Shares Of SemiLEDS (LEDS) Plunge Again On Earnings Miss, Poor Guidance

It’s sure been a rough few months for SemiLEDs (LEDS).  The stock was crushed in January when the company reported earnings and weak guidance.  The stock is down another 17% in early trading this morning after the results were even weaker than expected.  In January the company said it expected to post a non GAAP profit of .06 – .09/share on revenues between $10.5 – $12.5 million for the quarter, but instead posted a .03/share loss on revenues of $10 million.  That was also well below the analyst estimate of .08/share profit on the EPS side.  The CEO expressed his disappointment but reiterated the long term outlook for LED lighting is bright…

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"While we believe the long term market opportunity of LEDs has not changed, the quarter did not meet our expectations relative to revenue, EPS or gross margin due to the aggressive, competitive pricing environment and our decision to preserve our market share," said Trung Doan, Chairman and CEO of SemiLEDs. "Efforts to improve our gross margin include taking actions to improve our yield, transition to four inch wafers in our Taiwan facility, as well as ramping volume production of our new high brightness LED chip, I-Do, which delivers up to 135 lumens per watt, enabling us to provide our customers with a very cost effective lighting solution."

The outlook for this quarter isn’t any better and in fact even worse than last quarter.  The company expects revenue of just $6 – $7 million and another GAAP loss of .07 – .10/share (.05 – .08 non GAAP loss assuming forex losses about the same).


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