Cree Reports Financial Results for the Fourth Quarter of Fiscal Year 2021

CEW CREE Wolfspeed 400

August 24, 2021

Cree, Inc. has announced revenue from continuing operations of $145.8 million for its fourth quarter of fiscal 2021, ended June 27, 2021. This represents a 35% increase compared to revenue from continuing operations of $108.4 million reported for the fourth quarter of fiscal 2020, and a 6% increase compared to the third quarter of fiscal 2021. GAAP net loss from continuing operations for the fourth quarter of fiscal 2021 was $145.2 million, or $1.26 per diluted share, compared to GAAP net loss from continuing operations of $44.2 million, or $0.41 per diluted share, for the fourth quarter of fiscal 2020. On a nonGAAP basis, net loss from continuing operations for the fourth quarter of fiscal 2021 was $26.9 million, or $0.23 per diluted share, compared to non-GAAP net loss from continuing operations for the fourth quarter of fiscal 2020 of $28.9 million, or $0.27 per diluted share.

GAAP net loss for the fourth quarter of fiscal 2021 includes a $73.9 million expense related to a modification of Cree’s long-range plan regarding a portion of its Durham, North Carolina campus originally intended for expanding Cree’s LED production capacity that Cree had considered using to expand the manufacturing footprint for its silicon carbide materials product line. After Cree completes its current ongoing silicon carbide materials production capacity expansion in Durham, Cree now plans on further expansion of its silicon carbide materials production capacity outside of the Durham campus. As a result, the Company has decided it will no longer complete the construction of certain buildings on the Durham campus. The expense was recorded upon an updated valuation of the property.

Additionally, in the fourth quarter of fiscal 2021 subsequent to the sale of the LED Products business unit, Cree liquidated its approximately 3.3% common stock ownership interest in ENNOSTAR and received net proceeds of $66.4 million.

For fiscal year 2021, Cree reported revenue from continuing operations of $525.6 million, which represents a 12% increase when compared to revenue from continuing operations of $470.7 million for fiscal 2020. GAAP net loss from continuing operations was $341.3 million, or $3.04 per diluted share. This compares to a GAAP net loss from continuing operations of $197.6 million, or $1.83 per diluted share, for fiscal 2020. On a non-GAAP basis, net loss from continuing operations for fiscal year 2021 was $104.7 million, or $0.93 per diluted share, compared to nonGAAP net income from continuing operations of $76.6 million, or $0.71 per diluted share, for fiscal 2020.

“We delivered strong revenue during the quarter, as customers are ramping up production earlier and steeper than originally anticipated. We continued to grow and convert opportunities in our device pipeline, further establishing our industry leadership position in silicon carbide,” said Chief Executive Officer, Gregg Lowe. “We are on track to bring the world’s largest silicon carbide fab online in early calendar 2022, which uniquely positions us to capitalize on what we believe to be a multi-decade growth opportunity ahead.”

Business Outlook: For its first quarter of fiscal 2022, Cree targets revenue in a range of $144 million to $154 million. GAAP net loss is targeted at $78 million to $82 million, or $0.67 to $0.70 per diluted share. Non-GAAP net loss is targeted to be in a range of $25 million to $29 million, or $0.21 to $0.25 per diluted share. Targeted non-GAAP net loss excludes $53 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, interest income from transaction-related note receivable and project, transformation, transaction and transition costs.

Go HERE for more information

Related Articles


Changing Scene

  • Leviton Expands Camargo Manufacturing Facility 80,000 square feet in Chihuahua, Mexico

    March 30, 2023 Breaks ground on 80,000 sq. ft. production facility to support growing customer needs  Leviton recently announced the expansion of its manufacturing facility in Camargo, Mexico. About the Camargo Facility Expansion The over 80,000 square foot facility will house several new production lines and a distribution center for more efficient operations, as well… Read More…

  • Universal Douglas Closes Doors

    March 29, 2023 Almost two years to the day that Panasonic Corporation sold Universal Lighting Technologies and Douglas Lighting Controls to Los Angeles-based private equity firm Atar Capital comes news that the recently rebranded Universal Douglas business is expected to stop all operation in July. According to a letter sent to its customers and reprinted on The Edison Report, the company is “committed… Read More…


Design

  • Light at Night and the Inequality Gap: Progress and Challenges

    Light at Night and the Inequality Gap: Progress and Challenges

    March 9, 2023 In December 2021, the DLC hosted a webinar that explored issues related to “Bridging the Inequality Gap” in outdoor nighttime lighting. The conversation introduced research on how lighting contributes to discrimination and inequity in underrepresented communities, and generated heightened interest among attendees. To follow up on the research and work presented, the DLC sat… Read More…

  • LIT Design Awards Light Art Project Winner: Integral Group

    LIT Design Awards Light Art Project Winner: Integral Group

    December 19, 2022 Prize(s) Winners in Light Art Project Company Integral Group Lead Designers Ellie Niakan + Catherine Chan Photo Credits Catherine Chan Completion Date December 21, 2021 Project Location New Westminster, British Columbia, Canada Although appearing as solitary, trees are connected to one another through vast underground systems known as mycorrhizal networks. Through these hidden systems—a symbiotic relationship between plants… Read More…


New Products

  • Introducing LED-integrated Wine Rack System from MP Lighting

    Introducing LED-integrated Wine Rack System from MP Lighting

    March 23, 2023 Wine enthusiasts, sommeliers, and casual appreciators alike can all agree: wine is delicate. The naturally occurring chemicals in the wine can be disturbed by many environmental factors, mainly heat, lighting, and vibrations. To aid in the prevention of these factors spoiling the wine, wine racks can be installed. LED-integrated wine rack systems… Read More…

  • Punctuate with Hyphen. New architectural luminaire system by Fluxwerx

    Punctuate with Hyphen. New architectural luminaire system by Fluxwerx

    March 23, 2023 Fluxwerx makes a break from the ordinary with the launch of Hyphen—a family of discrete recessed and surface luminaires to design, define and leave your mark. With Portal, Fluxwerx pushed past conventional downlights and cylinders in our drive to give designers new and differentiated aesthetic options with innovative optics that maximize visual… Read More…