SemiLEDs (NASDAQ:LEDS), a developer and manufacturer of high-performance LED chips and components, announced its financial results for the second quarter of fiscal 2026 on Tuesday.
The report highlighted a sequential decline in revenue, which management attributed to the timing of specific equipment purchase orders.
Revenue for the second quarter, ended February 28, 2026, was $1.1 million.
This represents a decrease from the $2.6 million reported in the first quarter of fiscal 2026.
The company clarified that the lower revenue was primarily due to the absence of any "buy-sell" purchase orders for equipment during the three-month period—a variable revenue stream that had bolstered the previous quarter's results.
Despite the drop in sales, SemiLEDs saw a slight improvement in its bottom line.
The GAAP net loss attributable to stockholders was $603 thousand, or $(0.07) per diluted share, compared to a net loss of $742 thousand, or $(0.09) per diluted share, in the first quarter of fiscal 2026.
Operational metrics remained under pressure during the transition period.
GAAP gross margin stood at 1%, consistent with the first quarter.
However, the lower revenue base led to a significantly wider operating margin of negative 79%, compared to negative 39% in the prior quarter.
Meanwhile, the company’s liquidity position remains stable, with cash and cash equivalents of $4 million as of February 28, 2026, an increase from the $2.9 million held at the end of the first quarter.