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Cree has to lower its profit forcast for later 2019 facing sino us trade disputes

Cree lowed its revenue forecast of fiscal 4Q19 to the range between US$245 million and 252 million from previous US$263 million to 271 million as the Trump administration put Huawei on a sanction list.

On May 15, 2019, Bureau of Industry and Security (BIS) under the U.S. Department of Commerce put Huawei Technologies and 68 of its branches to the "Entity List" maintained by the U.S. Department of Commerce.

According to Cree, revenue for products and materials associated with Huawei’s wireless infrastructure construction were expected to be up to $15 million in the fourth quarter of fiscal 2019. Cree does know when it will resume shipment facing the trade war.
sino us trade disputes hits led market much
In addition to the matter of Huawei, Cree also sees slow demand on LED product due to global trade uncertainties by the trade dispute. For the above reason, the updated revenue expectation from continuing option of 4Q19 which ends on June 30, 2019, is in the range of US$245 million to 252 million, including Wolfspeed revenue between $132 million to $135 million and LED Products revenue between US$113 million to $117 million.

Adjusted non-GAAP net income from continuing operations is now between US$8 million to $13 million (prior US$12 million to $17 million) and non-GAAP diluted EPS is between US$0.08 to $0.12, in comparison to the prior US$0.12 and $0.16.
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