10 April 2012

SemiLEDs cuts losses as quarterly revenue rebounds a further 17%

For its fiscal second-quarter 2012 (to end-February), LED chip and component maker SemiLEDs Corp of Hsinchu Science Park, Taiwan has reported revenue of $7.9m, down 21% on $10m a year ago but up 17% on $6.75m last quarter (following a 27% rebound from the trough of $5.3m the previous quarter). This was also at the top end of the expected range of $7-8m.

Founded in 2005, SemiLEDs’ manufactures proprietary blue, green and ultraviolet (UV) LED chips under the MvpLED (metal vertical photon LED) brand for sale mainly to chip-packaging customers in China, Taiwan and other parts of Asia such as Korea, or to distributors who sell to packagers. It also packages chips into LED components for sale to distributors and end-customers in selected markets (mainly for general lighting applications, including street lights and commercial, industrial and residential lighting).

On a non-GAAP basis, net loss was $6.1m, up from $0.7m a year ago but cut from $7.1m last quarter. Compared with +23% a year ago, gross margin was negative 9%, but this is an improvement on negative 12% and negative 93% the previous two quarters. Likewise, compared with negative 6% a year ago, operating margin was negative 73%, but an improvement on negative 95% last quarter. Margins continue to improve through continued expense management. R&D expenditure rose from $1.7m last quarter to $2m, but selling, general & administrative (SG&A) expenditure was cut further, from $3.9m to $3m, so total operating expenses fell from $5.6m to $5m.
“Given the ongoing challenging industry environment, we are pleased with our quarterly financial and operational results,” says chairman & CEO Trung Doan. “Our strategy of pursuing the indoor lighting market has proved successful as it continues to improve our revenue growth, and we remain cost conscious in areas of the business that won’t impede our innovation and technology advantage,” he adds. “We continue to maintain the slow, steady growth and improvement that we have shown over the last two quarters.”

Cash used in operations during the quarter was $4.5m. Overall cash and cash equivalents fell from $74m to $66.4m.

For its fiscal third-quarter 2012 (to end May), SemiLEDs expects revenue to grow by 6% to $7.9-8.9m.

See related items:

SemiLEDs revenue rebounds by 27%, driven by lower-price indoor components

SemiLEDs’ revenue falls a further 5% due to delayed China lighting demand

SemiLEDs’ quarterly revenue drops a further 43%

SemiLEDs revenue drops due to pricing pressure

Tags: SemiLEDs

Visit: www.semileds.com