LEDS · SemiLEDs Corporation

SemiLEDs Corporation reported a significant sequential revenue decline of 58.6% to $1.1 million for the second quarter of fiscal 2026, which the company directly attributed to the absence of any buy-sell purchase orders of equipment. This decline occurred despite the company maintaining its gross margin at 1%, identical to the prior quarter. The operating loss widened substantially, with operating margin deteriorating to negative 79% from negative 39% in the first quarter, reflecting the impact of fixed operating expenses on a much smaller revenue base. While the net loss improved to $603 thousand from $742 thousand in the prior quarter, this improvement was driven by other income items rather than operational performance. The company's cash position strengthened to $4.0 million at quarter-end, up from $2.9 million in the prior quarter, providing some financial flexibility. Management indicated they anticipate buy-sell purchase orders in the second half of fiscal 2026, suggesting potential revenue recovery in upcoming quarters, though no specific guidance or quantitative outlook was provided. The results highlight the company's ongoing challenges in its core LED business and its continued reliance on equipment transactions for revenue generation.