Fri, Apr 11, 10:06 AM (15 days ago)
**SemiLEDs Corporation (LEDS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $10.9 million (Q1 2025) vs. $886,000 (Q1 2024), driven by buy-sell purchase orders. - **Gross Profit:** $1.0 million (9% margin) vs. $112,000 (13% margin). - **Net Income:** $388,000 vs. net loss of $559,000. - **Cash Flow:** Positive operating cash flow of $1.2 million (Q1 2025) vs. negative $679,000 (Q1 2024). **Profit Margins & Cash Flow:** - Gross margin decreased to 9% from 13% due to higher cost of revenues from buy-sell orders. - Operating expenses decreased by 5% QoQ, with R&D and SG&A expenses reducing. - Net cash provided by operating activities improved significantly to $1.2 million. **Earnings & Quarterly Performance:** - Earnings per share (EPS) improved to $0.05 from -$0.11. - Revenue growth was primarily driven by other revenues, including buy-sell orders. **Trends & Uncertainties:** - Revenue concentration in a few markets and customers. - Dependence on buy-sell orders for revenue growth. - Uncertainties around future orders and revenue recognition. - Potential impact of trade matters and tariffs. **Future Operations & Impact:** - Plans to improve liquidity, access alternative funding, and obtain additional equity. - Focus on cost reduction, operational efficiencies, and strategic investments. - Potential risks include failure to implement liquidity plans and generate positive cash flows. **Key Metrics:** - Current ratio improved to 1.35x from 0.84x. - Quick ratio increased to 0.85x from 0.47x. - Inventory turnover ratio decreased to 1.14x from 1.32x. **Conclusion:** SemiLEDs Corporation showed significant improvement in revenue and cash flow for Q1 2025, driven by buy-sell orders. However, the company faces uncertainties around future orders and the need to implement liquidity plans to ensure sustained operations. The focus on cost reduction and strategic investments will be crucial for long-term success.