Semileds Corp (NASDAQ:LEDS), a developer and manufacturer of LED chips and LED components, stock fell 4.15% (As on April 13, 11:36:50 AM UTC-4, Source: Google Finance) after the revenue for the second quarter of fiscal 2023 decreased to $1.2 million, compared to $1.7 million in the first quarter of fiscal 2023. GAAP net loss attributable to SemiLEDs stockholders for the second quarter of fiscal 2023 increased to $541 thousand, or $(0.11) per diluted share, compared to a net loss of $512 thousand, or $(0.11) per diluted share, in the first quarter of fiscal 2023. In the second quarter of fiscal year 2023, we shut down our manufacturing production for one week due to the Chinese New Year holiday.
Moreover, GAAP gross margin for the second quarter of fiscal 2023 decreased to 23%, compared to 27% for the first quarter of fiscal 2023. Operating margin for the second quarter of fiscal 2023 decreased to negative 61%, compared to negative 39% for the first quarter of fiscal 2023. The Company’s cash and cash equivalents were $3.9 million at February 28, 2023, compared to $4.5 million at the end of the first quarter of fiscal 2023. Fluctuations in the exchange rate among the U.S. dollar, the New Taiwan, or NT, dollar, the Japanese Yen and other currencies in which the sales, raw materials and component purchases and capital expenditures are denominated. The average selling price of the products may decline for a variety of factors.
The company expects revenue for the third quarter ending May 31, 2023 to be approximately $2.0 million +/- 10%.
Meanwhile, CrayoNano and SemiLEDs (Nasdaq: LEDS) has signed an agreement to jointly develop the next generation UV-C LED for disrupting the disinfection market. CrayoNano has validated and selected a strategic partner to accelerate the industrialization of CrayoNano’s UV-C LED technology. This collaboration alleviates capacity and supply chain constraints that continue to choke the global supply. This partnership will add onto CrayoNano’s resources and capacities in Trondheim and de-risk the supply chain dependency, ensuring a successful market entry. Under this agreement, CrayoNano and SemiLEDs will jointly develop products based on CrayoNano’s nanowire and hybrid material technology and SemiLEDs’ unique LED process technology , and process knowhow to accelerate CrayoNano’s mid-to long term UV-C product roadmap. CrayoNano will own the products under the agreement, and innovations and R&D will remain in Trondheim, Norway.