Aehr Test Systems reported second quarter fiscal 2026 revenue approximately 15% below consensus estimates, driven by weaker-than-expected order shipments in its core burn-in and test system product lines. Gross margin contracted to its lowest level in over three years, slipping below 30% as fixed manufacturing costs absorbed a reduced production volume.

The company’s operating cash outflow continued, totaling $4.2 million for the quarter, as R&D and SG&A expenses remained elevated while sales fell short of forecasts. To bolster its cash position, management sold approximately 2.0 million shares in the open market, generating roughly $12 million in proceeds by leveraging strong investor interest in AI-related semiconductors.

On the quarterly conference call, executives cited a series of equipment calibration issues at key customer sites and internal yield challenges that pushed out several major orders. These setbacks led to a backlog reduction of 20% versus the prior quarter and deferred recognition of nearly $8 million in expected revenues into the second half of the fiscal year.

Due to the combination of lingering operational disruptions and a softer demand environment in the silicon carbide segment, management now anticipates H2 fiscal 2026 sales to fall well below street estimates. While the company reiterated its long-term bookings pipeline remains intact, near-term guidance was withdrawn, signaling potential further downside for investors over the next two quarters.