DURHAM, N.C. — Cree, Inc. today announced revenue of $216.6 million for its first quarter of fiscal 2021, ended September 27, 2020. This represents an 11% decrease compared to revenue of $242.8 million reported for the first quarter of fiscal 2020, and a 5% increase compared to the fourth quarter of fiscal 2020. GAAP net loss attributable to controlling interest for the first quarter of fiscal 2021 was $184.4 million, or $1.68 per diluted share, compared to GAAP net loss attributable to controlling interest of $37.8 million, or $0.35 per diluted share, for the first quarter of fiscal 2020. On a non-GAAP basis, net loss attributable to controlling interest for the first quarter of fiscal 2021 was $21.3 million, or $0.19 per diluted share, compared to non-GAAP net loss attributable to controlling interest for the first quarter of fiscal 2020 of $3.6 million, or $0.03 per diluted share.
In the first quarter of fiscal 2021, the Company determined it would more likely than not sell all or a portion of assets comprising the LED Products segment below carrying value and as such, GAAP net loss attributable to controlling interest for the first quarter of fiscal 2021 includes a $105.7 million impairment of goodwill.
As previously announced, on October 18, 2020, Cree executed a definitive agreement to sell the LED Products business unit to SMART Global Holdings, Inc. (SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration. The transaction is subject to required regulatory approvals and satisfaction of customary closing conditions, and is targeted to close in the first calendar quarter of 2021.
“We are pleased with our performance in the first quarter and the momentum that continues to build for our innovative solutions across key end markets,” said Cree CEO, Gregg Lowe. “Our recent announcement to sell the Cree LED business to SMART Global Holdings is an important milestone in our transformational journey as we continue to lead the industry’s transition from silicon to silicon carbide.”
For its second quarter of fiscal 2021, Cree targets revenue from continuing operations in a range of $118 million to $124 million. GAAP net loss from continuing operations is targeted at $64 million to $69 million, or $0.58 to $0.62 per diluted share. Non-GAAP net loss from continuing operations is targeted to be in a range of $25 million to $30 million, or $0.23 to $0.27 per diluted share. Targeted non-GAAP net loss from continuing operations excludes $39 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 from continuing operations do not include any estimated change in the fair value of Cree’s Lextar investment.