SemiLEDs Corporation reported significant financial improvements in its latest quarterly filing, with revenues reaching $17.7 million for the three months ended May 31, 2025, a substantial increase from $1.3 million during the same period in 2024. This growth was primarily driven by a $16.5 million surge in sales from buy-sell purchase orders of equipment. For the nine months ending May 31, 2025, total revenues also rose to $29.8 million, compared to $3.9 million in the prior year. Despite this revenue growth, the company reported a net income of $223,000 for the quarter, a turnaround from a net loss of $319,000 in the same quarter last year.
The company's cost of revenues increased significantly, from $780,000 in Q3 2024 to $16.7 million in Q3 2025, reflecting the higher volume of equipment sales. Consequently, the gross profit margin decreased to 5% from 41% year-over-year, indicating that the buy-sell orders, while boosting revenue, carried lower margins than traditional product sales. Operating expenses remained relatively stable, totaling $1 million for the latest quarter, slightly down from $1.02 million in the previous year.
In terms of operational developments, SemiLEDs has focused on enhancing its product offerings and expanding its market presence. The company has concentrated its sales efforts on LED components and modules, which are expected to yield higher margins. As of May 31, 2025, SemiLEDs had cash and cash equivalents of $2.4 million, up from $1.7 million a year earlier, indicating improved liquidity. The company has also streamlined its operations by merging its wholly-owned subsidiary, Taiwan Bandaoti Zhaoming Co., Ltd., into its main operations, which is expected to enhance efficiency.
Looking ahead, SemiLEDs aims to continue leveraging its buy-sell purchase orders to drive revenue growth while managing costs to improve profitability. The company is also exploring opportunities to raise additional capital through equity offerings and asset sales to support its operations and strategic initiatives. However, management has acknowledged the challenges posed by market conditions, including competitive pressures and the need for ongoing innovation in product development. The outlook remains cautiously optimistic, with a focus on achieving positive cash flows and maintaining financial flexibility in the coming quarters.
About SemiLEDs Corp
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