AEHR — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-07-27

• The silicon photonics market is experiencing rapid growth in device deployment as data centers and 5G networks expand to meet surging bandwidth demand.

• Growing adoption of integrated optical devices across data centers, data center interconnects, mobile devices, automotive systems, and wearable biosensors is driving significantly higher requirements for initial quality and long-term reliability — standards that rise with each new product generation…

• Silicon photonics devices are highly integrated silicon-based semiconductors in which non-silicon laser transmitters and receivers are bonded directly to a silicon chip containing the multiplexing, de-multiplexing, and other high-speed communication circuitry. This integration enables a smaller, low…

• Power Semiconductors (Silicon Carbide (“SiC”) and Gallium Nitride (“GaN”))

• Silicon Carbide power semiconductors have emerged as the preferred technology for battery electric vehicle power conversion in on-board and off-board electric vehicle battery chargers, and the electric power conversion and control of the electric engines. These devices reduce power loss by as much a…

Text removed vs the prior filing · source: 10-K · 2025-07-28

• Silicon carbide power semiconductors have emerged as the preferred technology for battery electric vehicle power conversion in on-board and off-board electric vehicle battery chargers, and the electric power conversion and control of the electric engines. These devices reduce power loss by as much a…

• The gallium nitride market appears to be a potentially significant growth driver for our systems and WaferPak full wafer contactors, particularly for automotive, photovoltaic and other industrial applications where burn-in appears to be critical for meeting the initial quality and reliability needs …

• The Company’s FOX-P family of products are cost-effective solutions to help ensure the critical quality and reliability of devices in this market, where quality and reliability can provide assurance against failure of a vehicle whose power semiconductor fails in the power drive train.

• The silicon photonics market is seeing increasing deployment of devices used in the expansion of bandwidth and infrastructure to meet the explosive growth of data center and 5G infrastructure.

• The rapid growth of integrated optical devices in data centers and data center interconnect infrastructure, mobile devices, automotive applications, and wearable biosensor markets is driving substantially higher requirements for initial quality and long-term reliability, and they are increasing with…

Text added vs the prior filing · source: 10-K · 2026-07-27

• For non-standard products where we have not effectively demonstrated the ability to meet specifications in the customer environment, we defer revenue until we have met such customer specifications. Any delay in meeting customer specifications could have a material adverse effect on our operating res…

• Changes in U.S. tariff policies, retaliatory trade measures taken by other countries and resulting trade wars may have a material adverse impact on our results of operations.

• Changes in U.S. tariff policy, import restrictions, export controls, sanctions, retaliatory trade measures, and broader trade disputes have adversely affected, and may continue to adversely affect, our business, financial condition, and results of operations. Although certain tariffs previously impo…

• These measures have increased, and may continue to increase, our cost of revenues and operating expenses by raising the cost of imported raw materials, components, equipment, and other inputs used in our business. Trade restrictions and tariffs imposed by the United States or by other countries may …

• Our efforts to address these risks, such as through operational adjustments and pricing strategies, may not be successful. Such efforts may need time to take effect and may have an adverse impact on our results of operations.

Text removed vs the prior filing · source: 10-K · 2025-07-28

• In addition, a significant portion of our business is driven by demand for silicon carbide semiconductor devices, which are increasingly used in electric vehicles and related applications. If the growth of the electric vehicle market, or demand for silicon carbide semiconductor devices specifically,…

• For non-standard products where we have not effectively demonstrated the ability to meet specifications in the customer environment, we defer revenue until we have met such customer specifications. Any delay in meeting customer specifications could have a material adverse effect on our operating res…

• Global economic uncertainty and financial market volatility caused by political instability, changes in international trade relationships and conflicts, such as the conflict between Russia and Ukraine and the political climate in China and Taiwan, the Israel-Hamas war, the Israel-Iran conflict and t…

• Geopolitical tensions and changes in government trade policies could adversely affect our operations in China and our business, results of operations and financial condition.

• Heightened geopolitical tensions between the United States and China could create barriers to selling our products and services to customers in China as there is currently significant uncertainty about the future relationship between the United States and China with respect to trade policies, treati…

Text added vs the prior filing · source: 10-K · 2026-07-27

• Our operating results and cash flows can vary significantly from period to period due to the timing, volume, and mix of customer orders, particularly because a substantial portion of our revenue is derived from a relatively small number of high-value systems sales. As a result, the number, type, and…

• Demand for our products is influenced by conditions in the semiconductor industry and in the end markets served by our customers, including demand related to generative AI, silicon photonics and power semiconductors including silicon carbide and gallium nitride. During fiscal 2025 and fiscal 2026, o…

• In addition, our results of operations have been affected by changes in revenue mix across systems, contactors, and services, as well as by the integration and contribution of the acquired business. Because these factors can affect revenue levels, gross margins, operating expenses, and working capit…

• Recent changes in U.S. trade and tariff policies, including potential modifications to existing tariffs and the outcome of ongoing regulatory, administrative, or legal developments, may affect the cost of our imported goods, our supply chain, and, accordingly, our gross margins and operating results…

• We recognize deferred tax assets (“DTAs”) for deductible temporary differences, net operating loss carryforwards, and tax credit carryforwards to the extent we conclude it is more likely than not that such DTAs will be realized. Our DTAs relate solely to U.S. federal and state income taxes. At each …

Text removed vs the prior filing · source: 10-K · 2025-07-28

• We assess the likelihood that we are able to recover our deferred tax assets. If recovery is not more likely than not, we increase our provision for taxes by recording a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be recoverable. In determining…

• Beginning on June 1, 2024, we have changed our fiscal year to the 52- or 53-week period ending on the Friday nearest May 31. Our fiscal year 2025 ended on May 30, 2025. Each of our fiscal years in 2024 and 2023 ended on May 31.

• Revenue decreased by $7.3 million in fiscal year 2025 over fiscal year 2024 driven by a decrease in shipments of our systems and contactors primarily due to the continued softness in the power semiconductor demand for electric vehicles. Our product revenue decreased by $8.9 million due to the decrea…

• Revenue increased by $1.3 million in fiscal year 2024 over fiscal year 2023, primarily driven by higher sales in our contactors. Our contactors revenue increased by $15.7 million, and our services revenue increased by $0.3 million. The increase was partially offset by a decrease in systems revenue o…

• For fiscal year 2024, total revenues increased compared to the same period in the prior year due to an increase in international revenues as a result of more shipments to our customers in Europe and Asia, partially offset by the decline in revenue from a customer in the United States.