SemiLEDs Reports First Quarter Fiscal Year 2017 Financial Results
January 12 2017 - 7:36AM
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 first quarter of fiscal
year 2017, ended November 30, 2016.
Revenue for the first quarter of fiscal 2017 was
$2.7 million, a 43% increase compared to $1.9 million in the fourth
quarter of fiscal 2016. GAAP net loss attributable to SemiLEDs
stockholders for the first quarter of fiscal 2017 was $0.7 million,
compared to a loss of $12.2 million in the fourth quarter of 2016,
or a net loss of $0.20 per diluted share, compared to a net loss of
$4.07 per diluted share for the fourth quarter of fiscal 2016. The
GAAP net loss of $0.7 million for the first quarter of fiscal 2017
included $0.5 million in other income from a breach of contract
lawsuit payments consisting of the $0.3 million advance receipt
payment made in March 2015 and the $0.2 million settlement payment
made in November 2016.
On a non-GAAP basis, net loss attributable to
SemiLEDs stockholders for the first quarter of fiscal 2017 was $0.6
million, or a net loss of $0.17 per diluted share, compared to
non-GAAP net loss attributable to SemiLEDs stockholders of $2.8
million, or a loss of $0.94 in the fourth quarter of 2016.
GAAP gross margin for the first quarter of
fiscal 2017 was 4%, compared with gross margin for the fourth
quarter of fiscal 2016 of negative 66%. Operating margin for the
first quarter of fiscal 2017 was negative 41%, compared with
negative 614% in the fourth quarter of fiscal 2016, which was
negatively impacted by the impairment of long-lived assets and
investments. The Company’s cash and cash equivalents was $4.8
million at November 30, 2016, compared to $6.0 million at the end
of fiscal 2016. Cash used in operating activities was $1.1 million
in the first quarter of fiscal 2017, compared with $0.5 million in
the fourth quarter of fiscal 2016.
We expect revenue for the second quarter ending
February 28, 2017 to be about $2.1 million +/- 10%.
The Chinese New Year (CNY) of 2017 will begin on
January 28, 2017. Our office and factory facilities will be closed
from January 27, 2017 until February 12, 2017. We will resume
operation on Monday, February 13, 2017.
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 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 SUBSIDIARIES |
|
Condensed Consolidated Balance Sheets |
|
(In thousands of U.S. dollars) |
|
|
|
|
|
November 30, |
|
August 31, |
|
|
|
2016 |
|
2016 |
|
|
|
(Unaudited) |
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
4,827 |
|
|
$ |
6,030 |
|
|
Accounts
receivable (including related parties), net |
|
|
1,526 |
|
|
|
900 |
|
|
Inventories |
|
|
3,777 |
|
|
|
4,067 |
|
|
Prepaid
expenses and other current assets |
|
|
788 |
|
|
|
640 |
|
|
Total
current assets |
|
|
10,918 |
|
|
|
11,637 |
|
|
Property, plant and
equipment, net |
|
|
8,451 |
|
|
|
8,813 |
|
|
Intangible assets,
net |
|
|
60 |
|
|
|
44 |
|
|
Investments in
unconsolidated entities |
|
|
1,314 |
|
|
|
1,368 |
|
|
Other assets |
|
|
354 |
|
|
|
373 |
|
|
TOTAL ASSETS |
|
$ |
21,097 |
|
|
$ |
22,235 |
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Current
installments of long-term debt |
|
$ |
313 |
|
|
$ |
314 |
|
|
Accounts
payable |
|
|
1,184 |
|
|
|
1,326 |
|
|
Advance
receipt toward the convertible note |
|
|
500 |
|
|
|
500 |
|
|
Accrued
expenses and other current liabilities |
|
|
2,496 |
|
|
|
2,761 |
|
|
Total
current liabilities |
|
|
4,493 |
|
|
|
4,901 |
|
|
Long-term debt,
excluding current installments |
|
|
2,504 |
|
|
|
2,595 |
|
|
Other liability |
|
|
3,083 |
|
|
|
3,097 |
|
|
Total
liabilities |
|
|
10,080 |
|
|
|
10,593 |
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
|
SemiLEDs
stockholders’ equity |
|
|
|
|
|
|
|
Common
stock |
|
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
|
175,467 |
|
|
|
175,384 |
|
|
Accumulated other comprehensive income |
|
|
3,385 |
|
|
|
3,398 |
|
|
Accumulated deficit |
|
|
(167,869 |
) |
|
|
(167,179 |
) |
|
Total
SemiLEDs stockholders’ equity |
|
|
10,983 |
|
|
|
11,603 |
|
|
Noncontrolling interests |
|
|
34 |
|
|
|
39 |
|
|
Total
equity |
|
|
11,017 |
|
|
|
11,642 |
|
|
TOTAL LIABILITIES AND
EQUITY |
|
$ |
21,097 |
|
|
$ |
22,235 |
|
|
|
|
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 |
|
|
|
November 30, |
|
August 31, |
|
|
|
2016 |
|
2016 |
|
Revenues, net |
|
$ |
2,702 |
|
|
$ |
1,883 |
|
|
Cost of revenues |
|
|
2,586 |
|
|
|
3,132 |
|
|
Gross
profit (loss) |
|
|
116 |
|
|
|
(1,249 |
) |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research
and development |
|
|
199 |
|
|
|
409 |
|
|
Selling,
general and administrative |
|
|
1,100 |
|
|
|
1,210 |
|
|
Impairment of long-lived assets |
|
|
— |
|
|
|
8,635 |
|
|
Goodwill
impairment |
|
|
— |
|
|
|
55 |
|
|
Loss
(gain) on disposals of long-lived assets |
|
|
(80 |
) |
|
|
4 |
|
|
Total
operating expenses |
|
|
1,219 |
|
|
|
10,313 |
|
|
Loss from
operations |
|
|
(1,103 |
) |
|
|
(11,562 |
) |
|
Other income
(expenses): |
|
|
|
|
|
|
|
Impairment loss on investment |
|
|
— |
|
|
|
(597 |
) |
|
Equity in
loss from unconsolidated entities |
|
|
(9 |
) |
|
|
— |
|
|
Interest
expenses, net |
|
|
(9 |
) |
|
|
(10 |
) |
|
Other
income (loss), net |
|
|
476 |
|
|
|
(16 |
) |
|
Foreign
currency transaction gain (loss), net |
|
|
(51 |
) |
|
|
4 |
|
|
Total
other income (expenses), net |
|
|
407 |
|
|
|
(619 |
) |
|
Loss before income
taxes |
|
|
(696 |
) |
|
|
(12,181 |
) |
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
Net loss |
|
|
(696 |
) |
|
|
(12,181 |
) |
|
Less: Net loss
attributable to noncontrolling interests |
|
|
(6 |
) |
|
|
(10 |
) |
|
Net loss attributable
to SemiLEDs stockholders |
|
$ |
(690 |
) |
|
$ |
(12,171 |
) |
|
Net loss per share
attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.20 |
) |
|
$ |
(4.07 |
) |
|
Shares used in
computing net loss per share attributable to SemiLEDs
stockholders: |
|
|
|
|
|
|
|
Basic and
diluted |
|
|
3,518 |
|
|
|
2,990 |
|
|
|
|
SEMILEDS CORPORATION AND
SUBSIDIARIES |
|
Unaudited Reconciliation of GAAP to Non-GAAP
Measures |
|
(In thousands of U.S. dollars, except per
share data) |
|
|
|
|
|
Three Months Ended |
|
|
|
November 30, |
|
August 31, |
|
Non-GAAP Net Loss |
|
2016 |
|
2016 |
|
GAAP net loss
attributable to SemiLEDs stockholders |
|
$ |
(690 |
) |
|
$ |
(12,171 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
83 |
|
|
|
83 |
|
|
Impairment losses |
|
|
— |
|
|
|
9,287 |
|
|
Income
tax effect |
|
|
— |
|
|
|
— |
|
|
Non-GAAP net loss
attributable to SemiLEDs stockholders |
|
$ |
(607 |
) |
|
$ |
(2,801 |
) |
|
|
|
|
|
|
|
|
|
Diluted net loss per
share attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
GAAP net
loss |
|
$ |
(0.20 |
) |
|
$ |
(4.07 |
) |
|
Non-GAAP
net loss |
|
$ |
(0.17 |
) |
|
$ |
(0.94 |
) |
|
|
|
|
|
Three Months Ended |
|
|
|
November 30, |
|
August 31, |
|
Free Cash Flow |
|
2016 |
|
2016 |
|
Net cash used in
operating activities |
|
$ |
(1,121 |
) |
|
$ |
(530 |
) |
|
Less: Capital
expenditures |
|
|
68 |
|
|
|
154 |
|
|
Total free cash
flows |
|
$ |
(1,189 |
) |
|
$ |
(684 |
) |
|
Contacts:
Christopher Lee
Chief Financial Officer
SemiLEDs Corporation
+886-37-586788
investor@semileds.com
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