Executive Summary

Q1 FY2025 revenue was $1.261M, flat sequentially, with GAAP gross margin improving to 21% and operating margin to -52%; GAAP net loss narrowed slightly to $0.547M ($0.08 EPS) .
YoY, revenue declined 24% (from $1.650M) but gross margin rose from 15% to 21% on mix and other revenue; EPS improved from $(0.12) to $(0.08) .
A major near-term catalyst: buy-sell orders of approximately $13.3M received in Q2 FY2025 (with ~$12.7M estimated cost of revenue and $7.0M deposits already received), expected to be recognized in Q2 subject to installation/testing timing .
Liquidity remains tight (cash $1.248M) with going-concern emphasis and a plan to reduce costs, adjust product mix, and raise capital; Nasdaq compliance risk flagged due to stockholders’ equity deficiency notice in December 2024 .
No Q1 FY2025 earnings call transcript available in the filings set; comparisons are anchored to the 8-K press release and 10-Q .

What Went Well and What Went Wrong

What Went Well

Gross margin expanded to 21% from 12% in Q4 FY2024 and 15% in Q1 FY2024, aided by mix shift and other revenues .
Operating margin improved sequentially to -52% from -62% in Q4 FY2024, reflecting cost discipline and mix .
Management disclosed ~$13.3M buy-sell orders expected for Q2 FY2025: “We received buy-sell purchase orders…approximately $13.3 million…revenue…expected to be recognized in the second quarter of fiscal 2025” .

What Went Wrong

Revenues declined YoY to $1.261M (down 24%), driven by lower LED component volumes; LED components fell to $0.561M from $1.075M YoY .
Cash decreased to $1.248M and management reiterated going-concern considerations; “These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern” .
Nasdaq listing compliance risk: “On December 4, 2024, we received a notice from Nasdaq indicating…we did not meet the minimum of $2.5 million in stockholders’ equity” .

Financial Results

Sequential performance (last three quarters)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$1.323	$1.324	$1.261
GAAP Gross Margin (%)	41%	12%	21%
Operating Margin (%)	-36%	-62%	-52%
GAAP Net Loss ($USD Millions)	$0.319	$0.560	$0.547
Diluted EPS ($USD)	$(0.06)	$(0.08)	$(0.08)

YoY comparison (Q1)

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$1.650	$1.261
GAAP Gross Margin (%)	15%	21%
R&D ($USD Thousands)	$372	$221
SG&A ($USD Thousands)	$742	$696
GAAP Net Loss ($USD Thousands)	$598	$547
Diluted EPS ($USD)	$(0.12)	$(0.08)

Product mix (Q1 YoY)

Product Category	Q1 2024 ($USD Thousands)	Q1 2025 ($USD Thousands)	Share Q1 2024	Share Q1 2025
LED chips	58	65	4%	5%
LED components	1,075	561	65%	44%
Lighting products	49	59	3%	5%
Other operating revenues	468	576	28%	46%
Total Revenues	1,650	1,261	100%	100%

KPIs and balance sheet

KPI	Q4 2024	Q1 2025
Cash & Cash Equivalents ($USD Thousands)	1,671	1,248
Accounts Receivable, net ($USD Thousands)	416	261
Inventories, net ($USD Thousands)	3,574	3,722
Current Installments of Long-term Debt ($USD Thousands)	2,854	2,847
Long-term Debt excl. current ($USD Thousands)	870	744
Operating Cash Flow ($USD Thousands, quarter)	N/A	(158)
Shares (basic/diluted, thousands)	7,203	7,212

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD)	Q4 FY2024	~$1.0M ±10%	Actual $1.324M	Beat guidance midpoint
Revenue ($USD)	Q2 FY2025	N/A	~$13.3M expected from buy-sell POs; recognition targeted in Q2, subject to installation/testing	New disclosure
Cost of Revenue ($USD)	Q2 FY2025	N/A	~$12.7M estimated cost tied to buy-sell POs	New disclosure
Deposits ($USD)	Q2 FY2025	N/A	$7.0M deposits received against buy-sell POs	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 and Q4 FY2024)	Current Period (Q1 FY2025)	Trend
Strategic alternatives	Engaged Roth Capital to explore options	Not reiterated in Q1 filings/PR; focus on operations and liquidity	De-emphasized in disclosures
Supply chain/cost actions	Margin improvement via mix in Q3; compression in Q4	Gross margin up to 21%; continued cost controls and mix shift	Improving margins
Liquidity/going concern	Tight cash; debt service; equity conversions noted	Going-concern plan; potential equity raise; aim to reduce costs	Ongoing risk, active plan
Market/regulatory (Nasdaq)	N/A	Nasdaq notice on stockholders’ equity deficiency	Heightened listing risk
Product/technology (UV, modules, sensors)	Modules/UV noted; small format AI sensors capability	Continued emphasis on module/UV; tech capabilities outlined	Consistent focus
Customer concentration	N/A	Top 10 customers accounted for 96% of revenue; geographic concentration ~93%	Persistent concentration risk

Management Commentary

“We received buy-sell purchase orders; the first set of purchase orders are approximately $13.3 million…The revenue relating to these purchase orders is currently expected to be recognized in the second quarter of fiscal 2025…estimated cost of revenue…approximately $12.7 million.” .
“We have adopted a strategy to adjust our product mix by exiting certain high volume but low unit selling price product lines…to focus on the profitable products.” .
“These facts and conditions raise substantial doubt about the Company’s ability to continue as a going concern…Management believes that it has developed a liquidity plan…cost reductions and the sales of new higher margin products…raising additional cash through potential equity offerings…” .
“We estimate that our cash requirements to service debt and contractual obligations in fiscal 2025 is approximately $3.4 million, which we expect to fund through the issuance of additional equity… and through loan extensions.” .

Q&A Highlights

No Q1 FY2025 earnings call transcript is available in the filings set; key clarifications were provided through the 8-K/press release and 10-Q MD&A, particularly regarding Q2 buy-sell orders and liquidity planning .

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 revenue/EPS was unavailable to us at this time due to data access limitations; coverage also appears limited for this micro-cap name. As a result, we cannot provide a beat/miss versus consensus for Q1 or Q2 guidance. Values would normally be retrieved from S&P Global when available.

Key Takeaways for Investors

Sequential stability in revenue with improved margins: Q1 gross margin 21% and operating margin -52% versus Q4’s 12% and -62%, respectively, indicating better mix and cost control .
YoY decline led by LED components volume pressure; “LED components” revenue fell 48% YoY (to $0.561M), partly offset by growth in “other operating revenues” to $0.576M .
Near-term catalyst: ~$13.3M buy-sell orders with $7.0M deposits received, expected to be recognized in Q2 FY2025—monitor installation/testing timing risk; cost of revenue estimated ~$12.7M .
Liquidity tight and going-concern emphasis; cash $1.248M, operating cash flow $(0.158)M in Q1; management plans cost cuts, mix adjustments, and potential equity/debt actions .
Listing risk: Nasdaq deficiency notice for stockholders’ equity; watch for remediation (plan acceptance and equity actions) .
Capital structure actions ongoing: prior note conversions and loan amendments (including equity repayments and ability to repay via common stock) help de-lever but dilute; current loans total ~$2.4M with second-priority lien on HQ .
High customer/geographic concentration persists (Top 10 customers 96% of revenue; key markets 93%), keeping results sensitive to order timing/mix .

SemiLEDs Corp (LEDS)·Q1 2025 Earnings Summary