Cree increases quarterly revenue by 8 percent
US LED firm Cree has announced consolidated revenue of $347 million from continuing operations, and $54 million from discontinued operations, for a combined revenue of $401 million for its second quarter of fiscal 2017.
This represents an 8 percent decrease compared to combined revenue of $436 million ($394 million from continuing operations and $42 million from discontinued operations) in Q2 2016 and an 8 percent increase compared to Q1 2017.
Combined GAAP net income for Q2 2017 was $6 million, or $0.06 per diluted share, compared to combined GAAP net income of $13 million, or $0.13 per diluted share, for Q2 2016. On a non-GAAP basis, combined net income for Q2 2017 was $30 million, or $0.30 per diluted share, compared to combined non-GAAP net income for Q2 2016 of $28 million, or $0.28 per diluted share.
"We delivered very good results in fiscal Q2, as revenue and non-GAAP earnings were significantly above our targeted range due to the settlement of our patent infringement and false advertising lawsuit with Feit Electric," stated Chuck Swoboda, Cree chairman and CEO. "The fundamentals in our business have improved over the last several quarters, and we remain focused on building a larger and more valuable LED lighting company by bringing better light to our customers."
Revenue from continuing operations was $347 million in Q2 2017 compared to revenue from continuing operations of $394 million in Q2 2016. Loss from continuing operations for Q2 2017 was $1 million, or $0.01 per diluted share, compared to income from continuing operations of $9 million or $0.09 per diluted share for Q2 2016.
On a non-GAAP basis, income from continuing operations for Q2 2017 was $20 million, or $0.20 per diluted share, compared to non-GAAP income from continuing operations of $22 million or $0.21 per diluted share, for Q2 2016.
Revenue from discontinued operations was $54 million in Q2 2017 compared to revenue from discontinued operations of $42 million in Q2 2016. Income from discontinued operations, net of tax for Q2 2017 was $7 million, or $0.07 per diluted share, compared to income from discontinued operations, net of tax of $4 million, or $0.04 per diluted share, for Q2 2016.
On a non-GAAP basis, income from discontinued operations, net of tax for Q2 2017 was $10 million, or $0.10 per diluted share, compared to non-GAAP income from discontinued operations, net of tax of $7 million, or $0.07 per diluted share, for Q2 2016.
Business Outlook
For its Q3 2017 ending March 26, 2017, Cree targets combined revenue, which includes both continuing and discontinued operations, in a range of $340 million to $370 million. Combined GAAP net income is targeted at a $1 million loss to $3 million income, or a $0.01 loss to $0.03 income per diluted share. Combined non-GAAP net income is targeted in a range of $10 million to $18 million, or $0.10 to $0.18 per diluted share.
Targeted combined non-GAAP income excludes $23 million of pre-tax expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles and transaction costs associated with the sale of the Wolfspeed business.
For continuing operations, revenue is targeted in a range of $285 million to $315 million. GAAP loss from continuing operations is targeted at $3 million to $6 million, or $0.03 to $0.06 per diluted share. Non-GAAP income from continuing operations is targeted in a range of $1 million to $9 million, or $0.01 to $0.09 per diluted share.
Targeted non-GAAP income from continuing operations excludes $17 million of pre-tax expenses related to stock-based compensation expense and the amortization or impairment of acquisition-related intangibles. The GAAP and non-GAAP targets do not include any estimated change in the fair value of Cree?s Lextar investment.
For discontinued operations, revenue is targeted at $55 million +/-. GAAP income from discontinued operations, net of tax is targeted at $5 million +/-, or $0.05 per diluted share +/-. Non-GAAP income from discontinued operations, net of tax is targeted at $9 million +/-, or $0.09 per diluted share +/-. Targeted non-GAAP income from discontinued operations, net of tax excludes $4 million of expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles and transaction costs associated with the sale of the Wolfspeed business.
