Cree reports strong Q2
Positive results underscore momentum from company's SiC solutions, says CEO Gregg Lowe
Cree has announced revenue from continuing operations of $127.0 million for Q2 of fiscal 2021, ended December 27, 2020. This represents a 5 percent increase compared to revenue from continuing operations of $120.7 million reported for Q2 2020, and a 10 percent increase compared to Q12021.
GAAP net loss from continuing operations for Q2 2021 was $54.3 million, or $0.49 per diluted share, compared to GAAP net loss from continuing operations of $57.9 million, or $0.54 per diluted share, for Q2 2020. On a non- GAAP basis, net loss from continuing operations for Q2 2021 was $26.6 million, or $0.24 per diluted share, compared to non-GAAP net loss from continuing operations for Q2 2020 of $21.8 million, or $0.20 per diluted share.
As previously announced, on October 18, 2020, Cree executed a definitive agreement to sell the LED Products business unit to SMART Global Holdings (SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration. The transaction is subject to satisfaction of customary closing conditions, and is targeted to close in the first calendar quarter of 2021.
“We delivered strong results for the second quarter, including sequential growth in revenue from continuing operations, underscoring the momentum we continue to see for our SiC solutions,” said Cree CEO, Gregg Lowe. “While we continue to confront some of the challenges associated with the broader macroenvironment, we continue to invest for the future to support several growth opportunities across multiple sectors."
Business Outlook
For Q3 2021, Cree targets revenue from continuing operations in a range of $127 million to $133 million. GAAP net loss from continuing operations is targeted at $66 million to $71 million, or $0.59 to $0.64 per diluted share. Non-GAAP net loss from continuing operations is targeted to be in a range of $23 million to $28 million, or $0.21 to $0.25 per diluted share.
Targeted non-GAAP net loss from continuing operations excludes $43 million of estimated expenses, net of tax, related to stock-based compensation expense, amortisation or impairment of acquisition-related intangibles, factory optimisation restructuring and start-up costs, net accretion on convertible notes, and project, transformation, transaction and transition costs. The GAAP and non-GAAP targets from continuing operations do not include any estimated change in the fair value of Cree’s ENNOSTAR (formerly Lextar) investment.
