SemiLEDs Reports Fourth Quarter And Fiscal Year End 2017 Financial Results

HSINCHU, Taiwan, Nov. 15, 2017 (GLOBE NEWSWIRE) -- 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.

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.

Contacts:

Christopher LeeChief Financial OfficerSemiLEDs Corporation+886-37-586788investor@semileds.com

Source: SemiLEDs Corporation

SEMILEDS CORPORATION AND SUBSIDIARIES  
Unaudited Condensed Consolidated Balance Sheets  
(In thousands of U.S. dollars)  
   
               
    August 31,   August 31,  
    201 7   201 6  
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    
Goodwill            —    
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    

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, 201 7   May 31, 201 7   201 7     201 6    
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    
Loss (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    

SEMILEDS CORPORATION AND SUBSIDIARIES
Unaudited Condensed Statement of Cash Flow
(In thousands of U.S. dollars)
                           
    Three Months Ended   Year Ended August  31,  
Free Cash Flow   August  31, 201 7   May  31, 201 7   201 7     201 6    
Net cash 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 )  

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