Cree, Inc. (Nasdaq: CREE), a market leader in LED lighting, announced revenue of $304.1 million for its second quarter of fiscal 2012, ended December 25, 2011.
This represents an 18% increase compared to revenue of $257.0 million reported for the second quarter of fiscal 2011 and a 13% increase compared to the first quarter of fiscal 2012. GAAP net income for the second quarter of $12.1 million, or $0.10 per diluted share, decreased 76% year-over-year compared to GAAP net income of $49.8 million, or $0.45 per diluted share, for the second quarter of fiscal 2011. On a non-GAAP basis, net income for the second quarter of fiscal 2012 of $28.7 million, or $0.25 per diluted share, decreased 53% year-over-year compared to non-GAAP net income for the second quarter of fiscal 2011 of $60.7 million, or $0.55 per diluted share.
Financial results for the second fiscal quarter reflect the inclusion of Ruud Lighting for the entire period. Ruud Lighting was acquired in the first quarter of fiscal 2012 approximately one month before quarter-end.
"Our second quarter results demonstrated the strength in our expanded lighting product line with strong growth in sales of both indoor and outdoor products," stated Chuck Swoboda, Cree Chairman and CEO. "While the business environment remains challenging, our results demonstrate that our strategy is working. Our future business outlook remains very optimistic based on our belief that innovation drives payback, payback drives LED lighting adoption and adoption expands the market for both Cree and our customers."
- Cash and investments increased $55.0 million from Q1 of fiscal 2012 to $687.2 million.
- Accounts receivable (net) decreased $9.3 million from Q1 of fiscal 2012 to $156.4 million, with days sales outstanding of 46.
- Inventory decreased $16.3 million from Q1 of fiscal 2012 to $187.4 million and represents 85 days of inventory.
Recent Business Highlights:
- Introduced the next generation XLamp® XB-D LED, which doubles lumens-per-dollar of lighting class LEDs;
- Introduced high-voltage XLamp XT-E and XM-L LEDs that enable the use of more efficient, smaller drivers to lower cost for compact lighting applications;
- Released the Cree LMH2 LED module family, which features Cree TrueWhite® Technology and delivers 80 lumens-per-watt system efficacy combined with CRI greater than 90;
- Licensed pioneering remote phosphor patents to five LED lighting manufacturers through its recently launched remote phosphor licensing program.
- Announced a 208,000 square-foot facility expansion at Cree's Ruud Lighting subsidiary in Racine, Wisconsin
For its third quarter of fiscal 2012 ending March 25, 2012, Cree targets revenue in a range of $290 million to $310 million with GAAP gross margin targeted to be 34% to 35% and non-GAAP gross margin targeted to be 35% to 36%. Our GAAP gross margin targets include stock based compensation expense of approximately $2.2 million, while our non-GAAP targets do not. Operating expenses are targeted to increase by approximately $3 million to $4 million on a GAAP and non-GAAP basis. The tax rate is targeted at 13.0% for fiscal Q3. GAAP net income is targeted at $4 million to $12 million, or $0.04 to $0.10 per diluted share. Non-GAAP net income is targeted in a range of $21 million to $29 million, or $0.18 to $0.25 per diluted share. The GAAP and non-GAAP net income targets are based on an estimated 116.4 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles of $0.06 per diluted share and stock-based compensation expense of $0.07 per diluted share.
Quarterly Conference Call:
Cree will host a conference call at 5:00 p.m. Eastern time today to review the highlights of the fiscal second quarter 2012 results and the fiscal third quarter 2012 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. Log on to Cree's website at www.cree.com and go to “Investor Relations - Financial Events and Presentations” for webcast details. The call will be archived and available on the website through February 1, 2012.
Supplemental financial information, including the non-GAAP reconciliation attached to this press release, is available in the “Investor Relations” section of Cree's website, under “Financial Information”, “Quarterly Results”, at www.cree.com.
About Cree, Inc.
Cree is leading the LED lighting revolution and making energy-wasting traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting, and semiconductor products for power and radio frequency (RF) applications.
Cree's product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree products are driving improvements in applications such as general illumination, electronic signs and signals, power supplies and solar inverters.
For additional product and company information, please refer to www.cree.com.