SemiLEDs Corp (LEDS) 2014 Q1 法說會逐字稿

Good day and welcome to the SemiLEDs' Fiscal First Quarter Financial Results Conference Call for the Quarter Ended November 30, 2013. This call is being webcast live on the Events and Presentation page of the investor sections of SemiLEDs' website at www.semileds.com.

大家好，歡迎參加 SemiLEDs 2013 年 11 月 30 日結束季度的第一財季財務業績電話會議。

This call is property of SemiLEDs and with that and any recording, reproduction or transmission of this call without the expressed written consent of SemiLEDs is strictly prohibited. As a reminder, today's call is being recorded.

本次通話歸 SemiLEDs 所有，未經 SemiLEDs 明確書面同意，嚴禁對本次通話進行任何錄製、複製或傳輸。 提醒一下，今天的通話正在錄音。

You may listen to a webcast replay of this call by going to the Investors section of SemiLEDs' website, and visiting the Events and Presentations page.

您可以造訪 SemiLEDs 網站的「投資者」部分，然後造訪「活動和演示」頁面，收聽本次電話會議的網路直播重播。

I would now like to turn the call over to Erica Mannion of Sapphire Investor Relations, Investor Relations for SemiLEDs', please go ahead.

現在，我想將電話轉給 Sapphire 投資者關係部（SemiLEDs 投資者關係部）的 Erica Mannion，請繼續。

Good morning. Thank you for joining us to discuss SemiLEDs' financial and operating results for the fiscal first quarter 2014. With me today are, Trung Doan, Chairman, President and CEO; and Timothy Lin, Interim Chief Financial Officer.

早安. 感謝您加入我們討論 SemiLEDs 2014 財年第一季的財務和營運業績。以及臨時財務長 Timothy Lin。

Today, Trung will begin with a brief overview of the industry dynamics and details of the first quarter and Tim will review fiscal Q1 financial results. We will not be taking questions on today's call.

今天，Trung 將首先簡要概述行業動態和第一季的細節，然後 Tim 將回顧財年第一季的財務業績。 我們不會在今天的電話會議上回答問題。

On the call today, you may hear forward-looking statements about events and circumstances that have not yet occurred. Actual outcomes and results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties. Please refer to the Company's recent SEC filings at the SEC's website at www.sec.gov for detailed discussions of the relevant risks and uncertainties.

在今天的電話會議上，您可能會聽到尚未發生的事件和情況的前瞻性陳述。 由於多種風險和不確定性，實際成果可能與這些聲明中的預期有重大差異。 有關相關風險和不確定性的詳細討論，請參閱美國證券交易委員會網站 www.sec.gov 上該公司最近向美國證券交易委員會提交的文件。

The Company undertakes no responsibility to update the information in this conference call under any circumstance. The press release distributed today that announced the Company's results is available on the Company's website at www.semileds.com in the Investor section under financial press releases.

本公司不承擔在任何情況下更新本次電話會議中資訊的責任。 今天發布的宣佈公司業績的新聞稿可在公司網站 www.semileds.com 的「投資者」部分的財務新聞稿中查閱。

The current report on Form 8-K furnished with respect to our press release is available on the Company's website in the Investors section under SEC Filings and on the SEC's website. You'll also hear discussions of non-GAAP financial measures. Reconciliation of these non-GAAP measures to the most comparable GAAP financial measures are contained in the press release distributed today, and available on the Company's website.

與我們的新聞稿相關的 8-K 表的最新報告可在公司網站的「SEC 文件」下的「投資者」部分以及美國證券交易委員會網站上查閱。 您還將聽到有關非公認會計準則財務指標的討論。 這些非公認會計準則指標與最具可比性的公認會計準則財務指標的對帳表包含在今天發布的新聞稿中，並可在公司網站上查閱。

Now, I will turn the call over to Trung Doan, Chairman, President and CEO. Trung, please go ahead.

現在，我將把電話轉給董事長、總裁兼執行長 Trung Doan。 請 Trung 繼續。

One moment, he did disconnect his line. We are going to just try get him back on.

有一會兒，他確實斷了電話。 我們只是想讓他回來。

Ladies and gentlemen, you are on hold for today's SemiLEDs' call. We are attempting to reconnect our speakers of the call. Please continue to hold. Ladies and gentlemen, you are on hold for today's SemiLEDs' call. And at this time, we are attempting to reconnect to our speaker. Thank you for your patience. Please continue to hold.

女士們、先生們，您正在等待今天的 SemiLEDs 電話會議。 我們正在嘗試重新連接通話的揚聲器。 請繼續堅持。 女士們、先生們，您正在等待今天的 SemiLEDs 電話會議。 此時，我們正在嘗試重新連接揚聲器。 感謝您的耐心。 請繼續堅持。

Hello? Hi.

你好？ 你好。

Mr. Lin?

林先生？

Yes. What happened?

是的。 發生了什麼事？

We are not sure, sir. But please go ahead and you can continue with the conference.

先生，我們不確定。 但請繼續，您可以繼續參加會議。

So did the conference started yet?

那麼會議已經開始了嗎？

Yes, sir, you may go ahead, you may continue with your statement.

是的，先生，您可以繼續，您可以繼續您的發言。

Erica, isn't in yet.

艾莉卡還沒來。

You are online with your audience, sir, you may continue with your conference.

先生，您已與您的聽眾在線，您可以繼續您的會議。

Yes, but the thing is we need Erica to start.

是的，但是我們需要 Erica 來開始。

Trung, I'm all done. The conference is live. Can you start with your part of the script, please?

忠，我做完了。 會議正在進行現場直播。 您能先講一下劇本中您的部分嗎？

Okay, we got cut off. Sorry for that.

好的，我們被切斷了。 很抱歉。

Just go ahead.

繼續吧。

Okay. Good morning and thank you for joining our call today to discuss our first fiscal quarter 2014 results.

好的。 早安，感謝您今天參加我們 2014 財年第一季的業績電話會議。

As we have discussed on previous call, starting almost a year ago we make a conscious decision to refocus our business on profitable six months within niche LED markets such as UV and specialty lighting such as architectural.

正如我們在上次電話會議上討論的那樣，從大約一年前開始，我們就做出了一個有意識的決定，將業務重點重新放在利基 LED 市場（例如紫外線和建築照明等特殊照明）的六個月盈利上。

Given the level of chip commoditization in high-volume markets such as backlight, back lighting and general illumination, we have chosen to focus our effort on selected markets where we can also differentiate solutions and generate a higher margin.

考慮到背光、背光源和通用照明等大批量市場的晶片商品化水平，我們選擇將精力集中在特定的市場上，在這些市場上我們也可以提供差異化解決方案並產生更高的利潤。

As a part of this strategy we are also focused on developing greater value-added products such as components and lighting solutions.

作為該策略的一部分，我們還專注於開發更高附加價值的產品，例如組件和照明解決方案。

While we are still in the midst of executing on our strategy, we believe the combination of focusing on niche market opportunities and the greater value-add products will allow us to substantially improve our gross margins and bottom line.

雖然我們仍在執行我們的策略，但我們相信，專注於利基市場機會和更高附加價值產品的結合將使我們大幅提高毛利率和利潤。

As you saw in the press release, we distributed early this morning, our revenue came in at $3.4 million which is relatively flat compared to last quarter, however our Q1 2014 gross margin improved to negative 68% versus negative 103% for Q4 2013, resulting in a $1.2 million decrease in gross profit on our nominal top line growth. We believe the trend will continue for our Q2 2014 for both revenue and gross margin.

正如您在新聞稿中看到的，我們今天早上發布了一份報告，我們的收入為 340 萬美元，與上一季相比基本持平，但我們 2014 年第一季的毛利率從 2013 年第四季度的負 103% 改善為負 68%，導致我們的名義營業收入增長了 120 萬美元，但利潤減少了 120 萬美元。 我們相信，2014 年第二季的營收和毛利率都將繼續維持這一趨勢。

Tim will give you our expectations for fiscal Q2 2014, as we continue the interaction in our target markets with both our existing and new product offerings, we remain optimistic about opportunities in the market.

提姆將向您介紹我們對 2014 財年第二季的預期，隨著我們繼續透過現有產品和新產品與目標市場互動，我們對市場機會仍然持樂觀態度。

I thank you for your time today and your interest in SemiLEDs. Now I will turn the call over to Tim so he can review the financial results in more detail.

感謝您今天抽出時間並關注 SemiLEDs。 現在我將把電話轉給蒂姆，以便他能夠更詳細地審查財務結果。

Thank you, Trung, and thanks to everyone for joining us today. As a reminder, I am referring to our fiscal quarter as I walk through the financials.

謝謝你，Trung，也謝謝大家今天的參與。 提醒一下，我在介紹財務狀況時指的是我們的財務季度。

For the first quarter of 2014, revenue was $3.4 million which is approximately flat from the fourth quarter of 2013. Revenues attributable to the sales of our LED chips increased by 6% sequentially and represented approximately 29% of our total revenues in the quarter. Revenues attributable to the sales of our LED components increased by 4% sequentially and represented approximately 34% of our revenues in the quarter.

2014 年第一季的營收為 340 萬美元，與 2013 年第四季基本持平。 來自 LED 元件銷售的營收季增 4%，約佔本季營收的 34%。

Revenues from our lighting products increased by 25% sequentially and represented approximately 36% of our revenues in the quarter. GAAP net loss attributable to some of the stockholders was $6.3 million for the quarter compared to a loss of $17.9 million in the previous quarter. GAAP diluted net loss per share was $0.23.

我們的照明產品收入較上季成長 25％，約佔本季營收的 36％。 本季歸屬於部分股東的 GAAP 淨虧損為 630 萬美元，而上一季的虧損為 1,790 萬美元。 每股 GAAP 攤薄淨虧損為 0.23 美元。

On a non-GAAP basis, net loss attributable to SemiLEDs stockholders was $5.8 million compared to a loss of $7.3 million in the previous quarter. Non-GAAP diluted net loss per share for the first quarter of 2014 was $0.21. Non-GAAP net loss for the first quarter of 2014 excludes stock based compensation expense of $533,000 net of related taxes.

以非公認會計準則計算，SemiLEDs 股東淨虧損為 580 萬美元，而上一季的虧損為 730 萬美元。 2014年第一季非美國通用會計準則每股攤薄淨虧損0.21美元。 2014年第一季的非公認會計準則淨虧損不包括股票薪資費用533,000美元（扣除相關稅款）。

SG&A expenses were $2.6 million, which represents a $279,000 sequential decrease. R&D expenses were $1.1 million an approximately $63,000 decrease compared with Q4 2013.

銷售、一般及行政開支為 260 萬美元，較上一季減少 27.9 萬美元。 研發費用為 110 萬美元，與 2013 年第四季相比減少約 63,000 美元。

Gross margin for the third quarter was negative 68% which compares to a negative 103% in the previous quarter.

第三季的毛利率為負68%，而上一季的毛利率為負103%。

Moving to the balance sheet, days sales outstanding were 65 days as compared to 59 days for the prior quarter, inventory days on hand were 177 days up 40 days compared to 137 days at the end of the prior quarter. Inventory was 11.3 million at the end of the first quarter of 2014, a sequential increase of 842,000 from Q4 2013.

從資產負債表來看，應收帳款天數為 65 天，而上一季為 59 天，庫存天數為 177 天，比上一季末的 137 天增加了 40 天。 2014 年第一季末庫存為 1,130 萬，較 2013 年第四季增加 84.2 萬。

As of November 30, 2013, working capital was $32.6 million; cash and cash equivalents were $28.1 million, compared to cash and cash equivalent of $36.3 million in Q4 2013. Cash used in operations during the first quarter was $5.4 million compared to $4.7 million in the previous quarter. We spent approximately $483,000 on capital expenditures in Q1. This resulted in free cash flow of negative $5.9 million. We define free cash flow as cash provided by operations plus capital expenditures.

截至2013年11月30日，營運資金為3,260萬美元；現金和現金等價物為 2,810 萬美元，而 2013 年第四季的現金和現金等價物為 3,630 萬美元。 我們第一季的資本支出約為 483,000 美元。 這導致自由現金流為負 590 萬美元。 我們將自由現金流定義為經營活動提供的現金加上資本支出。

In addition to our ongoing CapEx investment as previously mentioned, during the quarter we paid approximately $1.6 million as a partial payment for an LED component production line and related products and technology we acquired in Q4 2013. In December, we made an additional payment of $450,000.

除了前面提到的持續進行的資本支出投資外，本季我們還支付了約 160 萬美元，作為 2013 年第四季收購的 LED 元件生產線及相關產品和技術的部分付款。

For the next quarter, fiscal Q2 2014, we expect Q2 revenues to be in the range of $4 million to $5 million and GAAP gross margin to continue to be negative for the quarter as we will not fully utilize our production capacity.

對於下一季度，即 2014 財年第二季度，我們預計第二季度營收將在 400 萬美元至 500 萬美元之間，由於我們不會充分利用我們的生產能力，本季的 GAAP 毛利率將繼續為負。

GAAP net loss attributable to some of the stockholders for Q2 is expected to be $5.4 million to $6.2 million; GAAP EPS is expected to be negative $0.20 to $0.22 per diluted share. The diluted shares outstanding account is estimated at $27.9 million.

第二季歸屬於部分股東的 GAAP 淨虧損預計為 540 萬美元至 620 萬美元；預計每股 GAAP EPS 為負 0.20 至 0.22 美元。 稀釋流通股帳戶估計為 2,790 萬美元。

This concludes our formal comments. Thank you everyone for your continued interest and taking the time to join the call today. I will now hand the call over to the operator for closing. Operator?

我們的正式評論到此結束。 感謝大家的持續關注並抽出時間參加今天的電話會議。 我現在將把通話交給接線員以結束通話。 操作員？

And this does conclude today's conference call. Thank you all for your participation.

今天的電話會議到此結束。 感謝大家的參與。