News Article
Cree revenues on the up
Although LED lighting adoption continues to increase, the firm has found that the macroeconomic environment is impacting its growth outlook in the near future
Durham based LED and power device manufacturer Cree has announced revenue of $306.8 million for its fourth quarter of fiscal 2012, ended June 24, 2012.
This represents a 26% increase compared to revenue of $243.0 million reported for the fourth quarter of fiscal 2011 and an 8% increase compared to the third quarter of fiscal 2012. GAAP net income for the fourth quarter was $10.0 million, or $0.09 per diluted share, a decrease of 49% year-over-year compared to GAAP net income of $19.8 million, or $0.18 per diluted share, for the fourth quarter of fiscal 2011.
For fiscal year 2012, Cree reported revenue of $1.16 billion, an 18% increase compared to revenue of $988 million for fiscal 2011. GAAP net income was $44 million, or $0.39 per diluted share, a decrease of 70% compared to $147 million, or $1.33 per diluted share for fiscal 2011. Cree generated $242 million of operating cash flow and $130 million of free cash flow (cash flow from operations less capital expenditures) during fiscal 2012.
"We finished the year strong in our fiscal fourth quarter with record revenue and non-GAAP earnings per share on the high end of our target range," noted Chuck Swoboda, Cree Chairman and CEO.
"Overall, LED lighting adoption continues to increase and we remain focused on being the leader in innovation to grow our business by enabling our customers to realise the tremendous benefits of LED technology. While we are encouraged by our progress, the macroeconomic environment is impacting our growth outlook in the near term," he added.
Gross margin decreased 10 basis points from Q3 of fiscal 2012 to 34.8% while cash and investments increased $34 million from Q3 of fiscal 2012 to $745 million. Accounts receivable (net) decreased $16 million from Q3 of fiscal 2012 to $152 million, with days sales outstanding of 45. Inventory decreased $8 million from Q3 of fiscal 2012 to $189 million and represents 85 days of inventory.
Business Outlook:
For its first quarter of fiscal 2013 ending September 23, 2012, Cree targets revenue in a range of $305 million to $325 million with GAAP gross margin targeted to be around 36%. The GAAP gross margin targets include stock-based compensation expense of approximately $2.1 million..Operating expenses are targeted to increase by approximately $2 million on a GAAP basis. The tax rate is targeted at 19.0% for fiscal Q1. GAAP net income is targeted at $10 million to $16 million, or $0.09 to $0.14 per diluted share. The GAAP net income target is based on an estimated 116.0 million diluted weighted average shares.
This represents a 26% increase compared to revenue of $243.0 million reported for the fourth quarter of fiscal 2011 and an 8% increase compared to the third quarter of fiscal 2012. GAAP net income for the fourth quarter was $10.0 million, or $0.09 per diluted share, a decrease of 49% year-over-year compared to GAAP net income of $19.8 million, or $0.18 per diluted share, for the fourth quarter of fiscal 2011.
For fiscal year 2012, Cree reported revenue of $1.16 billion, an 18% increase compared to revenue of $988 million for fiscal 2011. GAAP net income was $44 million, or $0.39 per diluted share, a decrease of 70% compared to $147 million, or $1.33 per diluted share for fiscal 2011. Cree generated $242 million of operating cash flow and $130 million of free cash flow (cash flow from operations less capital expenditures) during fiscal 2012.
"We finished the year strong in our fiscal fourth quarter with record revenue and non-GAAP earnings per share on the high end of our target range," noted Chuck Swoboda, Cree Chairman and CEO.
"Overall, LED lighting adoption continues to increase and we remain focused on being the leader in innovation to grow our business by enabling our customers to realise the tremendous benefits of LED technology. While we are encouraged by our progress, the macroeconomic environment is impacting our growth outlook in the near term," he added.
Gross margin decreased 10 basis points from Q3 of fiscal 2012 to 34.8% while cash and investments increased $34 million from Q3 of fiscal 2012 to $745 million. Accounts receivable (net) decreased $16 million from Q3 of fiscal 2012 to $152 million, with days sales outstanding of 45. Inventory decreased $8 million from Q3 of fiscal 2012 to $189 million and represents 85 days of inventory.
Business Outlook:
For its first quarter of fiscal 2013 ending September 23, 2012, Cree targets revenue in a range of $305 million to $325 million with GAAP gross margin targeted to be around 36%. The GAAP gross margin targets include stock-based compensation expense of approximately $2.1 million..Operating expenses are targeted to increase by approximately $2 million on a GAAP basis. The tax rate is targeted at 19.0% for fiscal Q1. GAAP net income is targeted at $10 million to $16 million, or $0.09 to $0.14 per diluted share. The GAAP net income target is based on an estimated 116.0 million diluted weighted average shares.
