Aehr Raises 2027 Revenue Outlook to $150 Million After 200% Quarterly Growth
Key Facts
Aehr raised its fiscal 2027 revenue outlook to $150 million after reporting record revenue of $33 million for the first quarter ended September 25, according to results announced on November 2. The company said revenue grew 200% from the same period of the prior fiscal year, when it was $11 million, and increased 75% from the previous quarter. The new guidance puts revenue for the fiscal year ending June 25, 2027, at the top of its previous range of $130 million to $150 million, and raises the lower end to $150 million. The company also expects non-GAAP net income to be at least 20% of revenue during the fiscal year. It said the revised outlook reflects strong quarterly performance, backlog, and greater visibility into customer programs and production and delivery schedules.
Quarterly bookings reflect the broader demand recorded during the period; they totaled $46.7 million, equivalent to a book-to-bill ratio of about 1.4, according to the company’s statement. Aehr said backlog stood at $100.9 million on September 25, the end of the quarter. What the company calls “effective backlog,” a figure that includes bookings received after the quarter ended, reached $109.3 million on November 1. The company ties its higher outlook to this balance and increased visibility into customers’ production programs. This means part of the annual guidance is based on recorded orders and production and delivery dates the company expects, while fulfillment remains tied to those schedules.
Revenue growth was accompanied by an improvement in quarterly profitability. Gross margin was 47.5% on a GAAP basis and 48.5% on the non-GAAP measure used by the company. Aehr reported GAAP net income of $7.2 million, compared with a net loss of $2.1 million in the year-earlier quarter of fiscal 2026. Non-GAAP net income was $9.4 million, or $0.28 a diluted share, compared with $0.2 million and $0.01 a share a year earlier. These figures provide context for the company’s expectation of non-GAAP net income of at least 20% of revenue in fiscal 2027.
The revised guidance follows a weaker fiscal year for revenue: the company recorded $50 million in 2026, compared with $59 million in 2025, and non-GAAP net income was $0.9 million in 2026. Aehr had forecast revenue of $130 million to $150 million for fiscal 2027 in July, estimating at the time that the range represented 2.6 to 3.0 times fiscal 2026 revenue. The company links demand for its AI chip test systems to its largest customer’s capacity expansion; on July 14, it said the customer’s increased capacity raises its expected need for FOX systems to test chips. On August 12, it announced a follow-on order worth $22 million from the customer for wafer-level test and burn-in systems, each capable of processing 9 300 mm wafers simultaneously. The company did not name the customer in these announcements.
On October 7, Aehr announced about $6 million in follow-on production orders from its largest hyperscale computing customer for a next-generation AI processor, with scheduled deliveries extending over 6 months. In its earnings statement, the company said the customer’s second processor had qualified on Sonoma systems, and that the follow-on orders support initial production sampling and the expected production ramp during 2027. It added that it is currently shipping and installing more than 12 systems a month to support increased production of the first processor. The company plans to install a FOX-XP test cell at a chip assembly, packaging and test partner in Taiwan in early 2027. It expects a decision on volume production within several months of installation and validation.
Aehr shares jumped 15.3% in extended trading on the evening of Monday, November 2, according to Investing.com, after quarterly results beat analysts’ estimates for revenue and adjusted earnings per share. Adjusted earnings per share were $0.28, versus an estimate of $0.10, while revenue was $33 million, compared with an estimate of $26.82 million. The company had announced that its results would be released after the market closed on November 2 and scheduled a conference call for 5 p.m. Eastern time. Aehr cautioned that customer forecasts are nonbinding and that orders may be canceled, rescheduled or delayed. Converting bookings and backlog into production and deliveries therefore remains central to execution of the annual guidance.