SemiLEDs Reports Third Quarter Fiscal Year 2017 Financial Results

SemiLEDs Corporation, “SemiLEDs” or the “Company,” a developer and manufacturer of LED chips and LED components, announced its financial results for the third quarter of fiscal year 2017, ended May 31, 2017.

(Image: SemiLEDs)

Revenue for the third quarter of fiscal 2017 was $2.1 million, a 15% increase compared to $1.8 million in the second quarter of fiscal 2017. GAAP net loss attributable to SemiLEDs stockholders for the third quarter of fiscal 2017 was $1.6 million, or a net loss of $0.45 per diluted share, compared to a loss of $1.1 million, or a net loss of $0.32 per diluted share for the second quarter of fiscal 2017. The GAAP net loss of $1.6 million for the third quarter of fiscal 2017 included impairment loss of $352 thousand pertained to cost method investment.

On a non-GAAP basis, net loss attributable to SemiLEDs stockholders for the third quarter of fiscal 2017 was $1.2 million, or a net loss of $0.34 per diluted share, compared to non-GAAP net loss attributable to SemiLEDs stockholders of $1.1 million, or a net loss of $0.30 in the second quarter of 2017.

GAAP gross margin for the third quarter of fiscal 2017 was negative 9%, compared with gross margin for the second quarter of fiscal 2017 of breakeven. Operating margin for the third quarter of fiscal 2017 was negative 61%, compared with negative 62% in the second quarter of fiscal 2017. The Company’s cash and cash equivalents was $3.1 million at May 31, 2017, compared to $4.1 million at the end of the second quarter of fiscal 2017. Cash used in operating activities was $0.9 million in the third quarter of fiscal 2017, compared with $0.6 million in the second quarter of fiscal 2017.

It expects revenue for the fourth quarter ending August 31, 2017 to be approximately $2.2 million +/- 10%.

SemiLEDs develops and manufactures LED chips and LED components primarily for general lighting applications, including street lights and commercial, industrial and residential lighting, along with specialty industrial applications such as ultraviolet (UV) curing, medical/cosmetic, counterfeit detection, horticulture, architectural lighting and entertainment lighting. SemiLEDs sells blue, white, green and UV LED chips.

     
SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
   
               
    May 31,     February 28,    
    2017     2017    
ASSETS                  
CURRENT ASSETS:                  
Cash and cash equivalents   $ 3,137     $ 4,068    
Accounts receivable (including related parties), net     1,277       1,075    
Inventories     3,369       3,782    
Prepaid expenses and other current assets     537       589    
Total current assets     8,320       9,514    
Property, plant and equipment, net     8,558       8,588    
Intangible assets, net     63       63    
Investments in unconsolidated entities     995       1,330    
Other assets     361       368    
TOTAL ASSETS   $ 18,297     $ 19,863    
LIABILITIES AND EQUITY                  
CURRENT LIABILITIES:                  
Current installments of long-term debt   $ 335     $ 327    
Accounts payable     837       1,079    
Advance receipt toward the convertible note     500       500    
Accrued expenses and other current liabilities     5,437       5,242    
Total current liabilities     7,109       7,148    
Long-term debt, excluding current installments     2,484       2,521    
Total liabilities     9,593       9,669    
Commitments and contingencies                  
EQUITY:                  
SemiLEDs stockholders’ equity                  
Common stock              
Additional paid-in capital     175,568       175,548    
Accumulated other comprehensive income     3,733       3,634    
Accumulated deficit     (170,597 )     (169,011 )  
Total SemiLEDs stockholders’ equity     8,704       10,171    
Noncontrolling interests           23    
Total equity     8,704       10,194    
TOTAL LIABILITIES AND EQUITY   $ 18,297     $ 19,863    

 

SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands of U.S. dollars and shares, except per share data)
   
     
    Three  Months  Ended    
    May 31,     February 28,    
    2017     2017    
Revenues, net   $ 2,111     $ 1,830    
Cost of revenues     2,297       1,823    
Gross profit (loss)     (186 )     7    
Operating expenses:                  
Research and development     257       195    
Selling, general and administrative     879       941    
Gain on disposals of long-lived assets     (33 )        
Total operating expenses     1,103       1,136    
Loss from operations     (1,289 )     (1,129 )  
Other income (expenses):                  
Impairment loss on investment     (352 )        
Equity in loss from unconsolidated entities           (2 )  
Interest expenses, net     (9 )     (8 )  
Other income, net     29       20    
Foreign currency transaction gain (loss), net     35       (30 )  
Total other income (expenses), net     (297 )     (20 )  
Loss before income taxes     (1,586 )     (1,149 )  
Income tax expense              
Net loss     (1,586 )     (1,149 )  
Less: Net loss attributable to noncontrolling interests           (7 )  
Net loss attributable to SemiLEDs stockholders   $ (1,586 )   $ (1,142 )  
Net loss per share attributable to SemiLEDs stockholders:                  
Basic and diluted   $ (0.45 )   $ (0.32 )  
Shares used in computing net loss per share attributable to SemiLEDs stockholders:                  
Basic and diluted     3,544       3,532    

 

SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Measures
(In thousands of U.S. dollars, except per share data)
   
     
    Three  Months  Ended    
    May 31,     February 28,    
Non-GAAP Net Loss   2017     2017    
GAAP net loss attributable to SemiLEDs stockholders   $ (1,586 )   $ (1,142 )  
Adjustments:                  
Stock-based compensation expense     43       81    
Impairment loss related to cost method investment     352          
Income tax effect              
Non-GAAP net loss attributable to SemiLEDs stockholders   $ (1,191 )   $ (1,061 )  
Diluted net loss per share attributable to SemiLEDs stockholders:                  
GAAP net loss   $ (0.45 )   $ (0.32 )  
Non-GAAP net loss   $ (0.34 )   $ (0.30 )  
     
    Three  Months  Ended    
    May 31,     February 28,    
Free Cash Flow   2017     2017    
Net cash used in operating activities   $ (858 )   $ (638 )  
Less: Capital expenditures     61       20    
Total free cash flows   $ (919 )   $ (658 )  
 
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