Cree, Inc. Reiterates Third Quarter Targets
Source: Cree, Inc.
Company Revises Q4 and FY 2002 Guidance
Durham, NC. Cree, Inc. (Nasdaq: CREE) today reaffirmed its third quarter fiscal year 2001 targets for earnings of $0.18 per share, before goodwill and one-time charges, and revenue of approximately $52 million.
Citing an increasingly competitive and slowing market for LED chips, the company expects its revenue and earnings targets for the fourth quarter of fiscal year 2001 will be reduced by 10-15 percent below the third quarter of fiscal year 2001. This would result in a targeted revenue range of approximately $45 to $48 million, with a targeted earnings per share range of $0.14 to $0.16. For fiscal year 2002, the company believes that as long as general economic conditions improve and its pipeline of LED product improvements are rapidly deployed in new designs, sequential growth could resume in the second quarter of fiscal 2002 and beyond, assuming the first quarter sequential growth remains flat to the fourth quarter of fiscal year 2001. With these assumptions, the company s current fiscal year 2002 targets are in the range of $200 to $240 million in revenue and earnings per share is expected to be flat to a 20 percent increase on a year-over-year basis.
Commenting from a sales trip in Asia, Cree s CEO Neal Hunter said, "We are pleased to be in a position to reaffirm our expectations for the third quarter. Obviously, we are dealing with a slowing economy that puts pressure on our customers which, in turn, inhibits our revenue growth. In the face of these obstacles, Cree has a solid arsenal of resources to create new products, lower existing costs, and penetrate applications. We also have much of the equipment and facilities in place to serve a growing market over the next 12 to 18 months as economic conditions improve. This should limit capital spending requirements and position us to build cash, assuming our revenue and earnings targets are attained. With the strength in our balance sheet, we can continue to focus on those elements that provide the greatest leverage over the long term."
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 including statements regarding targeted financial results during the third quarter and later periods. Actual results could differ materially due to a number of factors, including uncertainty regarding economic conditions; risks from increased competition; uncertainty whether we can achieve our targets for increased yields and cost reductions needed to permit lower product pricing without margin reductions; uncertain product demand; risks associated with the production ramp-up for our new ultra bright LED chips, including the possibility of unexpected delays, increased costs and manufacturing difficulties or less than expected market acceptance; the risk of variability in our manufacturing processes that can adversely affect yields and product performance; the possibility of adverse results in our pending intellectual property litigation; uncertainty whether our intellectual property rights will provide meaningful protection; concentration of our business among few customers; and other factors discussed in our filings with the Securities and Exchange Commission, including our report on Form 10-K for the year ended June 25, 2000 and subsequent reports filed with the Commission.
Contact: Fran Barsky, Investor Relations Manager Tel: 919-313-5397 Fax: 919-313-5452 email: fran_barsky@cree.com
Fran Barsky, Investor Relations Manager
Tel: 919-313-5397
Fax: 919-313-5452
email: fran_barsky@cree.com
E-mail: fran_barsky@cree.com
Web site: http://www.cree.com
