Short answer
AEHR TEST SYSTEMS (AEHR) filed its fiscal 2025 10-K annual report with the SEC on Jul 28, 2025. It reported revenue of $59M (−10.9% year over year) and net income of −$4M.
- Top risk flagged: Regulatory/legal risk: Potential indemnification liabilities for third-party IP infringement claims, with uncertain maximum potential damages and costly litigation risk
FY2025 key financial metrics · XBRL
- Revenue
- $59M
- −10.9% YoY
- Net income
- −$4M
- −111.8% YoY
- Operating margin
- -9.6%
- −24.8 pp YoY
- Gross margin
- 40.6%
- −8.6 pp YoY
- EPS (diluted)
- −$0.13
- −111.6% YoY
- ROE
- -3.2%
- −32.9 pp YoY
- Operating cash flow
- −$7M
- −521.4% YoY
Source: XBRL data from the AEHR TEST SYSTEMS (AEHR) FY2025 10-K on SEC EDGAR. USD.
AEHR TEST SYSTEMS FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Provider of semiconductor test, burn-in, and reliability screening solutions for wafers, singulated die, modules, and packaged parts
- New emphasis: Expansion into packaged part burn-in systems after Incal Technology acquisition; Sonoma series supports up to 2000 watts for AI accelerators, GPUs, HPC processors
- Strategic shift: Shift from full wafer contact systems dominance (98% revenue in FY24) to significant packaged parts contribution (34% revenue in FY25)
- Quantitative metric: Net revenues $59.0 million in FY25, with 66% from full wafer contact product lines (down from 98% prior year) and 34% from packaged parts (up from 2%)
- Customer concentration: Top five customers represented 77% of revenues in FY25, down from 93% in FY24, indicating slightly broader customer base
Management Discussion & Analysis
- Revenue $59.0M, down $7.3M (10.9%) YoY due to lower systems and contactor shipments, partly offset by $1.7M increase in services revenue
- Gross margin 40.6% vs 49.1% YoY, decline of 8.5 points from amortization, inventory variance, lower shipments, product mix
- Best segment: Packaged parts burn-in (Incal acquisition) driving revenue increase in product line; Worst: FOX-P systems and contactors declined significantly by $8.9M
- Operating cash flow negative $7.4M in FY25 vs positive $1.8M prior year; $11.1M spent on Incal acquisition, $4.2M on capex, $0.8M on stock tax withholdings
- Management cites ongoing semiconductor market softness in power EV demand, but growth in US AI-related sales; outlook cautious with restructuring costs of $0.9M related to Incal office closure
Risk Factors
- Regulatory/legal risk: Potential indemnification liabilities for third-party IP infringement claims, with uncertain maximum potential damages and costly litigation risk
- Geopolitical/macroeconomic threat: 70% net sales outside U.S.; U.S.-China trade tensions risk decreasing China sales and increasing component costs materially
- Operational/supply chain vulnerability: Dependence on sole source suppliers for critical components risks delivery delays and disruptions impacting product fulfillment
- Competitive/market disruption risk: AI integration risks from flawed algorithms, legal liabilities, and competitors’ superior AI-driven products harming market position
- Financial/structural risk: Key-person dependency on CEO and executives with no key person insurance or non-compete agreements impacting business continuity
Generated from the filing text; verify against the original. How to read a 10-K
Other AEHR TEST SYSTEMS annual reports
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.