SemiLEDs Reports First Quarter Fiscal Year 2025 Financial Results

Rhea-AI Summary

SemiLEDs (NASDAQ: LEDS) has released its financial results for Q1 FY2025, ended November 30, 2024. The LED chip and component manufacturer reported revenue of $1.3 million, unchanged from Q4 FY2024. The company's GAAP net loss slightly improved to $547,000 ($0.08 per diluted share) from $560,000 ($0.08 per diluted share) in the previous quarter.

The company showed improvement in margins, with GAAP gross margin increasing to 21% from 12% in Q4 FY2024, and operating margin improving to -52% from -62%. However, cash and cash equivalents decreased to $1.2 million from $1.7 million in the previous quarter.

Positive

• Gross margin improved from 12% to 21% quarter-over-quarter
• Operating margin improved from -62% to -52%
• Net loss decreased slightly from $560K to $547K

Negative

• Revenue remained stagnant at $1.3 million
• Cash and cash equivalents declined by $500K to $1.2 million
• Company continues to operate at a significant loss with -52% operating margin

Insights

Financial Analyst

The Q1 FY2025 results for SemiLEDs reveal concerning fundamentals. Revenue remained stagnant at $1.3 million, showing no quarter-over-quarter growth. While gross margin improved to 21% from 12%, the company continues to operate at a significant loss with a negative operating margin of 52%. The cash position has deteriorated by 29.4% to $1.2 million, raising serious liquidity concerns.

The narrowing net loss to $547,000 from $560,000 is minimal and primarily due to margin improvements rather than business growth. With a market cap of approximately $9.7 million and quarterly revenue of just $1.3 million, the company's valuation appears stretched given its financial performance. The combination of operating losses, declining cash reserves and stagnant revenue suggests significant challenges ahead.

For context, the LED chip market is highly competitive and SemiLEDs' small scale makes it difficult to achieve economies of scale necessary to compete effectively. The cash burn rate and financial resources could force the company to seek additional funding, potentially diluting existing shareholders.

HSINCHU, Taiwan--(BUSINESS WIRE)-- SemiLEDs Corporation (NASDAQ: LEDS), “SemiLEDs” or the “Company,” a developer and manufacturer of LED chips and LED components, today announced its financial results for the first quarter of fiscal year 2025, ended November 30, 2024.

Revenue for the first quarter of fiscal 2025 was $1.3 million, compared to $1.3 million in the fourth quarter of fiscal 2024. GAAP net loss attributable to SemiLEDs stockholders for the first quarter of fiscal 2025 decreased to $547 thousand, or $(0.08) per diluted share, compared to a net loss of $560 thousand, or $(0.08) per diluted share, in the fourth quarter of fiscal 2024.

GAAP gross margin for the first quarter of fiscal 2025 increased to 21%, compared to 12% for the fourth quarter of fiscal 2024. Operating margin for the first quarter of fiscal 2025 was negative 52%, compared with negative 62% for the fourth quarter of fiscal 2024. The Company’s cash and cash equivalents were $1.2 million at November 30, 2024, compared to $1.7 million at the end of the fourth quarter of fiscal 2024.

About SemiLEDs

SemiLEDs develops and manufactures LED chips and LED components for general lighting applications, including street lights and commercial, industrial, system 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.

Forward Looking Statements

This press release contains statements that may constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, revenue expectations for the second quarter ending February 28, 2025, the expedited timing of the recognition of revenue relating to the buy-sell purchase orders and estimated costs of revenue related thereto, any statements about historical results that may suggest trends for SemiLEDs’ business; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief regarding recovery of the LED industry, market opportunities and other future events or technology developments; any statements regarding SemiLEDs’ position to capitalize on any market opportunities; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are based on current expectations, estimates, forecasts and projections of future SemiLEDs’ or industry performance based on management’s judgment, beliefs, current trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. SemiLEDs’ Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and other SemiLEDs filings with the SEC (which you may obtain for free at the SEC’s website at http://www.sec.gov) discuss some of the important risks and other factors that may affect SemiLEDs’ business, results of operations and financial condition. SemiLEDs undertakes no intent or obligation to publicly update or revise any of these forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
		November 30,				August 31,
		2024				2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,248			$	1,671
Restricted cash and cash equivalents			77				78
Accounts receivable (including related parties), net			261				416
Inventories, net			3,722				3,574
Prepaid expenses and other current assets			185				223
Total current assets			5,493				5,962
Property, plant and equipment, net			2,609				2,798
Operating lease right of use assets			1,041				1,091
Intangible assets, net			85				90
Investments in unconsolidated entities			949				969
Other assets			223				228
TOTAL ASSETS		$	10,400			$	11,138
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current installments of long-term debt		$	2,847			$	2,854
Accounts payable			340				137
Accrued expenses and other current liabilities			2,799				2,936
Other payable to related parties			1,049				1,001
Operating lease liabilities, current portion			76				94
Total current liabilities			7,111				7,022
Long-term debt, excluding current installments			744				870
Operating lease liabilities, less current portion			965				997
Total liabilities			8,820				8,889
Commitments and contingencies
EQUITY:
SemiLEDs stockholders’ equity
Common stock			—				—
Additional paid-in capital			187,277				187,337
Accumulated other comprehensive income			3,531				3,545
Accumulated deficit			(189,228	)			(188,681	)
Total SemiLEDs stockholders’ equity			1,580				2,201
Noncontrolling interests			—				48
Total equity			1,580				2,249
TOTAL LIABILITIES AND EQUITY		$	10,400			$	11,138

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
		November 30, 2024				August 31, 2024
Revenues, net		$	1,261			$	1,324
Cost of revenues			1,001				1,171
Gross profit			260				153
Operating expenses:
Research and development			221				217
Selling, general and administrative			696				760
Gain on disposals of long-lived assets			—				1
Total operating expenses			917				978
Loss from operations			(657	)			(825	)
Other income (expenses):
Investment loss from unconsolidated entities			(3	)			(3	)
Interest expenses, net			(67	)			(36	)
Other income, net			282				268
Foreign currency transaction (loss) gain , net			(102	)			34
Total other income, net			110				263
Loss before income taxes			(547	)			(562	)
Income tax expense			—				—
Net loss			(547	)			(562	)
Less: Net income (loss) attributable to noncontrolling interests			—				(2	)
Net loss attributable to SemiLEDs stockholders		$	(547	)		$	(560	)
Net loss per share attributable to SemiLEDs stockholders:
Basic and diluted		$	(0.08	)		$	(0.08	)
Shares used in computing net loss per share attributable to SemiLEDs stockholders:
Basic and diluted			7,212				7,203

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250110464862/en/

Christopher Lee

Chief Financial Officer

SemiLEDs Corporation

+886-37-586788

investor@semileds.com

Source: SemiLEDs Corporation

FAQ

What was SemiLEDs (LEDS) revenue in Q1 2025?

SemiLEDs reported revenue of $1.3 million in Q1 fiscal year 2025, which remained unchanged from Q4 fiscal year 2024.

How much did SemiLEDs (LEDS) lose per share in Q1 2025?

SemiLEDs reported a net loss of $0.08 per diluted share in Q1 fiscal year 2025.

What was SemiLEDs (LEDS) gross margin in Q1 2025?

SemiLEDs' gross margin increased to 21% in Q1 fiscal year 2025, up from 12% in the previous quarter.

How much cash does SemiLEDs (LEDS) have as of November 30, 2024?

SemiLEDs had cash and cash equivalents of $1.2 million as of November 30, 2024, down from $1.7 million at the end of the previous quarter.

What was SemiLEDs (LEDS) operating margin in Q1 2025?

SemiLEDs' operating margin was negative 52% in Q1 fiscal year 2025, an improvement from negative 62% in the previous quarter.