HSINCHU, Taiwan--SemiLEDs Corporation (NASDAQ: LEDS), “SemiLEDs” or the “Company,” a developer and manufacturer of LED chips and LED components, today announced its financial results for the fourth quarter and full year of fiscal year 2015, ended August 31, 2015.
Revenue for the fourth quarter of fiscal 2015 was $3.1 million, an 11% decrease compared to $3.5 million in the third quarter of fiscal 2015. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2015 was $3.0 million, which is the same as the third quarter of fiscal 2015, or a net loss of $0.10 per diluted share, compared to a net loss of $0.11 per diluted share for the third quarter of fiscal 2015.
“We are restructuring to move toward a fabless business model in which we will utilize Foundry Fabs to ODM our chips using our developed technology,” said Trung Doan, Chairman, President and CEO. “This will enable us to focus on our higher margin and less capital intensive Component business,” concluded Doan.
On a non-GAAP basis, net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2015 was $2.8 million, or a net loss of $0.10 per diluted share, which is the same as the third quarter of fiscal 2015.
Revenue for fiscal 2015 was $14.1 million, a 2% decrease compared to $14.5 million for fiscal 2014. GAAP net loss attributable to SemiLEDs stockholders for fiscal 2015 was $13.3 million, or a net loss of $0.46 per diluted share, compared to GAAP net loss attributable to SemiLEDs stockholders of $24.5 million, or a net loss of $0.87 per diluted share, for fiscal 2014.
On a non-GAAP basis, net loss attributable to SemiLEDs stockholders for fiscal 2015 was $12.0 million, or a net loss of $0.42 per diluted share, compared to non-GAAP net loss attributable to SemiLEDs stockholders of $22.5 million, or a net loss of $0.80 per diluted share, for fiscal 2014.
GAAP gross margin for the fourth quarter of fiscal 2015 was negative 33%, compared with gross margin for the third quarter of fiscal 2015 of negative 24%. Operating margin for the fourth quarter of fiscal 2015 was negative 94%, compared with negative 88% in the third quarter of fiscal 2015. The Company’s cash and cash equivalents were $4.8 million at the end of fiscal 2015, compared to $6.0 million at the end of the third quarter of fiscal 2015. Cash used in operating activities was $0.6 million in the fourth quarter of fiscal 2015, compared to cash provided by operating activities of $0.1 million in the third quarter of fiscal 2015.
Management’s Prepared Remarks
In conjunction with the dissemination of this release, SemiLEDs will post management’s prepared remarks for the fourth quarter and fiscal 2015 financial results on the Investors section of its website at http://investors.semileds.com/events.cfm.
SemiLEDs develops and manufactures LED chips and LED components primarily for general lighting applications, including street lights and commercial, industrial and residential lighting, along with specialty industrial applications such as ultraviolet (UV) curing, medical/cosmetic, counterfeit detection, horticulture, architectural lighting and entertainment lighting. SemiLEDs sells blue, white, green and UV LED chips.
Non-GAAP Financial Measures
SemiLEDs has provided in this press release adjusted financial information that has not been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. SemiLEDs uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to, but not as a substitute for, GAAP measures, in evaluating the Company’s operational performance. SemiLEDs believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating operating results and trends, and in comparing its financial results with other companies in SemiLEDs’ industry, many of which present similar non-GAAP financial measures to investors. The historical non-GAAP financial measures presented above exclude the following items required to be included by GAAP: non-cash stock-based compensation charges, and the related tax effect, if any. In addition to the non-GAAP financial measures discussed above, SemiLEDs also uses free cash flow as a measure of operating performance. Free cash flow represents cash provided by operating activities less capital expenditures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of historic non-GAAP financial measures to GAAP results has been provided in the financial statement tables included in this press release.
Forward Looking Statements
This press release contains statements that may constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of future revenues, income, margins or other financial information and our plans to move to a fabless business model; any statements about historical results that may suggest trends for SemiLEDs’ business; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief regarding recovery of the LED industry, market opportunities and other future events or technology developments; any statements regarding SemiLEDs’ position to capitalize on any market opportunities; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are based on current expectations, estimates, forecasts and projections of future SemiLEDs’ or industry performance based on management’s judgment, beliefs, current trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. SemiLEDs’ Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and other SemiLEDs filings with the SEC (which you may obtain for free at the SEC’s website at http://www.sec.gov) discuss some of the important risks and other factors that may affect SemiLEDs’ business, results of operations and financial condition. SemiLEDs undertakes no intent or obligation to publicly update or revise any of these forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Consolidated Balance Sheets
(In thousands of U.S. dollars)
|Cash and cash equivalents||$||4,808||$||12,649|
|Accounts receivable (including related parties), net||2,049||2,171|
|Prepaid expenses and other current assets||891||1,909|
|Total current assets||13,672||25,941|
|Property, plant and equipment, net||20,779||27,063|
|Intangible assets, net||1,353||1,586|
|Investments in unconsolidated entities||2,014||2,204|
|LIABILITIES AND EQUITY|
|Current installments of long-term debt||$||1,068||$||1,934|
|Accrued expenses and other current liabilities||3,597||4,860|
|Total current liabilities||6,315||9,469|
|Long-term debt, excluding current installments||2,839||4,256|
|Commitments and contingencies|
|SemiLEDs stockholders’ equity|
|Additional paid-in capital||172,117||170,953|
|Accumulated other comprehensive income||3,083||5,583|
|Total SemiLEDs stockholders’ equity||29,296||43,906|
|TOTAL LIABILITIES AND EQUITY||$||38,520||$||57,617|
Consolidated Statements of Operations
(In thousands of U.S. dollars and shares, except per share data)
|Three Months Ended||Year Ended August 31,|
August 31, 2015
|May 31, 2015||2015||2014|
|Cost of revenues||4,159||4,367||18,214||25,792|
|Research and development||489||594||2,443||4,199|
|Selling, general and administrative||1,338||1,621||6,986||9,279|
Loss (Gain) on disposals of long-lived asset, net
|Total operating expenses||1,893||2,215||9,208||13,478|
|Loss from operations||(2,930||)||(3,074||)||(13,298||)||(24,789||)|
|Other income (expenses):|
|Equity in losses from unconsolidated entities, net||(40||)||40||(56||)||(183||)|
|Interest expenses, net||(20||)||(26||)||(94||)||(83||)|
|Other income, net||31||29||119||519|
|Foreign currency transaction income (loss), net||(37||)||(15||)||12||(74||)|
|Total other income (expenses), net||(66||)||28||(19||)||179|
|Loss before income taxes||(2,996||)||(3,046||)||(13,317||)||(24,610||)|
|Income tax expense||—||—||1||—|
|Less: Net loss attributable to noncontrolling interests||4||(5||)||(44||)||(135||)|
|Net loss attributable to SemiLEDs stockholders||$||(3,000||)||$||(3,041||)||$||(13,274||)||$||(24,475||)|
|Net loss per share attributable to SemiLEDs stockholders:|
|Basic and diluted||$||(0.10||)||$||(0.11||)||$||(0.46||)||$||(0.87||)|
|Shares used in computing net loss per share attributable to SemiLEDs stockholders:|
|Basic and diluted||29,133||28,567||28,710||28,141|
Unaudited Reconciliation of GAAP to Non-GAAP Measures
(In thousands of U.S. dollars, except per share data)
|Three Months Ended||Year Ended August 31,|
|Non-GAAP Net Loss||August 31, 2015||May 31, 2015||2015||2014|
|GAAP net loss attributable to SemiLEDs stockholders||$||(3,000||)||$||(3,041||)||$||(13,274||)||$||(24,475||)|
|Stock-based compensation expense||197||267||1,289||1,945|
|Income tax effect||—||—||—||—|
|Non-GAAP net loss attributable to SemiLEDs stockholders||$||(2,803||)||$||(2,774||)||$||(11,985||)||$||(22,530||)|
|Diluted net loss per share attributable to SemiLEDs stockholders:|
|GAAP net loss||$||(0.10||)||$||(0.11||)||$||(0.46||)||$||(0.87||)|
|Non-GAAP net loss||$||(0.10||)||$||(0.10||)||$||(0.42||)||$||(0.80||)|
|Three Months Ended||Year Ended August 31,|
|Free Cash Flow||August 31, 2015||May 31, 2015||2015||2014|
|Net cash provided by (used in) operating activities||$||(597)||$||104||$||(4,525||)||$||(15,698||)|
|Less: Capital expenditures||275||275||1,574||2,682|
|Total free cash flows||$||(872||)||$||(171||)||$||(6,099||)||$||(18,380||)|