SemiLEDs Corporation (LEDS), a manufacturer of LED chips and LED components, priced its IPO on 8th December, 2010, above the expected range at $17 per share and gave first day return of 51.5%.
Business Overview (from prospectus)
We develop, manufacture and sell LED chips and LED components that we believe are among the industry leading LED products on both a lumens per watt and cost per lumen basis. Our products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. We sell blue, green and ultraviolet (UV) LED chips under our MvpLED brand, primarily to customers in China, Taiwan and other parts of Asia. We sell our LED chips to packaging customers or to distributors, who in turn sell to packagers. In addition, we package a portion of our LED chips into LED components which we sell to distributors and end-customers in select markets. For the years ended August 31, 2009 and 2010, our revenues were $11.6 million and $35.8 million, respectively.
Offering: 5.3 million shares at $17 per share. Net proceeds of approximately $40.0 million will be used to expand production capacity in Taiwan and approximately $10.0 million for R&D expenses.
Revenues increased by approximately 209.6% from $11.6 million for the year ended August 31, 2009 to $35.8 million for the year ended August 31, 2010...Cost of revenues increased by 78.2% from $11.0 million for the year ended August 31, 2009 to $19.6 million for the year ended August 31, 2010...Research and development expenses decreased by 29.6% from $2.5 million for the year ended August 31, 2009 to $1.7 million for the year ended August 31, 2010...Net income increased from a loss of $3.8 million for the year ended August 31, 2009 to income of $10.8 million for the year ended August 31, 2010...
We compete with many LED chip manufacturers and, to a lesser extent, LED packaging manufacturers. With respect to our LED chips and LED components, we primarily compete with Citizen Electronics Co., Ltd., Cree, Epistar Corporation, Everlight Electronics Co., Ltd., Nichia Corporation, Philips (Lumileds) (PHG), Siemens (SI), Showa Denko and Toyoda Gosei. We have a number of competitors that compete directly with us and are much larger than us, including, among others, Cree, Epistar Corporation, Nichia Corporation, Philips (PHG), and Siemens (SI). Several substantially larger companies, such as Philips, Siemens (SI) and Toyoda Gosei, compete against us with a relatively small segment of their overall business. In addition, several large and well-capitalized semiconductor companies, such as Micron Technology, Inc. (MU), Samsung Electronics Co., Ltd., Sharp Ltd. and Taiwan Semiconductor Manufacturing Co. (TSM) have recently announced their plans to enter into the LED chip and lighting market. We are also aware of a number of well-funded private companies that are developing competing products. We will also compete with numerous smaller companies entering the market, some of whom may receive significant government incentives and subsidies pursuant to government programs designed to encourage the use of LED lighting and to establish LED-sector companies. We believe that we generally compete favorably within the marketplace. However, some of our existing and potential competitors possess significant advantages, including longer operating histories, greater financial, technical, managerial, marketing, distribution and other resources, more long-standing and established relationships with our existing and potential customers, greater name recognition, larger customer bases and greater government incentives and support.
- Company website
- WSJ: SemiLEDs 5.3M-Share IPO Prices Above Range At $17
- Bloomberg: SemiLEDs prices IPO shares at $17