News Article
Cree 3rd Q Revenue Increased 16% Year-over-Year
Quarterly Net Income Increased 27% Year-over-Year to $28.2 million
Cree have announced revenue of $405.3 million for its third quarter of fiscal 2014, ended March 30, 2014. This represents a 16% increase compared to revenue of $348.9 million reported for the third quarter of fiscal 2013. GAAP net income for the third quarter was $28.2 million, or $0.23 per diluted share, an increase of 27% year-over-year compared to GAAP net income of $22.2 million, or $0.19 per diluted share, for the third quarter of fiscal 2013. On a non-GAAP basis, net income for the third quarter of fiscal 2014 was $47.7 million, or $0.39 per diluted share, an increase of 17% year-over-year compared to non-GAAP net income for the third quarter of fiscal 2013 of $40.8 million, or $0.34 per diluted share.
“These results once again demonstrate our ability to deliver strong operating results while continuing to make longer term investments in new technology and building the Cree brand.”
“Fiscal Q3 was a solid quarter as revenue and operating income were in line with our target range and the business is well positioned to grow in fiscal Q4,” stated Chuck Swoboda, Cree Chairman and CEO. “These results once again demonstrate our ability to deliver strong operating results while continuing to make longer term investments in new technology and building the Cree brand.”
Gross margin decreased 50 basis points from Q2 of fiscal 2014 to 37.0% on a GAAP basis and decreased 40 basis points to 37.8% on a non-GAAP basis.
Cash and investments increased by $39.0 million from Q2 of fiscal 2014 to $1.2 billion.
Accounts receivable (net) increased by $8.8 million from Q2 of fiscal 2014 to $222.3 million, with days sales outstanding of 49.
Inventory increased $16.8 million from Q2 of fiscal 2014 to $251.2 million, with days of inventory of 89 days.
Recent Business Highlights:
Introduced SmartCastTM Technology, the first self-programming wireless lighting-control system that reduces energy consumption by more than 70 percent* at half the cost of traditional lighting controls;
Launched the new ZR Series LED troffer, delivering significant energy savings, superior color quality and an ultra-slim, sleek package starting at only $99;
Made The Biggest Thing Since the Light BulbTM brighter and more affordable by lowering prices of the Cree® LED Bulb product line by as much as 23 percent, and introducing the first 100-watt replacement LED bulb to look and light like a light bulb;
Achieved another significant LED milestone with the demonstration of 303 lumens per watt from a white, high-power LED;
Demonstrated the first 200-lumen-per-watt (LPW) LED concept luminaire, which is more than twice the efficiency of the best linear fluorescent luminaires;
Introduced three new CXA high-density LED arrays which, by doubling the light output of existing CXA LED arrays, enable the complete replacement of ceramic-metal-halide (CMH) light sources; and
Released the XLamp® XB-H LED, the brightest discrete in Cree’s high-density (HD) class of LEDs, delivering a breakthrough combination of lumen output and efficacy in a small package.
*Compared to traditional fluorescent luminaires without SmartCast Technology.
Business Outlook:
For its fourth quarter of fiscal 2014 ending June 29, 2014, Cree targets revenue in a range of $430 million to $460 million with GAAP gross margin targeted to be 36.8%+/- and non-GAAP gross margin targeted to be 37.5%+/-. Our GAAP gross margin targets include stock-based compensation expense of approximately $3.2 million, while our non-GAAP targets do not. Operating expenses are targeted to increase $7 million from Q3. The tax rate is targeted at 21.0%+/- for the fourth quarter of fiscal 2014. GAAP net income is targeted at $28.2 million to $36.3 million, or $0.23 to $0.29 per diluted share. Non-GAAP net income is targeted in a range of $46.5 million to $54.6 million, or $0.38 to $0.44 per diluted share. The GAAP and non-GAAP net income per diluted share targets are based on an estimated 124.0 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles and stock-based compensation expense of $0.15 per diluted share.
www.cree.com.
