Q1 Financial Reports of Philips, Cree, and SemiLEDs

In the last fiscal year, Philips accounted for 14% of LED product sales, while Cree and SemiLEDs have recently performed poorly.

Philips

According to Philips' Q1 2011 financial report, its net income was 138 million euros, a decrease of 63 million euros compared to Q1 2010, with EBITA of 437 million euros and sales of 5.3 billion euros. Comparable sales grew by 4%, with steady growth in the lighting and healthcare businesses. In Q1 2011, Philips Lighting, driven by the LED business, also achieved mid-single-digit sales growth, with its growth rate in line with the overall rate. In Q1 2011, total sales of Philips' LED-related products grew by 27% compared to the same period last year, nearly triple the sales of 2009, and this figure continues to rise rapidly.

　　Cree

　　Cree recently announced its Q3 (January–March) financial results, with revenue declining 6% year-over-year and 15% quarter-over-quarter to US$219 million; EPS came in at US$0.27, lower than the US$0.27 reported in the same period of 2010 (US$0.47). Pressured by falling prices for LED chip products, gross margin slipped from 48.1% in the same period of 2010 to 42.4%. On March 23, citing declining sales of LED chips and components, Cree also revised its Q3 revenue guidance range downward from the original US$245–265 million to US$215–220 million. Cree CEO Chuck Swoboda stated that customer inventories have not been digested, and near-term demand remains uncertain. Looking ahead to April–June, Cree expects revenue of US$225–245 million, gross margin of around 40%, and EPS of US$0.25–0.31. However, he also emphasized that the recent issues will not affect Cree's main policies going forward; the future LED lighting market is quite substantial, and with the company's continued R&D of innovative products, Cree is expected to achieve considerable returns.

　　SemiLEDs

　　Earlier this month, the stock price of U.S.-based SemiLEDs (NASDAQ: LEDS) declined; quarterly revenue for the period ending February 28, 2011, was US$10 million, an increase of 30% compared with the same period last year. "Although this quarter's earnings did not meet our expectations, the future LED lighting market is very substantial, and our products can still capture a certain market share thanks to their competitive pricing advantage," said Trung Doan, CEO of SemiLEDs. The company's GAAP net loss for the quarter was US$1.2 million, equivalent to a loss of US$0.05 per share. Its GAAP gross margin was 23%, only equivalent to 41% of the same period last year. Similarly, its GAAP operating gross profit decreased by 6%, equivalent to just 28% of the same period last year.

　　U.S.-based SemiLEDs was founded in 2004, with its headquarters located in Silicon Valley, California. The company specializes in the design, development and sale of high-efficiency vertical-structure Gallium Nitride (GaN) LEDs. SemiLEDs holds a world-leading position in the supply of solid-state lighting devices and opto-semiconductor devices, and is currently the only company in the world that has successfully developed and commercialized metal-based vertical-structure LED chips. The company's high-lumen HBLED products are designed for the automotive, communications, display and lighting equipment markets.