Cree Reports Revenue Decline for First Quarter of Fiscal Year 2017

2016-10-19

Cree, a market leader in LED lighting, announced consolidated revenue ofUS $321 millionfrom continuing operations, and$50 millionfrom discontinued operations, for a combined revenue of$371 millionfor its first quarter of fiscal 2017. This represents a 13% decrease compared to combined revenue of$425 million($381 millionfrom continuing operations and$44 millionfrom discontinued operations) for the first quarter of fiscal 2016 and a 4% decrease compared to the fourth quarter of fiscal 2016. Combined GAAP net income for the first quarter of fiscal 2017 was$0.6 million, or$0.00per diluted share, compared to combined GAAP net loss of$24 million, or$0.24per diluted share, for the first quarter of fiscal 2016. On a non-GAAP basis, combined net income for the first quarter of fiscal 2017 was$15 million, or$0.15per diluted share, compared to combined non-GAAP net income for the first quarter of fiscal 2016 of$21 million, or$0.21per diluted share.

Revenue from continuing operations was$321 millionin the first quarter of 2017 compared to revenue from continuing operations of$381 millionin the first quarter of fiscal 2016. Loss from continuing operations for the first quarter of fiscal 2017 was$3 million, or$0.03per diluted share, compared to loss from continuing operations of$26 millionor$0.25per diluted share for the first quarter of 2016. On a non-GAAP basis, income from continuing operations for the first quarter of fiscal 2017 was$9 million, or$0.09per diluted share, compared to non-GAAP income from continuing operations of$15 millionor$0.14per diluted share, for the first quarter of 2016.

Revenue from discontinued operations was$50 millionin the first quarter of 2017 compared to revenue from discontinued operations of$44 millionin the first quarter of 2016. Income from discontinued operations, net of tax for the first quarter of fiscal 2017 was$3 million, or$0.03per diluted share, compared to income from discontinued operations, net of tax of$1 million, or$0.01per diluted share for the first quarter of 2016. On a non-GAAP basis, income from discontinued operations, net of tax for the first quarter of fiscal 2017 was$6 million, or$0.06per diluted share, compared to non-GAAP income from discontinued operations, net of tax of$7 million, or$0.07per diluted share, for the first quarter of 2016.

"We delivered solid results in fiscal Q1, as Lighting, LED Products and Wolfspeed all achieved revenue and gross margins that were in line with our targets," statedChuck Swoboda,Cree Chairmanand CEO. "We continue to make progress with our transition to a more focused LED lighting company and building a more valuable business by bringing better light to our customers."

Q1 2017 Financial Metrics

(in thousands, except per share amounts and percentages)

First Quarter

2017

2016

Change

(unaudited)

(unaudited)

Revenue, net

$321,329

$381,549

($60,220

)

(16

)%

GAAP

Gross margin

26.9

%

28.1

%

Operating margin

(3.2

)%

(3.1

)%

Loss from continuing operations

($2,858

)

($25,736

)

$22,878

89

%

Income from discontinued operations, net of tax

$3,424

$1,247

$2,177

175

%

Net income (loss)

$566

($24,489

)

$25,055

102

%

Per share information:

Loss from continuing operations

($0.03

)

($0.25

)

$0.22

88

%

Income from discontinued operations, net of tax

$0.03

$0.01

$0.02

200

%

Earnings (loss) per diluted share

$0.00

($0.24

)

$0.24

100

%

Non-GAAP

Gross margin

27.7

%

28.8

%

Operating margin

2.8

%

4.9

%

Income from continuing operations

$9,500

$14,744

($5,244

)

(36

)%

Income from discontinued operations, net of tax

$5,709

$6,590

($881

)

(13

)%

Net income

$15,209

$21,334

($6,125

)

(29

)%

Per share information:

Income from continuing operations

$0.09

$0.14

($0.05

)

(36

)%

Income from discontinued operations, net of tax

$0.06

$0.07

($0.01

)

(14

)%

Earnings per diluted share

$0.15

$0.21

($0.06

)

(29

)%

  • Gross margin from continuing operations increased from 26.4% in Q4 of fiscal 2016 to 26.9% on a GAAP basis and decreased from 28.2% to 27.7% on a non-GAAP basis.

  • Consolidated cash and investments decreased by$16 millionfrom Q4 of fiscal 2016 to$589 million.

  • Accounts receivable from continuing operations, net increased by$7 millionfrom Q4 of fiscal 2016 to$146 million, with days sales outstanding of 41.

  • Inventory from continuing operations increased by$10 millionfrom Q4 of fiscal 2016 to$292 millionand represents 112 days of inventory.

  • Consolidated cash from operations was$18 millionfor Q1 of fiscal 2017.

  • We repurchased$36 millionof shares during Q1 of fiscal 2017.

Recent Business Highlights:

  • Announced the appointment ofDanny Castilloas President, Lighting, effectiveNovember 7, 2016

  • Released the following new Lighting products:

    • Essentiaby Cree LED Surface Wrap

    • A completely new portfolio of next generation LED bulbs

  • Launched the following new LED products:

    • XLampXP-L2 LED

    • XLamp XQ-E and XP-E High Efficiency (HE) Photo Red LEDs

    • QLS6A and QLSB6 LEDs

Business Outlook:

For its second quarter of fiscal 2017 endingDecember25, 2016, Cree targets combined revenue, which includes both continued and discontinued operations, in a range of$360 millionto$380 million. Combined GAAP net income is targeted at$10 millionto$11 million, or$0.10to$0.11per diluted share. Combined non-GAAP net income is targeted in a range of$13 millionto$19 million, or$0.13to$0.19per diluted share. Targeted combined non-GAAP earnings exclude$21 millionof expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles and transaction costs associated with the sale of the Wolfspeed business. The GAAP and non-GAAP targets do not include any estimated change in the fair value of Cree's Lextar investment.

For continuing operations, revenue is targeted in a range of$310 millionto$330 million. GAAP income from continuing operations is targeted at$2 millionto$5 million, or$0.02to$0.05per diluted share. Non-GAAP income from continuing operations is targeted in a range of$4 millionto$10 million, or$0.04to$0.10per diluted share. Targeted non-GAAP income from continuing operations exclude$18 millionof expenses related to stock-based compensation expense and the amortization or impairment of acquisition-related intangibles. The GAAP and non-GAAP targets do not include any estimated change in the fair value of Cree's Lextar investment.

For discontinued operations, revenue is targeted at +/-$50 million. GAAP income from discontinued operations, net of tax is targeted at +/-$7 million, or +/-$0.07per diluted share. Non-GAAP income from discontinued operations, net of tax is targeted at +/-$9 million, or +/-$0.09per diluted share. Targeted non-GAAP income from discontinued operations, net of tax excludes$3 millionof expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles and transaction costs associated with the sale of the Wolfspeed business.

Quarterly Conference Call:

Cree will host a conference call at5:00 p.m. Eastern timetoday to review the highlights of the fiscal 2017 first quarter results and the fiscal 2017 second quarter business outlook, including significant factors and assumptions underlying the targets noted above.

The conference call will be available to the public through a live audio web broadcast via the internet. For webcast details, visit Cree's website atinvestor.cree.com/events.cfm.

Supplemental financial information, including the non-GAAP reconciliation attached to this press release, is available on Cree's website atinvestor.cree.com/results.cfm.

分享到:
相关阅读
文章评论
© 2018 一灯头条 t.ledcax.com 一灯网 浙ICP备17043565号
违法和不良信息举报:lixuda@ledcax.com