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SemiLEDs Corporation (NASDAQ:LEDS) engages in the development, manufacture, and sale of light emitting diode (LED) chips and LED components. Its products are used primarily for general lighting applications, including street lights and commercial, industrial, and residential lighting, as well as in backlighting, medical, automotive, and ultra violet (UV) applications.

It is scheduled to report its Q3 2012 results on July 10, 2012, before the market opens. In this article, I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $83.20M and is currently trading at $3.03 with a 52-week range of $2.51-$7.40. The stock performance year to date: -11.14%. It is currently trading above 20 SMA, but below 50 and 200 SMA.

Key Metrics

  • Price/Sales: 3.25
  • Price/Book: 0.58
  • Total Debt: 7.60M
  • Annual dividend yield: N/A
  • Return on Equity: -21.55%
  • Return on Assets: -10.04%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter, it reported ($0.22) loss per share, beating analyst estimates of ($0.25) loss.

The consensus EPS is ($0.23) loss based on 7 analysts' estimates, down from ($0.16) loss a year ago. Revenue estimates are $8.58M, up from $5.60M a year ago. The median target price by analysts for the stock is $4.00.

Average recommendation: Overweight

Source: Marketwatch

Latest Developments

  • On June 26, 2012, Cree, Inc. and SemiLEDs agreed to end the parties' patent infringement litigation. As part of the settlement, SemiLEDs agreed to the entry of an injunction effective October 1, 2012, that prohibits the importation and sale of the SemiLEDs accused products in the United States and has made a one-time payment to Cree for past damages.
  • On April 5, 2012, Semileds Corp announced that for third quarter of 2012, it expects revenue in a range of $7.9 million to $8.9 million with GAAP net loss attributable to SemiLEDs stockholders of $7.5 million to $7.0 million, or a loss of $0.27 to $0.25 per diluted share, based on an estimated 27.5 million diluted weighted average shares.
  • On January 11, 2012, Semileds Corp announced that for the second quarter of 2012, it expects revenue in a range of $7-$8 million with GAAP net loss of $7.6 million to $7.1 million, or a loss of $0.28 to $0.26 per diluted share (EPS).

Competitors

SemiLEDs Corporation operates in Semiconductor- Memory Chips industry. The company could be compared to Aixtron SE (NASDAQ:AIXG), BCD Semiconductor Manufacturing Limited (NASDAQ:BCDS), Cree, Inc. (NASDAQ:CREE), and Veeco Instruments Inc. (NASDAQ:VECO). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

Click to enlargeLEDS Chart

LEDS data by YCharts

Competitors' Latest Development

  • On May 22, 2012, Cree, Inc. announced that John Kurtzweil has resigned as Executive Vice President-finance and Chief Financial Officer(NASDAQ:CFO), effective May 21, 2012, to pursue other opportunities, and that Michael McDevitt has been appointed CFO on an interim basis.
  • On May 2, 2012, BCD Semiconductor Manufacturing Ltd announced that for second quarter of 2012, it expects revenue to be in the range of $35-$39 million, representing a growth of approximately 12.9% to 25.8% compared to the first quarter of 2012 and a decline of approximately 9.0% to a growth of 1.4% compared to the second quarter of 2011.
  • On April 30, 2012, Veeco Instruments, Inc. announced that for the second quarter 2012, it expects revenue to be between $120 million and $145 million and earnings per share to be between $0.20 to $0.40 on a GAAP basis, and $0.29 to $0.48 on a non-GAAP basis.
  • On April 17, 2012, Cree, Inc. announced that for fourth quarter of 2012, it expected revenue to be in the range of $295 million-$315 million, GAAP net income to be in the range of $5 million-$12 million, or $0.04 to $0.10 per diluted share.
  • On February 7, 2012, Veeco Instruments, Inc. announced that for fiscal 2012, it expected revenue to be between $500 million -$600 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $612 million for fiscal 2012.
  • On February 6, 2012, BCD Semiconductor Manufacturing Ltd announced that for the first quarter of 2012 it expects revenue to be in the range of $28 to $32 million. According to I/B/E/S Estimates, analysts are expecting the company to report revenue of $30 million for the first quarter of 2012.
  • On February 6, 2012, Veeco Instruments, Inc. announced that for first quarter of 2012, it expects revenue to be in the range of $115 million and $140 million. Earnings per share are expected to be between $0.04 to $0.25 on a GAAP basis, and $0.13 to $0.34 on a non-GAAP basis.
  • On January 17, 2012, Cree, Inc. announced that for the third quarter of 2012, it expects revenue in a range of $290 million to $310 million with GAAP net income at $4 million to $12 million, or $0.04 to $0.10 per diluted share.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: SemiLEDs Corporation