LEDS SemiLEDS Corporation

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 third quarter of fiscal year 2024, ended May 31, 2024.

Revenue for the third quarter of fiscal 2024 increased to $1.3 million, compared to $886 thousand in the second quarter of fiscal 2024. GAAP net loss attributable to SemiLEDs stockholders for the third quarter of fiscal 2024 decreased to $319 thousand, or $(0.06) per diluted share, compared to a net loss of $559 thousand, or $(0.11) per diluted share, in the second quarter of fiscal 2024.

GAAP gross margin for the third quarter of fiscal 2024 increased to 41%, compared to 13% for the second quarter of fiscal 2024. Operating margin for the third quarter of fiscal 2024 was negative 36%, compared with negative 94% for the second quarter of fiscal 2024. The Company’s cash and cash equivalents were $1.7 million at May 31, 2024, compared to $1.6 million at the end of the second quarter of fiscal 2024.

We expect revenue for the fourth quarter ending August 31, 2024 to be approximately $1.0 million +/- 10%.

The Company has engaged Roth Capital Partners, LLC as the Company’s financial advisor to explore potential strategic alternatives.

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 fourth quarter ending August 31, 2024, 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)

 

 

 

May 31,

 

February 29,

 

 

 

2024

 

 

2024

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

1,676

 

 

$

1,613

 

 

Restricted cash and cash equivalents

 

 

77

 

 

 

79

 

 

Accounts receivable (including related parties), net

 

 

668

 

 

 

748

 

 

Inventories

 

 

3,673

 

 

 

3,751

 

 

Prepaid expenses and other current assets

 

 

282

 

 

 

245

 

 

Total current assets

 

 

6,376

 

 

 

6,436

 

 

Property, plant and equipment, net

 

 

2,788

 

 

 

2,996

 

 

Operating lease right of use assets

 

 

1,109

 

 

 

1,313

 

 

Intangible assets, net

 

 

91

 

 

 

96

 

 

Investments in unconsolidated entities

 

 

957

 

 

 

986

 

 

Other assets

 

 

190

 

 

 

192

 

 

TOTAL ASSETS

 

$

11,511

 

 

$

12,019

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current installments of long-term debt

 

$

2,848

 

 

$

2,859

 

 

Accounts payable

 

 

203

 

 

 

179

 

 

Accrued expenses and other current liabilities

 

 

2,665

 

 

 

2,562

 

 

Other payable to related parties

 

 

952

 

 

 

904

 

 

Operating lease liabilities, current

 

 

108

 

 

 

132

 

 

Total current liabilities

 

 

6,776

 

 

 

6,636

 

 

Long-term debt, excluding current installments

 

 

969

 

 

 

1,110

 

 

Operating lease liabilities, less current portion

 

 

1,001

 

 

 

1,181

 

 

Total liabilities

 

 

8,746

 

 

 

8,927

 

 

Commitments and contingencies

 

 

 

 

 

EQUITY:

 

 

 

 

 

SemiLEDs stockholders’ equity

 

 

 

 

 

Common stock

 

 

—

 

 

 

—

 

 

Additional paid-in capital

 

 

187,306

 

 

 

187,275

 

 

Accumulated other comprehensive income

 

 

3,530

 

 

 

3,571

 

 

Accumulated deficit

 

 

(188,121

)

 

 

(187,802

)

 

Total SemiLEDs stockholders' equity

 

 

2,715

 

 

 

3,044

 

 

Noncontrolling interests

 

 

50

 

 

 

48

 

 

Total equity

 

 

2,765

 

 

 

3,092

 

 

TOTAL LIABILITIES AND EQUITY

 

$

11,511

 

 

$

12,019

 

 

 

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

 

 

 

May 31,

 

February 29,

 

 

 

2024

 

 

2024

 

 

Revenues, net

 

$

1,323

 

 

$

886

 

 

Cost of revenues

 

 

780

 

 

 

774

 

 

Gross profit

 

 

543

 

 

 

112

 

 

Operating expenses:

 

 

 

 

 

Research and development

 

 

320

 

 

 

251

 

 

Selling, general and administrative

 

 

696

 

 

 

693

 

 

Total operating expenses

 

 

1,016

 

 

 

944

 

 

Loss from operations

 

 

(473

)

 

 

(832

)

 

Other income (expenses):

 

 

 

 

 

Investment loss from unconsolidated entities

 

 

(3

)

 

 

(5

)

 

Interest expenses, net

 

 

(58

)

 

 

(65

)

 

Other income, net

 

 

277

 

 

 

377

 

 

Foreign currency transaction loss, net

 

 

(59

)

 

 

(32

)

 

Total other income, net

 

 

157

 

 

 

275

 

 

Loss before income taxes

 

 

(316

)

 

 

(557

)

 

Income tax expense

 

 

—

 

 

 

—

 

 

Net loss

 

 

(316

)

 

 

(557

)

 

Less: Net income attributable to noncontrolling interests

 

 

3

 

 

 

2

 

 

Net loss attributable to SemiLEDs stockholders

 

$

(319

)

 

$

(559

)

 

Net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

Basic and diluted

 

$

(0.06

)

 

$

(0.11

)

 

Shares used in computing net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

Basic and diluted

 

 

4,914

 

 

 

4,905

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240708812696/en/

Christopher Lee Chief Financial Officer SemiLEDs Corporation +886-37-586788 investor@semileds