FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR), a global provider of semiconductor test and burn-in equipment, announced today that it has secured an initial production order from a leading automotive semiconductor supplier for its FOX-XP™ wafer level test and burn-in system with an integrated FOX WaferPak™ Aligner. This system is designed for testing gallium nitride (GaN) power semiconductor devices and is set to ship immediately. According to InvestingPro data, Aehr maintains strong financial health with a robust current ratio of 6.03, indicating excellent operational liquidity. The company's solid 50.48% gross profit margin reflects efficient cost management in its manufacturing operations.
President and CEO of Aehr Test Systems, Gayn Erickson, stated that the company has been collaborating with the customer for over a year to support their evaluation and qualification process for GaN power semiconductors. Erickson expressed excitement over the initial purchase order, which indicates the customer's transition to volume production wafer level burn-in of their GaN devices using Aehr's FOX-XP platform.
The customer previously utilized the FOX-NP system for production qualification and reliability testing, along with Aehr's proprietary WaferPak full wafer Contactors, to successfully qualify a variety of GaN device types for multiple applications, including industrial, solar, data center, and automotive markets.
Aehr's FOX-XP system allows for seamless transition from device qualification to high-volume, fully automated multi-wafer testing. It can test up to nine wafers in parallel and is designed to handle high-voltage and high-temperature stress tests, essential for power semiconductors like GaN and silicon carbide (SiC).
GaN MOSFETs are recognized for their higher power conversion efficiency over silicon and are becoming increasingly popular for automotive power converters and data center power applications. Industry experts predict that GaN will eventually replace silicon in power conversion, particularly for photovoltaic applications.
Market research from Yole Group and Frost & Sullivan projects significant growth for GaN technology, with anticipated annual device sales reaching $2.5 billion by 2029 and GaN semiconductors accounting for over 10% of the power semiconductor industry by 2028. These projections highlight a substantial growth opportunity for Aehr's wafer level test and burn-in solutions.
Aehr Test Systems, headquartered in Fremont, California, is recognized for its test solutions for semiconductor devices in various formats and has installed numerous systems worldwide. The company's products cater to the increasing quality, reliability, safety, and security needs of semiconductors used in various applications, including electric vehicles, power infrastructure, computing, and data infrastructure. With the company's next earnings report due in 6 days, InvestingPro subscribers can access real-time analysis and detailed financial metrics to make informed investment decisions. The company's market capitalization stands at $499.28 million, with analysts maintaining a positive outlook on its growth prospects.
This announcement is based on a press release statement from Aehr Test Systems.
In other recent news, Aehr Test Systems has reported significant developments. The company's Q1 financial results for fiscal 2025 revealed a revenue of $13.1 million and a non-GAAP net income of $2.2 million, both figures exceeding consensus estimates. Despite year-over-year decreases, Aehr Test Systems has reaffirmed its fiscal 2025 revenue guidance of at least $70 million, with a significant portion, 85%, expected from wafer-level burn-in.
The company also rescheduled its Q2 fiscal 2025 earnings release and subsequent conference call to January 13, 2025, due to the National Day of Mourning for former President Jimmy Carter. Aehr Test Systems demonstrated strong profitability with a 50.5% gross margin and maintains a healthy balance sheet with more cash than debt.
Additionally, Aehr Test Systems recently completed the acquisition of Incal Technology, enhancing its high-power testing capabilities for AI semiconductors. This strategic move has already resulted in the company receiving its first volume production orders for Incal's Sonoma ultra-high-power semiconductor test solution.
At Aehr Test Systems' Annual Meeting, shareholders elected six directors to the board and ratified BPM LLP as the company's independent registered public accounting firm for the upcoming fiscal year. These are the latest developments for Aehr Test Systems, a company that continues to make strides in the semiconductor testing industry.
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