic interface, for its testability. Mm-hmm. it is breaking the memory testers. And technically, when I describe a new memory tester, I am talking about well, most people do not know or care on this call, what a memory tester is, but a memory tester is built with pattern generations, it is sort of a different architecture and a different beast than a logic machine. So if you have an APG based memory tester, it would be really good for flash or DRAM.

But if you had a logic BIST engine in the device, then it may not even be very good at doing BIST And so you would need something that looks like a logic tester, which candidly is more like what we build today with Flash. The FOX-XP was originally designed for the BIST engine of a couple of the big flash memory manufacturers. Flash has built in self test. DRAM until recently never has. You mentioned that they were coming to you, these HBM potential customers. Would that be a function of potentially this paid evaluator telling them, hey, get over to Airtest and get your reliability better before you take out our accelerators.

Gayn Erickson: Is there any angle on that? Do you think that could be-- that would be a little too bold for me right now. I do not think that is the case.

Chris Siu: I do think there is a general tone amongst and growing amongst the data center buyers, all the hyperscalers, you know, from Google and Meta, all the papers that you see you know, Apple, certainly Tesla, of an ex an increasing expectation of test and reliability to screen out defects so that does not show up on my data center floor.

Gayn Erickson: So that is more of a go get your act together in general than necessarily go to Aehr. I will say that by contrast to the automotive guys, we specifically have automotive EV suppliers telling their suppliers go get Aehr. Okay? I mean, that is true. Right? So that is a different I mean, we love that. Right? But you know, imagine that 1 of the biggest you know, 1 or 2 biggest automotive suppliers in the world buys our WaferPaks tells their suppliers, we would like to qualify you for your silicon carbide reliability, and we are gonna use the Aehr Test FOX system with our WaferPaks to validate your devices. And good luck to you. Pretty impactful. Right?

Yep. So I do not have that with the AI customers today. That would be nice, but we do not have that. So yet.

Chris Siu: Yeah. Christian, not yet. Good job.

Larry Chlebina: Hey, I will let you go. Thank you. Thanks, Larry.

Operator: Thank you, Larry. Thank you. I am not seeing any other questions in queue at this time. I will now turn the call back to management for closing remarks.

Gayn Erickson: Alright. Well, thank you, everybody, for listening in and joining us. We are really excited to work hard for you guys this year. This is gonna be a great year for Aehr and hopefully for our customers and our shareholders as well. And we look forward to giving you guys an update as we go along. Take care.

Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

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