SemiLEDs Reports Fourth Quarter and Fiscal Year End 2016 Financial Results
November 21 2016 - 8:15AM
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
year of fiscal year 2016, ended August 31, 2016.
Revenue for the fourth quarter of fiscal 2016
was $1.9 million, a 21% decrease compared to $2.4 million in the
third quarter of fiscal 2016. GAAP net loss attributable to
SemiLEDs stockholders for the fourth quarter of fiscal 2016 was
$12.2 million, compared to a loss of $3.3 million in the third
quarter of 2016, or a net loss of $4.07 per diluted share, compared
to a net loss of $1.11 per diluted share for the third quarter of
fiscal 2016. The GAAP net loss of $12.2 million for the fourth
quarter of fiscal 2016 included impairment charges of $9.3 million
of which $7.4 million pertained to property, plant and equipment,
$1.2 million pertained to intangible assets, $0.1 million pertained
to goodwill and $0.6 million pertained to cost method
investments.
On a non-GAAP basis, net loss attributable to
SemiLEDs stockholders for the fourth quarter of fiscal 2016 was
$2.8 million, or a net loss of $0.94 per diluted share, compared to
non-GAAP net loss attributable to SemiLEDs stockholders of $3.1
million, or a loss of $1.06 in the third quarter of 2016.
GAAP gross margin for the fourth quarter of
fiscal 2016 was negative 66%, compared with gross margin for the
third quarter of fiscal 2016 of negative 61%. Operating margin for
the fourth quarter of fiscal 2016, which was negatively impacted by
the impairment of long-lived assets and investments was negative
614%, compared with negative 132% in the third quarter of fiscal
2016. The Company’s cash and cash equivalents was $6.0 million,
including a $500 thousand cash advance received toward the future
issuance of a convertible note at August 31, 2016, compared to $3.5
million at the end of the third quarter of fiscal 2016. Cash used
in operating activities was $0.5 million in the fourth quarter of
fiscal 2016, compared with $1.3 million in the third quarter of
fiscal 2016.
We expect revenue for the first quarter ending
November 30, 2016 to be $2.2 million to $2.6 million.
About SemiLEDs
SemiLEDs develops and manufactures LED chips and
LED components primarily for general lighting applications,
including street lights and commercial, industrial 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.
Non-GAAP Financial Measures
SemiLEDs has provided in this press release
adjusted financial information that has not been prepared in
accordance with accounting principles generally accepted in the
United States of America, or GAAP. SemiLEDs uses these non-GAAP
financial measures internally in analyzing its financial results
and believes they are useful to investors, as a supplement to, but
not as a substitute for, GAAP measures, in evaluating the Company’s
operational performance. SemiLEDs believes that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating operating results and trends, and in
comparing its financial results with other companies in SemiLEDs’
industry, many of which present similar non-GAAP financial measures
to investors. The historical non-GAAP financial measures presented
above exclude the following items required to be included by GAAP:
non-cash stock-based compensation charges, non-cash impairment
charges on long-lived assets, goodwill and investments, employee
termination benefits and the related tax effect, if any. In
addition to the non-GAAP financial measures discussed above,
SemiLEDs also uses free cash flow as a measure of operating
performance. Free cash flow represents cash provided by operating
activities less capital expenditures.
Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measures. A
reconciliation of historic non-GAAP financial measures to GAAP
results has been provided in the financial statement tables
included in this press release.
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 projection of future revenues, 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. 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.
Source: SemiLEDs Corporation
|
|
SEMILEDS
CORPORATION AND SUBSIDIARIESUnaudited Condensed
Consolidated Balance Sheets(In thousands of
U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
August 31, |
|
August 31, |
|
|
|
2016 |
|
2015 |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
6,030 |
|
|
$ |
|
4,808 |
|
|
Accounts receivable (including
related parties), net |
|
|
|
900 |
|
|
|
|
2,049 |
|
|
Inventories |
|
|
|
4,067 |
|
|
|
|
5,924 |
|
|
Prepaid expenses and other current
assets |
|
|
|
640 |
|
|
|
|
891 |
|
|
Total current assets |
|
|
|
11,637 |
|
|
|
|
13,672 |
|
|
Property, plant and
equipment, net |
|
|
|
8,813 |
|
|
|
|
20,779 |
|
|
Intangible assets,
net |
|
|
|
44 |
|
|
|
|
1,353 |
|
|
Goodwill |
|
|
|
— |
|
|
|
|
54 |
|
|
Investments in
unconsolidated entities |
|
|
|
1,368 |
|
|
|
|
2,014 |
|
|
Other assets |
|
|
|
373 |
|
|
|
|
648 |
|
|
TOTAL ASSETS |
|
$ |
|
22,235 |
|
|
$ |
|
38,520 |
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Current installments of long-term
debt |
|
$ |
|
314 |
|
|
$ |
|
1,068 |
|
|
Accounts payable |
|
|
|
1,326 |
|
|
|
|
1,650 |
|
|
Advance receipt toward the
convertible note |
|
|
|
500 |
|
|
|
|
— |
|
|
Accrued expenses and other current
liabilities |
|
|
|
2,761 |
|
|
|
|
3,597 |
|
|
Total current liabilities |
|
|
|
4,901 |
|
|
|
|
6,315 |
|
|
Long-term debt,
excluding current installments |
|
|
|
2,595 |
|
|
|
|
2,839 |
|
|
Other liability |
|
|
|
3,097 |
|
|
|
|
— |
|
|
Total liabilities |
|
|
|
10,593 |
|
|
|
|
9,154 |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
|
SemiLEDs stockholders’ equity |
|
|
|
|
|
|
|
Common stock |
|
|
|
— |
|
|
|
|
— |
|
|
Additional paid-in capital |
|
|
|
175,384 |
|
|
|
|
172,117 |
|
|
Accumulated other comprehensive
income |
|
|
|
3,398 |
|
|
|
|
3,083 |
|
|
Accumulated deficit |
|
|
|
(167,179 |
) |
|
|
|
(145,904 |
) |
|
Total SemiLEDs stockholders’
equity |
|
|
|
11,603 |
|
|
|
|
29,296 |
|
|
Noncontrolling interests |
|
|
|
39 |
|
|
|
|
70 |
|
|
Total equity |
|
|
|
11,642 |
|
|
|
|
29,366 |
|
|
TOTAL LIABILITIES AND
EQUITY |
|
$ |
|
22,235 |
|
|
$ |
|
38,520 |
|
|
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 |
|
Year Ended August 31, |
|
|
|
August 31, 2016 |
|
May 31, 2016 |
|
2016 |
|
2015 |
|
Revenues, net |
|
$ |
|
1,883 |
|
|
$ |
|
2,378 |
|
|
$ |
|
10,140 |
|
|
$ |
|
14,124 |
|
|
Cost of revenues |
|
|
|
3,132 |
|
|
|
|
3,828 |
|
|
|
|
15,078 |
|
|
|
|
18,214 |
|
|
Gross loss |
|
|
|
(1,249 |
) |
|
|
|
(1,450 |
) |
|
|
|
(4,938 |
) |
|
|
|
(4,090 |
) |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
|
409 |
|
|
|
|
394 |
|
|
|
|
2,026 |
|
|
|
|
2,443 |
|
|
Selling, general and
administrative |
|
|
|
1,210 |
|
|
|
|
1,267 |
|
|
|
|
4,767 |
|
|
|
|
6,986 |
|
|
Impairment of long-lived
assets |
|
|
|
8,635 |
|
|
|
|
— |
|
|
|
|
8,635 |
|
|
|
|
— |
|
|
Goodwill impairment |
|
|
|
55 |
|
|
|
|
— |
|
|
|
|
55 |
|
|
|
|
— |
|
|
Employee termination benefits |
|
|
|
— |
|
|
|
|
59 |
|
|
|
|
207 |
|
|
|
|
— |
|
|
Loss (gain) on disposals of
long-lived assets, net |
|
|
|
4 |
|
|
|
|
(29 |
) |
|
|
|
(23 |
) |
|
|
|
(221 |
) |
|
Total operating expenses |
|
|
|
10,313 |
|
|
|
|
1,691 |
|
|
|
|
15,667 |
|
|
|
|
9,208 |
|
|
Loss from
operations |
|
|
|
(11,562 |
) |
|
|
|
(3,141 |
) |
|
|
|
(20,605 |
) |
|
|
|
(13,298 |
) |
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss on investment |
|
|
|
(597 |
) |
|
|
|
— |
|
|
|
|
(597 |
) |
|
|
|
— |
|
|
Equity in loss from unconsolidated
entities |
|
|
|
— |
|
|
|
|
(79 |
) |
|
|
|
(79 |
) |
|
|
|
(56 |
) |
|
Interest expenses, net |
|
|
|
(10 |
) |
|
|
|
(13 |
) |
|
|
|
(52 |
) |
|
|
|
(94 |
) |
|
Other income (loss), net |
|
|
|
(16 |
) |
|
|
|
48 |
|
|
|
|
85 |
|
|
|
|
119 |
|
|
Foreign currency transaction gain
(loss), net |
|
|
|
4 |
|
|
|
|
(78 |
) |
|
|
|
(56 |
) |
|
|
|
12 |
|
|
Total other expenses, net |
|
|
|
(619 |
) |
|
|
|
(122 |
) |
|
|
|
(699 |
) |
|
|
|
(19 |
) |
|
Loss before income
taxes |
|
|
|
(12,181 |
) |
|
|
|
(3,263 |
) |
|
|
|
(21,304 |
) |
|
|
|
(13,317 |
) |
|
Income tax expense |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
Net loss |
|
|
|
(12,181 |
) |
|
|
|
(3,263 |
) |
|
|
|
(21,304 |
) |
|
|
|
(13,318 |
) |
|
Less: Net loss
attributable to noncontrolling interests |
|
|
|
(10 |
) |
|
|
|
(10 |
) |
|
|
|
(29 |
) |
|
|
|
(44 |
) |
|
Net loss attributable
to SemiLEDs stockholders |
|
$ |
|
(12,171 |
) |
|
$ |
|
(3,253 |
) |
|
$ |
|
(21,275 |
) |
|
$ |
|
(13,274 |
) |
|
Net loss per share
attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
|
(4.07 |
) |
|
$ |
|
(1.11 |
) |
|
$ |
|
(7.25 |
) |
|
$ |
|
(4.62 |
) |
|
Shares used in
computing net loss per share attributable to SemiLEDs
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
2,990 |
|
|
|
|
2,932 |
|
|
|
|
2,934 |
|
|
|
|
2,871 |
|
|
SEMILEDS
CORPORATION AND SUBSIDIARIESUnaudited
Reconciliation of GAAP to Non-GAAP
Measures(In thousands of U.S. dollars, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended August 31, |
|
Non-GAAP Net Loss |
|
August 31, 2016 |
|
May 31, 2016 |
|
2016 |
|
2015 |
|
GAAP net loss
attributable to SemiLEDs stockholders |
|
$ |
|
(12,171 |
) |
|
$ |
|
(3,253 |
) |
|
$ |
|
(21,275 |
) |
|
$ |
|
(13,274 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment losses |
|
|
|
9,287 |
|
|
|
|
— |
|
|
|
|
9,287 |
|
|
|
|
— |
|
|
Employee termination benefits |
|
|
|
— |
|
|
|
|
59 |
|
|
|
|
207 |
|
|
|
|
— |
|
|
Stock-based compensation
expense |
|
|
|
83 |
|
|
|
|
99 |
|
|
|
|
382 |
|
|
|
|
1,289 |
|
|
Income tax effect |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Non-GAAP net loss
attributable to SemiLEDs stockholders |
|
$ |
|
(2,801 |
) |
|
$ |
|
(3,095 |
) |
|
$ |
|
(11,399 |
) |
|
$ |
|
(11,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per
share attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
|
(4.07 |
) |
|
$ |
|
(1.11 |
) |
|
$ |
|
(7.25 |
) |
|
$ |
|
(4.62 |
) |
|
Non-GAAP net loss |
|
$ |
|
(0.94 |
) |
|
$ |
|
(1.06 |
) |
|
$ |
|
(3.88 |
) |
|
$ |
|
(4.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended August 31, |
|
Free Cash Flow |
|
August 31, 2016 |
|
May 31, 2016 |
|
2016 |
|
2015 |
|
Net cash used in operating activities |
|
$ |
|
(530 |
) |
|
$ |
|
(1,333 |
) |
|
$ |
|
(3,439 |
) |
|
$ |
|
(4,525 |
) |
|
Less: Capital expenditures |
|
|
|
154 |
|
|
|
|
184 |
|
|
|
|
821 |
|
|
|
|
1,574 |
|
|
Total free cash flows |
|
$ |
|
(684 |
) |
|
$ |
|
(1,517 |
) |
|
$ |
|
(4,260 |
) |
|
$ |
|
(6,099 |
) |
|
Contacts:
Christopher Lee
Chief Financial Officer
SemiLEDs Corporation
+886-37-586788
investor@semileds.com
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