Cree, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 30, 2012; Provides Earnings Guidance for the Third Quarter Ending March 31, 2013; Provides Tax Rate Guidance for the Fiscal Year 2013
January 22, 2013 at 09:00 pm
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Cree, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 30, 2012. For the quarter, revenue increased 10% sequentially to a record $346 million, which was greater than targeted range of $320 million to $340 million. GAAP earnings increased sequentially to $20.4 million or $0.18 per diluted share for the second quarter of fiscal 2013, and non-GAAP earnings increased sequentially to $36.9 million or $0.32 per diluted share. Non-GAAP earnings excluded $16.5 million of expense net of tax or $0.14 per diluted share from the amortization of acquired intangibles and stock-based compensation. GAAP and non-GAAP earnings per share exceeded the high end of targeted range. Cash provided by operations was $92 million and capital expenditures were $22 million, including $4 million related to patents, which resulted in free cash flow of $70 million. Net interest income and other for the quarter was $2.5 million. Operating income was $25,092,000 and income before income taxes was $27,573,000 against operating income of $12,192,000 and income before income taxes of $13,881,000 a year ago. Non-GAAP operating income was $47,355,000 against $31,257,000 a year ago.
For the six months, revenue, net was $662,039,000, operating income was $42,381,000, income before income taxes was $48,247,000 and net income was $36,526,000 or $0.31 per diluted share against revenue, net of $573,098,000, operating income of $25,579,000, income before income taxes of $30,211,000 and net income of $24,897,000 or $0.22 per diluted share for the same period a year ago. Non-GAAP operating income was $84,799,000 against $64,057,000 a year ago. Non-GAAP net income was $68,636,000 against $56,603,000 a year ago. Earnings per share non-GAAP diluted net income per share was $0.59 against $0.50 a year ago. Cash flow from operations was $178,294,000 against $122,237,000 a year ago. CapEx spending was $30,430,000 against $53,038,000 a year ago.
The company provided earnings guidance for the third quarter ending March 31, 2013. The company targets revenue in a range of $325 million to $345 million with GAAP gross margin targeted to be similar to second quarter and non-GAAP gross margin targeted to be 39.5%+/-. This target is based on a number of factors that could vary, including overall demand, product mix, cost reduction programs, factory execution and the competitive environment. GAAP gross margin targets include stock-based compensation expense of approximately $2.4 million, while non-GAAP targets do not. Operating expenses are targeted to be similar to second quarter on both a GAAP and non-GAAP basis. The tax rate is targeted at 17.0% for fiscal third quarter. GAAP net income is targeted at $17 million to $23 million, or $0.15 to $0.20 per diluted share. Non-GAAP net income is targeted in a range of $35 million to $41 million, or $0.30 to $0.35 per diluted share. The GAAP and non-GAAP net income targets are based on an estimated 116.7 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to the amortization of acquired intangibles and stock-based compensation expense of $0.15 per diluted share. Net interest income and other is targeted to be approximately $2 million. Charges for amortization of acquired intangibles in the amount of $7.7 million.
The company currently target tax rate to be 22% for the full fiscal 2013 year.
Wolfspeed, Inc. is a semiconductor company focused on silicon carbide technologies. The Company provides solutions for efficient energy consumption and a sustainable future. Its product families include silicon carbide material and power devices targeted for various applications such as electric vehicles, fast charging, and renewable energy and storage. Its products include Discrete MOSFETs, Discrete Schottky Diodes, Bare Die MOSFETs, Bare Die Schottky Diodes, Power Modules, Gate Driver Boards, Evaluation Kits, Reference Designs and Materials Products. The Companyâs silicon carbide fabrication facility is located in Marcy, New York.
Cree, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 30, 2012; Provides Earnings Guidance for the Third Quarter Ending March 31, 2013; Provides Tax Rate Guidance for the Fiscal Year 2013