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SemiLEDs Reports First Quarter Fiscal Year 2020 Financial Results

HSINCHU, Taiwan, Jan. 10, 2020 (GLOBE NEWSWIRE) -- SemiLEDs Corporation (LEDS), “SemiLEDs” or the “Company,” a developer and manufacturer of LED chips and LED components, today announced its financial results for the first quarter of fiscal year 2020, ended November 30, 2019.

Revenue for the first quarter of fiscal 2020 was $1.6 million, compared to $1.6 million in the fourth quarter of fiscal 2019. GAAP net loss attributable to SemiLEDs stockholders for the first quarter of fiscal 2020 was $317 thousand, compared to a loss of $881 thousand in the fourth quarter of fiscal 2019, or a net loss of $0.09 per diluted share, compared to a net loss of $0.25 per diluted share for the fourth quarter of fiscal 2019.

GAAP gross margin for the first quarter of fiscal 2020 was 33%, compared with gross margin for the fourth quarter of fiscal 2019 of 21%. Operating margin for the first quarter of fiscal 2020 was negative 36%, compared with negative 66% in the fourth quarter of fiscal 2019. The Company’s cash and cash equivalents was $688 thousand at November 30, 2019, compared to $1.4 million at the end of fiscal 2019.

We expect revenue for the second quarter ending February 28, 2020 to be approximately $1.2 million +/- 10%.

The Chinese New Year (CNY) of 2020 will begin on January 24, 2020. Our office and factory in Chunan will be closed from January 18, 2020 until February 2, 2020 and will resume operations on Monday, February 3, 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 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. SemiLEDs has not filed its Form 10-Q for the quarter ended November 30, 2019. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments, or changes in accounting estimates, that are identified prior to the time the Company files the Form 10-Q.

Contacts:

Christopher Lee
Chief Financial Officer
SemiLEDs Corporation
+886-37-586788
investor@semileds.com

SEMILEDS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands of U.S. dollars)

    November 30,     August 31,  
    2019     2019  
    (Unaudited)          
ASSETS                
CURRENT ASSETS:                
Cash and cash equivalents   $ 688     $ 1,363  
Restricted cash and cash equivalents     81       19  
Accounts receivable (including related parties), net     936       703  
Inventories     2,312       2,083  
Prepaid expenses and other current assets     884       460  
Assets held for sale     401        
Total current assets     5,302       4,628  
Property, plant and equipment, net     5,935       5,878  
Operating lease right of use assets     307        
Intangible assets, net     93       93  
Investments in unconsolidated entities     920       894  
Other assets     186       169  
TOTAL ASSETS   $ 12,743     $ 11,662  
LIABILITIES AND EQUITY                
CURRENT LIABILITIES:                
Current installments of long-term debt   $ 410     $ 398  
Accounts payable     649       680  
Advance receipt toward the convertible note     500       500  
Accrued expenses and other current liabilities     2,677       2,342  
Operating lease liabilities, current     148        
Liabilities held for sale     790        
Total current liabilities     5,174       3,920  
Long-term debt, excluding current installments     5,932       5,954  
Operating lease liabilities, less current portion     159        
Total liabilities     11,265       9,874  
Commitments and contingencies                
EQUITY:                
SemiLEDs stockholders’ equity                
Common stock            
Additional paid-in capital     175,839       175,804  
Accumulated other comprehensive income     3,729       3,753  
Accumulated deficit     (178,133 )     (177,816 )
Total SemiLEDs stockholders’ equity     1,435       1,741  
Noncontrolling interests     43       47  
Total equity     1,478       1,788  
TOTAL LIABILITIES AND EQUITY   $ 12,743     $ 11,662  
                 

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  
    November 30,     August 31,  
    2019     2019  
Revenues, net   $ 1,563     $ 1,555  
Cost of revenues     1,045       1,226  
Gross profit     518       329  
Operating expenses:                
Research and development     430       537  
Selling, general and administrative     726       819  
Gain on disposals of long-lived assets     (79 )      
Total operating expenses     1,077       1,356  
Loss from operations     (559 )     (1,027 )
Other income (expenses):                
Interest expenses, net     (78 )     (75 )
Other income, net     157       202  
Foreign currency transaction gain (loss), net     158       20  
Total other income, net     237       147  
Loss before income taxes     (322 )     (880 )
Income tax expense            
Net loss     (322 )     (880 )
Less: Net profit (loss) attributable to noncontrolling interests     (5 )     1  
Net loss attributable to SemiLEDs stockholders   $ (317 )   $ (881 )
Net loss per share attributable to SemiLEDs stockholders:                
Basic and diluted   $ (0.09 )   $ (0.25 )
Shares used in computing net loss per share attributable to SemiLEDs stockholders:                
Basic and diluted     3,595       3,592