Cree Announces Preliminary Q3 Results
COVID-19 pandemic has had a greater impact than originally anticipated
Cree has announced preliminary results for its third quarter of fiscal 2020 ended March 29, 2020 and provided a business update in light of the COVID-19 pandemic, which has had a greater impact than originally anticipated when the company provided the third quarter outlook on January 29, 2020.
Revenue for Q3 2020 is expected to be approximately $216 million, compared to $274 million in Q3 2019 and $240 million in the second quarter of fiscal 2020. The company expects GAAP net loss for Q3 2020 to be $63 million to $65 million, or $0.58 to $0.60 per diluted share. On a non-GAAP basis, net loss is expected to be in a range of $15 million to $17 million, or $0.14 to $0.16 per diluted share.
These preliminary financial results are subject to completion of the company's customary quarterly closing and review procedures.
Cree CEO Gregg Lowe said: “The health and well-being of our employees, customers and partners remains our top priority during this unprecedented time. We are closely monitoring the rapidly evolving COVID-19 situation, as well as guidelines from federal, state and local officials. Our manufacturing facilities in the U.S. are operating as essential businesses in states that have issued “shelter-in-place” orders and we have instituted strict measures that balance employee safety with meeting the needs of our customers. These measures include increasing the number of employee sick days, robust screening, social distancing and cleaning protocols to ensure the safety of our employees and the protection of our customers, suppliers, and partners.”
The company will provide a more detailed review of its business when it reports its third quarter fiscal 2020 results on April 29, 2020.
Lowe continued: “Our strong balance sheet allows us to navigate the current environment while maintaining capital expenditure plans, including the construction of our new facilities in New York and North Carolina, to support future growth. In addition, in light of the current operating environment, we'll continue to be diligent in the management of our liquidity position to meet the needs of the business. While near-term market conditions are fluid, we believe the long-term opportunities for SiC remain significant and we are committed to expanding our capacity to meet the anticipated long-term demand.”