Cree Reports Financial Results for the Third Quarter of Fiscal Year 2021
May 5, 2021
Cree, Inc. announced revenue from continuing operations of $137.3 million for its third quarter of fiscal 2021, ended March 28, 2021. This represents a 21% increase compared to revenue from continuing operations of $113.9 million reported for the third quarter of fiscal 2020, and an 8% increase compared to the second quarter of fiscal 2021. GAAP net loss from continuing operations for the third quarter of fiscal 2021 was $66.5 million, or $0.59 per diluted share, compared to GAAP net loss from continuing operations of $56.2 million, or $0.52 per diluted share, for the third quarter of fiscal 2020. On a nonGAAP basis, net loss from continuing operations for the third quarter of fiscal 2021 was $24.7 million, or $0.22 per diluted share, compared to non-GAAP net loss from continuing operations for the third quarter of fiscal 2020 of $18.4 million, or $0.17 per diluted share.
On March 1, 2021, Cree completed the previously announced sale of certain assets and subsidiaries comprising its former LED Products segment to SMART Global Holdings, Inc. (SGH) and its wholly owned acquisition subsidiary CreeLED, Inc. (CreeLED and collectively with SGH, SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration.
“We are building solid momentum and during our fiscal third quarter we continued to execute and drive our strategy, delivering strong top line performance as customers continue to realize the benefits of silicon carbide,” said Cree CEO, Gregg Lowe. “With the sale of our LED business now complete, we accomplished a critical milestone in our journey to becoming a pure-play semiconductor powerhouse and have an even greater focus on converting opportunities in our pipeline and expanding our manufacturing capacity.”
Business Outlook: For its fourth quarter of fiscal 2021, Cree targets revenue in a range of $142 million to $148 million. GAAP net loss is targeted at $68 million to $73 million, or $0.59 to $0.63 per diluted share. Non-GAAP net loss is targeted to be in a range of $25 million to $30 million, or $0.22 to $0.26 per diluted share. Targeted non-GAAP net loss excludes $43 million of estimated expenses, net of tax, related to stock-based compensation expense, amortization or impairment of acquisition-related intangibles, factory optimization restructuring and start-up costs, net accretion on convertible notes and project, transformation, transaction and transition costs. The GAAP and non-GAAP targets do not include any estimated change in the fair value of Cree’s ENNOSTAR (formerly Lextar) investment, which was liquidated earlier this month.
Quarterly Conference Call: Cree will host a conference call at 5:00 p.m. Eastern time today to review the highlights of the third quarter results and the fiscal fourth quarter 2021 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 at investor.cree.com/events.cfm.