SemiLEDs Reports Fourth Quarter and Fiscal Year End 2021 Financial Results

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 2021, ended August 31, 2021.

Revenues for both the fourth quarter and third quarter of fiscal 2021 were $1.4 million. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2021 increased to $1.8 million, or $(0.42) per diluted share, compared to a net loss of $64thousand, or $(0.02) per diluted share, in the third quarter of fiscal 2021.

GAAP gross margin for the fourth quarter of fiscal 2021 decreased to 11%, compared with gross margin for the third quarter of fiscal 2021 of 46%. Operating margin for the fourth quarter of fiscal 2021 decreased to negative 135%, compared with negative 41% for the third quarter of fiscal 2021. The Company’s cash and cash equivalents were $4.8 million at August 31, 2021, compared to $1.7 million at the end of the third quarter of fiscal 2021.

We are unable to forecast revenues for the first quarter ending November 30, 2021 at this time given the continuing uncertain impact of COVID-19 on the economy and the Company.

Revenues for fiscal year 2021 decreased to $4.7 million, compared to $6.1 million in fiscal year 2020. GAAP net loss attributable to SemiLEDs stockholders for fiscal year 2021 increased to $2.9 million, or $(0.68) per diluted share, compared to a net loss of $544 thousand, or $(0.15) per diluted share, in fiscal year 2020.

GAAP gross margin for fiscal year 2021 decreased to 22%, compared with gross margin for fiscal year 2020 of 26%. Operating margin for fiscal year 2021 decreased to negative 83%, compared with negative 34% in fiscal year 2020. The Company’s cash and cash equivalents were $4.8 million as of August 31, 2021, compared to $2.8 million as of August 31, 2020.

About SemiLEDs

SemiLEDs develops and manufactures LED chips and LED components for general lighting applications, including street lights and commercial, industrial, system 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.

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 statements about historical results that may suggest trends for SemiLEDs’ business; any statements of the plans, the potential continuing impact of the COVID-19 pandemic on our business; 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.

SEMILEDS CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars)

 

 

August 31,

 

 

August 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,833

 

 

$

2,832

 

Restricted cash and cash equivalents

 

 

90

 

 

 

85

 

Accounts receivable (including related parties), net

 

 

865

 

 

 

1,331

 

Inventories

 

 

3,937

 

 

 

2,476

 

Prepaid expenses and other current assets

 

 

329

 

 

 

781

 

Total current assets

 

 

10,054

 

 

 

7,505

 

Property, plant and equipment, net

 

 

5,244

 

 

 

5,645

 

Operating lease right of use assets

 

 

1,635

 

 

 

203

 

Intangible assets, net

 

 

126

 

 

 

89

 

Investments in unconsolidated entities

 

 

1,011

 

 

 

952

 

Other assets

 

 

169

 

 

 

186

 

TOTAL ASSETS

 

$

18,239

 

 

$

14,580

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current installments of long-term debt

 

$

5,109

 

 

$

4,750

 

Accounts payable

 

 

753

 

 

 

536

 

Advance receipt toward the convertible note

 

 

-

 

 

 

500

 

Accrued expenses and other current liabilities

 

 

2,783

 

 

 

2,654

 

Other payable to related parties

 

 

764

 

 

 

460

 

Operating lease liabilities, current portion

 

 

98

 

 

 

97

 

Total current liabilities

 

 

9,507

 

 

 

8,997

 

Long-term debt, excluding current installments

 

 

2,569

 

 

 

2,909

 

Operating lease liabilities, less current portion

 

 

1,537

 

 

 

106

 

Total liabilities

 

 

13,613

 

 

 

12,012

 

Commitments and contingencies

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

 

 

SemiLEDs stockholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

Additional paid-in capital

 

 

182,255

 

 

 

177,235

 

Accumulated other comprehensive income

 

 

3,543

 

 

 

3,647

 

Accumulated deficit

 

 

(181,211

)

 

 

(178,360

)

Total SemiLEDs stockholders’ equity

 

 

4,587

 

 

 

2,522

 

Noncontrolling interests

 

 

39

 

 

 

46

 

Total equity

 

 

4,626

 

 

 

2,568

 

TOTAL LIABILITIES AND EQUITY

 

$

18,239

 

 

$

14,580

 

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, 2021

 

 

May 31, 2021

 

 

2021

 

 

2020

 

Revenues, net

 

$

 

1,371

 

 

$

 

1,439

 

 

$

 

4,735

 

 

$

 

6,068

 

Cost of revenues

 

 

 

1,221

 

 

 

 

775

 

 

 

 

3,702

 

 

 

 

4,478

 

Gross profit

 

 

 

150

 

 

 

 

664

 

 

 

 

1,033

 

 

 

 

1,590

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

461

 

 

 

 

528

 

 

 

 

1,623

 

 

 

 

1,538

 

Selling, general and administrative

 

 

 

1,536

 

 

 

 

730

 

 

 

 

3,614

 

 

 

 

2,808

 

Gain on disposals of long-lived assets, net

 

 

 

 

 

 

 

(2

)

 

 

 

(286

)

 

 

 

(669

)

Total operating expenses

 

 

 

1,997

 

 

 

 

1,256

 

 

 

 

4,951

 

 

 

 

3,677

 

Loss from operations

 

 

 

(1,847

)

 

 

 

(592

)

 

 

 

(3,918

)

 

 

 

(2,087

)

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on disposals of investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

634

 

Interest income (expenses), net

 

 

 

(93

)

 

 

 

(94

)

 

 

 

(371

)

 

 

 

(358

)

Other income (loss), net

 

 

 

139

 

 

 

 

474

 

 

 

 

1,090

 

 

 

 

912

 

Foreign currency transaction gain (loss), net

 

 

 

(38

)

 

 

 

155

 

 

 

 

342

 

 

 

 

352

 

Total other income, net

 

 

 

8

 

 

 

 

535

 

 

 

 

1,061

 

 

 

 

1,540

 

Loss before income taxes

 

 

 

(1,839

)

 

 

 

(57

)

 

 

 

(2,857

)

 

 

 

(547

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

(1,839

)

 

 

 

(57

)

 

 

 

(2,857

)

 

 

 

(547

)

Less: Net (loss) gain attributable to noncontrolling interests

 

 

 

(4

)

 

 

 

7

 

 

 

 

(6

)

 

 

 

(3

)

Net loss attributable to SemiLEDs stockholders

 

$

 

(1,835

)

 

$

 

(64

)

 

$

 

(2,851

)

 

$

 

(544

)

Net loss per share attributable to SemiLEDs stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

 

(0.42

)

 

$

 

(0.02

)

 

$

 

(0.68

)

 

$

 

(0.15

)

Shares used in computing net loss per share attributable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to SemiLEDs stockholders:

Basic and diluted

 

 

 

4,413

 

 

 

 

4,060

 

 

 

 

4,180

 

 

 

 

3,921