News Article
Cree’s record revenue of $988 million is thanks to LED lighting
The firm’s annual revenue has increased by 14% and annual net income was $147 million.
Cree, an innovator in LED lighting, has announced revenue of $243.0 million for its fourth quarter of fiscal 2011, ended June 26, 2011.
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This represents an 8% decrease compared to revenue of $264.6 million reported for the fourth fiscal quarter last year and an 11% increase compared to the third quarter of fiscal 2011. GAAP net income for the fourth quarter of $19.8 million, or $0.18 per diluted share, decreased 63% year-over-year compared to GAAP net income of $52.8 million, or $0.48 per diluted share, for the fourth quarter of fiscal 2010.
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For fiscal year 2011, Cree reported revenue of $987.6 million, which represents a 14% increase compared to revenue of $867.3 million for fiscal 2010. GAAP net income of $146.5 million, or $1.33 per diluted share, decreased 4%, compared to $152.3 million, or $1.45 per diluted share for fiscal 2010. Cree generated $251.4 million of operating cash flow and $14.3 million of free cash flow (cash flow from operations less capital expenditures) during fiscal 2011.
"Q4 results were in-line with our targets, and we are encouraged by the 11% sequential growth in quarterly revenue," stated Chuck Swoboda, Cree chairman and CEO. "Over the last fiscal year, we continued to have success leading the LED lighting revolution and growing our LED lighting business, while at the same time managing through a challenging business cycle for our LED component and LED chip product lines. As we look ahead to Q1, demand has improved from earlier in the calendar year, and we are well positioned to continue to lead the LED lighting revolution."
Q4 2011 Financial Metrics:
Cash and investments ended the quarter at $1,085.8 million, which was an increase of $12.7 million from Q3 of fiscal 2011. Accounts receivable (net) decreased $7.4 million from Q3 of fiscal 2011 to $118.5 million, with days sales outstanding of 44, a decrease of 8 days from Q3 of fiscal 2011.
Inventory increased $6.9 million from Q3 of fiscal 2011 to $176.5 million and represents 106 days of inventory, a decrease of 13 days from Q3 of fiscal 2011.
Business Outlook:
For its first quarter of fiscal 2012 ending September 25, 2011, Cree targets revenue in a range of $245 million to $255 million with GAAP and non-GAAP gross margin targeted to be in a similar range as Q4 at 38-39%. GAAP operating expenses are targeted to increase by approximately $2.0 million to $75 million, or $62 million on a non-GAAP basis. The tax rate is targeted at 20% for fiscal Q1. GAAP net income is targeted at $16 million to $19 million, or $0.14 to $0.17 per diluted share. The GAAP net income targets are based on an estimated 110.2 million diluted weighted average shares.
Quarterly Conference Call:
Cree hosted a conference call reviewing the highlights of the fiscal fourth quarter 2011 results and the fiscal first quarter 2012 business outlook. The conference call is archived and available on Cree’s website under the “Investor relations” section up to August 23rd, 2011.
