DURHAM, N.C. — Cree, Inc. announced revenue of $215.5 million for its third quarter of fiscal 2020, ended March 29, 2020. This represents a 21% decrease compared to revenue of $274.0 million reported for the third quarter of fiscal 2019, and a 10% decrease compared to the second quarter of fiscal 2020. GAAP net loss from continuing operations attributable to controlling interest for the third quarter was $61.6 million, or $0.57 per diluted share, compared to GAAP net loss from continuing operations attributable to controlling interest of $22.4 million, or $0.22 per diluted share, for the third quarter of fiscal 2019. On a non-GAAP basis, net loss from continuing operations attributable to controlling interest for the third quarter of fiscal 2020 was $15.5 million, or $0.14 per diluted share, compared to non-GAAP net income from continuing operations attributable to controlling interest for the third quarter of fiscal 2019 of $20.5 million, or $0.20 per diluted share.
“During these challenging times, I am very proud of our team’s efforts to ensure the health, safety and welfare of our people, while also executing on our business continuity plans in support of our customers around the world,” said Cree CEO, Gregg Lowe. “An incredible amount of our energy and focus has been deployed to confront the short-term headwinds associated with the COVID-19 pandemic and position our business to capitalize on the expected long-term growth opportunity for silicon carbide and GaN solutions.”
Business Outlook:
For its fourth quarter of fiscal 2020, Cree targets revenue in a range of $185 million to $215 million. GAAP net loss is targeted at $61 million to $70 million, or $0.56 to $0.65 per diluted share. Non-GAAP net loss is targeted to be in a range of $16 million to $25 million, or $0.15 to $0.23 per diluted share. Targeted non-GAAP net loss excludes $45 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, gain on extinguishment of convertible notes, 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 Lextar investment.
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