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 fourth quarter and full year of fiscal year 2023, ended August 31, 2023.

Revenue for the fourth quarter of fiscal 2023 decreased to $1.5 million, compared to $1.7 million in the third quarter of fiscal 2023. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2023 increased to $881 thousand, or $(0.18) per diluted share, compared to a net loss of $756 thousand, or $(0.15) per diluted share, in the third quarter of fiscal 2023.

GAAP gross margin for the fourth quarter of fiscal 2023 decreased to 3%, compared to 14% for the third quarter of fiscal 2023. Operating margin for the fourth quarter of fiscal 2023 decreased to negative 73%, compared with negative 58% for the third quarter of fiscal 2023. The Company’s cash and cash equivalents were $2.6 million at August 31, 2023, compared to $3.0 million at the end of the third quarter of fiscal 2023.

We expect revenue for the first quarter ending November 30, 2023 to be approximately $1.5 million +/- 10%.

Revenues for fiscal year 2023 decreased to $6.0 million, compared to $7.1 million in fiscal year 2022. GAAP net loss attributable to SemiLEDs stockholders for fiscal year 2023 was $2.7 million, or $(0.55) per diluted share, compared to a net loss of $2.7 million, or $(0.61) per diluted share, in fiscal year 2022.

GAAP gross margin for fiscal year 2023 decreased to 17%, compared with gross margin for fiscal year 2022 of 20%. Operating margin for fiscal year 2023 decreased to negative 57%, compared with negative 45% in fiscal year 2022. The Company’s cash and cash equivalents were $2.6 million as of August 31, 2023, compared to $4.3 million as of August 31, 2022.

About SemiLEDs

SemiLEDs develops, manufactures, and sells 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 first quarter ending November 30, 2023, 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.

 

SEMILEDS CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

 

 

August 31,

 

 

August 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,572

 

 

$

4,274

 

Restricted cash and cash equivalents

 

 

78

 

 

 

82

 

Accounts receivable (including related parties), net

 

 

793

 

 

 

880

 

Inventories

 

 

4,022

 

 

 

3,784

 

Prepaid expenses and other current assets

 

 

129

 

 

 

123

 

Total current assets

 

 

7,594

 

 

 

9,143

 

Property, plant and equipment, net

 

 

3,233

 

 

 

4,139

 

Operating lease right of use assets

 

 

1,371

 

 

 

1,578

 

Intangible assets, net

 

 

97

 

 

 

102

 

Investments in unconsolidated entities

 

 

974

 

 

 

922

 

Other assets

 

 

186

 

 

 

170

 

TOTAL ASSETS

 

$

13,455

 

 

$

16,054

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Current installments of long-term debt

 

$

5,042

 

 

$

5,063

 

Accounts payable

 

 

436

 

 

 

286

 

Accrued expenses and other current liabilities

 

 

2,711

 

 

 

2,702

 

Other payable to related parties

 

 

1,374

 

 

 

1,061

 

Operating lease liabilities, current portion

 

 

139

 

 

 

143

 

Total current liabilities

 

 

9,702

 

 

 

9,255

 

Long-term debt, excluding current installments

 

 

1,327

 

 

 

1,866

 

Operating lease liabilities, less current portion

 

 

1,232

 

 

 

1,435

 

Total liabilities

 

 

12,261

 

 

 

12,556

 

Commitments and contingencies

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

SemiLEDs stockholders’ equity

 

 

 

 

 

 

Common stock

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

184,246

 

 

 

183,711

 

Accumulated other comprehensive income

 

 

3,550

 

 

 

3,697

 

Accumulated deficit

 

 

(186,645

)

 

 

(183,955

)

Total SemiLEDs stockholders’ equity

 

 

1,151

 

 

 

3,453

 

Noncontrolling interests

 

 

43

 

 

 

45

 

Total equity

 

 

1,194

 

 

 

3,498

 

TOTAL LIABILITIES AND EQUITY

 

$

13,455

 

 

$

16,054

 

 

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, 2023

 

 

May 31, 2023

 

 

2023

 

 

2022

 

Revenues, net

 

$

 

1,453

 

 

$

 

1,679

 

 

$

 

5,979

 

 

$

 

7,051

 

Cost of revenues

 

 

 

1,412

 

 

 

 

1,438

 

 

 

 

4,972

 

 

 

 

5,654

 

Gross profit

 

 

 

41

 

 

 

 

241

 

 

 

 

1,007

 

 

 

 

1,397

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

321

 

 

 

 

372

 

 

 

 

1,353

 

 

 

 

1,484

 

Selling, general and administrative

 

 

 

787

 

 

 

 

850

 

 

 

 

3,058

 

 

 

 

3,309

 

Gain on disposals of long-lived assets, net

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(196

)

Total operating expenses

 

 

 

1,108

 

 

 

 

1,222

 

 

 

 

4,411

 

 

 

 

4,597

 

Loss from operations

 

 

 

(1,067

)

 

 

 

(981

)

 

 

 

(3,404

)

 

 

 

(3,200

)

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment loss on investments

 

 

 

(1

)

 

 

 

—

 

 

 

 

(1

)

 

 

 

—

 

Gain on disposals of investment

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Interest expenses, net

 

 

 

(68

)

 

 

 

(67

)

 

 

 

(287

)

 

 

 

(369

)

Other income, net

 

 

 

288

 

 

 

 

295

 

 

 

 

1,054

 

 

 

 

1,485

 

Foreign currency transaction (loss) gain, net

 

 

 

(32

)

 

 

 

(3

)

 

 

 

(52

)

 

 

 

(642

)

Total other income, net

 

 

 

187

 

 

 

 

225

 

 

 

 

714

 

 

 

 

474

 

Loss before income taxes

 

 

 

(880

)

 

 

 

(756

)

 

 

 

(2,690

)

 

 

 

(2,726

)

Income tax expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net loss

 

 

 

(880

)

 

 

 

(756

)

 

 

 

(2,690

)

 

 

 

(2,726

)

Less: Net income (loss) attributable to noncontrolling interests

 

 

 

1

 

 

 

 

—

 

 

 

 

—

 

 

 

 

18

 

Net loss attributable to SemiLEDs stockholders

 

$

 

(881

)

 

$

 

(756

)

 

$

 

(2,690

)

 

$

 

(2,744

)

Net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

 

(0.18

)

 

$

 

(0.15

)

 

$

 

(0.55

)

 

$

 

(0.61

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 

4,903

 

 

 

 

4,897

 

 

 

 

4,881

 

 

 

 

4,522

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231110883864/en/

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