For fiscal first-quarter 2015 (to end-November 2014), LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has reported revenue of $2.9m, down 15% on $3.4m a year ago but up 29% on $2.3m last quarter, due to both design wins in target end-markets and the completion of previously announced facility consolidation activities.
Revenue from LED chips grew by 40% sequentially (comprising 24% of total revenue). Revenue from LED components grew 50% (comprising 55% of total revenue). However, this was offset by revenue from lighting products falling 15% (comprising 13% of revenue).
Gross margin has improved from last quarter’s negative 134% to negative 53% (also better than the minus 75% a ,year ago).
While R&D expenses have been cut further by $81,000 from $0.83m to $0.75m, selling, general & administrative (SG&A) expenses have risen by $300,000 from $1.85m last quarter to $2.15m. So, total operating expenses have risen slightly from $2.67m to $2.9m (though still less than $3.5m a year ago). Despite this, operating margin has improved from last quarter’s negative 251% to negative 152% (better than the negative 159% a year ago).
On a non-GAAP basis, net loss was $3.9m, cut from $5m last quarter and $5.9m a year ago.
Although better than $4.2m a year ago, cash used in operations has risen from $1.9m last quarter to $2.7m. So, despite capital expenditure being cut from $0.93m a year ago and $0.77m last quarter to $0.6m, free cash outflow has hence worsened from $2.7m last quarter to $3.3m (though still better than $5.1m a year ago). Consequently, during the quarter, cash and cash equivalents fell from $12.6m to $8.7m.
“As discussed last quarter, while relocation efforts were largely complete by the end of the fourth quarter, we continued to experience lingering effects of these activities in the first fiscal quarter as we completed the hook-up and start-up of this equipment,” chairman, president & CEO Trung Doan. “With our facility consolidation now concluded and new design wins in our target markets, we look forward to realizing further benefits from these efforts in the second fiscal quarter.”
Consequently, for fiscal Q2/2015 (to end-February), SemiLEDs expects revenue to grow further, to $3.4-3.7m.
On 23 December, SemiLEDs entered into a definitive common stock purchase agreement for XiaoQing Han, chairman & CEO of Beijing XiaoQing Environmental Protection Group, to acquire a 15% stake in the firm’s common stock at a purchase price of $1 per share (totalling $5m). By aligning their interests, both firms expect to benefit from operating synergies generated through the potential formation of several joint projects, including utilizing LED technology in waste-water treatment plants as well as packaging LED luminaries in provinces and regions throughout China. Han will join the SemiLEDs’ board of directors upon closing of the transaction.
