Cree Revenue Down for the Fourth Quarter and Up for Fiscal Year 2019
Cree, Inc. announced revenue of $251.2 million for its fourth quarter of fiscal 2019, ended June 30, 2019. This represents a 5% decrease compared to revenue of $265.8 million reported for the fourth quarter of fiscal 2018, and an 8% decrease compared to the third quarter of fiscal 2019. GAAP net loss from continuing operations for the fourth quarter was $34.6 million, or $0.33 per diluted share, compared to GAAP net loss from continuing operations of $28.9 million, or $0.29 per diluted share, for the fourth quarter of fiscal 2018.
On a non-GAAP basis, net income from continuing operations for the fourth quarter of fiscal 2019 was $11.5 million, or $0.11 per diluted share, compared to non-GAAP net income from continuing operations for the fourth quarter of fiscal 2018 of $14.5 million, or $0.14 per diluted share.
For fiscal year 2019, Cree reported revenue of $1.1 billion, which represents a 17% increase when compared to revenue of $0.9 billion for fiscal 2018. GAAP net loss from continuing operations was $57.9 million, or $0.56 per diluted share. This compares to a GAAP net loss from continuing operations of $16.4 million, or $0.17 per diluted share, for fiscal 2018. On a non-GAAP basis, net income from continuing operations for fiscal year 2019 was $76.9 million, or $0.74 per diluted share, compared to $36.9 million, or $0.37 per diluted share, for fiscal 2018.
“We are pleased with our performance in the quarter as non-GAAP earnings per share was within the top end of our updated range despite the challenging operating environment," stated Gregg Lowe, Cree CEO. "While the Huawei ban and softness in the LED market will continue to impact the sector in the short-term, our long-term outlook remains unchanged - there is a significant opportunity to help customers make the shift from silicon to silicon carbide solutions for their next generation applications.”
For its first quarter of fiscal 2020, Cree targets revenue from continuing operations in a range of $237 million to $243 million. GAAP net loss from continuing operations is targeted at $42 million to $46 million, or $0.39 to $0.43 per diluted share. Non-GAAP net loss from continuing operations is targeted to be in a range of $3 million to $7 million, or $0.03 to $0.07 per diluted share.
Targeted non-GAAP loss from continuing operations excludes $39 million of estimated expenses, net of tax, related to stock-based compensation expense, the amortization or impairment of acquired intangibles, factory optimization restructuring and start-up costs, amortization of debt issuance costs and discount, and project 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.