Cree Reports further drop in revenue for Q3 2016
US LED lighting firm Cree has announced revenue of $367 million for its Q3 2016, ended March 27, 2016. This compares to revenue of $410 million reported for the third quarter of fiscal 2015, and $436 million reported for the second quarter of fiscal 2016.
"Q3 operating results were in-line with the preliminary estimates we provided on April 5th," stated Chuck Swoboda, Cree chairman and CEO. "I believe we've addressed the root causes that led to our recent business challenges. We improved customer responsiveness in March, and we're optimistic that this, combined with new product momentum, will drive sequential growth in fiscal Q4."
GAAP net income for the Q3 2016 was $152 thousand, or $0.00 per diluted share, compared to GAAP net income of $476 thousand, or $0.00 per diluted share, for the third quarter of fiscal 2015. On a non-GAAP basis, net income for the Q3 2016 was $17 million, or $0.17 per diluted share, compared to non-GAAP net income for the third quarter of fiscal 2015 of $25 million, or $0.22 per diluted share.
Business Outlook
For its fourth quarter of fiscal 2016 ending June 26, 2016, Cree targets revenue in a range of $370 million to $395 million, with GAAP gross margin targeted to be 30.7 percent+/- and non-GAAP gross margin targeted to be 31.5 percent+/-.
GAAP operating expenses are targeted to be approximately $117 million, and non-GAAP operating expenses are targeted to be approximately $98 million. GAAP net (loss) income is targeted at $(3) million to $3 million, or $(0.03) to $0.03 per diluted share, excluding any net changes associated with Cree's Lextar investment. Non-GAAP net income is targeted in a range of $16 million to $22 million, or $0.16 to $0.22 per diluted share.
