News: LEDs
24 April 2025
SemiLEDs’ quarterly revenue growth boosted by buy-sell purchase orders of equipment
For its fiscal second-quarter 2025 (to end-February), LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has reported revenue of $10.87m, up from just $1.26m last quarter and $0.89m a year ago.
The rise was driven by a significant increase in ‘Other revenues’ to $10.1m (93% of total revenue), primarily comprising buy-sell purchase orders of equipment worth $9.4m (for which one customer alone contributed to 87% of total revenue).
Nevertheless, LED component revenue grew by 25% year-on-year to $682,000, due to higher volumes sold. Lighting product revenue grew by 21% to $58,000. Sales of LED chips rose from just $1000 a year ago to $29,000.
Revenue was concentrated in a few select markets, including India, Japan, the Netherlands, and the USA, which collectively accounted for 98% of net revenue. The top ten customers comprised 99% of total revenue.
Gross margin of 9% is down on 21% last quarter and 13% a year ago. However, operating margin has recovered further, from –94% a year ago and –52% last quarter to 1%.
Net income was $388,000 ($0.05 per diluted share), compared with net losses of $547,000 ($0.08 per diluted share) last quarter and $559,000 ($0.11 per diluted share) a year ago.
During the quarter, cash and cash equivalents almost doubled from $1.25m to $2.38m.
For fiscal third-quarter 2025, SemiLEDs expects more buy-sell purchase orders, which may lead to significant variations in revenue, cost of revenues, receivables, inventories, and customer deposits.
The firm is currently implementing a fabless business model to reduce idle capacity charges and minimize R&D activities associated with chip manufacturing operations.
Specifically, SemiLEDs’ plan involves:
- Gaining positive cash-inflow from operating activities through continuous cost reductions and the sales of new higher-margin products. Steady growth of buy-sell purchase orders of equipment, module products and the continued commercial sales of UV LED product are expected to improve gross margin, operating results and cash flows. The firm is targeting niche markets and focusing on product enhancement and developing LED products (including the ‘Enhanced Vertical’ LED product series in blue, white, green, and UV) into many other applications or devices.
- Continuing to monitor prices, work with current and potential vendors to decrease costs and, consistent with existing contractual commitments, possibly decrease SemiLEDs’ activity level and capital expenditures further. This plan reflects the firm’s strategy of controlling capital costs and maintaining financial flexibility.
- Raising additional cash through potential equity offerings, sales of assets and/or issuance of debt as considered necessary and looking at other potential business opportunities.
SemiLEDs’ revenue falls slightly in December quarter
SemiLEDs’ revenue falls by 13.3% for full fiscal year, but stabilized in Q4
