News Article
Cree Annual Revenue increased 53% to $867 Million
GAAP net income for the fourth quarter increased 445% year-over-year to $52.8 million and annual net income increased 402% to $152 million.
Cree, a market leader in LED lighting, announced record revenues of $264.6 million for its fourth quarter of fiscal 2010, ended June 27, 2010. This represents a 79% increase compared to revenue of $148.1 million reported for the fourth fiscal quarter last year and a 13% increase compared to the third quarter of fiscal 2010. GAAP net income for the fourth quarter increased 445% year-over-year to $52.8 million, or $0.48 per diluted share, compared to GAAP net income of $9.7 million, or $0.11 per diluted share, for the fourth quarter of fiscal 2009.
For fiscal year 2010, Cree reported revenue of $867.3 million, which represents a 53% increase compared to revenue of $567.3 million for fiscal 2009. GAAP net income increased 402% to $152.3 million, or $1.45 per diluted share, compared to $30.3 million, or $0.34 per diluted share for fiscal 2009.
On a non-GAAP basis, net income for fiscal year 2010 increased 203% to $179.2 million, or $1.71 per diluted share, compared to $59.2 million, or $0.66 per diluted share, for fiscal 2009. Cree generated $250.6 million of operating cash flow and $81.9 million of free cash flow (cash flow from operations less capital expenditures) during fiscal 2010.
“Fiscal 2010 was a great year for Cree and the LED lighting revolution,” stated Chuck Swoboda, Cree chairman and CEO. “We made good progress building momentum in our business and delivering on our four key objectives for the fiscal year. Entering fiscal 2011, we are focused on extending our leadership position while we build the scale, cost structure and channels to win in the market.”
Q4 2010 Financial Metrics:
* Cash and investments increased $75.4 million from Q3 of fiscal 2010 to $1,066.4 million.
* Cash flow from operations was $94.9 million. Free cash flow (cash flow from operations less capital expenditures) was $54.2 million as we spent $40.8 million on capital expenditures to support our capacity expansion.
* Accounts receivable (net) decreased $8.3 million from Q3 of fiscal 2010 to $117.5 million, resulting in days sales outstanding of 40, a decrease of 8 days from Q3 of fiscal 2010.
* Inventory (net) increased $5.2 million from Q3 of fiscal 2010 to $112.2 million and represents 76 days of inventory, a decrease of 3 days from Q3 of fiscal 2010.
For its first quarter of fiscal 2011 ending September 26, 2010, Cree targets revenue in a range of $270 million to $280 million with GAAP net income of $52 million to $56 million, or $0.48 to $0.51 per diluted share. Non-GAAP net income is targeted to increase quarter-over-quarter to a range of $62 million to $65 million, or $0.56 to $0.59 per diluted share, based on an estimated 110.2 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles of $0.02 per diluted share, and stock-based compensation expense of $0.06 per diluted share.
Cree will host a conference call to review the highlights of the fiscal fourth quarter 2010 results and the fiscal first quarter 2011 business outlook on August 10, 2010, at 5:00 p.m. Eastern Time.
The conference call will be available to the public through a live audio web broadcast via the Internet. The call may be accessed by the following link : http://www.cree.com/investor/overview.asp..The call will be archived and available on the website through August 24, 2010.
