Cree Reaching for ‘Transformation’ / Reports Financial ‘Headwinds’ in Q1 2020
Cree, Inc. announced revenue of $242.8 million for its first quarter of fiscal 2020, ended September 29, 2019. This represents an 11% decrease compared to revenue of $274.2 million reported for the first quarter of fiscal 2019, and a 3% decrease compared to the fourth quarter of fiscal 2019.
GAAP net loss from continuing operations for the first quarter was $37.8 million, or $0.35 per diluted share, compared to GAAP net loss from continuing operations of $0.8 million, or $0.01 per diluted share, for the first quarter of fiscal 2019.
On a non-GAAP basis, net loss from continuing operations for the first quarter of fiscal 2020 was $3.6 million, or $0.03 per diluted share, compared to non-GAAP net income from continuing operations for the first quarter of fiscal 2019 of $23.2 million, or $0.23 per diluted share.
“The transformation of Cree continued during the quarter and we delivered results that met or exceeded the upper end of our ranges," stated Gregg Lowe, CEO of Cree. “While we will continue to experience some near-term headwinds, we are continuing to build our long-term prospects as customers look to leverage the benefits of our silicon carbide and GaN solutions to drive innovation.”
For its second quarter of fiscal 2020, Cree targets revenue in a range of $234 million to $240 million. GAAP net loss is targeted at $45 million to $49 million, or $0.42 to $0.46 per diluted share. Non-GAAP net loss is targeted to be in a range of $8 million to $12 million, or $0.07 to $0.11 per diluted share.
Targeted non-GAAP loss excludes $31 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, accretion on convertible notes, and project, transformation and transaction 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.