Cree Reports Financial Results for the Fourth Quarter of Fiscal Year 2021

Cree Thumbnail

August 24, 2021

CreeCree, Inc. has announced revenue from continuing operations of $145.8 million for its fourth quarter of fiscal 2021, ended June 27, 2021. This represents a 35% increase compared to revenue from continuing operations of $108.4 million reported for the fourth quarter of fiscal 2020, and a 6% increase compared to the third quarter of fiscal 2021. GAAP net loss from continuing operations for the fourth quarter of fiscal 2021 was $145.2 million, or $1.26 per diluted share, compared to GAAP net loss from continuing operations of $44.2 million, or $0.41 per diluted share, for the fourth quarter of fiscal 2020. On a nonGAAP basis, net loss from continuing operations for the fourth quarter of fiscal 2021 was $26.9 million, or $0.23 per diluted share, compared to non-GAAP net loss from continuing operations for the fourth quarter of fiscal 2020 of $28.9 million, or $0.27 per diluted share.

GAAP net loss for the fourth quarter of fiscal 2021 includes a $73.9 million expense related to a modification of Cree’s long-range plan regarding a portion of its Durham, North Carolina campus originally intended for expanding Cree’s LED production capacity that Cree had considered using to expand the manufacturing footprint for its silicon carbide materials product line. After Cree completes its current ongoing silicon carbide materials production capacity expansion in Durham, Cree now plans on further expansion of its silicon carbide materials production capacity outside of the Durham campus. As a result, the Company has decided it will no longer complete the construction of certain buildings on the Durham campus. The expense was recorded upon an updated valuation of the property.

Additionally, in the fourth quarter of fiscal 2021 subsequent to the sale of the LED Products business unit, Cree liquidated its approximately 3.3% common stock ownership interest in ENNOSTAR and received net proceeds of $66.4 million.

For fiscal year 2021, Cree reported revenue from continuing operations of $525.6 million, which represents a 12% increase when compared to revenue from continuing operations of $470.7 million for fiscal 2020. GAAP net loss from continuing operations was $341.3 million, or $3.04 per diluted share. This compares to a GAAP net loss from continuing operations of $197.6 million, or $1.83 per diluted share, for fiscal 2020. On a non-GAAP basis, net loss from continuing operations for fiscal year 2021 was $104.7 million, or $0.93 per diluted share, compared to nonGAAP net income from continuing operations of $76.6 million, or $0.71 per diluted share, for fiscal 2020.

“We delivered strong revenue during the quarter, as customers are ramping up production earlier and steeper than originally anticipated. We continued to grow and convert opportunities in our device pipeline, further establishing our industry leadership position in silicon carbide,” said Chief Executive Officer, Gregg Lowe. “We are on track to bring the world’s largest silicon carbide fab online in early calendar 2022, which uniquely positions us to capitalize on what we believe to be a multi-decade growth opportunity ahead.”

Business Outlook: For its first quarter of fiscal 2022, Cree targets revenue in a range of $144 million to $154 million. GAAP net loss is targeted at $78 million to $82 million, or $0.67 to $0.70 per diluted share. Non-GAAP net loss is targeted to be in a range of $25 million to $29 million, or $0.21 to $0.25 per diluted share. Targeted non-GAAP net loss excludes $53 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, interest income from transaction-related note receivable and project, transformation, transaction and transition costs.

Go HERE for more information.

Related Articles


Latest Articles

  • Legrand’s Adorne Collection Now Offers Microban

    At the 2023 International Builders’ Show, Legrand® and Microban® announced a partnership to add antimicrobial protection to Legrand’s popular adorne Collection of designer switches and outlets. Legrand’s Microban-treated offering – which will include all adorne switches and dimmers (excluding smart devices at this time) as well as the matching plastic wallplates – features innovative technology… Read More…

  • Chinese Lighting Company Relocates U.S. Headquarters to Dallas

    Shenzhen, China-based commercial outdoor lighting manufacturer Ledsion Lighting has relocated its U.S. headquarters to Dallas, according to a report in Community Impact, a local area news source. The nearly 26,000-sq.-ft. facility in Dallas’ Lake Highlands area includes a regional distribution center, the company’s third nationwide. Read More…