Cree Reports Fiscal Third Quarter 2002 Results
DURHAM, N.C., April 11 /PRNewswire-FirstCall/ -- Cree, Inc. (Nasdaq: CREE - news) today reported third quarter fiscal year 2002 revenue of $33,376,000 which falls within the updated guidance range previously given on March 12, 2002. Adjusted net income for the third quarter was $320,000, or $0.00 per share, excluding intangible amortization and charges for the write off of intangibles associated with the acquisition of UltraRF, as well as additional reserves for discontinued inventory, severance costs and other expenses related to the down sizing of UltraRF. Gross margins for the third quarter were 42 percent of revenue, excluding the additional reserves for discontinued inventory and other costs at UltraRF of $5,125,000 and $435,000 of additional reserves recorded at Cree. The net loss for the third quarter of fiscal 2002 in accordance with generally accepted accounting principles (GAAP) was $68,286,000, or a loss of $0.94 per share.
For the nine-month period ended March 24, 2002, Cree reported revenue of $117,634,000. Adjusted net income for the nine-month period, excluding intangible amortization, charges for the write off of intangible assets, other charges described in the preceding paragraph, plus write-offs of fixed assets and reserves taken for privately held investments in the second quarter, was $14,821,000, or $0.20 per share. The net loss for the nine-month period in accordance with GAAP was $79,201,000, or a loss of $1.09 per share.
As announced on March 12, 2002, Cree had one-time pretax charges of $82,489,000 ($64,342,000, net of tax) for the write off of intangible assets, additional reserves for discontinued inventory, severance costs and other expenses related to the down sizing of the UltraRF business during the quarter ended March 24, 2002. As a result of the write-downs, Cree's tax provision was reduced from 29 percent to 22 percent. This change in the tax rate for fiscal 2002 increases the company's net reserve adjustment by $2,190,000 for the write off of fixed assets and the company's investments in privately held companies recorded in the second quarter of fiscal 2002.
Chuck Swoboda, President and Chief Executive Officer of Cree stated, ``We have dealt with the issues relating to UltraRF and have taken aggressive steps to reduce our costs and streamline our operations. We believe these actions will now position the business for success and these steps should enable Cree to return to the growth track in the fourth quarter.''
Cree, Inc. will host a conference call at 4:30 p.m. ET 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 April 18, 2002.
Cree is an advanced semiconductor company that leverages its expertise in silicon carbide (SiC), gallium nitride (GaN) and silicon (Si) materials technology to produce new and enabling semiconductors. The products include blue, green and ultraviolet (UV) light emitting diodes (LEDs), near UV lasers, radio frequency (RF) and microwave devices, and power switching devices. Targeted applications for these products include solid state illumination, optical storage, wireless infrastructure and power switching. For more information on Cree, please visit www.cree.com.
The schedules attached to this release are an integral part of this release. 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 materially due to a number of factors, including, risks associated with the production ramp-up for our new products such as our LDMOS 8 RF transistor product family and our MegaBright(TM) and XBright(TM) LED chips, including the possibility of unexpected delays, increased costs and manufacturing difficulties or less than expected market acceptance; risks resulting from the concentration of our business among few customers including the risk that customers may reduce or cancel orders or fail to honor contractual purchase commitments; uncertain product demand; risks from increased competition; uncertainty regarding economic conditions; uncertainty whether we can achieve our targets for increased yields and cost reduction needed to protect our margins; risks associated with the planned release of new products under development, including the possibility we will be unable to develop and manufacture commercially viable versions of such products; the risk that our investments in third parties will generate losses; the possibility of adverse results in our pending intellectual property litigation; uncertainty whether our intellectual property rights will provide meaningful protection; 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 24, 2001 and subsequent reports filed with the Commission.
Cree and the Cree logo are registered trademarks, and MegaBright and X- Bright are trademarks of Cree, Inc.
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