LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has reported revenue of $4.8m, down 23% on $6.2m last quarter and 39% on $7.9m a year ago, for its fiscal second-quarter 2013 (to end-February).
Impacted by the drop in revenue, a decline in the average selling price (ASP) of LED chips, and excess capacity charges for the firm’s LED chips, gross margin has deteriorated further, from negative 9% a year ago and negative 53% last quarter to negative 69%. “Demand has improved; however, the pricing environment for the general lighting market remains challenging,” says chairman, president & CEO Trung Doan.
R&D expenses have been cut further, from $2m a year ago and $1.2m last quarter to $1m. Selling, general & administrative (SG&A) expenses have also fallen, from $3.7m last quarter to $2.6m. Total operating expenses have hence been cut from $5.1m a year ago and $4.9m last quarter to $3.6m.
On a non-GAAP basis, net loss has been cut to $5.4m, compared to $8.6m last quarter and $6.1m a year ago. Cash used in operating activities was $4.2m, down from $4.5m a year ago. Also, capital expenditure has fallen further, from $3.3m a year ago and $1.7m last quarter to just $0.37m. Hence, total cash burn has been cut further, from $7.8m a year ago and $4.9m last quarter to $4.6m.
“We are on the right track and this is a turning point for SemiLEDs,” Doan believes. “From an execution standpoint, we need to focus on profitable markets and control cost,” he concludes.
