Company: AEHR
Filing Date: 2025-10-08
Form Type: 10-Q
Source: 0001654954-25-011582
Chunk: 23

Company: AEHR TEST SYSTEMS
Filing Date: 2025-10-08
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 $13,119  (16%) United States as a percentage of total revenues  43.9%  4.0%    Europe and Middle East as a percentage of total revenues  33.5%  0.1%    Asia as a percentage of total revenues  22.6%  95.9%    

N.M.-Not meaningful

On a geographic basis, revenues represent products that were shipped to or services that were performed at our customer locations. For the three months ended August 29, 2025, compared to the same period in the prior year, revenue decreased in Asia due to the ongoing softness in demand for electric vehicles, which was partially offset by increases in FOX-P systems sold in the United States, Europe and Middle East. 

 19Table of Contents

Gross Margin

  Three Months Ended      August 29,   August 30,   Percent (Dollars in thousands) 2025  2024  Change Gross profit $3,719  $7,078  (47%) Gross margin  33.9%  54.0%   

Gross profit decreased by $3.4 million for the three months ended August 29, 2025, compared to the same period in the prior year, primarily due to lower revenue levels. Gross margin decreased by 20.1 percentage points primarily due to a change in product mix, higher assembly and warranty costs, increased tariffs on imported parts following recent government policy changes, and amortization of acquired intangible assets. 

Research and Development

  Three Months Ended      August 29,   August 30,   Percent (Dollars in thousands) 2025  2024  Change Research and development $2,849  $2,361   21%As a percentage of total revenues  26.0%  18.0%    

Research and development expenses consist primarily of compensation and benefits for product development personnel, outside development service costs, travel expenses, facilities cost allocations, and stock-based compensation charges. Research and development expenses increased by $0.5 million for the three months ended August 29, 2025, compared to the same period in the prior year. The increase was primarily driven by higher employment-related costs, including stock-based compensation, which resulted from increased headcount.

Selling