SemiLEDs Reports Increase of Its Revenue

SemiLEDs reports revenue up 16.5% quarter-to-quarter

For its fiscal third-quarter 2012 (to end-May 31), LED chip and component maker SemiLEDs Corp of Hsinchu Science Park, Taiwan has reported revenue of $9.2m, up 16.5% on $7.9m last quarter and 64% on $5.6m a year ago, and exceeding the forecast 6% growth to $7.9-8.9m.

Founded in 2005, SemiLEDs' manufactures 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).

Operating margin has fallen back from last quarter's negative 73% to negative 87% (compared with negative 70% a year ago). Margins were negatively impacted by excess capacity charge of $1.6m and a provision for potential patent litigation settlement of $1.5m. In late June, SemiLEDs and LED chip, lamp and lighting fixture maker Cree Inc of Durham, NC, USA agreed to end their respective patent infringement litigation against each other. As part of the settlement, SemiLEDs agreed to make a one-time payment to Cree for past damages, and agreed to an injunction (effective 1 October) prohibiting the importation and sale of its accused products in the USA. The parties also agreed to withdraw the remaining claims without prejudice to the right to assert their respective claims in the future.

On a non-GAAP basis, net loss was $8m, up from $6.1m last quarter and almost double the $4.3m of a year ago. However, cash used in operating activities has been cut from $4.5m last quarter to $2.5m. Hence, although cash and cash equivalents fell from $66.4m to $62.9m during the quarter, this cash burn is less than last quarter.

''While we have been prudent in our spending this past year, we have continued to invest in R&D [for which expenses have more than doubled from $1m a year ago to $2.2m],''says chairman & CEO Trung Doan.

In late June, SemiLEDs launched its Enhanced Vertical (EV) LED product series, which features the firm's vertical chip structure on a patented metal alloy substrate, offering advantages in optical output and high thermal conductivity, it is claimed. However, the EV LED has been designed to also have higher thermal endurance, ensuring better reliability at higher temperatures.

''These products, which we are introducing globally, increase our addressable market and are the foundation for future revenue growth. We have already received interest and have some customers that have begun the evaluation process,'' Doan adds. ''We look forward to announcing more innovative products in the months to come,'' he concludes.