NEWS

Cree keeps the trend of growth in LED business

23-04-2014

Cree, Inc. announced revenue of US $405.3 million for the 3th quarter 2014, ended March 30, 2014. This represents a 16 percent increase compared to revenue of US $348.9 million reported for the 3th quarter 2013. GAAP net income for the 3th quarter 2014 was US $28.2 million, or US $0.23 per diluted share, an increase of 27 percent year over year compared to GAAP net income of US $22.2 million, or US $0.19 per diluted share, for 3Q13. On a non-GAAP basis, net income for the 3th quarter 2014 was US $47.7 million, or US $0.39 per diluted share, an increase of 17 percent year over year compared to non-GAAP net income for the 3Q13 of US $40.8 million, or US $0.34 per diluted share.

“Fiscal 3th  quarter  was a solid quarter as revenue and operating income were up to our target range and the business is ready to to grow in fiscal 4th quarter,” stated Chuck Swoboda, Cree Chairman and CEO.

“These results once again show our ability to provide strong operating results while continuing to make longer term investments in new technology and building the Cree brand.”

 

3th quarter 2014 Financial Metrics
(in thousands, except per share amounts and percentages)

 

 

Third Quarter

 

 

 

 

 

2014

2013

 

Change

 

 

(unaudited)

 

(unaudited)

 

 

 

 

Revenue, net

$

405,259

 

 

$

348,934

 

 

$

56,325

 

 

16

%

GAAP

 

 

 

 

 

 

 

Gross margin

37.0

%

 

38.1

%

 

 

 

 

Operating margin

7.5

%

 

6.7

%

 

 

 

 

Net income

$

28,164

 

 

$

22,157

 

 

$

6,007

 

 

27

%

Earnings per diluted share

$

0.23

 

 

$

0.19

 

 

$

0.04

 

 

21

%

Non-GAAP

 

 

 

 

 

 

 

Gross margin

37.8

%

 

38.8

%

 

 

 

 

Operating margin

13.2

%

 

12.9

%

 

 

 

 

Net income

$

47,710

 

 

$

40,761

 

 

$

6,949

 

 

17

%

Earnings per diluted share

$

0.39

 

 

$

0.34

 

 

$

0.05

 

 

15

%

 

1. Gross margin decreased 50 basis points from the second quarter 2014 to 37.0 percent on a GAAP basis and decreased 40 basis points to 37.8 percent on a non-GAAP basis.

2. Cash and investments increased by US $39.0 million from the second quarter 2014 to US $1.2 billion.

3. Accounts receivable (net) increased by US $8.8 million from the second quarter 2014 to US $222.3 million, with days sales outstanding of 49.

4. Inventory increased US $16.8 million from 2Q14 to US $251.2 million, with days of inventory of 89 days.


Business Outlook:

For its 4th quarter 2014 ending June 29, 2014, Cree targets revenue in a range of US $430 million to US $460 million with GAAP gross margin targeted to be 36.8 percent +/- and non-GAAP gross margin targeted to be 37.5 percent +/-. Our GAAP gross margin targets include stock-based compensation expense of approximately US $3.2 million, while our non-GAAP targets do not. Operating expenses are targeted to increase US $7 million from 3Q14. The tax rate is targeted at 21.0 percent +/- for the 4Q14. GAAP net income is targeted at US $28.2 million to US $36.3 million, or US $0.23 to US $0.29 per diluted share. Non-GAAP net income is targeted in a range of US $46.5 million to US $54.6 million, or US $0.38 to US $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 US $0.15 per diluted share.

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