News Article
Cree incomes slashed 50% from Ruud Lighting acquisition
Although order visibility is still limited, the firm believes it is well positioned to continue to lead the transition to LED lighting and drive growth in its business
LED innovator and dabbler in RF and power electronics, Cree, has reported its GAAP financial results for the third quarter of fiscal year 2012.
Cree 's revenue was $284.8 million for its third quarter of fiscal 2012, ended March 25, 2012.
This is a 6% decrease compared to the second quarter of fiscal 2012. Net income for the third quarter was $9.5 million, or $0.08 per diluted share, a decrease of 50% year-over-year compared to GAAP net income of $18.9 million, or $0.17 per diluted share, for the third quarter of fiscal 2011.
Revenue for lighting products did fall by almost 10% however, from $95.7 million to $86.5 million. This was mainly down to Cree integrating with Ruud Lighting and using a new bunch of agents.
"Our third quarter earnings per share were in the middle of our target range as strong factory execution and a tax benefit offset the impact of revenue being slightly below our target range," states Chuck Swoboda, Cree Chairman and CEO.
"Overall company backlog is stronger than it was at this point last quarter, with Lighting, LEDs and Power and RF all tracking ahead of Q2, although order visibility is still limited. Our focus remains on driving adoption through innovation and we believe we are well positioned to continue leading the transition to LED lighting and drive growth in our business."
Gross margin increased 30 basis points from Q2 of fiscal 2012 to 34.9% on a GAAP basis. Cash and investments increased $22.8 million from Q2 of fiscal 2012 to $710.1 million.
Net accounts receivable increased $11.8 million from Q2 of fiscal 2012 to $168.2 million, with days sales outstanding of 53.
Inventory increased $9.5 million from Q2 of fiscal 2012 to $196.8 million and represents 96 days of inventory.
Business Outlook (GAAP)
For its fourth quarter of fiscal 2012 ending June 24, 2012, Cree targets revenues in a range of $295 million to $315 million with gross margin targeted to be around 35%. Gross margin targets include stock-based compensation expenses of approximately $2.5 million.
Operating expenses are targeted to increase by about $5 million. The tax rate is targeted at 13.0% for fiscal Q4. Net income is targeted at $5 million to $12 million, or $0.04 to $0.10 per diluted share. The net income targets are based on an estimated 116.6 million diluted weighted average shares.
