SemiLEDs Corporation reported QQ2 2024 revenue of $0.886 million, marking a 23.1% year-over-year decline and a 46.3% quarter-over-quarter drop. Gross profit was $0.112 million with a gross margin of 12.64%, and the company posted an operating loss of $0.832 million and a net loss of $0.559 million, equating to an EPS of -0.11. The quarter reflects continued top-line weakness and margin compression at a small-scale LED chip and module producer targeting ODMs and packaging/distributors.
From a balance-sheet perspective, cash and equivalents stood at $1.69 million, while total debt stood at $6.19 million, yielding a net debt position of $4.49 million. The company generated negative operating cash flow of $0.605 million and free cash flow of about -$0.629 million. This liquidity profile, coupled with a substantial accumulated deficit (retained earnings of -$187.8 million), suggests near-term liquidity risk absent operational improvement or external financing.
Management commentary (where available) did not include formal forward guidance in the QQ2 2024 release. The key near-term implications center on stabilizing revenue, improving gross margins, and reducing cash burn. Investors should monitor any updates on cost control initiatives, product mix optimization toward higher-margin offerings, and potential strategic steps to address debt maturities and liquidity needs. The medium-term upside hinges on expanding higher-value LED products (including UV/horticulture niches) and growing ODM/packager relationships, contingent on market recovery and competitive dynamics.