SemiLEDs Reports Second Quarter Fiscal Year 2021 Financial Results

Rhea-AI Summary

SemiLEDs Corporation (NASDAQ: LEDS) reported its financial results for Q2 FY 2021, ending February 28, 2021. Revenue rose to $1.2 million from $719 thousand in Q1 FY 2021. The net loss decreased to $255 thousand ($0.06 per diluted share) from a loss of $697 thousand in the prior quarter. Gross margin improved to 20% compared to -3% in Q1. Operating margin also showed improvement at -42% from -135%. However, cash reserves fell to $2.1 million while revenue guidance for Q3 remains uncertain due to COVID-19 impacts.

Positive

• Revenue increased to $1.2 million, up from $719 thousand in Q1.
• Net loss improved to $255 thousand, compared to $697 thousand in Q1.
• Gross margin rose to 20% from -3% in the previous quarter.
• Operating margin improved to -42%, better than -135% in Q1.

Negative

• Cash and cash equivalents decreased to $2.1 million from $2.7 million.
• Unable to forecast revenue for Q3 due to COVID-19 uncertainties.

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 second quarter of fiscal year 2021, ended February 28, 2021.

Revenue for the second quarter of fiscal 2021 was $1.2 million, compared to $719 thousand in the first quarter of fiscal 2021. GAAP net loss attributable to SemiLEDs stockholders for the second quarter of fiscal 2021 was $255 thousand, compared to a loss of $697 thousand in the first quarter of fiscal 2021, or a net loss of $0.06 per diluted share, compared to a net loss of $0.17 per diluted share for the first quarter of fiscal 2021. In the second quarter, we shut down our manufacturing production for two weeks due to the Chinese New Year holiday.

GAAP gross margin for the second quarter of fiscal 2021 was 20%, compared with gross margin for the first quarter of fiscal 2021 of negative 3%. Operating margin for the second quarter of fiscal 2021 was negative 42%, compared with negative 135% in the first quarter of fiscal 2021. The Company’s cash and cash equivalents were $2.1 million at February 28, 2021, compared to $2.7 million at the end of the first quarter of fiscal 2021.

We are unable to forecast revenue for the third quarter ending May 31, 2021 at this time given the continuing uncertain impact of COVID-19 on the economy and the Company.

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 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)

		February 28,				November 30,
		2021				2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	2,086			$	2,693
Restricted cash and cash equivalents			88				87
Accounts receivable (including related parties), net			800				594
Inventories			2,905				2,765
Prepaid expenses and other current assets			743				750
Total current assets			6,622				6,889
Property, plant and equipment, net			5,549				5,621
Operating lease right of use assets			1,672				168
Intangible assets, net			120				88
Investments in unconsolidated entities			992				974
Other assets			172				194
TOTAL ASSETS		$	15,127			$	13,934
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current installments of long-term debt		$	5,023			$	4,884
Accounts payable			439				424
Advance receipt toward the convertible note			500				500
Accrued expenses and other current liabilities			2,483				2,728
Operating lease liabilities, current			611				536
Liabilities held for sale			126				77
Total current liabilities			9,182				9,149
Long-term debt, excluding current installments			2,777				2,852
Operating lease liabilities, less current portion			1,546				91
Total liabilities			13,505				12,092
Commitments and contingencies
EQUITY:
SemiLEDs stockholders’ equity
Common stock			—				—
Additional paid-in capital			177,313				177,247
Accumulated other comprehensive income			3,585				3,618
Accumulated deficit			(179,312	)			(179,057	)
Total SemiLEDs stockholders' equity			1,586				1,808
Noncontrolling interests			36				34
Total equity			1,622				1,842
TOTAL LIABILITIES AND EQUITY		$	15,127			$	13,934

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
		February 28,				November 30,
		2021				2020
Revenues, net		$	1,206			$	719
Cost of revenues			965				741
Gross profit (loss)			241				(22	)
Operating expenses:
Research and development			288				346
Selling, general and administrative			667				681
Gain on disposals of long-lived assets			(207	)			(77	)
Total operating expenses			748				950
Loss from operations			(507	)			(972	)
Other income (expenses):
Interest expenses, net			(92	)			(92	)
Other income, net			307				170
Foreign currency transaction gain, net			38				187
Total other income, net			253				265
Loss before income taxes			(254	)			(707	)
Income tax expense			—				—
Net loss			(254	)			(707	)
Less: Net income (loss) attributable to noncontrolling interests			1				(10	)
Net loss attributable to SemiLEDs stockholders		$	(255	)		$	(697	)
Net loss per share attributable to SemiLEDs stockholders:
Basic and diluted		$	(0.06	)		$	(0.17	)
Shares used in computing net loss per share attributable to SemiLEDs stockholders:
Basic and diluted			4,033				4,013

 

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FAQ

What were SemiLEDs' revenue results for Q2 FY 2021?

SemiLEDs reported revenue of $1.2 million for Q2 FY 2021.

How much was SemiLEDs' net loss in Q2 FY 2021?

The net loss for Q2 FY 2021 was $255 thousand.

What is the status of SemiLEDs' cash reserves as of February 28, 2021?

As of February 28, 2021, SemiLEDs had cash and cash equivalents of $2.1 million.

Why is SemiLEDs unable to forecast revenue for Q3?

SemiLEDs is unable to forecast revenue for Q3 due to the uncertain impact of COVID-19.

What was SemiLEDs' gross margin for Q2 FY 2021?

The gross margin for Q2 FY 2021 was 20%.