News Article
Cree net income slashed 76%
On the plus side, quarterly revenues rise significantly through Ruud Lighting acquisition
Cree has announced revenue of $304.1 million for its second quarter of fiscal 2012, ended December 25, 2011.
This represents an 18% increase compared to revenue of $257.0 million reported for the second quarter of fiscal 2011. GAAP net income for the second quarter of $12.1 million, or $0.10 per diluted share, decreased 76% year-over-year compared to GAAP net income of $49.8 million, or $0.45 per diluted share, for the second quarter of fiscal 2011.
Financial results for the second fiscal quarter reflect the inclusion of Ruud Lighting for the entire period. Ruud Lighting was acquired in the first quarter of fiscal 2012 approximately one month before quarter-end.
"Our second quarter results demonstrated the strength in our expanded lighting product line with strong growth in sales of both indoor and outdoor products," stated Chuck Swoboda, Cree Chairman and CEO. "While the business environment remains challenging, our results demonstrate that our strategy is working. Our future business outlook remains very optimistic based on our belief that innovation drives payback, payback drives LED lighting adoption and adoption expands the market for both Cree and our customers."
Business Outlook:
For its third quarter of fiscal 2012 ending March 25, 2012, Cree targets revenue in a range of $290 million to $310 million with GAAP gross margin targeted to be 34% to 35%. The GAAP gross margin targets include stock based compensation expense of approximately $2.2 million.
Operating expenses are targeted to increase by approximately $3 million to $4 million on a GAAP basis. The tax rate is targeted at 13.0% for fiscal Q3. GAAP net income is targeted at $4 million to $12 million, or $0.04 to $0.10 per diluted share. The latter target is based on an estimated 116.4 million diluted weighted average shares.
Cree hosted a conference call to review the highlights of the fiscal second quarter 2012 results and the fiscal third quarter 2012 business outlook.
The call is archived and available on the website www.cree.com in the “Investor Relations - Financial Events and Presentations” section until February 1, 2012.
