Cree Q3 results below expectations
LED company Cree has announced preliminary estimates of financial results for its third fiscal quarter ended March 27, 2016. Revenue for the quarter is estimated to be approximately $367 million, with earnings estimated to be ($0.01) loss to $0.01 per diluted share on a GAAP basis, and $0.13 to $0.15 per diluted share on a non-GAAP basis.
"The estimated revenue is below the company's previously targeted range of $400 million to $430 million due to lower Lighting Products revenue," stated Chuck Swoboda, Cree chairman and CEO. "I believe we've addressed the root causes that led to our recent business challenges. While it's premature to provide specific targets at this time, the order rate in commercial lighting improved in March, and we're optimistic that this, combined with demand for new products, will begin to drive growth in fiscal Q4."
Lighting Products revenue is estimated to be approximately $187 million, lower than previously targeted due primarily to lower commercial orders driven by three main factors: customer service disruptions related to our ERP system conversion, new product delays and a slower than forecast calendar Q1.
LED Products revenue is estimated to be in-line with the expectations for this segment in the company's previously announced revenue targets at approximately $151 million.
Power and RF Products revenue is estimated to be in-line with the expectations for this segment in the Company's previously announced revenue targets at approximately $29 million.
GAAP and non-GAAP gross margins are estimated to be below the company's previously announced targets at approximately 29.7 percent and 30.5 percent , respectively. The difference between GAAP and non-GAAP gross margin is stock-based compensation expense.
GAAP and non-GAAP operating expenses are estimated to be $5 million lower than previously targeted. The difference between non-GAAP and GAAP operating expenses is stock-based compensation expense, amortisation of acquired intangibles and income from equipment sales associated with the LED business restructuring.
