Cree Announces Financial Report for Its Fiscal 3Q19 with Focus on Wolfspeed Business

Cree announced financial results for its third quarter of fiscal 2019, ended March 31, 2019. Revenue from continuing operations for the third quarter of fiscal 2019 was US$274 million, which represents a 22% on-year increase. GAAP net loss from continuing operations for the third quarter of fiscal 2019 was US$22 million, or US$0.22 per diluted share. On a non-GAAP basis, net income from continuing operations for the third quarter of fiscal 2019 was US$20 million, compared to non-GAAP net income from continuing operations for the third quarter of fiscal 2018 of US$17 million.

The company announced on March 14, 2019 a definitive agreement to sell the Lighting Products business to IDEAL Industries. As a result, the results of the Lighting Products business have been classified as discontinued operations in the consolidated statements of (loss) income for all periods presented. The transaction is expected to close by the end of Cree’s fiscal year 2019.

On the other hand, Cree continues its focus on Wolfspeed business with products consists of SiC, GaN materials and power devices and RF devices based on Si and other semiconductor materials. For Cree’s fiscal 3Q19, Wolfspeed revenue grew by 72 percent, accounting for more than half of the company’s total revenue of the quarter.

The strong performance of Cree’s Wolfspeed segment supported the company’s margin improvement despite the weak LED business. Gregg Lowe, CEO of Cree, noted, “We are well positioned to meet the growing demand for next generation silicon carbide solutions over the next five years that support a variety of mega trends including the auto industry’s transition to electric vehicles and the rapid deployment of faster 5G wireless networks.”

For its fourth quarter of fiscal 2019 ending June 30, 2019, Cree targets revenue from continuing operations in a range of US$263 million to US$271 million. GAAP net loss from continuing operations is targeted at US$19 million to US$24 million. Non-GAAP net income from continuing operations is targeted to be in a range of US$12 million to US$17 million.

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