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SemiLEDs Reports First Quarter Fiscal Year 2020 Financial Results

January 10, 2020 GMT

HSINCHU, Taiwan, Jan. 10, 2020 (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 first quarter of fiscal year 2020, ended November 30, 2019.

Revenue for the first quarter of fiscal 2020 was $1.6 million, compared to $1.6 million in the fourth quarter of fiscal 2019. GAAP net loss attributable to SemiLEDs stockholders for the first quarter of fiscal 2020 was $317 thousand, compared to a loss of $881 thousand in the fourth quarter of fiscal 2019, or a net loss of $0.09 per diluted share, compared to a net loss of $0.25 per diluted share for the fourth quarter of fiscal 2019.

GAAP gross margin for the first quarter of fiscal 2020 was 33%, compared with gross margin for the fourth quarter of fiscal 2019 of 21%. Operating margin for the first quarter of fiscal 2020 was negative 36%, compared with negative 66% in the fourth quarter of fiscal 2019. The Company’s cash and cash equivalents was $688 thousand at November 30, 2019, compared to $1.4 million at the end of fiscal 2019.

We expect revenue for the second quarter ending February 28, 2020 to be approximately $1.2 million +/- 10%.

The Chinese New Year (CNY) of 2020 will begin on January 24, 2020. Our office and factory in Chunan will be closed from January 18, 2020 until February 2, 2020 and will resume operations on Monday, February 3, 2020.

About SemiLEDs

SemiLEDs develops and manufactures LED chips and LED components for general lighting applications, including street lights and commercial, industrial, system 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. SemiLEDs has not filed its Form 10-Q for the quarter ended November 30, 2019. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments, or changes in accounting estimates, that are identified prior to the time the Company files the Form 10-Q.

Contacts:

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

SEMILEDS CORPORATION AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands of U.S. dollars)

November August 31, 30, 2019 2019 ---------- ---------- (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 688 $ 1,363 Restricted cash and cash equivalents 81 19 Accounts receivable (including related parties), net 936 703 Inventories 2,312 2,083 Prepaid expenses and other current assets 884 460 Assets held for sale 401 — - -------- - -------- Total current assets 5,302 4,628 Property, plant and equipment, net 5,935 5,878 Operating lease right of use assets 307 — Intangible assets, net 93 93 Investments in unconsolidated entities 920 894 Other assets 186 169 TOTAL ASSETS $ 12,743 $ 11,662 - -------- - -------- LIABILITIES AND EQUITY CURRENT LIABILITIES: Current installments of long-term debt $ 410 $ 398 Accounts payable 649 680 Advance receipt toward the convertible note 500 500 Accrued expenses and other current liabilities 2,677 2,342 Operating lease liabilities, current 148 — Liabilities held for sale 790 — - -------- - -------- Total current liabilities 5,174 3,920 Long-term debt, excluding current installments 5,932 5,954 Operating lease liabilities, less current portion 159 — Total liabilities 11,265 9,874 - -------- - -------- Commitments and contingencies EQUITY: SemiLEDs stockholders’ equity Common stock — — Additional paid-in capital 175,839 175,804 Accumulated other comprehensive income 3,729 3,753 Accumulated deficit (178,133 ) (177,816 ) - -------- - -------- Total SemiLEDs stockholders’ equity 1,435 1,741 Noncontrolling interests 43 47 - -------- - -------- Total equity 1,478 1,788 - -------- - -------- TOTAL LIABILITIES AND EQUITY $ 12,743 $ 11,662 - -------- - --------

SEMILEDS CORPORATION AND SUBSIDIARIESUnaudited Condensed Consolidated Statements of Operations(In thousands of U.S. dollars and shares, except per share data)

Three Months Ended ------------------- November August 30, 31, 2019 2019 ------- -------- Revenues, net $ 1,563 $ 1,555 Cost of revenues 1,045 1,226 - ----- - ------ Gross profit 518 329 - ----- - ------ Operating expenses: Research and development 430 537 Selling, general and administrative 726 819 Gain on disposals of long-lived assets (79 ) — - ----- - ------ Total operating expenses 1,077 1,356 - ----- - ------ Loss from operations (559 ) (1,027 ) Other income (expenses): Interest expenses, net (78 ) (75 ) Other income, net 157 202 Foreign currency transaction gain (loss), net 158 20 - ----- - ------ Total other income, net 237 147 - ----- - ------ Loss before income taxes (322 ) (880 ) Income tax expense — — - ----- - ------ Net loss (322 ) (880 ) Less: Net profit (loss) attributable to noncontrolling interests (5 ) 1 - ----- - ------ Net loss attributable to SemiLEDs stockholders $ (317 ) $ (881 ) - ----- - ------ Net loss per share attributable to SemiLEDs stockholders: Basic and diluted $ (0.09 ) $ (0.25 ) - ----- - ------ Shares used in computing net loss per share attributable to SemiLEDs stockholders: Basic and diluted 3,595 3,592 - ----- - ------