SemiLEDs Corporation reported QQ3 2024 revenue of $1.323 million, down 21.2% year-over-year and up 49.3% quarter-over-quarter, reflecting a modest sequential rebound after a difficult prior quarter. Gross profit declined to $0.543 million with a gross margin of 41.0%, while the company posted an operating loss of $0.473 million and a net loss of $0.319 million, corresponding to an EPS of -$0.0444. Operational cash flow was positive at $0.109 million, and free cash flow stood at $0.098 million, underscoring modest near-term cash generation despite ongoing bottom-line weakness.
From a balance sheet perspective, total assets were $11.511 million with total liabilities of $8.746 million and stockholders’ equity of $2.715 million. The company carries a net debt position of approximately $3.25 million (total debt $4.926 million, cash $1.676 million), with a current ratio of 0.941 and a quick ratio of 0.399, signaling tight near-term liquidity. Retained earnings are deeply negative, signaling cumulative losses over time. Margins remain under pressure, as indicated by an operating margin of -35.8% and a net margin of -24.1%.
The QQ3 2024 performance shows some sequential improvement on the top line and continued leverage on fixed costs, but profitability remains elusive without substantive revenue growth or, alternatively, meaningful cost discipline. Absent explicit management guidance in the provided data, investors should monitor revenue trajectory in upcoming quarters, gross margin stability, and ongoing efforts to improve operating leverage. The company’s liquidity is modest but manageable for the near term, contingent on maintaining cash generation and reducing debt load. Overall, the investment case hinges on scalable revenue growth and margin expansion to offset fixed-cost structure and debt service costs.