AEHR TEST SYSTEMS Q3 FY2025 earnings call

Tariffs: Currently, the impact of U.S. tariff announcements is being monitored. Aehr doesn't believe direct impact yet, but assessing near-term secondary effects on customers. Redirecting materials, drop shipping, and shifting assembly to minimize tariffs. ### Market Highlights: Significant progress in expanding into new markets like AI processors, GaN, hard disk drive, flash memory. Shipped first high-power FOX-XP system for AI processors, expanded into GaN production, secured hard disk drive orders, and made progress on flash memory proof-of-concept. Integration of InCal is progressing, with personnel and manufacturing consolidated into Fremont facility. ### Silicon Carbide: Market remains a large opportunity, with signs of improvement in installed base utilization, driven by EVs and other markets.

Third quarter revenue totaled $18.3 million, a 142% increase compared to $7.6 million in Q3 last year. WaferPak revenues were $5.9 million, accounting for 32% of total revenue in the third quarter, down from 63% in the same period last year. Bookings in the third quarter of fiscal 2025 were $24.1 million, and backlog at the end of the quarter was $18.2 million. Since the end of the third quarter, additional bookings of $3.6 million have been received, making the effective backlog $21.8 million.

Considering secondary effects of tariff announcements on customers and uncertainty in orders/shipments, Aehr is temporarily withdrawing guidance for fiscal 2025 ending May 30 and will reassess guidance as clarity develops. Encouraged by engagements with current and potential customers and long-term growth in diverse markets.

Potential impact of tariffs on customers and geographies, including possible supply chain disruptions, delays in customer orders/shipments, and uncertainty regarding tariff implications on imports and exports.

Q: Color on accounts receivable jump?

A: AR includes unbilled receivables and some special terms with customers, but no flags or issues, just normal billing and customer terms management.

Q: Product launch on flash customer and fine pitch WaferPak?

A: Flash customer is working on proof-of-concept, and fine pitch WaferPak opens up DRAM high-bandwidth market potential, but requires DFT and low pin count test mode development.

Q: When to expect mass production orders from flash memory company?

A: Hoping for successful proof-of-concept next quarter, then co-development of test system taking about a year, so volume orders expected in fiscal 2027.