The quarter against our forecast
Q1 FY27 line by line, as the income statement shows it
| Line | Outlook | Our forecast | Reported | Against our forecast |
|---|---|---|---|---|
| Total revenue | — | $28.0M | $33.0M | +17.9%beat |
| Sales growth, year on year | — | 155.3% | 200.9% | +45.6 ptbeat |
| Revenue | — | $28.0M | — | with the 10-Q |
| Cost of revenue | — | $15.7M | $17.3M | +10.5%miss |
| Gross profit | — | $12.3M | $15.7M | +27.3%beat |
| Gross margin | — | 43.9% | 47.5% | +3.5 ptbeat |
| Research and development | — | $4.3M | $4.1M | −3.7%beat |
| Selling, general and administrative | — | $6.0M | $5.5M | −8.8%beat |
| Restructuring charges | — | $0.0M | $0.0M | —beat |
| Total operating expenses | — | $10.3M | $9.6M | −6.6%beat |
| Income (loss) from operations | — | $2.0M | $6.0M | +202.3%beat |
| Operating margin | — | 7.1% | 18.3% | +11.2 ptbeat |
| Interest income, net | — | $1.1M | $0.9M | −14.4%miss |
| Other income (expense), net | — | $0.0M | −$0.0M | —miss |
| Income (loss) before income tax benefit | — | $3.0M | $6.9M | +127.1%beat |
| Income tax benefit | — | $0.6M | −$0.3M | −141.6%beat |
| Tax rate | — | 20.0% | −3.7% | −23.7 ptbeat |
| Net income (loss) | — | $2.4M | $7.2M | +194.3%beat |
| Diluted | — | 0.03B | 0.03B | −0.00Bin line |
| Adjusted EPS | — | $0.14 | $0.28 | +14¢beat |
Our forecast was frozen before the release: the middle forecast of 7 analysts as of 2026-11-02 10:07:56 ET. Each reported number is quoted from the release; the 10-Q's tagged facts confirm the statement's lines when it is filed. Read before our lock: the SEC lists the release in its index that night, and the next check confirms its bytes. A cost above our forecast is a miss.
Why the quarter differed from our forecast
Income (loss) from operations+202.3%
What we assumedThe forecast allowed operating expenses of $10,300,000.00, including continued China patent-case spending.The company expects to keep spending on the China patent case, so I raised administrative expense a little through fiscal 2027 rather than letting it fall back as a percentage of sales.
a
What the company printedOperating expenses came in below our forecast, helping operating income reach $6,047,000.00.Total operating expenses 9,616 9,225 7,785 2,983
Known before our cutoff?No: Searched pre-cutoff filings and calls for first-quarter results and operating expenses; the actual first-quarter expense outcome was not disclosed.
Net income (loss)+194.3%
What we assumedThe forecast assumed a tax charge; stock-compensation deductions were a recognized risk to that assumption.The tax rate is also uncertain: stock-compensation deductions at a much higher share price could push the book rate well below 18%, raising earnings per share.
f
What the company printedAehr recorded a tax benefit instead of our forecast charge; net income reached $7,181,000.00.Income tax benefit (254 ) (1,846 ) (752 ) (930 )
Known before our cutoff?No: Searched pre-cutoff filings and calls for tax benefits; historical benefits were disclosed, but the first-quarter benefit was not.
Gross profit+27.3%
What we assumedForecasts allowed for package-system mix and component cost pressure rather than assuming an immediate return to higher margins.My second-quarter reported gross margin of 42%, below my first-quarter 43%, already allows for package-system mix and cost pressure.
g
What the company printedAehr's gross profit exceeded our forecast, reaching $15,663,000.00; the supplied release evidence does not identify a specific mix or cost cause.Gross profit (loss) 15,663 8,019 3,719 (1,012 )
Known before our cutoff?No: Searched pre-cutoff filings and calls for first-quarter gross margin; historical mix risks were available, but the actual gross-profit result was not.
Total revenue+17.9%
What we assumedThe forecasts concentrated Sonoma deliveries in the second quarter, leaving a smaller first-quarter sales estimate.From the July call (R7): the roughly 50 million dollars of Sonoma package-level systems ship mostly in the second quarter, so I put the second quarter at about 45 million dollars and the first quarter at about 27 million dollars, with the first half near 72 million and the second half near 68 million.
f
What the company printedAehr attributed record first-quarter revenue of $33,007,000.00 to accelerating AI demand and execution against expanding customer production requirements.“Our fiscal first quarter results demonstrate the accelerating demand for our AI semiconductor test and burn-in solutions and our ability to execute against expanding customer production requirements. Revenue increased 200% year over year and 75% sequentially to a record $33.0 million, while bookings of $46.7 million exceeded revenue by over 40%, reflecting continued strong demand for our wafer-level and package-level burn-in solutions.
Known before our cutoff?No: Searched pre-cutoff filings and calls for first-quarter results; shipment readiness was known, but the record first-quarter revenue outcome was not.
The company's new outlook
Revenue of $150 million, compared with its previous guidance range of $130 million to $150 million.
The updated revenue outlook represents 200% growth over fiscal 2026.
Each item as the release prints it. Our forecast stands beside an item only when the item is one of our two numbers, for our quarter or year, in our unit.
The company's reasons, from the release
- record revenue and strong bookings driven by AI test and burn-in demand ““Our fiscal first quarter results demonstrate the accelerating demand for our AI semiconductor test and burn-in solutions and our ability to execute against expanding customer production requirements. Revenue increased 200% year over year and 75% sequentially to a record $33.0 million, while bookings of $46.7 million exceeded revenue by over 40%, reflecting continued strong demand for our wafer-level and package-level burn-in solutions.”
- raised fiscal 2027 revenue outlook “The increased outlook reflects Aehr's strong first quarter performance, substantial backlog, increasing visibility into existing customer production programs, and anticipated production and delivery schedules. Aehr continues to pursue additional opportunities with existing and prospective customers that could support additional growth in fiscal 2027 and beyond.”