News Article
Cree bounces back with revenues up 17 percent
The LED and power device chip manufacturer's quarterly net income increased 26 percent year-over-year to $16.1 million
Cree, Inc. has announced revenue of $315.8 million for its first quarter of fiscal 2013, ended September 23rd, 2012.
This represents a 17% increase compared to revenue of $269 million reported for the first quarter of fiscal 2012 and a 3% increase compared to the fourth quarter of fiscal 2012.
GAAP net income for the first quarter was $16.1 million, or $0.14 per diluted share, an increase of 26% year-over-year compared to net income of $12.8 million, or $0.11 per diluted share, for the first quarter of fiscal 2012.
"We started the year strong in our fiscal first quarter with record revenue and non-GAAP earnings per share at the high end of our target range," notes Chuck Swoboda, Cree chairman and CEO.
"Overall company backlog is stronger than it was at this point last quarter, although visibility is still limited and the macroeconomic environment remains a headwind. Our results are beginning to demonstrate the enormous leverage we have in our fully integrated vertical lighting model."
Gross margin increased 200 basis points from Q4 of fiscal 2012 to 36.8% on a GAAP basis.
Cash and investments increased $71.8 million from Q4 of fiscal 2012 to $816.3 million. Accounts receivable (net) increased $10.0 million from Q4 of fiscal 2012 to $162.3 million, with 46 days sales outstanding.
Inventory decreased $9.2 million from Q4 of fiscal 2012 to $179.7 million and represents 81 days of inventory.
Business Outlook:
For its second quarter of fiscal 2013 ending December 30, 2012, Cree targets revenue in a range of $320 million to $340 million with GAAP gross margin targeted to be 37.5%+/-. Its GAAP gross margin targets include stock-based compensation expense of approximately $2.6 million.
Operating expenses are targeted to increase by +/- $7 million on a GAAP basis. The tax rate is targeted at 22% for fiscal Q2. GAAP net income is targeted at $13 million to $19 million, or $0.12 to $0.16 per diluted share. The net income targets are based on an estimated 116 million diluted weighted average shares.
This represents a 17% increase compared to revenue of $269 million reported for the first quarter of fiscal 2012 and a 3% increase compared to the fourth quarter of fiscal 2012.
GAAP net income for the first quarter was $16.1 million, or $0.14 per diluted share, an increase of 26% year-over-year compared to net income of $12.8 million, or $0.11 per diluted share, for the first quarter of fiscal 2012.
"We started the year strong in our fiscal first quarter with record revenue and non-GAAP earnings per share at the high end of our target range," notes Chuck Swoboda, Cree chairman and CEO.
"Overall company backlog is stronger than it was at this point last quarter, although visibility is still limited and the macroeconomic environment remains a headwind. Our results are beginning to demonstrate the enormous leverage we have in our fully integrated vertical lighting model."
Gross margin increased 200 basis points from Q4 of fiscal 2012 to 36.8% on a GAAP basis.
Cash and investments increased $71.8 million from Q4 of fiscal 2012 to $816.3 million. Accounts receivable (net) increased $10.0 million from Q4 of fiscal 2012 to $162.3 million, with 46 days sales outstanding.
Inventory decreased $9.2 million from Q4 of fiscal 2012 to $179.7 million and represents 81 days of inventory.
Business Outlook:
For its second quarter of fiscal 2013 ending December 30, 2012, Cree targets revenue in a range of $320 million to $340 million with GAAP gross margin targeted to be 37.5%+/-. Its GAAP gross margin targets include stock-based compensation expense of approximately $2.6 million.
Operating expenses are targeted to increase by +/- $7 million on a GAAP basis. The tax rate is targeted at 22% for fiscal Q2. GAAP net income is targeted at $13 million to $19 million, or $0.12 to $0.16 per diluted share. The net income targets are based on an estimated 116 million diluted weighted average shares.
