Newly public SemiLEDs Corp. nearly doubled its revenue and net income surged in the first quarter, but the outlook released by the chip maker sent shares into a tailspin before the market opened. The company said new pricing pressures will lead to slimmer profit and revenue over the next three months, sending shares slumping by 34 percent.
For the three months ended Nov. 30 the company earned $3.8 million, or 11 cents per share, up from earnings of $400,000, or a breakeven per share, a year earlier. SemiLEDs began trading on the Nasdaq on Dec. 9, so it was still private during the first quarter. Revenue rose 94 percent to $13 million from $6.7 million. In the second quarter, however, SemiLeds said it expects revenue in a range of $10.5 million to $12.5 million. Net income is expected to be only $1.6 million to $2.6 million, or 6 to 9 cents per share. SemiLEDs, based in Taiwan, makes LED chips, which are used to illuminate everything from video games, mobile phones to car dashboards. Shares fell $9.74 to $18.89 before the market opened.