* Pricing pressure to hurt 2nd-quarter earnings
* Warning hits rival LED makers Cree, Veeco, Rubicon
(Adds analyst comment, share movement of other LED makers)
LOS ANGELES, Jan 13 Shares of SemiLEDs Corp
(LEDS.O) slid 35 percent on Thursday after the Taiwanese LED
maker said pricing pressure would hurt results in the current
The news weighed heavily on shares of rival LED makers,
including Cree Inc (CREE.O), Veeco Instruments Inc (VECO.O) and
Rubicon Technology Inc (RBCN.O), though J.P. Morgan analyst
Christopher Blansett said the weak outlook was specific to
"This heightened (price) pressure was mostly concentrated at
one customer and this customer's primary exposure appears to be
in the camera flash segment," Blansett wrote in a client note.
"This ... is not a proxy for other areas of the LED market like
SemiLEDs sells its blue, green and ultraviolet LED chips to
customers in China, Taiwan and other parts of Asia. The light
emitting diodes are used in street lights and other lighting
The company reported first-quarter net income of $3.8
million, or 11 cents a share, compared with a profit of $363,000,
or break-even, a year ago. First-quarter revenue rose 94 percent
to $13 million.
For the fiscal second quarter, SemiLEDs expects net income of
$1.6 million to $2.6 million or 6 cents to 9 cents a share on
revenue of $10.5 million to $12.5 million.
SemiLEDs went public in December at $17 a share in an
offering that was oversubscribed more than 10 times.
[ID:nN08175276] The stock has traded as high as $32.12 but closed
at $18.76 on Thursday, down $9.87 or 34.5 percent.
Shares of Cree fell $3.74, or 5.4 percent, to close at $65.46
and Veeco's stock slid $2.10, or 4.2 percent, to close at $47.57.
Rubicon's stock dropped 38 cents, or 1.6 percent, to close at
(Reporting by Nichola Groom in Los Angeles and Supantha Mukherjee
in Bangalore; Editing by Roshni Menon, Phil Berlowitz)