Earnings in line....reiterates guidance for '02.
Wednesday April 11, 4:07 pm Eastern Time
Press Release
SOURCE: Cree, Inc.
Cree, Inc. Reports Record Third Quarter Revenue
Company Reiterates Targets for Fiscal Year 2002; Charles Swoboda Named CEO, Hunter Continues as Executive Chairman
DURHAM, N.C., April 11 /PRNewswire/ -- Cree, Inc. (Nasdaq: CREE - news) today reported record revenue of $53,365,000, a 29 percent increase, sequentially, and an 81 percent increase over the $29,528,000 reported in the year ago period. Product revenue grew 84 percent on a year-over-year basis, and 28 percent, sequentially, to $48,042,000 over the $26,177,000 reported in the comparable quarter a year ago. Excluding intangible asset amortization and a one-time charge of $17,400,000 for acquired in-process research and development as a result of the acquisition of UltraRF, net income grew 53 percent to $13,724,000, or $0.18 per diluted share, over the $8,962,000, or $0.12 per diluted share, reported in the year ago period (as adjusted for the company's 2-for-1 stock split in December 2000).
For the nine-month period, the company reported record revenue of $132,501,000 compared to $75,203,000 representing a 76 percent increase over the year ago period. Product revenue increased 80 percent to $119,940,000 over the $66,562,000 reported for the comparable period a year ago. Net income rose 110 percent to $40,239,000, or $0.53 per diluted share, before intangible amortization and the one-time charge, and compares with net income of $19,163,000, or $0.28 per diluted share (as adjusted for the company's 2-for-one stock split), for the corresponding period.
Neal Hunter, Chairman and CEO stated, ``We are pleased with our record revenue and strong profitability for the third quarter despite the global economic slowdown. With a strong balance sheet and new capital infrastructure, we are in a unique position to focus on our next generation products that should position us to accelerate growth in fiscal 2002 and beyond.''
In addition, Cree today reaffirmed that its business plan for fiscal year 2002 revenue is in the range of $200 to $240 million with earnings per share, before intangible amortization, to be flat to a 20 percent increase on a year- over-year basis.
Cree also announced a key management change in the promotion of Chuck Swoboda to Cree's President and Chief Executive Officer effective June 25, 2001. Neal Hunter will continue in a full-time capacity as Executive Chairman of Cree and focus on strategic initiatives for the company. Swoboda, in his new position, will be responsible for Cree's day-to-day operations, and customer and shareholder relationships.
Hunter added, ``I am pleased to announce the promotion of Chuck as CEO. He has played a fundamental role in the development and growth of Cree and he has proven his capability for leading the company. His dedication and enthusiasm has been a key influence to our success over the past five years. Chuck's assumption of the CEO's responsibilities will enable me to focus my full-time attention to strategic initiatives and expansion of our business.''
Cree, Inc. will host a conference call at 4:30 p.m. EDT today to review the details of the third quarter. The conference call will be available to all interested parties through a live audio web broadcast via the Internet. Log onto Cree's website at www.cree.com and go to ``Investor Info'' for webcast details. The call will be archived and available on the website through the sixth calendar day following the webcast. |
