Q3 results "˜within operating range' says Cree CEO
Cree, the US LED lighting company, has announced revenue of $409.5 million for its third quarter of fiscal 2015, ended March 29, 2015. This represents a 1 percent increase compared to revenue of $405.3 million reported for the Q3 2014.
But GAAP net profit for the Q3 was $0.7 million, a decrease of 98 percent year-over-year compared to $28.2 million for Q3 2014. On a non-GAAP basis, net profit for Q3 2015 was $25.0 million, a decrease of 48 percent year-over-year compared to Q3 2014 of $47.7 million.
The company's stock has dropped to a 3-month low.
"Q3 revenue and non-GAAP operating profit were within our targeted range despite the impact of extreme winter weather this quarter," stated Chuck Swoboda, Cree Chairman and CEO. "We're confident that we're on the right track and optimistic about the future growth in Lighting and potential upside from our Power & RF product line."
Gross margin decreased 250 basis points from Q2 of fiscal 2015 to 30.6 percent on a GAAP basis, and decreased 250 basis points to 31.4 percent on a non-GAAP basis.
Cash and investments decreased by $47.9 million from Q2 of fiscal 2015 to $782.0 million. Accounts receivable, net decreased by $2.7 million from Q2 of fiscal 2015 to $216.2 million, with days sales outstanding of 48. Inventory decreased by $33.2 million from Q2 of fiscal 2015 to $299.4 million and represents 95 days of inventory.
Business outlook
For its fourth quarter of fiscal 2015 June 28, 2015, Cree targets revenue in a range of $420 million to $440 million with GAAP gross margin targeted to be 31.3 percent+/- and non-GAAP gross margin targeted to be 32.0 percent+/-. GAAP gross margin targets include stock-based compensation expense of approximately $3.3 million, while our non-GAAP targets do not.
Operating expenses are targeted to increase $5 million compared to fiscal Q3. The tax rate is targeted at 9.0 percent+/- for Q4 2015. GAAP net profit is targeted at $4 million to $9 million, or $0.04 to $0.08 per diluted share. Non-GAAP net profit is targeted in a range of $26 million to $31 million, or $0.24 to $0.28 per diluted share.
