Attached files
| file | filename |
|---|---|
| 8-K - 2017Q4-8-K-PR - SemiLEDs Corp | leds-8k_20171114.htm |
Exhibit 99.1
SemiLEDs Reports Fourth Quarter and Fiscal Year End 2017
Financial Results
Hsinchu, Taiwan (November 15, 2017) — 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 2017, ended August 31, 2017.
Revenue for the fourth quarter of fiscal 2017 was $2.6 million, a 22% increase compared to $2.1 million in the third quarter of fiscal 2017. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2017 was $0.7 million, compared to a loss of $1.6 million in the third quarter of 2017, or a net loss of $0.19 per diluted share, compared to a net loss of $0.45 per diluted share for the third quarter of fiscal 2017.
GAAP gross margin for the fourth quarter of fiscal 2017 was 6%, compared with gross margin for the third quarter of fiscal 2017 of negative 9%. Operating margin for the fourth quarter of fiscal 2017 was negative 31%, compared with negative 61% in the third quarter of fiscal 2017. The Company’s cash and cash equivalents was $3.6 million as of August 31, 2017, compared to $3.1 million at the end of the third quarter of fiscal 2017. The net cash inflows in operating activities was $0.5 million in the fourth quarter of fiscal 2017, compared with net cash outflows $0.9 million in the third quarter of fiscal 2017.
We expect revenue for the first quarter ending November 30, 2017 to be $2.1 million +/- 15%.
Revenue for the fiscal year 2017 was $9.2 million, a 9% decrease compared to $10.1 million in the fiscal year 2016. GAAP net loss attributable to SemiLEDs stockholders for the fiscal year 2017 was $4.1 million, compared to a loss of $21.3 million in the fiscal year 2016 or a net loss of $1.16 per diluted share, compared to a net loss of $7.25 per diluted share for the fiscal year 2016.
GAAP gross margin for the fiscal year 2017 was 1%, compared with gross margin for the fiscal year 2016 of negative 49%. Operating margin for the fiscal year 2017 was negative 47%, compared with negative 203% in the fiscal year 2017. The Company’s cash and cash equivalents was $3.6 million as of August 31, 2017, compared to $6.0 million as of August 31, 2016. The net cash outflows in operating activities was $2.1 million in the fiscal year 2017, compared with net cash outflows $3.4 million in the fiscal year 2016.
About SemiLEDs
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.
1
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 projection of future revenues, 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.
Contacts:
|
Christopher Lee |
|
Chief Financial Officer |
|
SemiLEDs Corporation |
|
+886-37-586788 |
|
investor@semileds.com |
2
SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)
|
|
|
August 31, |
|
|
August 31, |
|
|
||
|
|
|
2017 |
|
|
2016 |
|
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,582 |
|
|
$ |
6,030 |
|
|
|
Accounts receivable (including related parties), net |
|
|
1,111 |
|
|
|
900 |
|
|
|
Inventories |
|
|
2,946 |
|
|
|
4,067 |
|
|
|
Prepaid expenses and other current assets |
|
|
405 |
|
|
|
640 |
|
|
|
Total current assets |
|
|
8,044 |
|
|
|
11,637 |
|
|
|
Property, plant and equipment, net |
|
|
8,275 |
|
|
|
8,813 |
|
|
|
Intangible assets, net |
|
|
104 |
|
|
|
44 |
|
|
|
Investments in unconsolidated entities |
|
|
992 |
|
|
|
1,368 |
|
|
|
Other assets |
|
|
255 |
|
|
|
373 |
|
|
|
TOTAL ASSETS |
|
$ |
17,670 |
|
|
$ |
22,235 |
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
335 |
|
|
$ |
314 |
|
|
|
Accounts payable |
|
|
1,145 |
|
|
|
1,326 |
|
|
|
Advance receipt toward the convertible note |
|
|
500 |
|
|
|
500 |
|
|
|
Accrued expenses and other current liabilities |
|
|
5,482 |
|
|
|
2,761 |
|
|
|
Total current liabilities |
|
|
7,462 |
|
|
|
4,901 |
|
|
|
Long-term debt, excluding current installments |
|
|
2,391 |
|
|
|
2,595 |
|
|
|
Other liability |
|
|
— |
|
|
|
3,097 |
|
|
|
Total liabilities |
|
|
9,853 |
|
|
|
10,593 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
|
|
|
|
SemiLEDs stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
— |
|
|
|
— |
|
|
|
Additional paid-in capital |
|
|
175,386 |
|
|
|
175,384 |
|
|
|
Accumulated other comprehensive income |
|
|
3,701 |
|
|
|
3,398 |
|
|
|
Accumulated deficit |
|
|
(171,270 |
) |
|
|
(167,179 |
) |
|
|
Total SemiLEDs stockholders’ equity |
|
|
7,817 |
|
|
|
11,603 |
|
|
|
Noncontrolling interests |
|
|
— |
|
|
|
39 |
|
|
|
Total equity |
|
|
7,817 |
|
|
|
11,642 |
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
17,670 |
|
|
$ |
22,235 |
|
|
3
SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Condensed 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, 2017 |
|
|
May 31, 2017 |
|
|
2017 |
|
|
2016 |
|
|
||||||||
|
Revenues, net |
|
$ |
|
2,571 |
|
|
$ |
|
2,111 |
|
|
$ |
|
9,214 |
|
|
$ |
|
10,140 |
|
|
|
Cost of revenues |
|
|
|
2,426 |
|
|
|
|
2,297 |
|
|
|
|
9,132 |
|
|
|
|
15,078 |
|
|
|
Gross loss |
|
|
|
145 |
|
|
|
|
(186 |
) |
|
|
|
82 |
|
|
|
|
(4,938 |
) |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
|
200 |
|
|
|
|
257 |
|
|
|
|
851 |
|
|
|
|
2,026 |
|
|
|
Selling, general and administrative |
|
|
|
788 |
|
|
|
|
879 |
|
|
|
|
3,708 |
|
|
|
|
4,767 |
|
|
|
Impairment of long-lived assets |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
8,635 |
|
|
|
Goodwill impairment |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
55 |
|
|
|
Employee termination benefits |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
207 |
|
|
|
Gain on disposals of long-lived assets, net |
|
|
|
(36 |
) |
|
|
|
(33 |
) |
|
|
|
(149 |
) |
|
|
|
(23 |
) |
|
|
Total operating expenses |
|
|
|
952 |
|
|
|
|
1,103 |
|
|
|
|
4,410 |
|
|
|
|
15,667 |
|
|
|
Loss from operations |
|
|
|
(807 |
) |
|
|
|
(1,289 |
) |
|
|
|
(4,328 |
) |
|
|
|
(20,605 |
) |
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss on investment |
|
|
|
— |
|
|
|
|
(352 |
) |
|
|
|
(352 |
) |
|
|
|
(597 |
) |
|
|
Equity in loss from unconsolidated entities |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(11 |
) |
|
|
|
(79 |
) |
|
|
Interest expenses, net |
|
|
|
(8 |
) |
|
|
|
(9 |
) |
|
|
|
(34 |
) |
|
|
|
(52 |
) |
|
|
Other income (loss), net |
|
|
|
69 |
|
|
|
|
29 |
|
|
|
|
594 |
|
|
|
|
85 |
|
|
|
Foreign currency transaction gain (loss), net |
|
|
|
73 |
|
|
|
|
35 |
|
|
|
|
27 |
|
|
|
|
(56 |
) |
|
|
Total other expenses, net |
|
|
|
134 |
|
|
|
|
(297 |
) |
|
|
|
224 |
|
|
|
|
(699 |
) |
|
|
Loss before income taxes |
|
|
|
(673 |
) |
|
|
|
(1,586 |
) |
|
|
|
(4,104 |
) |
|
|
|
(21,304 |
) |
|
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||
|
Net loss |
|
|
|
(673 |
) |
|
|
|
(1,586 |
) |
|
|
|
(4,104 |
) |
|
|
|
(21,304 |
) |
|
|
Less: Net loss attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
— |
|
|
|
|
(13 |
) |
|
|
|
(29 |
) |
|
|
Net loss attributable to SemiLEDs stockholders |
|
$ |
|
(673 |
) |
|
$ |
|
(1,586 |
) |
|
$ |
|
(4,091 |
) |
|
$ |
|
(21,275 |
) |
|
|
Net loss per share attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
|
(0.19 |
) |
|
$ |
|
(0.45 |
) |
|
$ |
|
(1.16 |
) |
|
$ |
|
(7.25 |
) |
|
|
Shares used in computing net loss per share attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
3,544 |
|
|
|
|
3,544 |
|
|
|
|
3,544 |
|
|
|
|
2,934 |
|
|
4
SEMILEDS CORPORATION AND SUBSIDIARIES
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, 2017 |
|
|
May 31, 2017 |
|
|
2017 |
|
|
2016 |
|
||||||||
|
GAAP net loss attributable to SemiLEDs stockholders |
|
$ |
|
(673 |
) |
|
$ |
|
(1,586 |
) |
|
$ |
|
(4,091 |
) |
|
$ |
|
(21,275 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment losses |
|
|
|
— |
|
|
|
|
352 |
|
|
|
|
352 |
|
|
|
|
9,287 |
|
|
Employee termination benefits |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
207 |
|
|
Stock-based compensation expense |
|
|
|
(182 |
) |
|
|
|
43 |
|
|
|
|
25 |
|
|
|
|
382 |
|
|
Income tax effect |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Non-GAAP net loss attributable to SemiLEDs stockholders |
|
$ |
|
(855 |
) |
|
$ |
|
(1,191 |
) |
|
$ |
|
(3,714 |
) |
|
$ |
|
(11,399 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per share attributable to SemiLEDs stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
|
(0.19 |
) |
|
$ |
|
(0.45 |
) |
|
$ |
|
(1.16 |
) |
|
$ |
|
(7.25 |
) |
|
Non-GAAP net loss |
|
$ |
|
(0.24 |
) |
|
$ |
|
(0.34 |
) |
|
$ |
|
(1.05 |
) |
|
$ |
|
(3.88 |
) |
|
|
|
Three Months Ended |
|
|
Year Ended August 31, |
|
||||||||||||||
|
Free Cash Flow |
|
August 31, 2017 |
|
|
May 31, 2017 |
|
|
2017 |
|
|
2016 |
|
||||||||
|
Net cash provided by (used in) operating activities |
|
$ |
|
508 |
|
|
$ |
|
(858 |
) |
|
$ |
|
(2,109 |
) |
|
$ |
|
(3,439 |
) |
|
Less: Capital expenditures |
|
|
|
1 |
|
|
|
|
61 |
|
|
|
|
150 |
|
|
|
|
821 |
|
|
Total free cash flows |
|
$ |
|
507 |
|
|
$ |
|
(919 |
) |
|
$ |
|
(2,259 |
) |
|
$ |
|
(4,260 |
) |
5