SemiLEDs Corp. (LEDS) stock prices were up by 5.14% some time aftermarket trading commenced on July 6th, 2021, bringing the price per share up to USD$16.77 early on in the trading day.
Revenue and Net Loss Reports
The company reported revenue in the amount of USD$1.4 million for the third quarter of fiscal 2021, up from the USD$1.2 million reported in the prior quarter. GAAP net loss attributable to SemiLEDs stockholders came out to USD$64,000, representing a net loss of USD$0.02 per diluted share, for the third quarter of fiscal 2021. The second quarter of fiscal 2021 reported a net loss of USD$255,000, representing a net loss of USD$0.06 per diluted share.
GAAP Gross Margin and Liquidity Position
GAAP gross margin was up to 46% for Q3 of fiscal 2021, a significant improvement from the 20% reported for the prior quarter. Operating margins for the quarter ended May 31st, 2021 was down to negative 41%, as compared to the negative 42% reported for Q2 of fiscal 2021. The company ended the third quarter of fiscal 2021 with a solid liquidity position. As of May 31st 2021, the company reported cash and cash equivalents in the amount of USD$1.7 million, down from the USD$2.1 million reported at the end of Q2 of fiscal 2021.
Scope of LEDS
The company develops and manufactures both LED chips and components for general lighting applications, including, but not limited to streetlights, as well as commercial, industrial, system, and residential lighting. LEDS also facilitates specialty industrial applications, such as UV curing, medical/cosmetic, counterfeit detection, horticulture, architectural lighting, and entertainment lighting. The company’s product portfolio includes blue, white, green, and UV LED chips.
Effects of the Pandemic
Current and potential investors are hopeful that management will continue to push for continued growth as global restrictions ease and universal immunization programs are accelerated. Nevertheless, recent activity has been largely confounding. With the company itself admitting to lacking any fundamental reason for the gains, evidence suggests LEDS is being driven by day traders. The company has reported a negative free cash flow and only USD$5 million in revenue over the last twelve months.
Future Outlook for LEDS
Armed with consistently improving financials despite the ongoing effects of the coronavirus pandemic, LEDS has managed to stay afloat during particularly tumultuous economic times. The dire straits presented by the onset of Covid-19 resulted in the massive reduction of the scope of the company’s business, with social gatherings being limited and so many businesses facing temporary or permanent closure.
