15 July 2015

SemiLEDs' operating efficiency improvements yield positive quarterly cash flow

For fiscal third-quarter 2015 (ended 31 May), LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has reported revenue of $3.5m, down 23% on $4.6m both last quarter and a year ago but at the mid-point of the $3-4m guidance range.

Revenue from LED chips grew by 47% sequentially (rebounding from a low of 11% of total revenue last quarter to 22%). Revenue from LED components fell by 36% sequentially (dropping back from the spike to 69% of total revenue last quarter to 58%) and revenue from lighting products fell by 38% sequentially (dropping back from 19% of revenue to 15%).

Gross margin has fallen back from negative 14% last quarter to negative 24%, although this is still better than negative 61% a year ago. Selling, general & administrative (SG&A) expenses have fallen by $255,000 from $1,876,000 last quarter to $1,621,000, while research and development (R&D) expenses have been cut by $18,000 from $612,000 to $594,000. Likewise, operating margin has fallen back from negative 62% to negative 88%, although that is better than negative 138% a year ago.

On a non-GAAP basis, net loss was back up from $2.5m ($0.09 per diluted share) last quarter to $2.8m ($0.10 per diluted share).

Cash inflow from operating activities was +$0.1m, versus cash used in operating activities of $1.36m last quarter. "Our continuing efforts to improve operating efficiency have resulted in a positive cash inflow from operating activities," says chairman, president & CEO Trung Doan. Capital expenditure has been cut further, from $423,000 last quarter to $275,000. Hence, free cash flow was negative $0.17m, cut from negative $1.8m last quarter. During the quarter, cash and cash equivalents fell from $6.7m to $6m. "As we reduce our cost and expect to secure new design wins, we look forward to further improving our cash position and margin," adds Doan. "Our focus remains on specialty, complete and high-end LED solutions." 

For fiscal fourth-quarter 2015 (to end-August), SemiLEDs expects revenue to be steady at $3.2-3.8m.

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Tags: SemiLEDs

Visit: www.semileds.com