SemiLEDs reports 22% revenue increase in second quarter of FY14 over previous quarter
HSINCHU, Taiwan--SemiLEDs Corporation (NASDAQ: LEDS), “SemiLEDs” or the “Company,” a developer and manufacturer of LED chips and LED components, has announced its financial results for the second quarter of fiscal year 2014, ended February 28, 2014.
Revenue for the second quarter of fiscal 2014 was $4.2 million, a 22% increase compared to $3.4 million in the first quarter of fiscal 2014. GAAP net loss attributable to SemiLEDs stockholders for the second quarter of fiscal 2014 was $6.4 million, or a net loss of $0.23 per diluted share, compared to GAAP net loss attributable to SemiLEDs stockholders of $6.3 million, or a net loss of $0.23 per diluted share, for the first quarter of fiscal 2014.
“We are pleased with the sequential revenue growth we achieved in the quarter, however we continue to take actions to reduce our cost and lower our negative cash flow while reorienting the business toward more profitable and specialty segments of the industry, such as UV, entertainment and architecture,” said Trung Doan, Chairman, President and CEO. “As we focus our development efforts on new product offerings and technology advances for these specialty markets, we believe our financial results will improve in the quarters to come,” concluded Doan.
On a non-GAAP basis, net loss attributable to SemiLEDs stockholders for the second quarter of fiscal 2014 was $5.9 million, or a net loss of $0.21 per diluted share, compared to non-GAAP net loss attributable to SemiLEDs stockholders of $5.8 million, or a net loss of $0.21 per diluted share, for the first quarter of fiscal 2014.
GAAP gross margin for the second quarter of fiscal 2014 was negative 75%, compared with gross margin for the first quarter of fiscal 2014 of negative 68%, primarily due to inventory write-downs as a result of increasing pricing pressure for our LED chips, and excess capacity charges. Operating margin for the second quarter of fiscal 2014 was negative 159% compared with negative 179% in the first quarter of fiscal 2014.
The Company’s cash and cash equivalents were $21.5 million at the end of the second quarter of fiscal 2014, compared to the first quarter fiscal 2014 ending balance of $28.1 million. Cash used in operating activities was $4.2 million in the second quarter of fiscal 2014.
Management’s Prepared Remarks
In conjunction with the dissemination of this release, SemiLEDs will post management’s prepared remarks for its second fiscal quarter 2014 financial results and business outlook for the fiscal third quarter on the Investors section of its website at http://investors.semileds.com/events.cfm.
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 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 projections of future revenues, income, margins or other financial information; 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.
*For the full release that includes SemiLEDs balance sheets and statements of operations, visit http://investors.semileds.com/releasedetail.cfm?ReleaseID=840070.
SemiLEDs Corporation - Timothy Lin, Interim Chief Financial Officer