SemiLEDs Reports Fourth Quarter and Fiscal Year End 2024 Financial Results

Rhea-AI Summary

SemiLEDs (NASDAQ: LEDS) reported its Q4 and fiscal year 2024 results. Q4 revenue remained flat at $1.3 million compared to Q3 FY2024, while net loss widened to $560,000 ($0.08 per share) from $319,000 ($0.04 per share). Gross margin declined to 12% from 41% in Q3. For full fiscal year 2024, revenue decreased to $5.2 million from $6.0 million in FY2023. Annual net loss improved to $2.0 million ($0.32 per share) compared to $2.7 million ($0.55 per share) in FY2023. Cash position stood at $1.7 million as of August 31, 2024.

Positive

• Annual net loss improved from $2.7M to $2.0M year-over-year
• Fiscal year 2024 gross margin increased to 20% from 17% in 2023

Negative

• Q4 net loss widened to $560K from $319K quarter-over-quarter
• Q4 gross margin declined significantly to 12% from 41% in Q3
• Annual revenue decreased to $5.2M from $6.0M year-over-year
• Cash position decreased from $2.6M to $1.7M year-over-year

Insights

Financial Analyst

The Q4 and FY2024 results paint a concerning picture for SemiLEDs. Q4 revenue remained flat at $1.3 million quarter-over-quarter, while net loss widened significantly to $560,000 from $319,000. The dramatic decline in gross margin from 41% to 12% and deteriorating operating margin to negative 62% signals serious operational challenges.

Full-year performance shows continued struggles with revenue declining 13.3% to $5.2 million. While the annual net loss improved slightly, the company's cash position has eroded from $2.6 million to $1.7 million year-over-year. With negative operating margins and declining cash reserves, the company's financial sustainability is questionable without additional funding or significant operational improvements.

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 fiscal year, ended August 31, 2024.

Revenue for the fourth quarter of fiscal 2024 was $1.3 million, compared to $1.3 million in the third quarter of fiscal 2024. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2024 increased to $560 thousand, or $(0.08) per diluted share, compared to a net loss of $319 thousand, or $(0.04) per diluted share, in the third quarter of fiscal 2024.

GAAP gross margin for the fourth quarter of fiscal 2024 decreased to 12%, compared to 41% for the third quarter of fiscal 2024. Operating margin for the fourth quarter of fiscal 2024 decreased to negative 62%, compared with negative 36% for the third quarter of fiscal 2024. The Company’s cash and cash equivalents were $1.7 million at August 31, 2024, compared to $1.7 million at the end of the third quarter of fiscal 2024.

Revenues for fiscal year 2024 decreased to $5.2 million, compared to $6.0 million in fiscal year 2023. GAAP net loss attributable to SemiLEDs stockholders for fiscal year 2024 was $2.0 million, or $(0.32) per diluted share, compared to a net loss of $2.7 million, or $(0.55) per diluted share, in fiscal year 2023.

GAAP gross margin for fiscal year 2024 increased to 20%, compared with gross margin for fiscal year 2023 of 17%. Operating margin for fiscal year 2024 was negative 57%, compared with negative 57% in fiscal year 2023. The Company’s cash and cash equivalents were $1.7 million as of August 31, 2024, compared to $2.6 million as of August 31, 2023.

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, the consideration of potential strategic alternatives, 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. There can be no assurance that SemiLEDs will be able to identify or execute upon any strategic alternatives or, if alternatives are identified, the possible terms of any such strategic agreement. 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,
		2024				2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,671			$	2,572
Restricted cash and cash equivalents			78				78
Accounts receivable (including related parties), net			416				793
Inventories, net			3,574				4,022
Prepaid expenses and other current assets			223				129
Total current assets			5,962				7,594
Property, plant and equipment, net			2,798				3,233
Operating lease right of use assets			1,091				1,371
Intangible assets, net			90				97
Investments in unconsolidated entities			969				974
Other assets			228				186
TOTAL ASSETS		$	11,138			$	13,455
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current installments of long-term debt		$	2,854			$	5,042
Accounts payable			137				436
Accrued expenses and other current liabilities			2,936				2,711
Other payable to related parties			1,001				1,374
Operating lease liabilities, current portion			94				139
Total current liabilities			7,022				9,702
Long-term debt, excluding current installments			870				1,327
Operating lease liabilities, less current portion			997				1,232
Total liabilities			8,889				12,261
Commitments and contingencies
EQUITY:
SemiLEDs stockholders’ equity
Common stock			—				—
Additional paid-in capital			187,337				184,246
Accumulated other comprehensive income			3,545				3,550
Accumulated deficit			(188,681	)			(186,645	)
Total SemiLEDs stockholders’ equity			2,201				1,151
Noncontrolling interests			48				43
Total equity			2,249				1,194
TOTAL LIABILITIES AND EQUITY		$	11,138			$	13,455

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								Years Ended August 31,
		August 31, 2024				May 31, 2024				2024				2023
Revenues, net		$	1,324			$	1,323			$	5,183			$	5,979
Cost of revenues			1,171				780				4,130				4,972
Gross profit			153				543				1,053				1,007
Operating expenses:
Research and development			217				320				1,160				1,353
Selling, general and administrative			760				696				2,891				3,058
Gain on disposals of long-lived assets, net			1				—				(49	)			—
Total operating expenses			978				1,016				4,002				4,411
Loss from operations			(825	)			(473	)			(2,949	)			(3,404	)
Other income (expenses):
Impairment loss from unconsolidated entities			(3	)			(3	)			(3	)			(1	)
Interest expenses, net			(36	)			(58	)			(247	)			(287	)
Other income, net			268				277				1,181				1,054
Foreign currency transaction (loss) gain, net			34				(59	)			(13	)			(52	)
Total other income, net			263				157				918				714
Loss before income taxes			(562	)			(316	)			(2,031	)			(2,690	)
Income tax expense		—				—				—				—
Net loss			(562	)			(316	)			(2,031	)			(2,690	)
Less: Net income (loss) attributable to noncontrolling interests			(2	)			3				5				—
Net loss attributable to SemiLEDs stockholders		$	(560	)		$	(319	)		$	(2,036	)		$	(2,690	)
Net loss per share attributable to SemiLEDs stockholders:
Basic and diluted		$	(0.08	)		$	(0.04	)		$	(0.32	)		$	(0.55	)
Shares used in computing net loss per share attributable to SemiLEDs stockholders:
Basic and diluted			7,203				7,185				6,320				4,881

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241127417578/en/

Christopher Lee

Chief Financial Officer

SemiLEDs Corporation

+886-37-586788

investor@semileds.com

Source: SemiLEDs Corporation

FAQ

What was SemiLEDs (LEDS) revenue in Q4 2024?

SemiLEDs reported revenue of $1.3 million in Q4 2024, unchanged from Q3 2024.

How much did SemiLEDs (LEDS) lose per share in fiscal year 2024?

SemiLEDs reported a net loss of $0.32 per diluted share for fiscal year 2024.

What was SemiLEDs (LEDS) gross margin in Q4 2024?

SemiLEDs' gross margin in Q4 2024 was 12%, down from 41% in Q3 2024.

How much cash did SemiLEDs (LEDS) have as of August 31, 2024?

SemiLEDs had cash and cash equivalents of $1.7 million as of August 31, 2024.