NEW YORK ( TheStreet) -- Shares of SemiLEDs ( LEDS) sank in late trades on Thursday after the Taiwan-based LED chip maker reported a much wider than expected quarterly loss as revenue fell more than 40% year-over-year. The company cited pricing pressure and weak demand for the shortfall. SemiLEDs posted an adjusted loss of $4.3 million, or 16 cents a share, for the three months ended on May 31, down sharply from a year-ago equivalent profit of $3.3 million, or 9 cents a share. Revenue dropped 43% to $5.6 million in the quarter from $9.9 million last year. The average estimate of seven analysts polled by Thomson Reuters was for a loss of 6 cents a share in the May quarter on revenue of $6.3 million. The stock was last quoted at $5.40, down 12.9%, on volume of nearly 40,000, according to Nasdaq.com. Based on a regular session close at $6.20, the shares were already down more than 70% so far in 2011. For its fiscal fourth quarter ending in August, SemiLEDs forecast a loss ranging from $6.4 million to $6.7 million, or 23 to 25 cents a share, with negative gross margins and revenue of between $5.5 million and $6.5 million. Wall Street was expecting a loss of 2 cents a share in the August quarter on revenue of $8.7 million. Of the seven analysts covering the stock, four had either hold (3) or underperform (1) ratings. Jefferies, an underwriter of the company's December 2010 initial public offering, finally joined the bear camp earlier Thursday, downgrading the stock to hold from buy, and lowering the 12-month price target to $6 from $15, citing stiff competition and a slow recovery in demand for LED chips. The news was weighing on Cree ( CREE), a prime competitor with SemiLEDS, in the extended session with the stock down 1.7% to $32.90 on volume of more than 200,000.
Bhatnagar continued: "While we expected revenue from Japan to decline sequentially from the record first quarter, we experienced unexpected weakness in other parts of Asia Pacific, such as China and India." Ixia stressed that orders from Cisco Systems ( CSCO), its largest customer, met expectations at $10 million and were characterized as "strong" by Bhatnagar. Wall Street was expecting a profit of 16 cents a share from Ixia on revenue of $80.5 million. Based on a regular session close at $13.01, the shares were down 22% year-to-date. For the past year, the stock was up nearly 44% but its 52-week high of $19.10 dates back to mid-February. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: firstname.lastname@example.org