Greetings, and welcome to Aehr Test Systems' Second Quarter Fiscal 2024 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Jim Byers of MKR Investor Relations. Jim, you may begin.

Thank you, operator. Good afternoon and welcome to Aehr Test Systems' Second Quarter Fiscal 2024 Financial Results Conference Call. With me on today's call are Aehr Test Systems' President and Chief Executive Officer, Gayn Erickson; and Chief Financial Officer, Chris Siu. Before I turn the call over to Gayn and Chris, I'd like to cover a few items. This afternoon right after market close, Aehr Test issued a press release announcing its fiscal 2024 second quarter results, that release is available on the company's website at aehr.com. This call is being broadcast live over the Internet for all interested parties and the webcast will be archived on the Investor Relations page of the company's website. I'd like to remind everyone that on today's call management will be making forward-looking statements that are based on current information and estimates and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Those factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in the company's most recent periodic and current reports filed with the SEC. These forward-looking statements, including guidance provided during today's call are only valid as of this date, and Aehr Test Systems undertakes no obligation to update the forward-looking statements. And now with that, I'd like to turn the conference call over to Gayn Erickson, President and Chief Executive Officer.

Thanks, Jim. Good afternoon, everyone, and welcome to our second quarter of fiscal 2024 earnings conference call. Thanks for joining us today. We'll start with a quick summary of the highlights of the quarter and the continued momentum we're experiencing in the semiconductor wafer level test and burn-in markets, then Chris will go over the financials in more detail. After that, we'll open up the lines to take your questions. We had another solid quarter with strong year-over-year growth in revenue and net income, both ahead of consensus estimates. Revenue for the quarter was $21.4 million, an increase of 45% year-over-year and we generated non-GAAP net income of $6.7 million, slightly over 31% net profit. For the first half of the fiscal year, we grew revenue 65% over the same period last year. We continue to see increased demand for our wafer level burn-in products and remain confident about the future demand for our unique technology solutions and the multiple market opportunities they address. In just the last 60 days we've seen how the slowing of the growth rate of the electric vehicle market has had a negative impact on the timing of several current and new customer orders and capacity increases for silicon carbide devices used in them. For clarity, we do not see the silicon carbide market actually decreasing, only a slowing of the growth rate and we've seen delays in both current customer and new customer purchase orders for production ramps to meet those electric vehicle demands, compared to what we were expecting even within the last several weeks and days. I'll discuss more detail on our new customer engagements, but a very large customer that we've been engaged with on a significant automotive benchmark, in particular, has modified their timing for taking multiple production systems, which we feel most likely pushes them out of this fiscal year and is reflected in our lowered revenue forecast for this fiscal year. Recent announcements from some automotive semiconductor suppliers of slowing growth due to their customers stockpiling parts suggests that the automotive semiconductor slowdown may be due in part to a temporary excess in inventory. But in addition to slowing sales of automobiles worldwide related to overall caution by automotive buyers due to increased interest rates and its impact on new auto sales. Multiple companies we're engaged with, our large suppliers of automotive semiconductors, have put in place temporary cost control measures that have trickled down to even silicon carbide plants, which we have heard are the area least impacted due to the expected growth that is forecasted by their customers. As a result, we've seen delays in customer ramps and capacity expansion plans, which has resulted in delays in expected existing and new customer orders for our products. We're also experiencing the impact of shifts in our customers' product mix, which specifically includes an increase in WaferPak, Wafer Contactors for our largest customer. As our customers shift from one design to another, they will order additional WaferPaks from us to be able to test and burn-in those wafers. In the case of a large shift in the customer mix, this can be a very large number of WaferPaks. Our largest customers' overall forecast for revenue with us has actually remained relatively flat for the year, but the revenue mix has shifted to fewer systems and more WaferPaks. Given the latest forecast from our customers and the uncertainty on the timing of their orders, we believe it makes sense to take a more conservative approach to our fiscal year forecast and have reduced our growth estimates for fiscal 2024 revenue. We're reducing our revenue expectations of at least $100 million this fiscal year by 15% to 25% to a range of $75 million to $85 million in revenue. This is still a growth rate of 15% to 30% year-over-year. Despite this uncertainty in timing of orders, we remain confident about the future demand of our unique semiconductor test solutions in the markets we address. We have not reduced our growth expectations for the years ahead, where we continue to see tremendous opportunity. We continue to hear from our current customers as well as companies who are engaged in evaluations that wafer level burn-in is critical to their product roadmaps to address multiple large and growing markets, including battery and hybrid electric vehicles, industrial and solar power conversion, data and telecommunications infrastructure, and the new incoming optical IO and co-packaged optics semiconductor markets. Now, let me discuss our progress with silicon carbide and gallium nitride power semiconductor customers. As a reminder, silicon carbide is a compound semiconductor with a thermal conductivity that's three times better than that of silicon, and the dielectric breakdown strength of SiC is around 10 times better than silicon, making this much better for high-voltage, high-power applications. Silicon carbide has become the semiconductor of choice for use in electric vehicle power conversion and chargers. In particular, it is a key differentiator in the motor traction inverters due to the longer-range and faster charging of electric vehicles using silicon carbide technology. Silicon carbide semiconductor devices have a very high relative early life failure rate compared to pure silicon, but these failures can be weeded out with special electrical and thermal stresses referred to as burn-in, such as those supplied by Aehr's family of FOX Wafer level test and burn-in systems and our proprietary WaferPak full Wafer Contactors. Our WaferPaks make electrical contact to the tiny electrical pads of the semiconductors while still in wafer form and are unique and specific to each customer device and wafer layout. Customers are moving from package or module form of burn-in to save on the yield loss of the packages, particularly for multi-die modules used in new electric vehicles. Aehr has a unique solution for being able to test thousands of silicon carbide devices at a time on a single wafer and also up to 18 wafers at a time, so that our customers can remove extrinsic failures to get the quality and reliability critical to the electric vehicle suppliers in an extremely cost-effective way. We can do this testing and burn-in while ensuring that every single device is proven to be burned in before they're shipped to the end customer. This cost-effectiveness and assurance that 100% of the devices are burned in is critical to this market. Last month, we announced our first order for our FOX Wafer level test and burn-in system to be used for gallium nitride devices. This customer is a leading global supplier of semiconductor devices used in electric vehicles and power infrastructure and adds another major customer to the list of companies using Aehr's FOX products for Wafer level test and burn-in of wide-bandgap compound semiconductors. We were already able to ship this system within a few weeks to them to meet their needs. We're now working with two of the market leaders in gallium nitride, which positions us front and center in a market that we believe is another potential growth driver for our wafer level solutions. Gallium nitride is similar to silicon carbide in that both of these compounds semiconductors are considered wide bandgap semiconductors that are more efficient and higher voltage power conversion applications than pure silicon semiconductors. We believe that the gallium nitride market is another potential growth driver for our wafer level solutions, particularly for automotive and photovoltaic applications where burn-in appears to be critical for meeting the initial quality and reliability needs of those markets. We continue to make great progress with our previously announced benchmarks and engagements with prospective new customers, including the significant automotive qualification of wafer level burn-in we've been doing with one of the market leaders in silicon carbide. We believe we have a large opportunity with this potential new customer and feel confident they'll move forward with our FOX-XP multi-wafer solution for their high volume needs, but the timing is taking longer than anticipated. We remain confident that we will receive initial purchase orders from them in fiscal 2024. However, it's not clear whether they will have infrastructure ready to take shipments from us within our fiscal year that ends May 31st. We’ve made significant progress in expanding our customer base for silicon carbide or SiC and gallium nitride or GaN wafer-level burn-in for a wide variety of applications. We currently have a total of seven customers purchasing our solutions for SiC and GaN devices and are also actively engaged with more than two dozen SiC and GaN companies to address their needs for wafer level test and burn-in of these devices. Importantly, 10 of these additional companies have already engaged with Aehr for on-wafer benchmarks. We have never lost a full wafer level burn-in evaluation since introducing our FOX-NP and XP systems configured with silicon carbide and gallium nitride test resources. We believe we will have over 12 silicon carbide/gallium nitride customers buying our wafer level test and burn-in solutions by the end of this calendar year 2024. These companies are projecting revenue growth and the need for burn-in in their devices at the wafer level to weed out early failures that would otherwise show up in their devices or modules or worse in their customers' applications. We firmly believe that Aehr provides the most competitive solution to burn-in devices that will be used in power modules and have shown examples where our cost of test and burn-in is significantly cheaper to do in wafer form than in the historical package part form. Packaged part burn-in is an option for discrete devices and individual packages, but the yield placing multiple devices in a single package or in modules exceeds the cost of testing significantly. For example, at a loss of 1% per die during burn-in, a module containing 32 die would experience a 32% yield loss of the entire module, and all the die inside it are thrown away if they're burnt in at that module level. This is a real-life example that we've seen across every customer we talk to. In anticipation of both our current and new customers' forecasted needs, Aehr has put in place the inventory, infrastructure, and processes to increase our manufacturing and installation capacity, as well as significantly lower our lead times to meet growth in our customer capacity needs. This allows us to ship a large number of systems and WaferPaks within the same quarter that we received purchase orders, which is certainly the case in this current fiscal year. While we've seen delays in orders from our automotive customers, we're actually seeing a pickup in opportunities for silicon carbide wafer level burn-in for applications outside of the electric vehicle market, which includes industrial solar and commuter electric trains as the efficiency and value silicon carbide is being recognized for these additional markets. Even though the largest market opportunity for silicon carbide is still electric vehicles and charging infrastructure, industrial and other power conversion market segments represent significant additional opportunities for silicon carbide for Aehr's products. William Blair forecasted that the total silicon carbide market is growing at a CAGR of greater than 4% annually to $8.5 billion in 2025 and over 25% of that will be in industrial and energy power conversion applications. As we noted on last quarter's call, we're also seeing a continued stream of new designs for our WaferPaks, as more and more electric vehicles are coming online with their own specific device designs for inverters and onboard chargers. Our proprietary WaferPak Contactors are needed with our FOX wafer level test and burn-in systems to make contact with the individual die on the wafer and are designed specifically for a given device. As our customers win new designs from their customers, Aehr will eventually secure orders for new WaferPaks to fulfill these new wins. Last quarter, we mentioned that our new WaferPak and applications test program design volume has tripled over the previous nine months, and this quarter will be a new company record for new WaferPak designs for customers. Each design can turn into a high-volume production application driving tens or even hundreds of WaferPaks needed for production, highlighting the recurring revenue part of our business. We believe that for the semiconductor test markets we serve, our customers desire, if not require short lead times for test and burn-in systems, particularly for the WaferPaks used with them. During this fiscal year, we've been able to increase our manufacturing capacity to enable us to ship up to 50 or more FOX test blades per month representing 50 or more wafers, a full wafer test and burn-in capacity each month. We have the supply chain infrastructure and processes in place to increase this another 50% by the end of this fiscal year and heading into our fiscal 2025 that begins June 1st. We've increased our WaferPak capacity to not only support WaferPaks for new systems, but also for our installed base of systems, so that customers can purchase and ship large quantities of WaferPaks within a few months. We believe the added inventory, increasing capacity, and shorter lead times are creating an even larger competitive advantage for us, which in turn will result in continued market share expansion and growth in the markets we serve. So let me move on and talk a little bit about silicon photonics. We remain very enthusiastic about this market, which includes the current photonics transceiver market used in data and telecommunications and the upcoming application of silicon photonics integrated circuits for use in optical chip-to-chip communication, which we see as a major market opportunity. These next-generation silicon photonics-based integrated circuits can require up to two to four times as much power for full wafer test and burn-in and stabilization, and our new high-power configuration of our FOX production system can be used to test and burn-in these new optical IO devices, expanding the market opportunity for the FOX-XP system even further. We've been making good progress on our new volume production FOX-XP system for these very high-power silicon photonics device wafers and expect to ship this system by the end of our current fiscal third quarter to fulfill our first order from our current major silicon photonics customer that we received last May. The system is configured to enable cost-effective production test of up to 3500 Watts of power per wafer and up to nine full wafers in parallel and also includes our latest chamber configuration, which has a smaller overall footprint. This new system is also Auto Aligner ready, enabling our customers to easily dock this to our new FOX WaferPak Auto Aligner for hands-free operation of wafers from six to 12 inches using industry-standard wafer cassettes and FOUPs. This new FOX-XP configuration allows for the testing of as many as 8000 high-power optical devices in parallel on each of nine wafers before they're singulated and placed into a photonic application such as fiber-optic transceiver modules or for replacement and co-packaged optics for optical chip-to-chip communication devices, such as those that have been announced on product roadmaps by companies including NVIDIA, Intel, AMD, TSMC, and GlobalFoundries. These photonic ICs require an extra step in their manufacturing process referred to as stabilization or aging, where the devices experience varying degradation and then stabilize their optical output power as a function of the input power. This is critical to stabilize before integration into a transceiver or optical chip-to-chip communication package. This process step takes many hours or even more than 24 hours for stabilization and is critical to do before the die is integrated into the system. Aehr provides a unique solution for doing the stabilization of all devices while still in relatively easy and repeatable wafer form. One key challenge in doing this in massive parallelism up to and including all the devices in the single wafer is the power and power density of testing the devices in this form. The stabilization requires very high power, and this not only requires a test system to deliver the high power to the wafer, but all the power to the wafer must be removed in the form of heat to keep it from literally destroying the devices. Aehr can not only provide precise regulating calibrated voltage in current devices on a wafer up to 3500 Watts per wafer and nine wafers at a time, but we can also remove this power while maintaining a uniform temperature across all the wafers. At this time, we believe we're the only company providing both power delivery and power removal for silicon photonics wafers, and we're doing it with up to nine wafers at a time. This is a key differentiator in what we believe is an enabler for the capacity and scale needed to address the high-power photonic integrated circuits used in very high-speed optical transceivers, and also the up-and-coming optical chip-to-chip communication devices market. As I noted on our last call, Aehr currently has six customers using our systems for production testing of silicon photonics devices. We're watching this market very closely and are working with some of the leaders in silicon photonics to ensure that they have the products and solutions available to meet their needs for this potentially significant market application. Let me conclude. We expect continued strong demand for our wafer-level burn-in solutions given the continued growth forecast for the markets we address and the expanded market opportunities we're seeing. While we reduced our growth estimates for fiscal '24 revenue given the uncertainty on the timing of customer orders, we believe we remain well-positioned to capitalize on the incredible growth of this industry and are poised for continued solid growth for years to come. With that, let me turn it over to Chris, and then we'll open up the line for questions.

Thank you, Gayn. Good afternoon, everyone. We're pleased to announce another solid quarter for Aehr Test Systems, with strong year-over-year growth in revenue and net income, both ahead of consensus estimates. Let me summarize our results for the fiscal second quarter. Second quarter revenue was $21.4 million, up 45% from $14.8 million in Q2 of last year. Strong demand in all revenue categories including systems, contactors, and services contributed to a significant year-over-year increase in revenue in the second quarter. WaferPak revenues were $9.2 million and accounted for 43% of our total revenue in the second quarter, which was consistent with 45% of our revenue in the prior year quarter. Customers typically buy WaferPaks from us subsequent to purchasing our FOX systems. We're seeing continued momentum for new WaferPak designs with existing and new customers to meet their customer and market requirements. As Gayn noted, we've seen how the slowing growth in the electric vehicle market has had a negative impact on the timing of several current and new customer orders and capacity increases. As a result, bookings in the second quarter were $2.2 million and our backlog as of quarter-end was $3 million. We expect orders for systems, WaferPaks, Aligners, and Services in this and next quarter in time to support our latest revenue forecast. GAAP gross margin for the second quarter came in at 51.1%, down from 53.4% in Q2 last year. The decrease in gross margin is primarily due to high inventory reserve and increased period costs. Operating expenses in the second quarter were $5.5 million, up 24% from $4.4 million in Q2 last year. The year-over-year increase is primarily due to previously noted increased headcount-related expenses to support our worldwide sales and marketing efforts along with our R&D programs. Our investments in sales and marketing staff continue to have a positive impact on expanding our customer engagements in the US, Asia, and Europe, and marketing reach to support revenue growth. The increase in R&D in Q2 from the same period last year was primarily due to costs associated with development programs for augmenting features and performance of our Automated Wafer Aligner and higher personnel expenses. The first order for our integrated Automated Aligner that was shipped in the fiscal first quarter of 2024 was accepted by our customer in the fiscal second quarter. We continue to bring in R&D talent and invest in R&D programs to enhance our existing market-leading products and to introduce new products to maintain our competitive advantages and expand our applications and addressable markets. Non-GAAP net income, which excludes the impact of stock-based compensation was $6.7 million or $0.23 per diluted share for the second quarter. This is up from non-GAAP net income of $4.5 million or $0.16 per diluted share in the second quarter of fiscal '23. Turning to the balance sheet, we continued to maintain a strong cash position on our balance sheet. Our cash and cash equivalents were $50.5 million at the end of Q2, flat from our cash and cash equivalents balance of $51 million at the end of Q1. With a strong balance sheet, we can continue to invest in scaling our business. Over the past six months, we have invested financial and human resources in improving our own infrastructure to support the continued growth of our business. We recently went live with a new human resources information system in Q4 and are implementing a new enterprise resource planning system that will provide more sophisticated functionalities and capabilities to support decision-making and compliance. We expanded our policies and procedures in various functions to provide more internal control and structure. We have made improvements in our supply chain and engaged with contract manufacturers that offer more value-added quality components and services to support our growth. We used $0.5 million in operating cash flows during the quarter to procure inventory components to support our revenue target in fiscal 2024. Even though our book-to-bill ratio is less than one, we believe we have the necessary inventory components to build products quickly and ship them to our customers when we receive purchase orders from them. We have zero debt and continue to invest our excess cash in money market funds. Interest income earned during this favorable interest rate environment was $631,000 in the second quarter, compared to $263,000 in the second quarter last year. In Q3 of last year, we announced an ATM offering of up to $25 million in shares of the company's common stock on the open market. We've received gross proceeds of $7.3 million on the sale of 209,000 shares in fiscal 2023. We did not sell any shares during our last three fiscal quarters. As of the end of the second fiscal quarter of 2024, the remaining amount available under the ATM offering was $17.7 million. It remains our plan to only sell shares against this ATM offering at times and prices that are most advantageous to our shareholders and to the company. Now turning to our outlook for the current fiscal 2024 year that ends on May 31st, 2024. As Gayn noted, we expect continued strong demand for our wafer-level burn-in solutions for the markets we currently address, as well as increased demand from the new market opportunities we're seeing. However, given the latest customer forecast and the uncertainty on the timing of their orders, we believe it makes sense to take a more conservative approach to our fiscal year forecast and reduce our growth estimates for fiscal 2024 revenue. For the fiscal year ending May 31st, 2024, Aehr is revising its expected full-year total revenue to be between $75 million and $85 million, representing growth of 15% to 30% year-over-year and GAAP net income of between 20% and 25% of revenue. Even with this more conservative guidance, we expect solid year-over-year revenue growth and believe we are poised for continued strong growth for years to come. Lastly, looking at the Investor Relations calendar, Aehr Test will be meeting with investors next week at the Needham Growth Conference taking place in New York. We will be meeting with investors throughout the day on Wednesday, January 17, and until noon on Thursday, January 18, and hope to see some of you at this conference. This concludes our prepared remarks, and we're now ready to take your questions. Operator, please go ahead.

Thank you. At this time, we'll be conducting a question-and-answer session. First question today is coming from Christian Schwab from Craig-Hallum. Christian, your line is live.

Thank you. Gayn, can you give us some indication of how you would anticipate revenue orders to come and support in the second half of the year? Are you assuming the vast majority of the revenue you're guiding for the fiscal year will come in the May quarter?

Yes, no, that's a fair question. Given where the orders are right now with already a chunk into the third quarter, we think that the second half or the Q4 will certainly be bigger than Q3. Maybe not the majority, maybe at a 60:40 split or something like that. So we're still expecting orders and have things lined up to ship for this quarter.

You mentioned a slowdown in your prepared comments, but also stated that this does not alter your growth expectations for the coming years. Could you clarify what your growth expectations are? What do you anticipate the company's topline growth rate will be over multiple years?

Yes, that's what we likely prepared ourselves for, Christian. We haven't outlined a multi-year growth strategy. Let me respond this way. When we communicate with our customers, one of the most challenging aspects of preparing for this call was that even just under 30 days ago, we were still receiving consistent reports from our customers indicating bookings and shipments aligned with us surpassing $100 million. It’s only in the past few weeks that we’ve observed changes to their plans. These customers have not altered their long-term strategies, revenue growth forecasts, market share, or timelines for silicon carbide. We believe these remain consistent with what we had previously anticipated. If you examine the projected market for silicon carbide, we still expect robust growth. However, some specific customers who intended to install tools in the spring have postponed those installations by a few months, which has adversely affected our revenue forecast for this fiscal year. Nevertheless, our capacity is still strong, and we remain confident we can surpass the $100 million mark when demand rebounds.

Great. And then maybe another way to think about it as we exit this year and go into fiscal year 2025, would you assume that your lead customer can grow or sustain itself at a material run rate of $50 million, $60 million, or $80 million?

I mean, I believe that they will still be material. I don't know that they will be the dominant customer. My guess is, they will not even be the largest, as some of the other customers ramp up. We think that the silicon carbide market is growing, let’s say, 40% a year topline revenue. We can grow alongside the market itself as we become a more prominent supplier. Our customer base is expanding, which will help maintain our growth trajectory.

Is the Chinese market still a fast adopter of silicon carbide? Many manufacturers are getting into silicon carbide. Is that a market that you plan on targeting?

The Chinese market is indeed growing rapidly, particularly for EVs. We're currently shipping products to customers that test and ship into the Chinese market. Many of the suppliers are based outside of China, but we are noticing a shift. We are engaging with major Chinese suppliers and exploring strategies to introduce our solutions in that market. We recognize the potential there and are willing to adapt to ensure our technology is represented.

That's great. Thank you, Gayn.

Thank you, Christian.

Thank you. The next question is coming from Jed Dorsheimer from William Blair. Jed, your line is live.

Thanks for taking my questions. Sorry for the background noise; I'm in Las Vegas, meeting with your customer, actually. So, Gayn, trying to reconcile, it sounds like there was a material change in the last 30 days in terms of demand and visibility to your business. Is that correct?

After our largest customer talked about their change in their forecast, we had been seeing positive booking activity, which was a surprise. However, in the last week or so, we've had to adjust our expectations based on their latest insights, coupled with input from other customers. We are still trying to navigate these changes and maintain transparency. Overall, we are conservatively guiding our revenue forecast, ensuring we capture any potential upside.

Got it. It implies some challenges for the next quarters. What's your confidence level towards the low end of your guidance? What gives you confidence?

We have good visibility into our customer orders and bookings despite the recent downturn. Our goal is to maintain communication with our customers to understand their forecasts. Over the past month, we have stayed consistent with their input on our expected revenue, which fuels our confidence in hitting our revised guidance.

I appreciate all the color, Gayn. I look forward to seeing you tomorrow night.

Thank you, Jed.

Thank you. The next question is coming from Tom Diffely from D.A. Davidson. Tom, your line is live.

Curious where we are as an industry when we talk about power conversion devices in the move from silicon to silicon carbide? And where are we from discrete silicon carbide to multi-die systems?

Silicon carbide is continuing to gain traction as companies are beginning to recognize its efficiency and capability over traditional silicon in power conversion applications. Multi-die systems are a strategic focus for many manufacturers. Transitioning from discrete components to these multi-die systems reflects a growing demand for integrated solutions. We see ongoing interest in this area, which gives us a solid footing moving forward.

Great. I appreciate all the extra color.

Thank you, Tom.

Gayn, just your level of expectation around some of these, either new markets or new segments seems to be increasing. Despite the short-term noise, is your expectation on the other segments kind of increasing to the point where you think you might be close to capacity in a couple of years?

Yes, we're seeing increased engagement and demand in multiple segments, which indeed highlights our growth potential across non-core markets. Our strategic readiness should position us well to meet upcoming needs in areas like optical IO and GaN, while also exploring memory testing solutions as these markets mature. I maintain a positive outlook on our growth trajectory, despite current market slight adjustments.

Hey, Gayn, do you expect follow-on orders and shipments this fiscal year to the fully automated silicon carbide customer that you just booked revenue from last quarter?

Yes, we are expecting some follow-on revenue from most of our customers, including the automated silicon carbide customer.

Okay. Do you think that the slower uptake of some of these customers is due to waiting for the 200-millimeter wafers before they commit to your full system?

That could be a factor, but I don't believe it's the primary reason. Many are planning to transition to 200-millimeter fabs but are pacing themselves to avoid unnecessary multiple investments. However, most customers are actively engaged with us for fulfillment.

On the optical IO customer, there seems to be a quick push for additional orders. How much capacity do you anticipate they will need?

We anticipate significant volume increases in the optical IO market. As we fulfill their current orders, we're preparing to scale production capacity to meet the anticipated demand while remaining agile.

Thank you, Gayn.

Thank you for your questions.

This concludes today's call. I will now turn the call back to Aehr Test management for closing remarks.

Thank you. I want to summarize our position as we are continuing to adapt to emerging market conditions. Although recent forecasting adjustments affect our near-term outlook, we’re confident in our ability to maintain a strong growth trajectory long-term. We continue to focus on capitalizing on several key macro trends that will sustain our growth in silicon carbide, gallium nitride, and memory testing. We will keep engaging with our customers and delivering on our commitments. Thank you for your support, and we look forward to our next update.