4/13....CREE...Cree Reports Record Third Quarter Results
Earnings Per Share Rises 136 Percent; Gross Margin Increases to 56 Percent
DURHAM, N.C., April 13 /PRNewswire/ -- Cree, Inc. (Nasdaq: CREE - news), reported today record third quarter fiscal year 2000 revenue of $28,363,000, a 19 percent increase, sequentially, and a 77 percent increase over the $16,035,000 reported in the year ago period. Earnings per share rose 136 percent to $0.26, per diluted share, over the $0.11, per diluted share, reported in the comparable period in the prior year (as adjusted for the company's 2-for-1 stock split in July 1999). Net income increased 171 percent to $9,155,000 compared to $3,377,000 in the year ago period. Product revenue grew 86 percent on a year-over-year basis, and 18 percent, sequentially. The high brightness light emitting diode (LED) device shipments nearly doubled sequentially, while revenue for these products accounted for over 80 percent of total LED sales during the third fiscal quarter. Gross margins increased to 56 percent from the 53 percent reported for the second quarter of fiscal year 2000.
For the nine-month period, the company reported record revenue of $72,342,000 compared to $42,352,000, an increase of 71 percent over the comparable period in the prior year. Net income rose 127 percent to $19,575,000, or $0.60 per diluted share, and compares with net income of $8,594,000, or $0.31 per diluted share, for the corresponding period. Product revenue increased 77 percent for the nine-month period.
Neal Hunter, Chairman and Chief Executive Officer stated, ``Our strong performance during the third quarter is an indication of the continued momentum of our business, as experienced by the strong demand for our high brightness LEDs. In addition to delivering the best quarterly results in company history, Cree continues to position itself for future growth by investing in technology as illustrated by the acquisition announcement made earlier this week of Nitres, Inc., a leader in research and development of nitride-based semiconductor devices.''
North Carolina-based Cree, Inc. is the world leader in developing and manufacturing semiconductor materials and electronic devices made from silicon carbide (SiC). The company uses proprietary technology to make enabling compound semiconductors such as blue and green LEDs, SiC crystals used in the production of unique gemstones and SiC wafers that are sold for device production and research. Cree has new product initiatives based on its expertise in SiC, including radio frequency and microwave transistors for use in wireless infrastructure applications and radar, blue laser diodes for optical storage applications and high power devices for power conditioning and switching. For more information on Cree, visit cree.com .
This press release contains forward-looking statements involving risks and uncertainties that may cause actual results to differ materially from those indicated. Actual results could differ due to a number of factors, such as the risk our customers may fail to honor contractual purchase commitments; the risk we may be unable to increase capacity quickly enough to meet delivery obligations; the risk that demand for high brightness LEDs our products may be less than we expect; the risk of price reductions or other actions by competitors that may impair sales; uncertainty whether we can continue to meet our margin goals; the risk of manufacturing delays or increased costs due to variability in the complex processes used to manufacture our products; the risk posed by concentration of our business among a few customers; uncertainty whether our intellectual property rights will provide adequate protection and the risk of intellectual property claims asserted against us by others; and other factors discussed in our filings with the Securities and Exchange Commission, including our report on Form 10-K for the year ended June 27, 1999 and our registration statement on Form S-3 dated January 3, 2000.
-- Tables Follow --
FINANCIAL STATEMENT HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
03/26/2000 03/28/1999 03/26/2000 03/28/1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Product Revenue $26,195 $14,084 $66,588 $37,609
Contract Revenue 2,168 1,951 5,754 4,743
Total Revenue 28,363 16,035 72,342 42,352
Cost of Product Sales 10,977 6,794 30,549 18,586
Cost of Contract Sales 1,541 1,503 3,799 3,755
Total Cost of Sales 12,518 8,297 34,348 22,341
Gross Profit 15,845 7,738 37,994 20,011
Operating Expenses:
Research & Development 2,245 1,515 5,087 3,442
Sales, General &
Administrative 2,828 1,568 7,393 4,236
Other 673 311 767 878
Income from Operations 10,099 4,344 24,747 11,455
Net Interest Income 3,772 347 4,912 482
Income Before
Income Taxes 13,871 4,691 29,659 11,937
Income Taxes 4,716 1,314 10,084 3,343
Net Income $9,155 $3,377 $19,575 $8,594
Net Income Per
Share (diluted) $0.26 $0.11 * $0.60 $0.31
Weighted Average Shares of
Common Stock
Outstanding (diluted) 34,612 29,770 * 32,473 27,978
Balance Sheet Highlights
03/26/2000 06/27/1999
Current Assets $262,121 $69,767
Total Assets 455,220 144,218
Current Liabilities 24,751 9,545
Long Term Debt -- --
Shareholders' Equity $425,790 $130,022
Reflects the impact of a two-for-one |
