SemiLEDs Reports Fourth Quarter and Fiscal Year End 2022 Financial Results

Rhea-AI Summary

SemiLEDs Corporation (NASDAQ: LEDS) reported its financial results for Q4 and the full fiscal year 2022. For Q4, revenues were $1.6 million, slightly down from $1.8 million in Q3. The net loss for Q4 increased to $1.1 million, or $(0.25) per share, compared to a loss of $916 thousand in Q3. Full-year revenues rose to $7.1 million, up from $4.7 million in fiscal 2021. However, the annual net loss decreased to $2.7 million, or $(0.61) per share. Cash and equivalents were $4.3 million as of August 31, 2022. Forecasting for the upcoming quarter remains uncertain due to COVID-19 impacts.

Positive

• Annual revenue increased to $7.1 million, up from $4.7 million in 2021.
• Reduced annual net loss from $2.9 million in 2021 to $2.7 million in 2022.
• Improved operating margin for the fiscal year to negative 45%, compared to negative 83% in 2021.

Negative

• Q4 revenues declined to $1.6 million from $1.8 million in Q3.
• Q4 net loss increased to $1.1 million, up from $916 thousand in Q3.
• GAAP gross margin decreased to 20% for FY2022, down from 22% in FY2021.
• Operating margin worsened to negative 66% in Q4 from negative 43% in Q3.
• Inability to forecast Q1 revenues due to COVID-19 uncertainty.

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 2022, ended August 31, 2022.

Revenues for the fourth quarter and third quarter of fiscal 2022 were $1.6 million and $1.8 million, respectively. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2022 increased to $1.1 million, or $(0.25) per diluted share, compared to a net loss of $916 thousand, or $(0.20) per diluted share, in the third quarter of fiscal 2022.

GAAP gross margin for the fourth quarter of fiscal 2022 increased to 21%, compared with gross margin for the third quarter of fiscal 2022 of 19%. Operating margin for the fourth quarter of fiscal 2022 decreased to negative 66%, compared with negative 43% for the third quarter of fiscal 2022. The Company’s cash and cash equivalents were $4.3 million at August 31, 2022, compared to $3.0 million at the end of the third quarter of fiscal 2022.

We are unable to forecast revenues for the first quarter ending November 30, 2022 at this time given the uncertain impact of COVID-19 on the economy and the Company.

Revenues for fiscal year 2022 increased to $7.1 million, compared to $4.7 million in fiscal year 2021. GAAP net loss attributable to SemiLEDs stockholders for fiscal year 2022 decreased to $2.7 million, or $(0.61) per diluted share, compared to a net loss of $2.9 million, or $(0.68) per diluted share, in fiscal year 2021.

GAAP gross margin for fiscal year 2022 decreased to 20%, compared with gross margin for fiscal year 2021 of 22%. Operating margin for fiscal year 2022 improved to negative 45%, compared with negative 83% in fiscal year 2021. The Company’s cash and cash equivalents were $4.3 million as of August 31, 2022, compared to $4.8 million as of August 31, 2021.

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 a COVID-19 pandemic resurgence on our business; strategies and objectives of management for future operations; the impact of rising inflation on customer purchasing, 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,
		2022				2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	4,274			$	4,833
Restricted cash and cash equivalents			82				90
Accounts receivable (including related parties), net			880				865
Inventories			3,784				3,937
Prepaid expenses and other current assets			123				329
Total current assets			9,143				10,054
Property, plant and equipment, net			4,139				5,244
Operating lease right of use assets			1,578				1,635
Intangible assets, net			102				126
Investments in unconsolidated entities			922				1,011
Other assets			170				169
TOTAL ASSETS		$	16,054			$	18,239
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current installments of long-term debt		$	5,063			$	5,109
Accounts payable			286				753
Accrued expenses and other current liabilities			2,702				2,783
Other payable to related parties			1,061				764
Operating lease liabilities, current portion			143				98
Total current liabilities			9,255				9,507
Long-term debt, excluding current installments			1,866				2,569
Operating lease liabilities, less current portion			1,435				1,537
Total liabilities			12,556				13,613
Commitments and contingencies
EQUITY:
SemiLEDs stockholders’ equity
Common stock			—				—
Additional paid-in capital			183,711				182,255
Accumulated other comprehensive income			3,697				3,543
Accumulated deficit			(183,955	)			(181,211	)
Total SemiLEDs stockholders’ equity			3,453				4,587
Noncontrolling interests			45				39
Total equity			3,498				4,626
TOTAL LIABILITIES AND EQUITY		$	16,054			$	18,239

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, 2022					May 31, 2022					2022					2021
Revenues, net		$		1,626			$		1,784			$		7,051			$		4,735
Cost of revenues				1,291					1,448					5,654					3,702
Gross profit				335					336					1,397					1,033
Operating expenses:
Research and development				428					357					1,484					1,623
Selling, general and administrative				976					810					3,309					3,614
Gain on disposals of long-lived assets, net				—					(57	)				(196	)				(286	)
Total operating expenses				1,404					1,110					4,597					4,951
Loss from operations				(1,069	)				(774	)				(3,200	)				(3,918	)
Other income (expenses):
Interest expenses, net				(92	)				(94	)				(369	)				(371	)
Other income, net				270					264					1,485					1,090
Foreign currency transaction (loss) gain, net				(247	)				(307	)				(642	)				342
Total other income, net				(69	)				(137	)				474					1,061
Loss before income taxes				(1,138	)				(911	)				(2,726	)				(2,857	)
Income tax expense			—					—					—					—
Net loss				(1,138	)				(911	)				(2,726	)				(2,857	)
Less: Net income (loss) attributable to noncontrolling interests				—					5					18					(6	)
Net loss attributable to SemiLEDs stockholders		$		(1,138	)		$		(916	)		$		(2,744	)		$		(2,851	)
Net loss per share attributable to SemiLEDs stockholders:
Basic and diluted		$		(0.25	)		$		(0.20	)		$		(0.61	)		$		(0.68	)
Shares used in computing net loss per share attributable to SemiLEDs stockholders:
Basic and diluted				4,533					4,517					4,522					4,180

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221107005514/en/

Christopher Lee

Chief Financial Officer

SemiLEDs Corporation

+886-37-586788

investor@semileds.com

Source: SemiLEDs Corporation

FAQ

What were SemiLEDs' revenues for Q4 2022?

SemiLEDs reported revenues of $1.6 million for Q4 2022.

How did SemiLEDs' net loss change in Q4 2022?

The net loss for Q4 2022 increased to $1.1 million, or $(0.25) per diluted share.

What is the revenue trend for SemiLEDs in fiscal year 2022?

Revenues for fiscal year 2022 rose to $7.1 million, compared to $4.7 million in fiscal year 2021.

What was the cash position of SemiLEDs at the end of Q4 2022?

Cash and cash equivalents were $4.3 million as of August 31, 2022.

Is there revenue guidance for Q1 2023 from SemiLEDs?

SemiLEDs is unable to forecast revenues for Q1 2023 due to the uncertain impact of COVID-19.