Technology

Shares of SemiLEDs Corporation (NASDAQ:LEDS) Booming!

SemiLEDs Corporation (NASDAQ:LEDS)

SemiLEDs Corporation (NASDAQ:LEDS)

SemiLEDs Corporation (NASDAQ:LEDS) stock is up over 1700% after the memory chip manufacturer announced it would be releasing their Q4, 2017 financial results after the market close. LEDS stock was trading below yesterday’s close until the company made the announcement, then the stock shot up from $2.75 to over $7.50 just after 12:30PM EST. Volume is over 130 times the daily listed average.

SemiLEDs Corporation (NASDAQ:LEDS)

SmeiLEDS Files Preliminary Results

However, prior to this morning’s announcement, SemiLEDs Corporation (NASDAQ:LEDS) filed an 8-K form with the SEC and provided preliminary results for the quarter ended August 31, 2017. Revenue for Q4 2017 was $2.6 million, a 22% increase compared to $2.1 million for Q3 2017. GAAP net loss attributable to SemiLEDs stockholders for the fourth quarter of fiscal 2017 was (-$0.7) million, compared to a loss of (-$1.6) million for Q3 2017, or a net loss of (-$0.19) per diluted share, compared to a net loss of (-$0.45) per diluted share for Q3 2017. Cash and cash equivalents was $3.6 million as of August 31, 2017, compared to $3.1 million at the end of the third quarter of fiscal 2017. The net cash inflows in operating activities were $0.5 million in the fourth quarter of fiscal 2017, compared with net cash outflows $0.9 million in the third quarter of fiscal 2017.

SemiLEDs Corporation (NASDAQ:LEDS), based in Chunan, Taiwan, develops and manufactures LED chips and LED components primarily for general lighting applications, including street lights and commercial, industrial 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.

LEDS Stock Performance

Sales have been declining for SemiLEDs Corporation (NASDAQ:LEDS). In 2012, the company reported sales of $29.3 million. For 2016, the company’s sales were only $10.1 million. However, with one exception, EPS losses have been contracting annually. In 2012 the EPS loss was (-$18.04), and that number shrank to (-$7.25) by 2016.

Over the past quarter, LEDS stock has performed well – gaining over 30%. Unfortunately, the shares are down over 20% for the year.

It should also be noted that, as of the market open, LEDS stock had a sizeable short seller position of over 20% of the stock’s float.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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