News Article
SemiLEDs margins slashed by excess capacity and patent litigation
The firm's margins were negatively impacted in the third quarter of fiscal 2012 by excess capacity charge of $1.6 million and a provision for potential litigation settlement of $1.5 million
Taiwanese LED chipaker, SemiLEDs has announced its financial results for the third quarter of fiscal year 2012, ended May 31, 2012.
Revenue for the third quarter of fiscal 2012 was $9.2 million, a 64% increase compared to $5.6 million in the third quarter of fiscal 2011.
“While we have been prudent in our spending this past year, we have continued to invest in research and development. We are excited about the prospects for our recently announced Enhanced Vertical (EV) LED product series. 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,” said Trung Doan, Chairman and CEO of SemiLEDs.
“We look forward to announcing more innovative products in the months to come that will further strengthen our position in the market place,” concluded Doan.
GAAP net loss attributable to SemiLEDs stockholders for the third quarter of fiscal 2012 was $10.0 million, or a net loss of $0.36 per diluted share, compared to GAAP net loss attributable to SemiLEDs stockholders of $5.1 million, or a net loss of $0.19 per diluted share, for the third quarter of fiscal 2011.
GAAP gross margin for the third quarter of fiscal 2012 was negative 11%, compared with positive gross margin for the third quarter of fiscal 2011 of 9%. Operating margin for the third quarter of fiscal 2012 was negative 87%, compared with negative 70% in the third quarter of fiscal 2011. Margins were negatively impacted in the third quarter of fiscal 2012 by excess capacity charge of $1.6 million and a provision for potential litigation settlement of $1.5 million.
SemiLEDs agreed to make a one-time payment to Cree for past damages and to an injunction, effective October 1st, 2012, to stop the importation and sale of SemiLEDs’ accused products in the United States. The parties have agreed to withdraw the remaining claims without prejudice to the right to assert their respective claims in the future.
The Company’s cash and cash equivalents were $62.9 million at the end of the third quarter of fiscal 2012, compared to the second quarter ending balance of $66.4 million. Cash used in operating activities was $2.5 million in the third quarter of fiscal 2012.
SemiLEDs discussed these financial results in a conference call yesterday. A replay of the webcast is available on the Investors section of the Company’s website and will remain available for approximately 90 calendar days.
