Cree Announces Stock Repurchase Program
Source: Cree, Inc.
Durham, NC. Cree, Inc. (Nasdaq: CREE) today announced that its Board of Directors has authorized the repurchase of up to four million shares, or about five percent, of its outstanding common stock. The authorization supersedes a prior program under which Cree had repurchased approximately 1.35 million shares (as adjusted for subsequent stock splits) during the four years ending in 1998.
Cree expects to use available cash to finance purchases under the new program, which extends to January 2002. At the discretion of the company s management, the repurchase program can be implemented through open market or privately negotiated transactions. The company will determine the time and extent of repurchases based on its evaluation of market conditions and other factors. Such purchases would, in part, offset the issuance of shares for employee stock plans.
Neal Hunter, Chairman and CEO stated, "This repurchase program enhances our ongoing strategy of pursuing opportunities that enhance shareholder value. Cree s financial condition continues to be very strong, with cash and short- term investments at historically high levels. We believe this buyback is a particularly attractive alternative in which to invest a portion of the company s available cash while maintaining a very strong position to fund future growth and investment opportunities."
North Carolina-based Cree, Inc. develops and manufactures semiconductor materials and devices based on silicon carbide (SiC), gallium nitride (GaN) and related compounds. The company s products include blue and green LEDs, RF power transistors for use in wireless infrastructure applications, SiC crystals used in the production of unique gemstones and SiC wafers sold for use in research and development. Cree has new product initiatives based on its experience in SiC and GaN-based semiconductors, including blue laser diodes for optical storage applications, high frequency microwave devices for radar and other communications systems, and power devices for power conditioning and switching. For more information on Cree, visit http://www.cree.com.
This press release contains forward-looking statements involving risks and uncertainties that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including fluctuations in the market price of Cree s common stock and other market conditions, the nature of other investment opportunities available to the company from time to time, Cree s cash flow from operations and other factors discussed in Cree s report on Form 10-K for the year ended June 25, 2000 and subsequent reports filed with the Securities and Exchange Commission.
Contact: Fran Barsky, Investor Relations Manager of Cree Tel: 919-313-5397 Fax: 919-313-5452 Fran_Barsky@Cree.com
Fran Barsky, Investor Relations Manager of Cree
Tel: 919-313-5397
Fax: 919-313-5452
Fran_Barsky@Cree.com
E-mail: Fran_Barsky@Cree.com
Web site: http://www.cree.com
