SemiLEDs Corporation reportedQQ1 2025 revenue of 1.261 million USD, representing a 23.58% year-over-year decline and a 4.76% quarter-over-quarter decrease. The gross profit was 0.260 million USD with a gross margin of 20.6%, while operating income was -0.657 million USD and net income was -0.547 million USD, translating to an EPS of -0.0758. The company continues to incur a negative operating cash flow of -0.158 million USD and a free cash flow burn of -0.276 million USD, underscoring ongoing cash burn despite some margin stabilization versus the prior year.
Management commentary is not included in the provided data. In this quarter, profitability remained pressured, but the year-over-year gross margin improved meaningfully (from 11.6% in Q4 2024 to 20.6% in Q1 2025), indicating some success in cost control or mix shift. However, the business continues to operate with negative net income and a weak liquidity position, with a current ratio of 0.77 and a cash-to-current-liabilities dynamic that signals potential near-term liquidity risk. The equity base remains slim (total stockholders’ equity around 1.58 million USD) amid accumulated deficits and substantial liabilities, including short-term debt of 2.923 million USD and long-term debt of 0.965 million USD.
Overall, the QQ1 2025 result paints a picture of a niche LED chip/module supplier navigating a challenged macro and competitive landscape. The key questions for investors center on whether the company can sustain its improved gross margin while reversing cash burn and stabilizing working capital, and what catalysts could unlock a sustainable path to profitability.