News Article
SemiLEDs FY Q3 2011 revenues plummet by 43%
The firm says the latest quarter was challenging as pricing pressure and end demand weakness continued from the fiscal second quarter although it is now seeing prices stabilise.
Chinese developer and manufacturer of LED chips and LED components SemiLEDs Corporation, has announced its financial results for the third quarter of fiscal year 2011, ended May 31, 2011.
Revenue for the third quarter of fiscal 2011 was $5.6 million, a 43% decrease compared to $9.9 million in the third quarter of fiscal 2010.
“Our fiscal third quarter was challenging as pricing pressure and end demand weakness continued from the fiscal second quarter. However, we are seeing pricing stabilise,” said Trung Doan, Chairman and CEO of SemiLEDs.
“We remain focused on improving our cost structure by accelerating our efforts to transition to four inch wafer production at our Taiwan facility, continuing to ramp four inch production volume at China SemiLEDs, as well as supporting our customers to maximise the benefits of our metal vertical chip structures to reduce the total cost of ownership.”
GAAP net loss for the third quarter of fiscal 2011 was $5.1 million, or a loss of $0.19 per diluted share, compared to GAAP net income of $3.2 million, or $0.09 per diluted share, for the third quarter of fiscal 2010. The Company recorded a foreign currency transaction loss of $0.2 million in the quarter.
GAAP gross margin for the third quarter of fiscal 2011 was 9%, compared with 51% in the third quarter of fiscal 2010. Operating margin for the third quarter of fiscal 2011 was negative 70%, compared with 36% in the third quarter of fiscal 2010. Margins were negatively impacted by a charge of $1.1 million for the write-downs of inventory.
The Company's cash and cash equivalents was $94.4 million at the end of the third quarter, compared to the prior quarter ending balance of $102.6 million. Cash used in operations was $3.3 million in the third quarter of fiscal 2011.
For its fourth quarter of fiscal 2011 ending August 31, 2011, SemiLEDs expects revenue in a range of $5.5 million to $6.5 million with GAAP net loss of $6.7 million to $6.4 million, or a loss of $0.25 to $0.23 per diluted share, based on an estimated 27.3 million diluted weighted average shares. GAAP gross margin is expected to be negative.
Conference Call Information
SemiLEDs will discuss these financial results in a conference call at 4:30 p.m. EDT on Friday, July 8, 2011. The public is invited to listen to a live webcast of the conference call on the Investors section of the company website at http://investors.semileds.com/events.cfm.
An audio replay will be available until 8:30 p.m. EDT on Tuesday, July 12, 2011.
The audio replay may be accessed by dialling
888-203-1112 or 719-457-0820
and enter access code 9866126.
A replay of the webcast will be available on the Investors section on the Company’s web site approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.
SemiLEDs develops and manufactures LED chips and LED components primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. SemiLEDs sells blue, green and ultraviolet (UV) LED chips under the MvpLED brand.
