13 April 2017
SemiLEDs reduces cash burn, despite revenue falling by a third
For fiscal second-quarter 2017 (ended 28 February), LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has reported revenue of $1.83m, down 32% on $2.7m last quarter and 37% on $2.92m a year ago. However, during the quarter, SemiLEDs shut down its manufacturing production for two weeks due to the Chinese New Year holiday.
Gross margin was breakeven, down from 4% last quarter but still better than negative 27% a year ago. Total operating expenses have been slightly cut from $1.22m las quarter to $1.14m. Despite this, operating margin has worsened from negative 41% last quarter to negative 62%.
On a non-GAAP basis, net loss was $1.06m ($0.30 per diluted share), rising from $0.61m ($0.17 per diluted share) last quarter but better than $2.2m a year ago.
Despite this, net cash used in operating activities has been cut from $1.12m last quarter to $0.64m, while capital expenditure has been cut further, from $68,000 last quarter to just $20,000. Total free cash outflow has therefore been almost halved from $1.19m last quarter to $0.66m. During the quarter, cash and cash equivalents hence fell from $4.83m to $4.07m.
For fiscal third-quarter 2017 (to 31 May), SemiLEDs expects revenue to rise to $2m+/-10%.