Executive Summary

Q4 FY2024 revenue was $1.324M, essentially flat QoQ vs $1.323M in Q3 but above the company’s Q3 guidance of ~$1.0M ±10% (range $0.9–$1.1M); however, GAAP gross margin deteriorated sharply to 12% (from 41% in Q3) and operating margin fell to -62% (from -36% in Q3) .
GAAP net loss widened to $(0.08) per diluted share (vs $(0.06) per diluted share in Q3) as profitability pressure offset the revenue outperformance vs guidance .
Cash and cash equivalents ended the quarter at $1.671M, essentially unchanged QoQ (Q3: $1.676M) but down YoY (FY2023 year-end: $2.572M), with total debt of ~$3.724M as of Aug 31, 2024 (current installments $2.854M + LT debt $0.870M) .
No new forward guidance was issued for the next quarter; nonetheless, the quarter’s key stock-reaction catalyst is the revenue beat vs prior guidance contrasted with a significant sequential margin reset, which likely tempers positive read-through from the top line .

What Went Well and What Went Wrong

What Went Well
- Revenue exceeded the company’s prior Q4 outlook of ~$1.0M ±10% (range $0.9–$1.1M), delivering $1.324M in Q4 FY2024 .
- FY2024 GAAP gross margin improved to 20% vs 17% in FY2023, indicating some full-year mix/efficiency improvement despite quarterly volatility .
- Inventories declined sequentially to $3.574M in Q4 from $3.673M in Q3, suggesting some working capital progress alongside stable cash QoQ ($1.671M vs $1.676M) .
- Quote (forward-looking context): “We expect revenue for the fourth quarter ending August 31, 2024 to be approximately $1.0 million +/- 10%.” (Q3 release; actual Q4 revenue beat this guidance) .
What Went Wrong
- Gross margin compressed to 12% from 41% QoQ; operating margin fell to -62% from -36% QoQ, driving a wider net loss of $(0.08) per share vs $(0.06) in Q3 .
- FY2024 revenue declined to $5.183M from $5.979M in FY2023, reflecting a tougher demand backdrop for the year despite Q3–Q4 stabilization .
- Leverage remains a constraint: total debt ~$3.724M vs cash of $1.671M at FY2024 year-end; equity rose YoY ($2.201M vs $1.151M) but liquidity remains tight for sustained investment or volatility absorption .
- Context from Q2: “We shut down our manufacturing production from February 3 to February 18 due to the Chinese New Year holiday,” highlighting operational sensitivity to downtime earlier in the year .

Financial Results

Quarterly performance vs prior periods

Metric	Q2 FY2024 (Feb 29, 2024)	Q3 FY2024 (May 31, 2024)	Q4 FY2024 (Aug 31, 2024)
Revenue ($USD Millions)	$0.886	$1.323	$1.324
Gross Margin %	13%	41%	12%
Operating Margin %	-94%	-36%	-62%
Net Loss ($USD Millions)	$(0.559)	$(0.319)	$(0.560)
Diluted EPS ($)	$(0.11)	$(0.06)	$(0.08)

Balance sheet and KPIs

KPI	Q2 FY2024 (Feb 29, 2024)	Q3 FY2024 (May 31, 2024)	Q4 FY2024 (Aug 31, 2024)
Cash & Cash Equivalents ($USD Millions)	$1.613	$1.676	$1.671
Accounts Receivable, net ($USD Millions)	$0.748	$0.668	$0.416
Inventories, net ($USD Millions)	$3.751	$3.673	$3.574
Current Installs. of LT Debt ($USD Millions)	$2.859	$2.848	$2.854
Long-term Debt excl. current ($USD Millions)	$1.110	$0.969	$0.870
Total Debt ($USD Millions)	$3.969	$3.817	$3.724
Total Equity ($USD Millions)	$3.092	$2.765	$2.249

Full-year snapshot

Metric	FY2023	FY2024
Revenue ($USD Millions)	$5.979	$5.183
GAAP Gross Margin %	17%	20%
GAAP Operating Margin %	-57%	-57%
Net Loss ($USD Millions)	$(2.690)	$(2.036)
Diluted EPS ($)	$(0.55)	$(0.32)
Cash & Cash Equivalents at year-end ($USD Millions)	$2.572	$1.671

Estimates vs actuals
- Wall Street consensus (S&P Global) for Q4 FY2024 EPS and revenue was unavailable via our feed at this time; we attempted to retrieve S&P Global estimates but encountered a rate limit error. As a result, comparisons to consensus are not shown.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 FY2024	~$1.0M ±10% (range $0.9–$1.1M) as provided on July 8, 2024	None issued at Nov 27, 2024; actual delivered $1.324M	N/A (no update); actual exceeded prior guidance

No new forward-looking guidance (e.g., revenue, margins, opex, tax rate) was provided in the Q4 FY2024 materials reviewed .

Earnings Call Themes & Trends

No Q4 FY2024 earnings call transcript was available in our document set; we infer themes from press releases.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Profitability/margins	Q2: GM 13%, Op margin -94% (CNY shutdown impact noted) . Q3: GM improved to 41%, Op margin -36% .	GM 12%, Op margin -62% .	Volatile; sharp sequential setback in Q4 after Q3 rebound.
Revenue trajectory	Q2: $0.886M with Q3 outlook ~$1.0M ±10% . Q3: $1.323M, Q4 guide reiterated at ~$1.0M ±10% .	Actual $1.324M vs prior Q4 guide $0.9–$1.1M .	Stabilizing around $1.3M; outperformed guidance in Q4.
Strategic alternatives	Financial advisor engaged in Q3 (Roth Capital Partners) .	Mentioned within forward-looking statements context (consideration of potential strategic alternatives) .	Ongoing strategic review context persists.
Operations/supply chain	Q2: Plant shutdown Feb 3–18 due to Chinese New Year .	No new operational disruptions disclosed .	No recent disruptions disclosed.
Nasdaq listing compliance	Q2: Company believed in compliance based on 2Q stockholders’ equity .	Not discussed in Q4 release .	No update in Q4 materials.

Management Commentary

Strategic/operational context:
- The company engaged Roth Capital Partners as financial advisor to explore potential strategic alternatives (disclosed in Q3) .
- Forward-looking statements in Q4 reiterate the “consideration of potential strategic alternatives” and reference the broader LED industry recovery and market opportunities as uncertainties .
Important quotes:
- “We expect revenue for the fourth quarter ending August 31, 2024 to be approximately $1.0 million +/- 10%.” (Q3 outlook; Q4 actual beat) .
- “We shut down our manufacturing production from February 3 to February 18 due to the Chinese New Year holiday.” (Q2 operational disclosure) .

Note: The Q4 press release and 8-K did not include management-prepared remarks or a call transcript with additional qualitative color beyond the financial tables and forward-looking statement disclosures .

Q&A Highlights

No Q4 FY2024 earnings call transcript was available; thus, there were no analyst Q&A themes or clarifications to report from this period .

Estimates Context

We attempted to pull S&P Global consensus for Q4 FY2024 revenue and EPS; however, data retrieval failed due to a rate limit, and we do not show consensus comparisons. As such, any estimate-related adjustments are not assessed in this report at this time.
Given the revenue outcome vs the company’s prior guidance, sell-side estimates (where they exist) may need to reassess revenue resilience but also factor in the steeper-than-expected gross margin compression in Q4 .

Key Takeaways for Investors

Revenue resilience: Q4 revenue of $1.324M exceeded prior guidance, suggesting some stabilization of demand/mix near ~$1.3M run-rate despite a soft FY2024 overall .
Margin volatility is the focus: GM fell to 12% from 41% QoQ and operating margin to -62% from -36%, overshadowing the top-line beat and widening losses per share .
Liquidity/leverage watch: Cash held roughly flat QoQ at ~$1.67M but sits against ~$3.72M of total debt at FY2024 year-end; investors should monitor working capital and refinancing/repayment visibility .
Strategic alternatives remain a potential medium-term catalyst; the Q4 forward-looking text references ongoing consideration, following the Q3 announcement of an advisor engagement .
Year-over-year picture: FY2024 revenue declined to $5.183M vs $5.979M, though FY gross margin improved to 20% from 17%; sustained improvement will require stabilizing quarterly margins .
Near-term setup: With no new forward guidance, the narrative likely hinges on whether Q4’s margin compression proves transient vs structural; absent new disclosures, traders may focus on subsequent updates or strategic review developments .

Appendix: Source Documents Reviewed

Q4 FY2024 press release and 8-K (including financial statements) .
Q3 FY2024 press release (including Q4 revenue guidance) .
Q2 FY2024 8-K press release (including CNY shutdown and financials) .

Estimates disclaimer: We attempted to retrieve consensus from S&P Global for Q4 FY2024 but were unable to due to a temporary rate limit.

SemiLEDs Corp (LEDS)·Q4 2024 Earnings Summary