SemiLEDS (LEDS) Slammed Following Poor Q3 Showing, Q4 Outlook
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SemiLEDS (Nasdaq: LEDS) shares are sharply lower after-hours Thursday (although well off the lowest level this afternoon) following very concerning third-quarter earnings.
Revenue in the quarter fell 43 percent from $9.886 million to $5.600 million.
Net income swung from a profit of $3.246 million to a loss of $5.123 million, or 19 cents per share. Adjusting for stock-based compensation, and the loss narrowed to 16 cents per share.
Wall Street analysts, on average, had been looking for revs of $6.25 million and a loss of 10 cents per share.
SemiLEDS CEO Trung Doan attributed the quarter's results to both pricing pressure and weak demand. "We remain focused on improving our cost structure by accelerating our efforts to transition to four inch wafer production at our Taiwan facility, continuing to ramp four inch production volume at China SemiLEDs, as well as supporting our customers to maximize the benefits of our metal vertical chip structures to reduce the total cost of ownership," Doan commented.
Looking ahead, SemiLEDS sees a fourth-quarter loss of 23 to 25 cents per share on revs of $5.5 to $6.5 million. The numbers are a far cry from the 2 cent per share loss and revs of $9.0 million expected by the Street.
After initially resuming trading (stock was halted ahead of release) about 26 percent lower, shares are down about 13 percent after hours. The stock last traded at $5.40.
Revenue in the quarter fell 43 percent from $9.886 million to $5.600 million.
Net income swung from a profit of $3.246 million to a loss of $5.123 million, or 19 cents per share. Adjusting for stock-based compensation, and the loss narrowed to 16 cents per share.
Wall Street analysts, on average, had been looking for revs of $6.25 million and a loss of 10 cents per share.
SemiLEDS CEO Trung Doan attributed the quarter's results to both pricing pressure and weak demand. "We remain focused on improving our cost structure by accelerating our efforts to transition to four inch wafer production at our Taiwan facility, continuing to ramp four inch production volume at China SemiLEDs, as well as supporting our customers to maximize the benefits of our metal vertical chip structures to reduce the total cost of ownership," Doan commented.
Looking ahead, SemiLEDS sees a fourth-quarter loss of 23 to 25 cents per share on revs of $5.5 to $6.5 million. The numbers are a far cry from the 2 cent per share loss and revs of $9.0 million expected by the Street.
After initially resuming trading (stock was halted ahead of release) about 26 percent lower, shares are down about 13 percent after hours. The stock last traded at $5.40.
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