For its fiscal second-quarter 2013 (to end-February), LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has reported revenue of $4.8m, down 23% on $6.2m last quarter and 39% on $7.9m a year ago.
Fiscal Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Revenue $7.9m $9.2m $5.5m $6.2m $4.8m
Founded in 2005, SemiLEDs’ makes proprietary blue, green and ultraviolet (UV) LED chips under the MvpLED (metal vertical photon LED) brand for sale mainly to chip-packaging customers in China, Taiwan and other parts of Asia such as Korea, or to distributors who sell to packagers. It also packages chips into LED components for sale to distributors and end-customers in selected markets (mainly for general lighting applications, including street lights and commercial, industrial and residential lighting).
Impacted by the drop in revenue, a decline in the average selling price (ASP) of LED chips, and excess capacity charges for the firm’s LED chips, gross margin has deteriorated further, from negative 9% a year ago and negative 53% last quarter to negative 69%. “Demand has improved; however, the pricing environment for the general lighting market remains challenging,” says chairman, president & CEO Trung Doan.
R&D expenses have been cut further, from $2m a year ago and $1.2m last quarter to $1m. Selling, general & administrative (SG&A) expenses have also fallen, from $3.7m last quarter to $2.6m. Total operating expenses have hence been cut from $5.1m a year ago and $4.9m last quarter to $3.6m.
On a non-GAAP basis, net loss has been cut to $5.4m, compared to $8.6m last quarter and $6.1m a year ago. Cash used in operating activities was $4.2m, down from $4.5m a year ago. Also, capital expenditure has fallen further, from $3.3m a year ago and $1.7m last quarter to just $0.37m. Hence, total cash burn has been cut further, from $7.8m a year ago and $4.9m last quarter to $4.6m.
“We are on the right track and this is a turning point for SemiLEDs,” Doan believes. “From an execution standpoint, we need to focus on profitable markets and control cost,” he concludes.
