Kalyan Jewellers shares drop 2% on Q1 business updates
India remained the primary growth engine, with a 31% YoY rise in revenue, driven by strong Akshaya Tritiya and wedding season demand. Same-store sales in India were up 18% for the quarter. The international segment also maintained similar momentum, recording a 31% YoY increase, with the Middle East markets contributing a 26% revenue jump, thanks to improved same-store performance. The global markets accounted for 15% of total revenue.
Kalyan's digital-first brand Candere posted an impressive 67% YoY revenue growth, aided by a new marketing campaign launched in May that boosted footfall, traffic, and sales.
The company expanded its footprint by opening 10 new Kalyan showrooms in India, one in the U.S., and eight new Candere outlets across India during the quarter. As of June-end, Kalyan operated 406 stores worldwide.
Looking ahead, the company plans to open 170 new showrooms across its brands in FY26, with a focus on scaling in non-south Indian markets and overseas.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
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Interested parties may access the call by dialing +1-833-470-1428 in the United States or +1-404-975-4839 from international locations, using the access code 305335. The earnings presentation and a live webcast of the conference call can be accessed from the Company's investor relations website ( where they will remain available for approximately one year. Use of Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that are not historical in nature, that are predictive or that depend upon or refer to future events or conditions. These statements may include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of Penguin Solutions; statements regarding the extent and timing of and expectations regarding Penguin Solutions' future net sales and expenses; statements regarding Penguin Solutions' strategic objectives and development of our services and capabilities; statements regarding long-term effective tax rates; statements regarding the business and financial outlook for fiscal year 2025 described under "Business Outlook" above; and statements regarding our liquidity. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "plan," "goal," "believe," "could," and other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to: global business and economic conditions, including the impact on the financial condition of our customers, particularly in challenging macroeconomic environments, growth trends in technology industries (including trends and markets related to artificial intelligence), our customer markets and various geographic regions; uncertainties in the geopolitical environment; the ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics or otherwise; changes in trade regulations and tariffs or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending, including changes in customer spending on our products and services; appropriations for government spending; the success of our strategic initiatives including the U.S. Domestication (as defined below) and our ability to realize the anticipated benefits thereof, our rebranding and related strategy, any existing or potential collaborations and additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers' negative reactions to them; issues, delays or complications in integrating the operations of Stratus Technologies; failure to achieve the intended benefits of the sale of SMART Brazil and its business; the impact of and expected timing of winding down the manufacturing and discontinuing the sale of products offered through our Penguin Edge business; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers, and the timing and volume of customer orders and renewals; the impact of customer churn rates, including discounting and churn of significant customers from whom we derive a significant percent of our revenue; production or manufacturing difficulties; competitive factors; technological changes; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market, LED market or other markets in which we participate; changes to applicable tax regimes or rates; changes to the valuation allowance for our deferred tax assets, including any potential inability to realize these assets in the future; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; and the continuing availability of borrowings under revolving lines of credit or other debt arrangements and our ability to raise capital through debt or equity financings. These and other risks, uncertainties and factors are described in greater detail under the sections titled "Risk Factors," "Critical Accounting Estimates," "Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and "Liquidity and Capital Resources" contained in the Annual Report on Form 10-K for the fiscal year ended August 30, 2024 filed prior to the U.S. Domestication by our predecessor Penguin Solutions Cayman (as defined below), as updated by the risk factors contained in our Quarterly Reports on Form 10-Q and in our other filings with the U.S. Securities and Exchange Commission (the "SEC"). Such risks, uncertainties and factors as outlined above and in such filings could cause our actual results to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made. Statement Regarding Use of Non-GAAP Financial Measures This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP effective tax rate, non-GAAP net income, non-GAAP weighted-average shares outstanding, non-GAAP diluted earnings per share and adjusted EBITDA. Penguin Solutions' management uses these non-GAAP measures to supplement Penguin Solutions' financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company's past and future operating performance. These non-GAAP measures exclude certain items, such as share-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships and trademarks/trade names acquired in connection with business combinations); cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; restructuring charges; impairment of goodwill; changes in the fair value of contingent consideration; (gains) losses from changes in foreign currency exchange rates; amortization of debt issuance costs; (gain) loss on extinguishment or prepayment of debt; other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies are reflected in the Company's non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax provision (benefit); depreciation expense and amortization of intangible assets; share-based compensation expense; cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; impairment of goodwill; restructuring charges; loss on extinguishment of debt and other infrequent or unusual items. In the third quarter of fiscal 2025, for our non-GAAP reporting, we reduced our long-term projected non-GAAP effective tax rate from 28% to 25%, which includes the tax impact of pre-tax non-GAAP adjustments and reflects currently available information as well as other factors and assumptions. This reduction was due to changes in the geographic earnings mix. While we expect to use this normalized non-GAAP effective tax rate through fiscal 2025, this long-term non-GAAP effective tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Our GAAP effective tax rate can vary significantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax effects of certain items of income or expense, significant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could significantly impact our GAAP effective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP effective tax rate measure to our GAAP effective tax rate. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about Penguin Solutions' financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the "Reconciliation of GAAP to Non-GAAP Measures" tables below. Explanatory Note Subsequent to the end of the third quarter, on June 30, 2025, we completed the redomiciliation of the parent company of our corporate group, Penguin Solutions, Inc., a Cayman Islands exempted company ("Penguin Solutions Cayman"), from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions, Inc., a Delaware corporation ("Penguin Solutions Delaware"), becoming our publicly traded parent company (the "U.S. Domestication"). Penguin Solutions Delaware is the successor issuer to Penguin Solutions Cayman. The U.S. Domestication was approved by the shareholders of Penguin Solutions Cayman and effected via a court-sanctioned scheme of arrangement under Cayman Islands law, pursuant to which each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware. Additional information about the U.S. Domestication was included in Penguin Solutions Cayman's definitive proxy statement on Schedule 14A, filed with the SEC on April 2, 2025. As used in this press release, unless stated otherwise or the context requires otherwise, the terms "Penguin Solutions," "Company," "we," "our," "us" or similar terms (i) for periods prior to the consummation of the U.S. Domestication, refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the consummation of the U.S. Domestication, refer to Penguin Solutions Delaware and its consolidated subsidiaries. Throughout this press release, we refer to our equity securities (i) for periods prior to the consummation of the U.S. Domestication, as ordinary shares and/or convertible preferred shares and (ii) for periods at or after the consummation of the U.S. Domestication, as shares of common stock and/or shares of convertible preferred stock. About Penguin Solutions The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our Advanced Computing, Integrated Memory, and Optimized LED lines of business. With our expert skills, experience, and partnerships, we turn our customers' most complex challenges into compelling opportunities. For more information, visit Penguin Solutions, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended May 30, 2025 Feb. 28, 2025 May 31, 2024 May 30, 2025 May 31, 2024 Net sales: Advanced Computing $ 132,498 $ 200,157 $ 144,968 $ 510,081 $ 405,197 Integrated Memory 130,124 105,260 91,629 332,090 260,594 Optimized LED 61,629 60,102 63,983 188,701 193,857 Total net sales 324,251 365,519 300,580 1,030,872 859,648 Cost of sales 229,168 260,871 211,674 733,329 605,958 Gross profit 95,083 104,648 88,906 297,543 253,690 Operating expenses: Research and development 20,222 19,907 19,681 59,940 61,596 Selling, general and administrative 59,724 59,315 57,249 179,575 175,851 Impairment of goodwill 5,294 6,079 — 11,373 — Other operating expense — 859 465 968 6,739 Total operating expenses 85,240 86,160 77,395 251,856 244,186 Operating income 9,843 18,488 11,511 45,687 9,504 Non-operating (income) expense: Interest expense, net 573 2,183 6,167 7,152 22,975 Other non-operating (income) expense (1,439 ) (209 ) 441 (1,012 ) 113 Total non-operating (income) expense (866 ) 1,974 6,608 6,140 23,088 Income (loss) before taxes 10,709 16,514 4,903 39,547 (13,584 ) Income tax provision 7,259 7,643 (1,323 ) 21,262 4,409 Net income (loss) from continuing operations 3,450 8,871 6,226 18,285 (17,993 ) Net loss from discontinued operations — — — — (8,148 ) Net income (loss) 3,450 8,871 6,226 18,285 (26,141 ) Net income attributable to noncontrolling interest 789 789 610 2,325 1,784 Net income (loss) attributable to Penguin Solutions 2,661 8,082 5,616 15,960 (27,925 ) Preferred share dividends 3,033 2,600 — 5,633 — Income available for distribution (372 ) 5,482 5,616 10,327 (27,925 ) Income allocated to participating securities — 482 — 678 — Net income (loss) available to ordinary shareholders $ (372 ) $ 5,000 $ 5,616 $ 9,649 $ (27,925 ) Basic earnings (loss) per share: Continuing operations $ (0.01 ) $ 0.09 $ 0.11 $ 0.18 $ (0.38 ) Discontinued operations — — — — (0.15 ) $ (0.01 ) $ 0.09 $ 0.11 $ 0.18 $ (0.53 ) Diluted earnings (loss) per share: Continuing operations $ (0.01 ) $ 0.09 $ 0.10 $ 0.18 $ (0.38 ) Discontinued operations — — — — (0.15 ) $ (0.01 ) $ 0.09 $ 0.10 $ 0.18 $ (0.53 ) Shares used in per share calculations: Basic 53,130 53,454 52,570 53,355 52,219 Diluted 53,738 54,384 54,283 54,336 52,219 Penguin Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands, except percentages) (Unaudited) Three Months Ended Nine Months Ended May 30, 2025 Feb. 28, 2025 May 31, 2024 May 30, 2025 May 31, 2024 GAAP gross profit $ 95,083 $ 104,648 $ 88,906 $ 297,543 $ 253,690 Share-based compensation expense 1,393 1,776 1,760 4,812 5,266 Amortization of acquisition-related intangibles 5,908 5,907 5,909 17,724 17,747 Cost of sales-related restructuring 369 77 387 404 1,271 Other — — — (200 ) — Non-GAAP gross profit $ 102,753 $ 112,408 $ 96,962 $ 320,283 $ 277,974 GAAP gross margin 29.3 % 28.6 % 29.6 % 28.9 % 29.5 % Effect of adjustments 2.4 % 2.2 % 2.7 % 2.2 % 2.8 % Non-GAAP gross margin 31.7 % 30.8 % 32.3 % 31.1 % 32.3 % GAAP operating expenses $ 85,240 $ 86,160 $ 77,395 $ 251,856 $ 244,186 Share-based compensation expense (8,858 ) (9,804 ) (9,432 ) (28,550 ) (27,535 ) Amortization of acquisition-related intangibles (2,531 ) (2,932 ) (3,857 ) (9,309 ) (11,778 ) Diligence, acquisition and integration expense (296 ) (567 ) (4 ) (1,696 ) (6,678 ) Redomiciliation costs (1) (3,702 ) (2,359 ) — (7,304 ) — Impairment of goodwill (5,294 ) (6,079 ) — (11,373 ) — Restructuring charges — (859 ) (465 ) (968 ) (6,739 ) Other (1) (280 ) (242 ) — (855 ) — Non-GAAP operating expenses $ 64,279 $ 63,318 $ 63,637 $ 191,801 $ 191,456 GAAP operating income $ 9,843 $ 18,488 $ 11,511 $ 45,687 $ 9,504 Share-based compensation expense 10,251 11,580 11,192 33,362 32,801 Amortization of acquisition-related intangibles 8,439 8,839 9,766 27,033 29,525 Cost of sales-related restructuring 369 77 387 404 1,271 Diligence, acquisition and integration expense 296 567 4 1,696 6,678 Redomiciliation costs (1) 3,702 2,359 — 7,304 — Impairment of goodwill 5,294 6,079 — 11,373 — Restructuring charges — 859 465 968 6,739 Other (1) 280 242 — 655 — Non-GAAP operating income $ 38,474 $ 49,090 $ 33,325 $ 128,482 $ 86,518 (1) In the second quarter of fiscal 2025 we began breaking out redomiciliation costs from "Other." 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All periods presented have been adjusted to reflect this change. Penguin Solutions, Inc. Consolidated Balance Sheets (In thousands) (Unaudited) As of May 30, 2025 August 30, 2024 Assets Cash and cash equivalents $ 709,871 $ 383,147 Short-term investments 25,676 6,337 Accounts receivable, net 292,504 251,743 Inventories 184,348 151,213 Other current assets 37,497 75,264 Total current assets 1,249,896 867,704 Property and equipment, net 93,882 106,548 Operating lease right-of-use assets 61,850 60,349 Intangible assets, net 95,130 121,454 Goodwill 150,585 161,958 Deferred tax assets 83,872 85,078 Other noncurrent assets 67,567 71,415 Total assets $ 1,802,782 $ 1,474,506 Liabilities and Equity Accounts payable and accrued expenses $ 310,572 $ 219,090 Current debt 19,916 — Deferred revenue 101,374 63,954 Other current liabilities 44,882 44,552 Total current liabilities 476,744 327,596 Long-term debt 639,562 657,347 Noncurrent operating lease liabilities 63,650 60,542 Other noncurrent liabilities 27,903 29,813 Total liabilities 1,207,859 1,075,298 Commitments and contingencies Penguin Solutions shareholders' equity: Ordinary shares 1,869 1,807 Preferred shares 6 — Additional paid-in capital 745,557 513,335 Retained earnings 40,312 29,985 Treasury shares (202,996 ) (153,756 ) Accumulated other comprehensive income 23 10 Total Penguin Solutions shareholders' equity 584,771 391,381 Noncontrolling interest in subsidiary 10,152 7,827 Total equity 594,923 399,208 Total liabilities and equity $ 1,802,782 $ 1,474,506 Penguin Solutions, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended Nine Months Ended May 30, 2025 Feb. 28, 2025 May 31, 2024 May 30, 2025 May 31, 2024 Cash flows from operating activities Net income (loss) $ 3,450 $ 8,871 $ 6,226 $ 18,285 $ (26,141 ) Net loss from discontinued operations — — — — (8,148 ) Net income (loss) from continuing operations 3,450 8,871 6,226 18,285 (17,993 ) Adjustments to reconcile net income (loss) from continuing operations to cash provided by (used for) operating activities Depreciation expense and amortization of intangible assets 14,012 14,037 15,525 43,010 50,335 Amortization of debt issuance costs 917 950 817 2,820 2,827 Share-based compensation expense 10,251 11,580 11,192 33,362 32,801 Impairment of goodwill 5,294 6,079 — 11,373 — Loss on extinguishment or prepayment of debt — — 792 — 1,117 Deferred income taxes, net 959 (48 ) (3,840 ) 1,122 (3,646 ) Other (1,041 ) (716 ) (3,228 ) (2,469 ) (2,772 ) Changes in operating assets and liabilities: Accounts receivable 37,880 (54,755 ) (42,124 ) (40,760 ) 7,406 Inventories 15,389 47,215 (4,535 ) (30,776 ) (2,321 ) Other assets (1,979 ) 15,015 15,424 13,741 (5,703 ) Accounts payable and accrued expenses and other liabilities 11,788 24,649 83,632 133,908 84,626 Payment of acquisition-related contingent consideration — — — — (29,000 ) Net cash provided by operating activities from continuing operations 96,920 72,877 79,881 183,616 117,677 Net cash used for operating activities from discontinued operations (4,099 ) — (101 ) (4,099 ) (28,336 ) Net cash provided by operating activities 92,821 72,877 79,780 179,517 89,341 Cash flows from investing activities Capital expenditures and deposits on equipment (1,916 ) (2,335 ) (3,777 ) (6,087 ) (13,629 ) Proceeds from maturities of investment securities 12,650 11,055 9,915 27,485 31,870 Purchases of held-to-maturity investment securities (12,733 ) (12,671 ) — (46,127 ) (19,503 ) Purchases of non-marketable investments — — (1,000 ) — (1,000 ) Other (474 ) (398 ) (518 ) (1,015 ) (1,264 ) Net cash used for investing activities from continuing operations (2,473 ) (4,349 ) 4,620 (25,744 ) (3,526 ) Net cash provided by investing activities from discontinued operations 28,350 — 451 28,350 119,389 Net cash provided by (used for) investing activities $ 25,877 $ (4,349 ) $ 5,071 $ 2,606 $ 115,863 Penguin Solutions, Inc. Consolidated Statements of Cash Flows, Continued (In thousands) (Unaudited) Three Months Ended Nine Months Ended May 30, 2025 Feb. 28, 2025 May 31, 2024 May 30, 2025 May 31, 2024 Cash flows from financing activities Proceeds from issuance of convertible preferred shares, net of issuance costs $ — $ 191,182 $ — $ 191,182 $ — Repayments of debt — — (75,000 ) — (126,634 ) Payment of acquisition-related contingent consideration — — — — (21,000 ) Payments to acquire ordinary shares (31,645 ) (6,472 ) (2,129 ) (49,240 ) (17,991 ) Payment of preferred share cash dividends (2,867 ) (2,233 ) — (5,100 ) — Distribution to noncontrolling interest — — — — (1,470 ) Proceeds from issuance of ordinary shares 4,003 382 3,817 7,745 8,064 Other — — (1 ) — (584 ) Net cash used for financing activities from continuing operations (30,509 ) 182,859 (73,313 ) 144,587 (159,615 ) Net cash used for financing activities from discontinued operations — — — — (606 ) Net cash used for financing activities (30,509 ) 182,859 (73,313 ) 144,587 (160,221 ) Effect of changes in currency exchange rates — — (76 ) — (1,256 ) Net increase in cash, cash equivalents and restricted cash 88,189 251,387 11,462 326,710 43,727 Cash, cash equivalents and restricted cash at beginning of period 621,998 370,611 442,329 383,477 410,064 Cash, cash equivalents and restricted cash at end of period $ 710,187 $ 621,998 $ 453,791 $ 710,187 $ 453,791 View source version on Contacts Investor Contact: Suzanne SchmidtInvestor Relations+1-510-360-8596ir@ PR Contact: Maureen O'LearyCorporate Communications1-602-330-6846pr@
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Aehr Test Systems Reports Fiscal 2025 Fourth Quarter and Full Year Financial Results; Expands Total Addressable Market and Diversifies Customer Base
FREMONT, CA / / July 8, 2025 / Aehr Test Systems (NASDAQ:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced financial results for its fiscal 2025 fourth quarter and full year ended May 30, 2025. Fiscal Fourth Quarter Financial Results: Net revenue was $14.1 million, compared to $16.6 million in the fourth quarter of fiscal 2024. GAAP net loss was $(2.9) million, or $(0.10) per diluted share, compared to GAAP net income of $23.9 million, or $0.81 per diluted share, which included a tax benefit of approximately $20.7 million, in the fourth quarter of fiscal 2024. Non-GAAP net loss, which excludes stock-based compensation, acquisition-related adjustments and restructuring charges, was $(0.2) million, or $(0.01) per diluted share, compared to non-GAAP net income of $24.7 million, or $0.84 per diluted share, which included the tax benefit and excluded stock-based compensation and acquisition-related costs, in the fourth quarter of fiscal 2024. Bookings were $11.1 million for the quarter. Backlog as of May 30, 2025 was $15.2 million. Effective backlog, including bookings since May 30, 2025, is $16.3 million. Total cash, cash equivalents and restricted cash as of May 30, 2025 was $26.5 million, compared to $31.4 million at February 28, 2025. Fiscal Year Financial Results: Net revenue was $59.0 million, compared to $66.2 million in fiscal 2024. GAAP net loss was $(3.9) million, or $(0.13) per diluted share, compared to GAAP net income of $33.2 million, or $1.12 per diluted share, which included a tax benefit of approximately $20.7 million, in fiscal 2024. Non-GAAP net income was $4.6 million, or $0.15 per diluted share, which excludes stock-based compensation, acquisition-related adjustments and costs, restructuring charges and officer severance benefits, compared to non-GAAP net income of $35.8 million, or $1.21 per diluted share, which included the tax benefit and excluded stock-based compensation and acquisition-related costs, in fiscal 2024. Cash used in operating activities was $7.4 million for fiscal 2025. An explanation of the use of non-GAAP financial measures and a reconciliation of Aehr's non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying tables. Gayn Erickson, President and CEO of Aehr Test Systems, commented: "Fiscal 2025 was a transformative year for Aehr Test Systems, marked by significant progress on our strategic initiatives to expand our total addressable market, diversify our customer base, and enhance our product portfolio. We expanded into new markets for test and burn-in, including artificial intelligence processors for both wafer and package level, gallium nitride power semiconductors, data storage devices, and silicon photonics integrated circuits for optical chip-to-chip communication, unlocking substantial growth opportunities beyond our concentration in silicon carbide last fiscal year. "A major milestone was the successful launch and adoption of our first production wafer level burn-in (WLBI) system specifically for artificial intelligence (AI) processors. This breakthrough validates the feasibility and cost benefits of WLBI testing for high-power AI devices, attracting strong interest from leading processor companies considering high-volume adoption. "We are excited to report today that one of these companies has asked us to move forward with an evaluation for wafer level testing of one of their current high-volume processors. Based on their feedback, we believe that if this evaluation is successful, they intend to transition to high-volume production wafer-level testing, which would represent a significant opportunity for Aehr. We also expect to move to evaluation phases with additional AI companies during this fiscal year and believe we can capture a meaningful share of the total production burn-in market for AI processors with our FOX WLBI systems and proprietary WaferPak Contactors. "We also expanded into packaged part qualification and production burn-in for AI processors this year through the acquisition of Incal Technology, enabling us to offer both wafer level and packaged part reliability burn-in and test solutions. Since the acquisition, we've achieved record shipments of packaged part burn-in (PPBI) systems and secured a major hyperscaler as our first production AI customer in this space. This customer is one of the premier large-scale data center hyperscalers that is developing its own AI processors and significantly expanding this capacity. They have indicated plans to ramp this device over the next year and have already begun discussing their next generation processors with us to ensure we can meet their production capacity needs. Aehr is the only company on the market that offers both a WLBI and a PPBI system for both qualification and production burn-in of AI processors, and we are very excited about our new AI product offerings and the expanded total addressable market they bring to us. "In gallium nitride (GaN) power semiconductors, we secured the first production order from a leading automotive semiconductor supplier for our FOX-XP high-power multi-wafer production system with high voltage for volume production of GaN devices. We are in discussions and engagements with multiple other potential new GaN customers, highlighting the growing adoption of WLBI for GaN devices and signaling future opportunity as this market expands. "GaN offers a wider range of applications than silicon carbide and is poised for significant growth in the next decade. While about 70% of silicon carbide's largest market segment is for electric vehicles (EVs) and EV charging infrastructure, GaN is more diverse and not focused on a single application. With more uses, there are more potential customers and a larger market for GaN compared to silicon carbide. "We are also making significant progress in the hard disk drive past year, our lead customer began ordering multiple FOX-CP solutions for burn-in and stabilization of new devices in hard disk drives, representing follow-on orders to the first production order we received from them back in 2019. This customer is one of the top suppliers of data storage devices worldwide. In addition to the multiple systems we have in backlog, they have indicated they will be purchasing additional systems both in the short term and over time. "We saw solid momentum in the silicon photonics market this year with the adoption of optical chip-to-chip communication and optical network switching. Several companies, including AMD, Nvidia, Intel, TSMC, and GlobalFoundries, have announced product roadmaps for devices that utilize optical chip-to-chip communication. We have several customers in this market, including the largest supplier of silicon photonics integrated circuits in the market. We have seen a significant number of new WaferPak designs from our installed base of systems for new designs that they use for qualification and development work on their FOX wafer level test and burn-in systems. We also now offer a new system with higher power 3500 watt per wafer configuration to meet the needs of new high-power wafers for optical I/O and chip-to-chip communication devices. This is also available as an upgrade to our FOX-NP systems for low-volume production and product qualification, as well as our FOX-XP nine wafer production systems. This system can also be configured with our new integrated WaferPak Auto aligner, which provides fully hands-free factory automation of silicon photonics integrated circuit wafers. We expect to see not only revenue from system upgrades and WaferPaks but also for incremental FOX-XP system and WaferPak orders to meet the capacity needs of the silicon photonics market this year. We remain very excited about the silicon photonics market and see this as a significant market opportunity for our products. "While the silicon carbide market growth has slowed due to a slower growth in EVs, we remain confident in its long-term opportunity for Aehr and our leadership in WLBI solutions for this sector. EVs are still growing significantly worldwide, and we believe the silicon carbide market continues on a robust long-term growth trajectory. Demand for silicon carbide remains significantly driven by battery EVs, but silicon carbide devices are also gaining traction in other markets, including power infrastructure, solar, and various industrial applications. This quarter, we shipped our first high-voltage configuration of the FOX-XP, which can test 18 wafers simultaneously, extending the capabilities of our proven nine-wafer high-voltage configuration. We believe we are well-positioned in the silicon carbide market with our industry-leading solution for WLBI. "We are also collaborating with a global leader in flash memory to demonstrate our FOX-XP platform for high-volume production wafer level test and burn-in of flash memory wafers, aiming to provide a competitive, cost-effective alternative to traditional testing methods. New technologies in NAND are driving new requirements for WLBI to address the manufacturing and negative yield implications of testing these NAND devices at the package or system level, and we believe our FOX WLBI solution is positioned to be a very competitive low-cost alternative to packaged part or alternative wafer level test and burn-in solutions for this market. "Looking ahead, we are well-positioned to capitalize on strong demand across various semiconductor applications. The strategic investments we made this past year have built the infrastructure and capacity needed for significant growth, and we plan to boost our research and development efforts to add more capabilities and resources for our expanding customer base. We believe that nearly all the opportunities and market verticals we serve will experience order growth in fiscal 2026. The one exception may be silicon carbide, as customer forecasts for this market are back-half loaded, with stronger growth expected in our fiscal 2027. "While we remain confident in Aehr's long-term growth prospects, we continue to experience some timing-related delays in order placements due to tariff-related uncertainty, particularly in our first quarter. Accordingly, we are maintaining our cautious approach and are not reinstating specific guidance beyond what we have already stated, which is that we anticipate order growth across all our segments this fiscal year with the possible exception of silicon carbide. Overall, we are very optimistic about our growth opportunities in the diverse markets we serve and our ability to meet increasing demand." Management Conference Call and Webcast: Aehr Test Systems will host a conference call and webcast today at 5:00 p.m. Eastern (2:00 p.m. PT) to discuss its fiscal 2025 fourth quarter and full year operating results. To access the live call, dial +1 888-506-0062 (US and Canada) or +1 973-528-0011 (International) and give the participant passcode 594858. In addition, a live and archived webcast of the conference call will be available over the Internet at in the Investor Relations section and may also be accessed by clicking here. A phone replay of the call will be available approximately two hours following the end of the live call and will remain available for one week. To access the call replay, dial +1 877-481-4010 (US and Canada) or +1 919-882-2331 (International) and enter replay passcode 52626. About Aehr Test Systems Headquartered in Fremont, California, Aehr Test Systems is a leading provider of test solutions for testing, burning-in, and stabilizing semiconductor devices in wafer level, singulated die, and packaged part form, and has installed thousands of systems worldwide. Increasing quality, reliability, safety, and security needs of semiconductors used across multiple applications, including electric vehicles, electric vehicle charging infrastructure, solar and wind power, computing, advanced AI processors, data and telecommunications infrastructure, and solid-state memory and storage, are driving additional test requirements, incremental capacity needs, and new opportunities for Aehr Test products and solutions. Aehr has developed and introduced several innovative products including the FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX WaferPak Contactor, FOX DiePak® Carrier and FOX DiePak Loader. The FOX-XP and FOX-NP systems are full wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize a wide range of devices such as leading-edge silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets, and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The FOX-CP system is a low-cost single-wafer compact test solution for logic, memory and photonic devices and the newest addition to the FOX-P product family. The FOX WaferPak Contactor contains a unique full wafer contactor capable of testing wafers up to 300mm that enables IC manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. The FOX DiePak Carrier allows testing, burning in, and stabilization of singulated bare die and modules up to 1024 devices in parallel per DiePak on the FOX-NP and FOX-XP systems up to nine DiePaks at a time. Acquired through its acquisition of Incal Technology, Inc., Aehr's new line of high-power packaged part reliability/burn-in test solutions for Artificial Intelligence (AI) semiconductor manufacturers, including its ultra-high-power Sonoma family of test solutions for AI accelerators, GPUs, and high-performance computing (HPC) processors, position Aehr within the rapidly growing AI market as a turn-key provider of reliability and testing that span from engineering to high volume production. For more information, please visit Aehr Test Systems' website at Safe Harbor Statement This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Aehr's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern Aehr's expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, future requirements and orders of Aehr's new and existing customers; bookings and revenue forecasted for proprietary WaferPakTM and DiePak consumables, as well as the ability to generate bookings and revenue from application of Aehr's solutions in emerging markets; Aehr's ability to receive orders and generate revenue in the future, as well as Aehr's beliefs regarding the factors impacting the foregoing; and expectations related to long-term demand for Aehr's products, the attractiveness of key markets and the ability for AEHR to successfully enter new markets. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Aehr's recent Form 10-K, 10-Q and other reports filed from time to time with the Securities and Exchange Commission. Aehr disclaims any obligation to update information contained in any forward-looking statement to reflect events or circumstances occurring after the date of this press release. Contacts: Aehr Test Systems Chris Siu Chief Financial Officer csiu@ PondelWilkinson, Kehrli or Jim ByersInvestor Contacttkehrli@ - Financial Tables to Follow - AEHR TEST SYSTEMSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended Year Ended May 30, Feb 28, May 31, May 30, May 31, (In thousands, except per share data) 2025 2025 2024 2025 2024 Revenue $ 14,089 $ 18,307 $ 16,600 $ 58,968 $ 66,218 Cost of revenue 9,817 11,124 8,152 35,035 33,675 Gross profit 4,272 7,183 8,448 23,933 32,543 Operating expenses: Research and development 2,686 3,140 2,151 10,463 8,719 Selling, general and administrative 3,926 5,162 3,756 18,283 13,746 Restructuring charges 864 - - 864 - Total operating expenses 7,476 8,302 5,907 29,610 22,465 Income (loss) from operations (3,204 ) (1,119 ) 2,541 (5,677 ) 10,078 Interest income, net 222 270 592 1,401 2,388 Other expense, net (4 ) (25 ) (10 ) (15 ) (8 ) Income (loss) before income tax benefit (2,986 ) (874 ) 3,123 (4,291 ) 12,458 Income tax benefit (87 ) (231 ) (20,741 ) (381 ) (20,698 ) Net income (loss) $ (2,899 ) $ (643 ) $ 23,864 $ (3,910 ) $ 33,156 Net income (loss) per share: Basic $ (0.10 ) $ (0.02 ) $ 0.82 $ (0.13 ) $ 1.15 Diluted $ (0.10 ) $ (0.02 ) $ 0.81 $ (0.13 ) $ 1.12 Shares used in per share calculations: Basic 29,823 29,733 28,953 29,581 28,818 Diluted 29,823 29,733 29,459 29,581 29,617 AEHR TEST SYSTEMSRECONCILIATION OF GAAP TO NON-GAAP RESULTS(Unaudited) Three Months Ended Year Ended May 30, February 28, May 31, May 30, May 31, (In thousands, except per share data) 2025 2025 2024 2025 2024 Reconciliation of GAAP to non-GAAP gross profit GAAP gross profit $ 4,272 $ 7,183 $ 8,448 $ 23,933 $ 32,543 Special items: a) Stock-based compensation expense 357 218 108 737 330 b) Acquisition-related adjustments 260 416 - 1,305 - Non-GAAP gross profit $ 4,889 $ 7,817 $ 8,556 $ 25,975 $ 32,873 Reconciliation of GAAP to non-GAAP operating expenses GAAP operating expenses $ 7,476 $ 8,302 $ 5,907 $ 29,610 $ 22,465 Special items: a) Stock-based compensation expense (1,064 ) (1,180 ) (667 ) (4,027 ) (2,188 ) b) Acquisition-related adjustments (106 ) (106 ) - (353 ) - c) Restructuring charges (864 ) - - (864 ) - c) Officer severance benefits - (653 ) - (653 ) - d) Acquisition-related costs - (51 ) (107 ) (548 ) (107 ) Non-GAAP operating expenses $ 5,442 $ 6,312 $ 5,133 $ 23,165 $ 20,170 Reconciliation of GAAP to non-GAAP income (loss) from operations GAAP income (loss) from operations $ (3,204 ) $ (1,119 ) $ 2,541 $ (5,677 ) $ 10,078 Special items: a) Stock-based compensation expense 1,421 1,398 775 4,764 2,518 b) Acquisition-related adjustments 366 522 - 1,658 - c) Restructuring charges 864 - - 864 - d) Officer severance benefits - 653 - 653 - e) Acquisition-related costs - 51 107 548 107 Non-GAAP income (loss) from operations $ (553 ) $ 1,505 $ 3,423 $ 2,810 $ 12,703 Reconciliation of GAAP to non-GAAP income (loss) before income tax benefit GAAP income (loss) before income tax benefit $ (2,986 ) $ (874 ) $ 3,123 $ (4,291 ) $ 12,458 Special items: a) Stock-based compensation expense 1,421 1,398 775 4,764 2,518 b) Acquisition-related adjustments 366 522 - 1,658 - c) Restructuring charges 864 - - 864 - d) Officer severance benefits - 653 - 653 - e) Acquisition-related costs - 51 107 548 107 Non-GAAP income (loss) before income tax benefit $ (335 ) $ 1,750 $ 4,005 $ 4,196 $ 15,083 Reconciliation of GAAP to non-GAAP net income (loss) GAAP net income (loss) $ (2,899 ) $ (643 ) $ 23,864 $ (3,910 ) $ 33,156 Special items: a) Stock-based compensation expense 1,421 1,398 775 4,764 2,518 b) Acquisition-related adjustments 366 522 - 1,658 - c) Restructuring charges 864 - - 864 - d) Officer severance benefits - 653 - 653 - e) Acquisition-related costs - 51 107 548 107 Non-GAAP net income (loss) $ (248 ) $ 1,981 $ 24,746 $ 4,577 $ 35,781 Reconciliation of GAAP to non-GAAP income (loss) per diluted share GAAP income (loss) per diluted share $ (0.10 ) $ (0.02 ) $ 0.81 $ (0.13 ) $ 1.12 Special items: a) Stock-based compensation expense 0.05 0.05 0.03 0.16 0.09 b) Acquisition-related adjustments 0.01 0.02 - 0.05 - c) Restructuring charges 0.03 - - 0.03 - d) Officer severance benefits - 0.02 - 0.02 - e) Acquisition-related costs - 0.00 0.00 0.02 0.00 Non-GAAP income (loss) per diluted share $ (0.01 ) $ 0.07 $ 0.84 $ 0.15 $ 1.21 a) Represents compensation expense for equity awards granted to employees and directors and excludes the compensation expense related to the severance benefits incurred from the passing of an officer.b) Represents amortization of intangible assets and fair value adjustment to inventory related to the Company's business acquisition.c) Represents impairment of long-lived assets that will no longer be used in operations, including right-of-use assets and facility-related property, contract termination costs and facility exit-related costs.d) Represents severance benefits, including compensation expense, provided due to the passing of an officer as per the terms of his change in control and severance agreement.e) Represents acquisition activity costs. Non-GAAP measures should not be considered a replacement for GAAP results. The non-GAAP measures indicated above are financial measures the Company uses to evaluate the underlying results and operating performance of the business. The limitation of these measures are that they exclude items that impact the Company's current period GAAP measures. This limitation is best addressed by using these measures in combination with the most directly comparable GAAP financial measures. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. We believe these measures enhance investors' ability to review the Company's business from the same perspective as the Company's management and facilitate comparisons of this period's results with prior periods. AEHR TEST SYSTEMSCONSOLIDATED BALANCE SHEETS(Unaudited) May 30, May 31, (In thousands, except par value) 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 24,529 $ 49,159 Accounts receivable 14,191 9,796 Inventories 41,997 37,470 Prepaid expenses and other current assets 8,061 1,423 Total current assets 88,778 97,848 Property and equipment, net 8,969 3,253 Goodwill 10,719 - Intangible assets, net 10,781 - Deferred tax assets, net 19,114 20,773 Operating lease right-of-use assets, net 9,601 5,734 Other non-current assets 546 304 Total assets $ 148,508 $ 127,912 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,728 $ 5,332 Accrued expenses and other current liabilities 6,020 3,366 Operating lease liabilities, short-term 909 465 Deferred revenue, short-term 1,981 1,345 Total current liabilities 15,638 10,508 Operating lease liabilities, long-term 9,921 5,732 Deferred revenue, long-term 36 41 Other long-term liabilities 42 38 Total liabilities 25,637 16,319 Shareholders' equity: Preferred stock, $0.01 par value: Authorized: 10,000 shares; Issued and outstanding: none - - Common stock, $0.01 par value: Authorized: 75,000 shares; Issued and outstanding: 29,877 shares and 28,995 shares at May 30, 2025 and May 31, 2024, respectively 299 289 Additional paid-in capital 145,758 130,612 Accumulated other comprehensive loss (126 ) (158 ) Accumulated deficit (23,060 ) (19,150 ) Total shareholders' equity 122,871 111,593 Total liabilities and shareholders' equity $ 148,508 $ 127,912 AEHR TEST SYSTEMSCONSOLIDATED SATEMENTS OF CASH FLOWS(Unaudited) Year Ended May 30, May 31, (In thousands) 2025 2024 Cash flows from operating activities: Net income (loss) $ (3,910 ) $ 33,156 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation expense 5,162 2,518 Depreciation and amortization 2,312 657 Deferred income taxes (421 ) (20,773 ) Amortization of operating lease right-of-use assets 1,076 706 Impairment of assets 584 - Accretion of investment discount - (130 ) Changes in operating assets and liabilities: Accounts receivable (3,037 ) 6,790 Inventories (2,441 ) (13,732 ) Prepaid expenses and other current assets (5,012 ) (875 ) Accounts payable (714 ) (3,891 ) Accrued expenses (378 ) (792 ) Deferred revenue 143 (1,469 ) Operating lease liabilities (699 ) (423 ) Income taxes payable (65 ) 14 Net cash provided by (used in) operating activities (7,400 ) 1,756 Cash flows from investing activities: Purchases of property and equipment (4,992 ) (749 ) Proceeds from maturities of investments - 18,000 Payments for business acquisition, net of cash and cash equivalent acquired (11,075 ) - Net cash provided by (used in) investing activities (16,067 ) 17,251 Cash flows from financing activities: Proceeds from issuance of common stock under employee plans 1,409 1,807 Shares repurchased for tax withholdings on vesting of restricted stock units (784 ) (1,596 ) Proceeds from issuance of common stock, net of issuance costs - (72 ) Net cash provided by financing activities 625 139 Effect of exchange rate changes on cash, cash equivalents and restricted cash 13 (41 ) Net increase (decrease) in cash, cash equivalents and restricted cash (22,829 ) 19,105 Cash, cash equivalents and restricted cash, beginning of year(1) 49,309 30,204 Cash, cash equivalents and restricted cash, end of year (1) $ 26,480 $ 49,309 Supplemental cash flow information: Income taxes paid $ 100 $ 90 Interest paid $ - $ - Supplemental disclosure of non-cash flow information: Net transfer of equipment between inventory and property and equipment $ 458 $ 357 Purchases of property and equipment included in accounts payable and accrued liabilities $ 1,259 $ 53 (1) Includes restricted cash within prepaid expenses and other current assets and other non-current assets. 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