SemiLEDs Reports Fourth Quarter and Fiscal Year End 2021 Financial Results

Rhea-AI Summary

SemiLEDs Corporation (NASDAQ: LEDS) reported its financial results for Q4 and full fiscal 2021, revealing revenues of $1.4 million for both Q4 and Q3. The GAAP net loss rose to $1.8 million in Q4, up from $64 thousand in Q3, translating to $(0.42) per diluted share. Gross margin decreased to 11% in Q4 from 46% in Q3. Annual revenues fell to $4.7 million, down from $6.1 million in 2020, with a net loss of $2.9 million for fiscal 2021. Cash and equivalents at the end of Q4 stood at $4.8 million, an increase from $1.7 million in Q3.

Positive

• Increased cash and cash equivalents to $4.8 million at the end of Q4.
• Cash and equivalents up from $2.8 million year-over-year.

Negative

• Q4 GAAP net loss increased significantly to $1.8 million versus $64 thousand in Q3.
• Annual revenue declined to $4.7 million from $6.1 million in fiscal 2020.
• Q4 gross margin decreased to 11% from 46% in Q3.
• Fiscal 2021 operating margin worsened to negative 83% from negative 34% in 2020.
• Inability to forecast revenues for Q1 2022 due to COVID-19 uncertainties.

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 fourth quarter and full year of fiscal year 2021, ended August 31, 2021.

Revenues for both the fourth quarter and third quarter of fiscal 2021 were $1.4 million. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2021 increased to $1.8 million, or $(0.42) per diluted share, compared to a net loss of $64thousand, or $(0.02) per diluted share, in the third quarter of fiscal 2021.

GAAP gross margin for the fourth quarter of fiscal 2021 decreased to 11%, compared with gross margin for the third quarter of fiscal 2021 of 46%. Operating margin for the fourth quarter of fiscal 2021 decreased to negative 135%, compared with negative 41% for the third quarter of fiscal 2021. The Company’s cash and cash equivalents were $4.8 million at August 31, 2021, compared to $1.7 million at the end of the third quarter of fiscal 2021.

We are unable to forecast revenues for the first quarter ending November 30, 2021 at this time given the continuing uncertain impact of COVID-19 on the economy and the Company.

Revenues for fiscal year 2021 decreased to $4.7 million, compared to $6.1 million in fiscal year 2020. GAAP net loss attributable to SemiLEDs stockholders for fiscal year 2021 increased to $2.9 million, or $(0.68) per diluted share, compared to a net loss of $544 thousand, or $(0.15) per diluted share, in fiscal year 2020.

GAAP gross margin for fiscal year 2021 decreased to 22%, compared with gross margin for fiscal year 2020 of 26%. Operating margin for fiscal year 2021 decreased to negative 83%, compared with negative 34% in fiscal year 2020. The Company’s cash and cash equivalents were $4.8 million as of August 31, 2021, compared to $2.8 million as of August 31, 2020.

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, any statements about historical results that may suggest trends for SemiLEDs’ business; any statements of the plans, the potential continuing impact of the COVID-19 pandemic on our business; 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)
		August 31,				August 31,
		2021				2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	4,833			$	2,832
Restricted cash and cash equivalents			90				85
Accounts receivable (including related parties), net			865				1,331
Inventories			3,937				2,476
Prepaid expenses and other current assets			329				781
Total current assets			10,054				7,505
Property, plant and equipment, net			5,244				5,645
Operating lease right of use assets			1,635				203
Intangible assets, net			126				89
Investments in unconsolidated entities			1,011				952
Other assets			169				186
TOTAL ASSETS		$	18,239			$	14,580
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current installments of long-term debt		$	5,109			$	4,750
Accounts payable			753				536
Advance receipt toward the convertible note			-				500
Accrued expenses and other current liabilities			2,783				2,654
Other payable to related parties			764				460
Operating lease liabilities, current portion			98				97
Total current liabilities			9,507				8,997
Long-term debt, excluding current installments			2,569				2,909
Operating lease liabilities, less current portion			1,537				106
Total liabilities			13,613				12,012
Commitments and contingencies
EQUITY:
SemiLEDs stockholders’ equity
Common stock			—				—
Additional paid-in capital			182,255				177,235
Accumulated other comprehensive income			3,543				3,647
Accumulated deficit			(181,211	)			(178,360	)
Total SemiLEDs stockholders’ equity			4,587				2,522
Noncontrolling interests			39				46
Total equity			4,626				2,568
TOTAL LIABILITIES AND EQUITY		$	18,239			$	14,580

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										Year Ended August 31,
		August 31, 2021					May 31, 2021					2021					2020
Revenues, net		$		1,371			$		1,439			$		4,735			$		6,068
Cost of revenues				1,221					775					3,702					4,478
Gross profit				150					664					1,033					1,590
Operating expenses:
Research and development				461					528					1,623					1,538
Selling, general and administrative				1,536					730					3,614					2,808
Gain on disposals of long-lived assets, net				—					(2	)				(286	)				(669	)
Total operating expenses				1,997					1,256					4,951					3,677
Loss from operations				(1,847	)				(592	)				(3,918	)				(2,087	)
Other income (expenses):
Gain on disposals of investment				—					—					—					634
Interest income (expenses), net				(93	)				(94	)				(371	)				(358	)
Other income (loss), net				139					474					1,090					912
Foreign currency transaction gain (loss), net				(38	)				155					342					352
Total other income, net				8					535					1,061					1,540
Loss before income taxes				(1,839	)				(57	)				(2,857	)				(547	)
Income tax expense			—					—					—					—
Net loss				(1,839	)				(57	)				(2,857	)				(547	)
Less: Net (loss) gain attributable to noncontrolling interests				(4	)				7					(6	)				(3	)
Net loss attributable to SemiLEDs stockholders		$		(1,835	)		$		(64	)		$		(2,851	)		$		(544	)
Net loss per share attributable to SemiLEDs stockholders:
Basic and diluted		$		(0.42	)		$		(0.02	)		$		(0.68	)		$		(0.15	)
Shares used in computing net loss per share attributable
to SemiLEDs stockholders:
Basic and diluted				4,413					4,060					4,180					3,921

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211126005208/en/

Christopher Lee

Chief Financial Officer

SemiLEDs Corporation

+886-37-586788

investor@semileds.com

Source: SemiLEDs Corporation

FAQ

What were SemiLEDs' revenues for Q4 2021?

SemiLEDs reported revenues of $1.4 million for Q4 2021.

What was the GAAP net loss for SemiLEDs in Q4 2021?

The GAAP net loss for Q4 2021 was $1.8 million, or $(0.42) per diluted share.

How did SemiLEDs perform financially in fiscal year 2021?

In fiscal year 2021, SemiLEDs reported revenues of $4.7 million and a net loss of $2.9 million.

What was the cash position of SemiLEDs at the end of Q4 2021?

At the end of Q4 2021, SemiLEDs had cash and cash equivalents of $4.8 million.

Is SemiLEDs able to forecast revenues for Q1 2022?

No, SemiLEDs stated they are unable to forecast revenues for Q1 2022 due to COVID-19 uncertainties.