SemiLEDs Announced Its Financial Results for The Fourth Quarter

SemiLEDs, a developer and manufacturer of LED chips and LED components, has announced its financial results for the fourth quarter of fiscal year 2011, ended August 31, 2011. Revenue for the fourth quarter of fiscal 2011 was USUS$5.3 million, a 54% decrease from USUS$11.5 million in the fourth quarter of fiscal 2010. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2011 was US$13.6 million, or a loss of US$0.50 per diluted share, compared to GAAP net income attributable to SemiLEDs stockholders of US$5.3 million, or US$0.18 per diluted share, for the fourth quarter of fiscal 2010. "As expected, the market remained challenging in Asia for LED chips and components. The China market is not improving due to inflationary and monetary issues together with depressed economic conditions around the world. We continue to see pricing pressure due to the weak demand in the China outdoor street lighting market, together with the overcapacity of backlight that has spilled over to the general lighting market. The ASP erosion is not as extreme as in prior quarters and prices have stabilized somewhat," said Trung Doan, chairman and CEO of SemiLEDs. "With so much uncertainty, we remain cautious in our near term outlook but continue to believe in the industry's long term market opportunities. When the Chinese government releases funds for the five-year plan, we expect to benefit given that we are one of the few companies that meets the program's requirements and that we have local presence with our JV, China SemiLEDs," continued Doan. Revenue for the fiscal year end 2011 was US$33.9 million, a 5.2% decrease compared to US$35.8 million for the fiscal year end 2010. GAAP net loss attributable to SemiLEDs stockholders for the fiscal year 2011 was US$16.1 million, or a loss of US$0.88 per diluted share, compared to GAAP net income attributable to SemiLEDs stockholders of US$10.8 million, or US$0.24 per diluted share, for the fiscal year 2010. GAAP gross margin for the fourth quarter of fiscal 2011 was negative 93%, compared with 53% in the fourth quarter of fiscal 2010. Operating margin for the fourth quarter of fiscal 2011 was negative 228%, compared with 42% in the fourth quarter of fiscal 2010. Margins were negatively impacted by a charge of US$4.3 million for the write-downs of inventory and a charge of US$1.1 million for bad debt reserve. Financial Outlook For its first quarter of fiscal 2012 ending November 30, 2011, SemiLEDs expects revenue in a range of US$6.0 million to US$7.0 million with GAAP net loss attributable to SemiLEDs stockholders of US$8.5 million to US$8.0 million, or a loss of US$0.31 to US$0.29 per diluted share, based on an estimated 27.3 million diluted weighted average shares. GAAP gross margin is expected to be negative. Source: www.digitimes.com