SOURCE: Cree, Inc.
Cree, Inc. Reiterates Third Quarter Targets Company Revises Q4 and FY 2002 Guidance
DURHAM, N.C., March 7 /PRNewswire/ -- Cree, Inc. (Nasdaq: CREE - news) today reaffirmed its third quarter fiscal year 2001 targets for earnings of $0.18 per share, before goodwill and one-time charges, and revenue of approximately $52 million.
Citing an increasingly competitive and slowing market for LED chips, the company expects its revenue and earnings targets for the fourth quarter of fiscal year 2001 will be reduced by 10-15 percent below the third quarter of fiscal year 2001. This would result in a targeted revenue range of approximately $45 to $48 million, with a targeted earnings per share range of $0.14 to $0.16. For fiscal year 2002, the company believes that as long as general economic conditions improve and its pipeline of LED product improvements are rapidly deployed in new designs, sequential growth could resume in the second quarter of fiscal 2002 and beyond, assuming the first quarter sequential growth remains flat to the fourth quarter of fiscal year 2001. With these assumptions, the company's current fiscal year 2002 targets are in the range of $200 to $240 million in revenue and earnings per share is expected to be flat to a 20 percent increase on a year-over-year basis.
Commenting from a sales trip in Asia, Cree's CEO Neal Hunter said, ``We are pleased to be in a position to reaffirm our expectations for the third quarter. Obviously, we are dealing with a slowing economy that puts pressure on our customers which, in turn, inhibits our revenue growth. In the face of these obstacles, Cree has a solid arsenal of resources to create new products, lower existing costs, and penetrate applications. We also have much of the equipment and facilities in place to serve a growing market over the next 12 to 18 months as economic conditions improve. This should limit capital spending requirements and position us to build cash, assuming our revenue and earnings targets are attained. With the strength in our balance sheet, we can continue to focus on those elements that provide the greatest leverage over the long term.'' |
