DURHAM, N.C., Oct. 15 /PRNewswire/ -- Cree Research, Inc. (NASDAQ:CREE),
the world's leading manufacturer and supplier of silicon carbide (SiC) wafers
and SiC based semiconductor products, today reported an increase of 102
percent in net income to $2,366,000, or $0.18 per share, as compared to
$1,169,000, or $0.09 per share, reported in the prior year. Revenues for the
first quarter of fiscal 1999 increased to $12,279,000, a 20 percent increase
over the $10,207,000 reported in the year ago period.
Gross margin improved 80 percent year-over-year and 37 percent,
sequentially, reaching a record of 46 percent for the first quarter of fiscal
1999. Product margin for the quarter rose to 49 percent. The improved gross
margin was driven by lower manufacturing costs resulting from a full quarter
of the new conductive buffer (CB) light emitting diode (LED) product and plant
yield improvements.
In commenting on the quarter's results, Neal Hunter, President and CEO,
stated that, "The first quarter of 1999 was an excellent quarter for Cree.
Our triple-digit earnings increase demonstrates that Cree has the ability to
report substantial earnings growth despite unsettled market conditions in our
industry." Hunter added, "Our visibility on the rest of this fiscal year is
becoming clearer and we expect to reach our target goals."
North Carolina-based Cree Research, Inc. is the world leader in the
development of silicon carbide semiconductors which have potential advantages
in certain optoelectronic, RF and microwave, power, and high temperature
applications. Cree owns outright or licenses exclusively 51 U.S. and
31 foreign patents related to its process and device technology.
In accordance with safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the company notes that statements in this press
release and elsewhere which look forward in time involve risks and
uncertainties that may cause actual results to differ materially from those
indicated by the forward-looking statements. Factors that could cause results
to differ include those discussed in the company's report on Form 10-K for the
year ended June 28, 1998 as filed with the Securities and Exchange Commission.
FINANCIAL STATEMENT HIGHLIGHTS
(in thousands, except per share data)
Three Months Ended
9/27/98 9/28/97
(Unaudited) (Unaudited)
Product Revenue $10,720 $8,206
Contract Revenue 1,559 2,001
Total Revenue 12,279 10,207
Cost of Product Sales 5,415 5,419
Cost of Contract Sales 1,207 1,653
Total Cost of Sales 6,622 7,072
Gross Margin 5,657 3,135
Operating Expenses 2,293 1,528
Net Interest Income 115 164
Income Before Income Taxes 3,479 1,771
Income Taxes 1,113 602
Net Income 2,366 1,169
Net Income Per Share (if dilutive) $0.18 $0.09
Weighted Average Shares of Common
Stock Outstanding, if dilutive 13,249 13,408
Balance Sheet Highlights
9/27/98 6/28/98
Current Assets $31,510 $34,658
Total Assets 73,810 72,724
Current Liabilities 7,549 7,055
Long Term Debt 9,931 8,650
Shareholder's Equity $54,175 $54,865
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