Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Nov. 30, 2013 | Jan. 06, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'SemiLEDs Corp | ' |
Entity Central Index Key | '0001333822 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Nov-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--08-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 27,760,780 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $28,122 | $36,272 |
Accounts receivable, net of allowance for doubtful accounts of $1,601 and $1,616 as of November 30, 2013 and August 31, 2013, respectively | 2,417 | 2,152 |
Accounts receivable from related parties, net of allowance for doubtful accounts of $1,410 and $1,395 as of November 30, 2013 and August 31, 2013, respectively | 133 | 120 |
Inventories | 11,342 | 10,500 |
Prepaid expenses and other current assets | 1,149 | 1,080 |
Total current assets | 43,163 | 50,124 |
Property, plant and equipment, net | 29,487 | 30,473 |
Intangible assets, net | 1,431 | 1,379 |
Goodwill, net | 59 | 59 |
Investments in unconsolidated entities | 2,220 | 2,275 |
Other assets | 1,470 | 1,395 |
TOTAL ASSETS | 77,830 | 85,705 |
CURRENT LIABILITIES: | ' | ' |
Current installments of long-term debt | 2,243 | 2,294 |
Accounts payable | 2,455 | 3,534 |
Accrued expenses and other current liabilities | 5,802 | 6,825 |
Deferred income, current portion | 51 | 51 |
Total current liabilities | 10,551 | 12,704 |
Long-term debt, excluding current installments | 5,755 | 6,169 |
Deferred income, net of current portion | 327 | 339 |
Total liabilities | 16,633 | 19,212 |
Commitments and contingencies (Note 5) | ' | ' |
SemiLEDs stockholders' equity | ' | ' |
Common stock, $0.0000056 par value-32,143 shares authorized; 27,761 shares issued and outstanding | ' | ' |
Additional paid-in capital | 169,505 | 169,114 |
Accumulated other comprehensive income | 6,075 | 5,557 |
Accumulated deficit | -114,447 | -108,155 |
Total SemiLEDs stockholders' equity | 61,133 | 66,516 |
Noncontrolling interests | 64 | -23 |
Total equity | 61,197 | 66,493 |
TOTAL LIABILITIES AND EQUITY | $77,830 | $85,705 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,601 | $1,616 |
Accounts receivable from related parties, allowance for doubtful accounts (in dollars) | $1,410 | $1,395 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 32,143 | 32,143 |
Common stock, shares issued | 27,761 | 27,761 |
Common stock, shares outstanding | 27,761 | 27,761 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Condensed Consolidated Statements of Operations | ' | ' |
Revenues, net | $3,417 | $6,227 |
Cost of revenues | 5,754 | 9,515 |
Gross loss | -2,337 | -3,288 |
Operating expenses: | ' | ' |
Research and development | 1,126 | 1,223 |
Selling, general and administrative | 2,644 | 3,663 |
Total operating expenses | 3,770 | 4,886 |
Loss from operations | -6,107 | -8,174 |
Other income (expenses): | ' | ' |
Equity in losses from unconsolidated entities, net | -63 | -75 |
Interest income (expenses), net | -37 | 5 |
Other income, net | 54 | 52 |
Foreign currency transaction loss, net | -197 | -926 |
Total other expenses, net | -243 | -944 |
Loss before income taxes | -6,350 | -9,118 |
Net loss | -6,350 | -9,118 |
Less: Net loss attributable to noncontrolling interests | -58 | -195 |
Net loss attributable to SemiLEDs stockholders | ($6,292) | ($8,923) |
Net loss per share attributable to SemiLEDs stockholders: | ' | ' |
Basic and diluted (in dollars per share) | ($0.23) | ($0.32) |
Shares used in computing net loss per share attributable to SemiLEDs stockholders: | ' | ' |
Basic and diluted (in shares) | 27,784 | 27,495 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Condensed Consolidated Statements of Comprehensive Loss | ' | ' |
Net loss | ($6,350) | ($9,118) |
Other comprehensive income, net of tax: | ' | ' |
Foreign currency translation adjustments, net of tax of $0 for both periods | 521 | 2,715 |
Comprehensive loss | -5,829 | -6,403 |
Comprehensive loss attributable to noncontrolling interests | -55 | -166 |
Comprehensive loss attributable to SemiLEDs stockholders | ($5,774) | ($6,237) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Condensed Consolidated Statements of Comprehensive Loss | ' | ' |
Foreign currency translation adjustments, tax | $0 | $0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Changes in Equity (USD $) | Total | Total SemiLEDs Stockholders' Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non-Controlling Interests |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
BALANCE at Aug. 31, 2013 | $66,493 | $66,516 | ' | $169,114 | $5,557 | ($108,155) | ($23) |
BALANCE (in shares) at Aug. 31, 2013 | ' | ' | 27,761 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 533 | 533 | ' | 533 | ' | ' | ' |
Purchase of common shares in Ning Xiang | ' | -142 | ' | -142 | ' | ' | 142 |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 521 | 518 | ' | ' | 518 | ' | 3 |
Net loss | -6,350 | -6,292 | ' | ' | ' | -6,292 | -58 |
BALANCE at Nov. 30, 2013 | $61,197 | $61,133 | ' | $169,505 | $6,075 | ($114,447) | $64 |
BALANCE (in shares) at Nov. 30, 2013 | ' | ' | 27,761 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($6,350) | ($9,118) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,566 | 2,097 |
Stock-based compensation expense | 533 | 336 |
Bad debt expense | 31 | 686 |
Provisions for inventory write-downs | 187 | 712 |
Equity in losses from unconsolidated entities, net | 63 | 75 |
Income recognized on patents assignment | -13 | -13 |
Changes in operating assets and liabilities, net of acquisition: | ' | ' |
Accounts receivable, net | -285 | 262 |
Inventories | -915 | 957 |
Prepaid expenses and other | 37 | 101 |
Accounts payable | -807 | 147 |
Accrued expenses and other current liabilities | 525 | 508 |
Net cash used in operating activities | -5,428 | -3,250 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property, plant and equipment | -483 | -1,669 |
Purchase of investment | ' | -2,873 |
Payments related to acquisition of business | -1,626 | ' |
Payments for development of intangible assets | -80 | -119 |
Placement of refundable deposits | -78 | -1 |
Increase in restricted cash | -97 | ' |
Proceeds from sales of short-term investments | ' | 488 |
Proceeds from return of investment in unconsolidated entity | ' | 250 |
Net cash used in investing activities | -2,364 | -3,924 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from line of credit | 170 | ' |
Payments on line of credit | -170 | -1,623 |
Payments of long-term debt | -562 | -244 |
Other financing activities | 3 | 1 |
Net cash used in financing activities | -559 | -1,866 |
Effect of exchange rate changes on cash and cash equivalents | 201 | 1,132 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -8,150 | -7,908 |
CASH AND CASH EQUIVALENTS-Beginning of period | 36,272 | 47,228 |
CASH AND CASH EQUIVALENTS-End of period | 28,122 | 39,320 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Accrual related to property, plant and equipment | 203 | 1,776 |
Accrual related to acquisition of business | $450 | ' |
Business
Business | 3 Months Ended |
Nov. 30, 2013 | |
Business | ' |
Business | ' |
1. Business | |
SemiLEDs Corporation (“SemiLEDs”) was incorporated in Delaware on January 4, 2005 and is a holding company for various wholly and majority owned subsidiaries. SemiLEDs and its subsidiaries (collectively, the “Company”) develop, manufacture and sell high performance light emitting diodes (“LEDs”). The Company’s core products are LED chips and LED components, but lighting products have also become an increasingly important part of the Company’s business. A portion of the Company’s business consists of the sale of contract manufactured LED products. The Company’s customers are concentrated in a few select markets, including Taiwan, the United States, China and Russia. | |
As of November 30, 2013, SemiLEDs had seven wholly owned subsidiaries and an 87% equity interest in Ning Xiang Technology Co., Ltd. (“Ning Xiang”). The most significant of these consolidated subsidiaries is SemiLEDs Optoelectronics Co., Ltd. (“Taiwan SemiLEDs”) located in Hsinchu, Taiwan where a substantial portion of research, development, manufacturing, marketing and sales activities currently take place and where a substantial portion of the assets are held and located. Taiwan SemiLEDs owns a 100% equity interest in Silicon Base Development, Inc. (“SBDI”). SBDI is engaged in the research, development, manufacturing, marketing and sales of LED components. As of November 30, 2013, the Company also owned an 87% interest in Ning Xiang, which consisted of a 51% interest acquired in August 2011, an additional 15% interest acquired in April 2013 and an additional 21% interest acquired in November 2013. Ning Xiang is engaged in the design, manufacture and sale of lighting fixtures and systems. | |
SemiLEDs’ common shares are listed on the NASDAQ Global Select Market under the symbol “LEDS” since December 8, 2010. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
2. Summary of Significant Accounting Policies | ||||||||
Basis of Presentation—The Company’s unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable provisions of the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the rules and regulations of the SEC. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on November 26, 2013. The unaudited condensed consolidated balance sheet as of August 31, 2013 included herein was derived from the audited consolidated financial statements as of that date. | ||||||||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated balance sheet as of November 30, 2013, the statements of operations and comprehensive loss for the three months ended November 30, 2013 and 2012, the statement of changes in equity for the three months ended November 30, 2013, and the statements of cash flows for the three months ended November 30, 2013 and 2012. The results for the three months ended November 30, 2013 are not necessarily indicative of the results to be expected for the year ending August 31, 2014. | ||||||||
Principles of Consolidation—The unaudited interim condensed consolidated financial statements include the accounts of SemiLEDs and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated during consolidation. | ||||||||
Use of Estimates—The preparation of unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the collectibility of accounts receivable, inventory net realizable values, realization of deferred tax assets, valuation of stock-based compensation expense, the useful lives of property, plant and equipment and intangible assets, the recoverability of the carrying amount of property, plant and equipment, intangible assets, goodwill and investments in unconsolidated entities, the fair value of acquired tangible and intangible assets, income tax uncertainties, provision for potential litigation costs and other contingencies. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ materially from those estimates. | ||||||||
Certain Significant Risks and Uncertainties—The Company is subject to certain risks and uncertainties that could have a material and adverse effect on the Company’s future financial position or results of operations, which risks and uncertainties include, among others: it has incurred significant losses over the last three fiscal years, any inability of the Company to compete in a rapidly evolving market and to respond quickly and effectively to changing market requirements, any inability of the Company to grow its revenue and/or maintain or increase its margins, it may experience fluctuations in its revenues and operating results, any inability of the Company to protect its intellectual property rights, claims by others that the Company infringes their proprietary technology, and any inability of the Company to raise additional funds in the future. | ||||||||
Concentration of Supply Risk—Some of the components and technologies used in the Company’s products are purchased and licensed from a limited number of sources and some of the Company’s products are produced by a limited number of contract manufacturers. The loss of any of these suppliers and contract manufacturers may cause the Company to incur transition costs to another supplier or contract manufacturer, result in delays in the manufacturing and delivery of the Company’s products, or cause it to carry excess or obsolete inventory. The Company relies on a limited number of such suppliers and contract manufacturers for the fulfillment of its customer orders. Any failure of such suppliers and contract manufacturers to perform could have an adverse effect upon the Company’s reputation and its ability to distribute its products or satisfy customers’ orders, which could adversely affect the Company’s business, financial position, results of operations and cash flows. | ||||||||
Concentration of Credit Risk—Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. | ||||||||
The Company keeps its cash and cash equivalents in demand deposits with prominent banks of high credit quality and invests only in money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. As of November 30, 2013 and August 31, 2013, cash and cash equivalents of the Company consisted of the following (in thousands): | ||||||||
Cash and Cash Equivalents by Location | November 30, | August 31, | ||||||
2013 | 2013 | |||||||
United States: | ||||||||
Denominated in U.S. dollars | $ | 18,582 | $ | 18,631 | ||||
Taiwan: | ||||||||
Denominated in U.S. dollars | 6,997 | 16,158 | ||||||
Denominated in New Taiwan dollars | 1,403 | 445 | ||||||
Denominated in other currencies | 332 | 264 | ||||||
China (including Hong Kong): | ||||||||
Denominated in U.S. dollars | 377 | 345 | ||||||
Denominated in Renminbi | 430 | 428 | ||||||
Denominated in H.K. dollars | 1 | 1 | ||||||
Total cash and cash equivalents | $ | 28,122 | $ | 36,272 | ||||
The Company’s revenues are substantially derived from the sales of LED products. A significant portion of the Company’s revenues are derived from a limited number of customers and sales are concentrated in a few select markets. Management performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. Management evaluates the need to establish an allowance for doubtful accounts for estimated potential credit losses at each reporting period. The allowance for doubtful accounts is based on the management’s assessment of the collectibility of its customer accounts. Management regularly reviews the allowance by considering certain factors, such as historical experience, industry data, credit quality, age of accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. | ||||||||
Net revenues generated from sales to the top ten customers represented 43% and 47% of the Company’s total net revenues for the three months ended November 30, 2013 and 2012, respectively. | ||||||||
The Company’s revenues have been concentrated in a few select markets, including Taiwan, the United States, China and Russia. Net revenues generated from sales to customers in these markets, in the aggregate, accounted for 61% and 62% of the Company’s total net revenues for the three months ended November 30, 2013 and 2012, respectively. | ||||||||
Noncontrolling Interests—Noncontrolling interests are classified in the consolidated statements of operations as part of consolidated net income (loss) and the accumulated amount of noncontrolling interests in the consolidated balance sheets as part of equity. Changes in ownership interest in a consolidated subsidiary that do not result in a loss of control are accounted for as an equity transaction. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. | ||||||||
Transactions with noncontrolling interests had the following effect on equity attributable to SemiLEDs stockholders (in thousands): | ||||||||
Three Months | ||||||||
Ended | ||||||||
November 30, | ||||||||
2013 | ||||||||
Net loss attributable to SemiLEDs stockholders | $ | (6,292 | ) | |||||
Transfers to noncontrolling interests: | ||||||||
Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang | (142 | ) | ||||||
Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests | $ | (6,434 | ) | |||||
Recent Accounting Pronouncement | ||||||||
Presentation of Certain Unrecognized Tax Benefits—In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss, or tax credit carryforward, rather than as a liability, when: (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction; and (2) the entity intends to use the deferred tax asset for that purpose. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. This ASU is effective for the Company beginning in the first quarter of fiscal 2015. The Company has elected not to early adopt this ASU. |
Balance_Sheet_Components
Balance Sheet Components | 3 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Balance Sheet Components | ' | ||||||||||||
Balance Sheet Components | ' | ||||||||||||
3. Balance Sheet Components | |||||||||||||
Inventories | |||||||||||||
Inventories as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands): | |||||||||||||
November 30, | August 31, | ||||||||||||
2013 | 2013 | ||||||||||||
Raw materials | $ | 2,237 | $ | 2,193 | |||||||||
Work in process | 3,403 | 3,865 | |||||||||||
Finished goods | 5,702 | 4,442 | |||||||||||
Total | $ | 11,342 | $ | 10,500 | |||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands): | |||||||||||||
November 30, | August 31, | ||||||||||||
2013 | 2013 | ||||||||||||
Buildings and improvements | $ | 14,675 | $ | 14,510 | |||||||||
Machinery and equipment | 68,302 | 67,109 | |||||||||||
Leasehold improvements | 3,184 | 3,144 | |||||||||||
Other equipment | 2,730 | 2,686 | |||||||||||
Construction in progress | 761 | 1,028 | |||||||||||
Total property, plant and equipment | 89,652 | 88,477 | |||||||||||
Less: Accumulated depreciation, amortization and impairment | (60,165 | ) | (58,004 | ) | |||||||||
Property, plant and equipment, net | $ | 29,487 | $ | 30,473 | |||||||||
Intangible Assets | |||||||||||||
Intangible assets as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands): | |||||||||||||
November 30, 2013 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | Carrying | ||||||||||
Amortization | Amount | Amount | |||||||||||
Period (Years) | |||||||||||||
Patents and trademarks | 14 | $ | 1,080 | $ | 184 | $ | 896 | ||||||
Acquired technology | 5 | 727 | 192 | 535 | |||||||||
Total | $ | 1,807 | $ | 376 | $ | 1,431 | |||||||
August 31, 2013 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | Carrying | ||||||||||
Amortization | Amount | and | Amount | ||||||||||
Period (Years) | Impairment(1) | ||||||||||||
Patents and trademarks | 15 | $ | 973 | $ | 161 | $ | 812 | ||||||
Acquired technology | 5 | 719 | 152 | 567 | |||||||||
Customer relationships | 5 | 1,337 | 1,337 | — | |||||||||
Total | $ | 3,029 | $ | 1,650 | $ | 1,379 | |||||||
(1) Includes an impairment charge of $851 thousand recognized in the year ended August 31, 2013 to write down the intangible asset for customer relationships to its fair value of zero before the end of its estimated useful life. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 3 Months Ended | |||||||||||
Nov. 30, 2013 | ||||||||||||
Investments in Unconsolidated Entities | ' | |||||||||||
Investments in Unconsolidated Entities | ' | |||||||||||
4. Investments in Unconsolidated Entities | ||||||||||||
The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands, except percentages): | ||||||||||||
November 30, 2013 | August 31, 2013 | |||||||||||
Percentage | Amount | Percentage | Amount | |||||||||
Ownership | Ownership | |||||||||||
Equity method investments: | ||||||||||||
SILQ (Malaysia) Sdn. Bhd. | 50 | % | $ | 219 | 50 | % | $ | 289 | ||||
Xurui Guangdian Co., Ltd. (“China SemiLEDs”) | 49 | % | — | 49 | % | — | ||||||
Cost method investments | Various | 2,001 | Various | 1,986 | ||||||||
Total investments in unconsolidated entities | $ | 2,220 | $ | 2,275 | ||||||||
There were no dividends received from unconsolidated entities through November 30, 2013. | ||||||||||||
Equity Method Investments | ||||||||||||
The carrying amount of the Company’s investment in China SemiLEDs was reduced to zero as of August 31, 2012 as a result of the Company recognizing its proportionate share of the net loss reported by China SemiLEDs. The Company has suspended using the equity method of accounting and will no longer amortize the excess of the Company’s share of the net assets of China SemiLEDs over the carrying amount of this investment until its share of future income, if any, from China SemiLEDs is sufficient to recover its share of the cumulative losses that have not previously been recognized. | ||||||||||||
The fair value of the Company’s investments in the non-marketable stock of its equity method investees is not readily available. These investments, except for China SemiLEDs which had a zero carrying amount at November 30, 2013, are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. | ||||||||||||
Cost Method Investments | ||||||||||||
In October 2012, the Company acquired a 9.9% equity interest in High Power Optoelectronics, Inc. (“HPO”) for total cash consideration of $2.9 million and had an option to increase its equity interest to more than 50% within one year of the acquisition. The fair values of the Company’s cost method investments are not readily available. All cost method investments are assessed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. In the third quarter of fiscal 2013, management reviewed the operating performance and financial condition of HPO based on the latest available financial statements of the investee and other publicly available information. Management considered the extent and duration of time to which the fair value of the investment has been less than its carrying amount, the financial condition of the investee and the prospect for recovery in the near term, and recognized an other-than-temporary impairment loss of $1,885 thousand on its investment in HPO for the year ended August 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Nov. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
5. Commitments and Contingencies | |||||
Operating Lease Agreements—The Company has several operating leases with unrelated parties, primarily for land, plant and office spaces in Taiwan, which are noncancellable and which expire at various dates between January 2014 and December 2020. Lease expense related to these noncancellable operating leases was $283 thousand and $202 thousand for the three months ended November 30, 2013 and 2012, respectively. Lease expense is recognized on a straight-line basis over the term of the lease. | |||||
The aggregate future noncancellable minimum rental payments for the Company’s operating leases as of November 30, 2013 consisted of the following (in thousands): | |||||
Years Ending August 31, | Operating | ||||
Leases | |||||
Remainder of 2014 | $ | 931 | |||
2015 | 1,295 | ||||
2016 | 1,230 | ||||
2017 | 642 | ||||
2018 | 276 | ||||
Thereafter | 221 | ||||
Total | $ | 4,595 | |||
Purchase Obligations—The Company had purchase commitments for property, plant and equipment in the amount of $2.1 million and $3.2 million as of November 30, 2013 and August 31, 2013, respectively. | |||||
Litigation—The Company is directly or indirectly involved from time to time in various claims or legal proceedings arising in the ordinary course of business. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. There is significant judgment required in assessing both the likelihood of an unfavorable outcome and whether the amount of loss, if any, can be reasonably estimated. | |||||
On July 10, 2013, a putative class action lawsuit was filed in the United States District Court for the Southern District of New York against the Company and certain of its current and former officers and directors, styled as Huard v. SemiLEDs Corporation, et al., alleging violations of the U.S. federal securities laws. On July 31, 2013, a second investor filed a complaint, styled as Mohammad v. SemiLEDs Corporation, et al. On September 30, 2013, the Court appointed Mohammad Yasir as lead plaintiff and Pomerantz Grossman Hufford Dahlstrom & Gross LLP as lead counsel. On November 15, 2013, the lead plaintiff filed its Amended Complaint, styled as In re SemiLEDs Corporation Litigation, Civil Action No. 1:13-cv-04776-DLC (S.D.N.Y.). The Amended Complaint alleges one count of violation of Section 10(b) of the Exchange Act and one count of violation of Section 20(a) of the Exchange Act, both arising out of alleged misstatements made by the Company and certain of its current and former officers and directors in connection with the Company’s initial public offering and the Company’s results in the first, second, and third quarter of 2011. Management believes that the Company has meritorious defenses and the Company intends to contest this lawsuit vigorously. In the opinion of management, the likelihood of an unfavorable outcome in the matters described above that would result in a material loss to the Company is less than probable, and the amount of potential losses for claims against the Company in the matters described above are not currently reasonably estimable. |
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Stock-based Compensation | ' | |||||||
Stock-based Compensation | ' | |||||||
6. Stock-based Compensation | ||||||||
The Company currently has one equity incentive plan (the “2010 Plan”), which provides for awards in the form of restricted shares, stock units, stock options or stock appreciation rights to the Company’s employees, officers, directors and consultants. Prior to SemiLEDs’ initial public offering, the Company had another stock-based compensation plan (the “2005 Plan”), but awards are made from the 2010 Plan after the initial public offering. Options outstanding under the 2005 Plan continue to be governed by its existing terms. | ||||||||
During fiscal 2013, SemiLEDs granted options for 100 thousand shares of SemiLEDs’ common stock and 1,195 thousand restricted stock units to the Company’s executives and employees. These options and stock units vest over four years at a rate of 25% on each anniversary of the vesting start date and the options have a contractual term of ten years, subject to earlier expiration in the event of the holder’s termination. The exercise price of stock options and the grant date fair value of stock units were equal to the closing price of the common stock on the date of grant. In addition, in February 2013, SemiLEDs granted 211 thousand restricted stock units to its directors that vest 100% on the earlier of the first anniversary of the vesting start date of February 6, 2013 and the date of the next annual meeting. The grant-date fair value of the restricted stock units was $0.71 per unit. Each restricted stock unit represents the contingent right to one share of SemiLEDs’ common stock. | ||||||||
The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires inputs including the market price of SemiLEDs’ common stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several of the Company’s publicly-traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of stock units is based upon the market price of SemiLEDs’ common stock on the date of the grant. This fair value is amortized to compensation expense over the vesting term. | ||||||||
Stock-based compensation expense is recorded net of estimated forfeitures such that expense is recorded only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. A forfeiture rate of zero is estimated for stock-based awards with vesting term that is less than or equal to one year from the date of grant. | ||||||||
A summary of the stock-based compensation expense for the three months ended November 30, 2013 and 2012 was as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
November 30, | ||||||||
2013 | 2012 | |||||||
Cost of revenues | $ | 195 | $ | 183 | ||||
Research and development | 111 | 94 | ||||||
Selling, general and administrative | 227 | 59 | ||||||
$ | 533 | $ | 336 |
Net_Loss_Per_Share_of_Common_S
Net Loss Per Share of Common Stock | 3 Months Ended | |||||
Nov. 30, 2013 | ||||||
Net Loss Per Share of Common Stock | ' | |||||
Net Loss Per Share of Common Stock | ' | |||||
7. Net Loss Per Share of Common Stock | ||||||
The following stock-based compensation plan awards were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive (in thousands of shares): | ||||||
Three Months Ended | ||||||
November 30, | ||||||
2013 | 2012 | |||||
Stock units and stock options to purchase common stock | 25 | 10 |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
8. Income Taxes | ||||||||
The Company’s loss before income taxes for the three months ended November 30, 2013 and 2012 consisted of the following (in thousands): | ||||||||
Three Months Ended | ||||||||
November 30, | ||||||||
2013 | 2012 | |||||||
U.S. operations | $ | (563 | ) | $ | (693 | ) | ||
Foreign operations | (5,787 | ) | (8,425 | ) | ||||
Loss before income taxes | $ | (6,350 | ) | $ | (9,118 | ) | ||
Unrecognized Tax Benefits | ||||||||
As of November 30, 2013 and August 31, 2013, the Company had unrecognized tax benefits related to tax positions taken in prior periods of $147 thousand and $145 thousand, respectively. The entire amount of the unrecognized tax benefits would impact the Company’s effective tax rate if recognized. The impact would be offset by an adjustment to the valuation allowance. | ||||||||
Accrued interest and penalties related to unrecognized tax benefits were immaterial. The Company files income tax returns in the United States, various U.S. states and certain foreign jurisdictions. The tax years 2005 through 2012 remain open in most jurisdictions. The Company is not currently under examination by income tax authorities in federal, state or foreign jurisdictions. |
RelatedParty_Transactions
Related-Party Transactions | 3 Months Ended |
Nov. 30, 2013 | |
Related-Party Transactions | ' |
Related-Party Transactions | ' |
9. Related-Party Transactions | |
As of both November 30, 2013 and August 31, 2013, amounts due to related parties of $0.2 million, which consisted primarily of the outstanding balance on a one-year unsecured NT dollar-denominated loan entered into by a majority owned subsidiary with one of its shareholders, were recorded in other current liabilities. Management believes that the terms of this transaction are at current market rates and would not have been any different had it been negotiated with an independent third party. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Nov. 30, 2013 | |
Subsequent Event | ' |
Subsequent Event | ' |
10. Subsequent Event | |
In January 2014, SemiLEDs’ board of directors approved an amendment to the 2010 Equity Incentive Plan, or the 2010 Plan as described in Note 6 above, that increases the number of shares authorized for issuance under the plan by an additional 2.5 million shares. The amendment is subject to the approval of SemiLEDs’ stockholders at the 2014 annual meeting. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Basis of Presentation | ' | |||||||
Basis of Presentation—The Company’s unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable provisions of the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by the rules and regulations of the SEC. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on November 26, 2013. The unaudited condensed consolidated balance sheet as of August 31, 2013 included herein was derived from the audited consolidated financial statements as of that date. | ||||||||
The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated balance sheet as of November 30, 2013, the statements of operations and comprehensive loss for the three months ended November 30, 2013 and 2012, the statement of changes in equity for the three months ended November 30, 2013, and the statements of cash flows for the three months ended November 30, 2013 and 2012. The results for the three months ended November 30, 2013 are not necessarily indicative of the results to be expected for the year ending August 31, 2014. | ||||||||
Principles of Consolidation | ' | |||||||
Principles of Consolidation—The unaudited interim condensed consolidated financial statements include the accounts of SemiLEDs and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated during consolidation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates—The preparation of unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include the collectibility of accounts receivable, inventory net realizable values, realization of deferred tax assets, valuation of stock-based compensation expense, the useful lives of property, plant and equipment and intangible assets, the recoverability of the carrying amount of property, plant and equipment, intangible assets, goodwill and investments in unconsolidated entities, the fair value of acquired tangible and intangible assets, income tax uncertainties, provision for potential litigation costs and other contingencies. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ materially from those estimates. | ||||||||
Certain Significant Risks and Uncertainties | ' | |||||||
Certain Significant Risks and Uncertainties—The Company is subject to certain risks and uncertainties that could have a material and adverse effect on the Company’s future financial position or results of operations, which risks and uncertainties include, among others: it has incurred significant losses over the last three fiscal years, any inability of the Company to compete in a rapidly evolving market and to respond quickly and effectively to changing market requirements, any inability of the Company to grow its revenue and/or maintain or increase its margins, it may experience fluctuations in its revenues and operating results, any inability of the Company to protect its intellectual property rights, claims by others that the Company infringes their proprietary technology, and any inability of the Company to raise additional funds in the future. | ||||||||
Concentration of Supply Risk | ' | |||||||
Concentration of Supply Risk—Some of the components and technologies used in the Company’s products are purchased and licensed from a limited number of sources and some of the Company’s products are produced by a limited number of contract manufacturers. The loss of any of these suppliers and contract manufacturers may cause the Company to incur transition costs to another supplier or contract manufacturer, result in delays in the manufacturing and delivery of the Company’s products, or cause it to carry excess or obsolete inventory. The Company relies on a limited number of such suppliers and contract manufacturers for the fulfillment of its customer orders. Any failure of such suppliers and contract manufacturers to perform could have an adverse effect upon the Company’s reputation and its ability to distribute its products or satisfy customers’ orders, which could adversely affect the Company’s business, financial position, results of operations and cash flows. | ||||||||
Concentration of Credit Risk | ' | |||||||
Concentration of Credit Risk—Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable. | ||||||||
The Company keeps its cash and cash equivalents in demand deposits with prominent banks of high credit quality and invests only in money market funds. Deposits held with banks may exceed the amount of insurance provided on such deposits. As of November 30, 2013 and August 31, 2013, cash and cash equivalents of the Company consisted of the following (in thousands): | ||||||||
Cash and Cash Equivalents by Location | November 30, | August 31, | ||||||
2013 | 2013 | |||||||
United States: | ||||||||
Denominated in U.S. dollars | $ | 18,582 | $ | 18,631 | ||||
Taiwan: | ||||||||
Denominated in U.S. dollars | 6,997 | 16,158 | ||||||
Denominated in New Taiwan dollars | 1,403 | 445 | ||||||
Denominated in other currencies | 332 | 264 | ||||||
China (including Hong Kong): | ||||||||
Denominated in U.S. dollars | 377 | 345 | ||||||
Denominated in Renminbi | 430 | 428 | ||||||
Denominated in H.K. dollars | 1 | 1 | ||||||
Total cash and cash equivalents | $ | 28,122 | $ | 36,272 | ||||
The Company’s revenues are substantially derived from the sales of LED products. A significant portion of the Company’s revenues are derived from a limited number of customers and sales are concentrated in a few select markets. Management performs ongoing credit evaluations of its customers and generally does not require collateral on accounts receivable. Management evaluates the need to establish an allowance for doubtful accounts for estimated potential credit losses at each reporting period. The allowance for doubtful accounts is based on the management’s assessment of the collectibility of its customer accounts. Management regularly reviews the allowance by considering certain factors, such as historical experience, industry data, credit quality, age of accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. | ||||||||
Net revenues generated from sales to the top ten customers represented 43% and 47% of the Company’s total net revenues for the three months ended November 30, 2013 and 2012, respectively. | ||||||||
The Company’s revenues have been concentrated in a few select markets, including Taiwan, the United States, China and Russia. Net revenues generated from sales to customers in these markets, in the aggregate, accounted for 61% and 62% of the Company’s total net revenues for the three months ended November 30, 2013 and 2012, respectively. | ||||||||
Noncontrolling Interests | ' | |||||||
Noncontrolling Interests—Noncontrolling interests are classified in the consolidated statements of operations as part of consolidated net income (loss) and the accumulated amount of noncontrolling interests in the consolidated balance sheets as part of equity. Changes in ownership interest in a consolidated subsidiary that do not result in a loss of control are accounted for as an equity transaction. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. | ||||||||
Transactions with noncontrolling interests had the following effect on equity attributable to SemiLEDs stockholders (in thousands): | ||||||||
Three Months | ||||||||
Ended | ||||||||
November 30, | ||||||||
2013 | ||||||||
Net loss attributable to SemiLEDs stockholders | $ | (6,292 | ) | |||||
Transfers to noncontrolling interests: | ||||||||
Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang | (142 | ) | ||||||
Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests | $ | (6,434 | ) | |||||
Recent Accounting Pronouncement | ' | |||||||
Recent Accounting Pronouncement | ||||||||
Presentation of Certain Unrecognized Tax Benefits—In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward, or similar tax loss, or tax credit carryforward, rather than as a liability, when: (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction; and (2) the entity intends to use the deferred tax asset for that purpose. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application are permitted. This ASU is effective for the Company beginning in the first quarter of fiscal 2015. The Company has elected not to early adopt this ASU. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Schedule of cash and cash equivalents by location | ' | |||||||
As of November 30, 2013 and August 31, 2013, cash and cash equivalents of the Company consisted of the following (in thousands): | ||||||||
Cash and Cash Equivalents by Location | November 30, | August 31, | ||||||
2013 | 2013 | |||||||
United States: | ||||||||
Denominated in U.S. dollars | $ | 18,582 | $ | 18,631 | ||||
Taiwan: | ||||||||
Denominated in U.S. dollars | 6,997 | 16,158 | ||||||
Denominated in New Taiwan dollars | 1,403 | 445 | ||||||
Denominated in other currencies | 332 | 264 | ||||||
China (including Hong Kong): | ||||||||
Denominated in U.S. dollars | 377 | 345 | ||||||
Denominated in Renminbi | 430 | 428 | ||||||
Denominated in H.K. dollars | 1 | 1 | ||||||
Total cash and cash equivalents | $ | 28,122 | $ | 36,272 | ||||
Schedule of effect of transactions with noncontrolling interests on equity attributable to stockholders | ' | |||||||
Transactions with noncontrolling interests had the following effect on equity attributable to SemiLEDs stockholders (in thousands): | ||||||||
Three Months | ||||||||
Ended | ||||||||
November 30, | ||||||||
2013 | ||||||||
Net loss attributable to SemiLEDs stockholders | $ | (6,292 | ) | |||||
Transfers to noncontrolling interests: | ||||||||
Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang | (142 | ) | ||||||
Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests | $ | (6,434 | ) |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 3 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Balance Sheet Components | ' | ||||||||||||
Schedule of inventories | ' | ||||||||||||
Inventories as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands): | |||||||||||||
November 30, | August 31, | ||||||||||||
2013 | 2013 | ||||||||||||
Raw materials | $ | 2,237 | $ | 2,193 | |||||||||
Work in process | 3,403 | 3,865 | |||||||||||
Finished goods | 5,702 | 4,442 | |||||||||||
Total | $ | 11,342 | $ | 10,500 | |||||||||
Schedule of property, plant and equipment | ' | ||||||||||||
Property, plant and equipment as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands): | |||||||||||||
November 30, | August 31, | ||||||||||||
2013 | 2013 | ||||||||||||
Buildings and improvements | $ | 14,675 | $ | 14,510 | |||||||||
Machinery and equipment | 68,302 | 67,109 | |||||||||||
Leasehold improvements | 3,184 | 3,144 | |||||||||||
Other equipment | 2,730 | 2,686 | |||||||||||
Construction in progress | 761 | 1,028 | |||||||||||
Total property, plant and equipment | 89,652 | 88,477 | |||||||||||
Less: Accumulated depreciation, amortization and impairment | (60,165 | ) | (58,004 | ) | |||||||||
Property, plant and equipment, net | $ | 29,487 | $ | 30,473 | |||||||||
Schedule of intangible assets | ' | ||||||||||||
Intangible assets as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands): | |||||||||||||
November 30, 2013 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | Carrying | ||||||||||
Amortization | Amount | Amount | |||||||||||
Period (Years) | |||||||||||||
Patents and trademarks | 14 | $ | 1,080 | $ | 184 | $ | 896 | ||||||
Acquired technology | 5 | 727 | 192 | 535 | |||||||||
Total | $ | 1,807 | $ | 376 | $ | 1,431 | |||||||
August 31, 2013 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | Carrying | ||||||||||
Amortization | Amount | and | Amount | ||||||||||
Period (Years) | Impairment(1) | ||||||||||||
Patents and trademarks | 15 | $ | 973 | $ | 161 | $ | 812 | ||||||
Acquired technology | 5 | 719 | 152 | 567 | |||||||||
Customer relationships | 5 | 1,337 | 1,337 | — | |||||||||
Total | $ | 3,029 | $ | 1,650 | $ | 1,379 | |||||||
(1) Includes an impairment charge of $851 thousand recognized in the year ended August 31, 2013 to write down the intangible asset for customer relationships to its fair value of zero before the end of its estimated useful life. |
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 3 Months Ended | |||||||||||
Nov. 30, 2013 | ||||||||||||
Investments in Unconsolidated Entities | ' | |||||||||||
Schedule of ownership interest and carrying amounts of investments in unconsolidated entities | ' | |||||||||||
The Company’s ownership interest and carrying amounts of investments in unconsolidated entities as of November 30, 2013 and August 31, 2013 consisted of the following (in thousands, except percentages): | ||||||||||||
November 30, 2013 | August 31, 2013 | |||||||||||
Percentage | Amount | Percentage | Amount | |||||||||
Ownership | Ownership | |||||||||||
Equity method investments: | ||||||||||||
SILQ (Malaysia) Sdn. Bhd. | 50 | % | $ | 219 | 50 | % | $ | 289 | ||||
Xurui Guangdian Co., Ltd. (“China SemiLEDs”) | 49 | % | — | 49 | % | — | ||||||
Cost method investments | Various | 2,001 | Various | 1,986 | ||||||||
Total investments in unconsolidated entities | $ | 2,220 | $ | 2,275 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Nov. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
Schedule of aggregate future noncancellable minimum rental payments for the operating leases | ' | ||||
The aggregate future noncancellable minimum rental payments for the Company’s operating leases as of November 30, 2013 consisted of the following (in thousands): | |||||
Years Ending August 31, | Operating | ||||
Leases | |||||
Remainder of 2014 | $ | 931 | |||
2015 | 1,295 | ||||
2016 | 1,230 | ||||
2017 | 642 | ||||
2018 | 276 | ||||
Thereafter | 221 | ||||
Total | $ | 4,595 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) (Employees, officers, directors and consultants) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Employees, officers, directors and consultants | ' | |||||||
Stock-based Compensation | ' | |||||||
Schedule of stock-based compensation expense | ' | |||||||
A summary of the stock-based compensation expense for the three months ended November 30, 2013 and 2012 was as follows (in thousands): | ||||||||
Three Months Ended | ||||||||
November 30, | ||||||||
2013 | 2012 | |||||||
Cost of revenues | $ | 195 | $ | 183 | ||||
Research and development | 111 | 94 | ||||||
Selling, general and administrative | 227 | 59 | ||||||
$ | 533 | $ | 336 |
Net_Loss_Per_Share_of_Common_S1
Net Loss Per Share of Common Stock (Tables) | 3 Months Ended | |||||
Nov. 30, 2013 | ||||||
Net Loss Per Share of Common Stock | ' | |||||
Schedule of stock-based compensation plan awards were excluded from the computation of diluted net loss per share of common stock | ' | |||||
The following stock-based compensation plan awards were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been anti-dilutive (in thousands of shares): | ||||||
Three Months Ended | ||||||
November 30, | ||||||
2013 | 2012 | |||||
Stock units and stock options to purchase common stock | 25 | 10 |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Income Taxes | ' | |||||||
Schedule of loss before income taxes | ' | |||||||
The Company’s loss before income taxes for the three months ended November 30, 2013 and 2012 consisted of the following (in thousands): | ||||||||
Three Months Ended | ||||||||
November 30, | ||||||||
2013 | 2012 | |||||||
U.S. operations | $ | (563 | ) | $ | (693 | ) | ||
Foreign operations | (5,787 | ) | (8,425 | ) | ||||
Loss before income taxes | $ | (6,350 | ) | $ | (9,118 | ) |
Business_Details
Business (Details) | Nov. 30, 2013 | Apr. 30, 2013 | Aug. 31, 2011 |
Business | ' | ' | ' |
Number of wholly owned subsidiaries | 7 | ' | ' |
Ning Xiang | ' | ' | ' |
Business | ' | ' | ' |
Ownership interest acquired (as a percent) | 21.00% | 15.00% | 51.00% |
Ownership interest (as a percent) | 87.00% | ' | ' |
Taiwan SemiLEDs | SBDI | ' | ' | ' |
Business | ' | ' | ' |
Ownership interest (as a percent) | 100.00% | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2012 |
Revenues | Revenues | United States | United States | Taiwan | Taiwan | Taiwan | Taiwan | Taiwan | Taiwan | China (including Hong Kong) | China (including Hong Kong) | China (including Hong Kong) | China (including Hong Kong) | China (including Hong Kong) | China (including Hong Kong) | Taiwan, the United States, Russia and China | Taiwan, the United States, Russia and China | |||||
Customer concentration risk | Customer concentration risk | U.S. Dollars | U.S. Dollars | U.S. Dollars | U.S. Dollars | New Taiwan Dollars | New Taiwan Dollars | Other currencies | Other currencies | U.S. Dollars | U.S. Dollars | Renminbi | Renminbi | H.K. dollars | H.K. dollars | Revenues | Revenues | |||||
Top ten customers | Top ten customers | Customer concentration risk | Customer concentration risk | |||||||||||||||||||
Summary of Significant Accounting Policies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which significant loss is incurred preceding current fiscal year | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of Credit Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cash and cash equivalents | $28,122 | $36,272 | $39,320 | $47,228 | ' | ' | $18,582 | $18,631 | $6,997 | $16,158 | $1,403 | $445 | $332 | $264 | $377 | $345 | $430 | $428 | $1 | $1 | ' | ' |
Concentration risk (as a percent) | ' | ' | ' | ' | 43.00% | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61.00% | 62.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Noncontrolling Interests | ' | ' |
Net loss attributable to SemiLEDs stockholders | ($6,292) | ($8,923) |
Ning Xiang | ' | ' |
Noncontrolling Interests | ' | ' |
Net loss attributable to SemiLEDs stockholders | -6,292 | ' |
Transfers to noncontrolling interests: | ' | ' |
Decrease in SemiLEDs additional paid in capital for purchase of common shares in Ning Xiang | -142 | ' |
Change from net loss attributable to SemiLEDs stockholders and transfer to noncontrolling interests | ($6,434) | ' |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | Nov. 30, 2013 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $2,237 | $2,193 |
Work in process | 3,403 | 3,865 |
Finished goods | 5,702 | 4,442 |
Total | 11,342 | 10,500 |
Property, Plant and Equipment | ' | ' |
Total property, plant and equipment | 89,652 | 88,477 |
Less: Accumulated depreciation, amortization and impairment | -60,165 | -58,004 |
Property, plant and equipment, net | 29,487 | 30,473 |
Buildings and improvements | ' | ' |
Property, Plant and Equipment | ' | ' |
Total property, plant and equipment | 14,675 | 14,510 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment | ' | ' |
Total property, plant and equipment | 68,302 | 67,109 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment | ' | ' |
Total property, plant and equipment | 3,184 | 3,144 |
Other equipment | ' | ' |
Property, Plant and Equipment | ' | ' |
Total property, plant and equipment | 2,730 | 2,686 |
Construction in progress | ' | ' |
Property, Plant and Equipment | ' | ' |
Total property, plant and equipment | $761 | $1,028 |
Balance_Sheet_Components_Detai1
Balance Sheet Components (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 |
Intangible Assets | ' | ' |
Gross Carrying Amount | $1,807 | $3,029 |
Accumulated Amortization and Impairment | 376 | 1,650 |
Total | 1,431 | 1,379 |
Patents and trademarks | ' | ' |
Intangible Assets | ' | ' |
Weighted Average Amortization Period | '14 years | '15 years |
Gross Carrying Amount | 1,080 | 973 |
Accumulated Amortization and Impairment | 184 | 161 |
Total | 896 | 812 |
Acquired technology | ' | ' |
Intangible Assets | ' | ' |
Weighted Average Amortization Period | '5 years | '5 years |
Gross Carrying Amount | 727 | 719 |
Accumulated Amortization and Impairment | 192 | 152 |
Total | 535 | 567 |
Customer relationships | ' | ' |
Intangible Assets | ' | ' |
Weighted Average Amortization Period | ' | '5 years |
Gross Carrying Amount | ' | 1,337 |
Accumulated Amortization and Impairment | ' | 1,337 |
Impairment of Long-Lived Assets | ' | ' |
Impairment charge of finite lived asset | ' | $851 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 |
Investments in unconsolidated entities | ' | ' |
Cost method investments | $2,001 | $1,986 |
Total investments in unconsolidated entities | 2,220 | 2,275 |
Dividend received from unconsolidated entities | 0 | ' |
SILQ (Malaysia) Sdn. Bhd | ' | ' |
Investments in unconsolidated entities | ' | ' |
Percentage ownership | 50.00% | 50.00% |
Equity method investments | $219 | $289 |
China SemiLEDs | ' | ' |
Investments in unconsolidated entities | ' | ' |
Percentage ownership | 49.00% | 49.00% |
Investments_in_Unconsolidated_3
Investments in Unconsolidated Entities (Details 2) (High Power Optoelectronics, USD $) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2012 | Aug. 31, 2013 | |
Cost Method Investments | ' | ' |
Percentage of cost method investee owned | 9.90% | ' |
Investment of equity interest | $2,900,000 | ' |
Period within which the entity can exercise option to increase equity interest | '1 year | ' |
Impairment loss on investment | ' | $1,885,000 |
Minimum | ' | ' |
Cost Method Investments | ' | ' |
Option to increase equity interest (as a percent) | 50.00% | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | |
Commitments and Contingencies | ' | ' | ' |
Lease expense related to noncancellable operating leases | $283,000 | $202,000 | ' |
Future noncancellable minimum rental payments | ' | ' | ' |
Remainder of 2014 | 931,000 | ' | ' |
2015 | 1,295,000 | ' | ' |
2016 | 1,230,000 | ' | ' |
2017 | 642,000 | ' | ' |
2018 | 276,000 | ' | ' |
Thereafter | 221,000 | ' | ' |
Total | 4,595,000 | ' | ' |
Purchase Obligations | ' | ' | ' |
Purchase commitments for property, plant and equipment | $2,100,000 | ' | $3,200,000 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Feb. 28, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Nov. 30, 2012 |
item | Less than or equal to | Executives and employees | Executives and employees | Executives and employees | Directors | Employees, officers, directors and consultants | Employees, officers, directors and consultants | Employees, officers, directors and consultants | Employees, officers, directors and consultants | Employees, officers, directors and consultants | Employees, officers, directors and consultants | ||
Stock options | Restricted stock unit | Stock options and stock units | Restricted stock unit | Cost of revenues | Cost of revenues | Research and development | Research and development | Selling, general and administrative | Selling, general and administrative | ||||
Stock-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share-based compensation plans | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted of common stock (in shares) | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $533 | $336 | ' | ' | ' | ' | ' | $195 | $183 | $111 | $94 | $227 | $59 |
Stock units granted (in shares) | ' | ' | ' | ' | 1,195,000 | ' | 211,000 | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage on each anniversary of the vesting start date of awards granted | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' |
Contractual term | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage on the earlier of the first anniversary of the vesting start date and the date of the next annual meeting | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Grant-date fair value (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.71 | ' | ' | ' | ' | ' | ' |
Number of shares of common stock for which contingent right is established by restricted stock unit (in shares) | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Estimated forfeiture rate (as a percent) | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net_Loss_Per_Share_of_Common_S2
Net Loss Per Share of Common Stock (Details) (Stock units and stock options to purchase common stock) | 3 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Stock units and stock options to purchase common stock | ' | ' |
Securities excluded from computation of diluted net income (loss) per share of common stock | ' | ' |
Antidilutive securities (in shares) | 25 | 10 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Aug. 31, 2013 |
Loss before income taxes | ' | ' | ' |
U.S. operations | ($563) | ($693) | ' |
Foreign operations | -5,787 | -8,425 | ' |
Loss before income taxes | -6,350 | -9,118 | ' |
Unrecognized tax benefits | $147 | ' | $145 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (Majority owned subsidiary, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 |
item | ||
Majority owned subsidiary | ' | ' |
Related-Party Transactions | ' | ' |
Outstanding balance of loan | $0.20 | $0.20 |
Term of loan agreement entered into by subsidiary with its shareholder | '1 year | ' |
Number of shareholders from whom loan was taken | 1 | ' |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event, 2010 Equity Incentive Plan) | 1 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Subsequent event | 2010 Equity Incentive Plan | ' |
Subsequent event | ' |
Additional number of shares authorized for issuance | 2.5 |