Cree Reports Financial Results for the Second Quarter of Fiscal Year 2019
“We delivered excellent results in the second quarter, with non-GAAP earnings per share that exceeded the top end of our target range driven by another record quarter for Wolfspeed combined with gross margin improvement in all three businesses," stated
Business Outlook:
For its third quarter of fiscal 2019 ending
Quarterly Conference Call:
Cree will host a conference call at
The conference call will be available to the public through a live audio web broadcast via the internet. For webcast details, visit Cree's website at investor.cree.com/events.cfm.
Supplemental financial information, including the non-GAAP reconciliation attached to this press release, is available on Cree's website at investor.cree.com/results.cfm.
About
Cree is an innovator of Wolfspeed® power and radio frequency (RF) semiconductors, lighting class LEDs and lighting products. Cree’s Wolfspeed product families include SiC materials, power-switching devices and RF devices targeted for applications such as electric vehicles, fast charging inverters, power supplies, telecom and military and aerospace. Cree’s LED product families include blue and green LED chips, high-brightness LEDs and lighting-class power LEDs targeted for indoor and outdoor lighting, video displays, transportation and specialty lighting applications. Cree’s LED lighting systems and lamps serve indoor and outdoor applications.
For additional product and Company information, please refer to www.cree.com.
Non-GAAP Financial Measures:
This press release highlights the Company's financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain costs, charges and expenses which are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the Company's performance, core results and underlying trends. Cree's management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.
Forward Looking Statements:
The schedules attached to this release are an integral part of the release. This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated in the forward-looking statements. Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products segment's results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the already imposed and proposed tariffs by
Cree® and Wolfspeed® are registered trademarks of
CREE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS (in thousands, except per share amounts and percentages) |
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Three Months Ended | Six Months Ended | |||||||||||
December 30, 2018 |
December 24, 2017 |
December 30, 2018 |
December 24, 2017 |
|||||||||
Revenue, net | $413,036 | $367,870 | $821,303 | $728,268 | ||||||||
Cost of revenue, net | 277,806 | 275,267 | 557,905 | 535,333 | ||||||||
Gross profit | 135,230 | 92,603 | 263,398 | 192,935 | ||||||||
Gross margin percentage | 32.7 | % | 25.2 | % | 32.1 | % | 26.5 | % | ||||
Operating expenses: | ||||||||||||
Research and development | 49,181 | 39,776 | 95,146 | 81,635 | ||||||||
Sales, general and administrative | 72,120 | 68,076 | 144,810 | 131,040 | ||||||||
Amortization or impairment of acquisition-related intangibles | 6,345 | 6,792 | 14,840 | 13,584 | ||||||||
Loss on disposal or impairment of long-lived assets | 178 | 4,262 | 671 | 7,087 | ||||||||
Total operating expenses | 127,824 | 118,906 | 255,467 | 233,346 | ||||||||
Operating income (loss) | 7,406 | (26,303 | ) | 7,931 | (40,411 | ) | ||||||
Operating loss percentage | 1.8 | % | (7.2 | )% | 1.0 | % | (5.5 | )% | ||||
Non-operating (expense) income, net | (5,464 | ) | 26,729 | (14,968 | ) | 25,662 | ||||||
Income (loss) before income taxes | 1,942 | 426 | (7,037 | ) | (14,749 | ) | ||||||
Income tax expense (benefit) | 4,423 | (13,326 | ) | 6,577 | (8,629 | ) | ||||||
Net (loss) income | (2,481 | ) | 13,752 | (13,614 | ) | (6,120 | ) | |||||
Net (loss) income attributable to non-controlling interest | (31 | ) | 31 | (97 | ) | 16 | ||||||
Net (loss) income attributable to controlling interest | ($2,450 | ) | $13,721 | ($13,517 | ) | ($6,136 | ) | |||||
Diluted loss per share | ($0.02 | ) | $0.14 | ($0.13 | ) | ($0.06 | ) | |||||
Shares used in diluted per share calculation | 102,871 | 100,763 | 102,396 | 98,499 | ||||||||
CREE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) |
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December 30, 2018 |
June 24, 2018 |
|||||
ASSETS | ||||||
Current assets: | ||||||
Cash, cash equivalents, and short-term investments | $723,668 | $387,085 | ||||
Accounts receivable, net | 192,052 | 153,875 | ||||
Income tax receivable | 1,295 | 2,434 | ||||
Inventories | 313,312 | 296,015 | ||||
Prepaid expenses | 25,314 | 28,310 | ||||
Other current assets | 20,570 | 20,191 | ||||
Current assets held for sale | — | 2,180 | ||||
Total current assets | 1,276,211 | 890,090 | ||||
Property and equipment, net | 675,940 | 661,319 | ||||
Goodwill | 620,330 | 620,330 | ||||
Intangible assets, net | 374,219 | 390,054 | ||||
Other long-term investments | 48,431 | 57,501 | ||||
Deferred income taxes | 7,939 | 6,451 | ||||
Other assets | 11,480 | 11,800 | ||||
Total assets | $3,014,550 | $2,637,545 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable, trade | $143,455 | $151,307 | ||||
Accrued salaries and wages | 59,974 | 53,458 | ||||
Income taxes payable | 2,092 | — | ||||
Accrued contract liabilities | 53,912 | — | ||||
Other current liabilities | 35,292 | 43,528 | ||||
Total current liabilities | 294,725 | 248,293 | ||||
Long-term liabilities: | ||||||
Long-term debt | — | 292,000 | ||||
Convertible notes, net | 458,000 | — | ||||
Deferred income taxes | 2,235 | 3,056 | ||||
Other long-term liabilities | 36,085 | 22,115 | ||||
Total long-term liabilities | 496,320 | 317,171 | ||||
Shareholders’ equity: | ||||||
Common stock | 129 | 127 | ||||
Additional paid-in-capital | 2,703,601 | 2,549,123 | ||||
Accumulated other comprehensive income, net of taxes | 856 | 596 | ||||
Accumulated deficit | (485,928 | ) | (482,710 | ) | ||
Total shareholders’ equity | 2,218,658 | 2,067,136 | ||||
Non-controlling interest | 4,847 | 4,945 | ||||
Total liabilities and equity | $3,014,550 | $2,637,545 |
CREE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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Six Months Ended | ||||||
December 30, 2018 |
December 24, 2017 |
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(In thousands) | ||||||
Cash flows from operating activities: | ||||||
Net (loss) income | ($13,614 | ) | ($6,120 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 79,438 | 74,634 | ||||
Amortization of debt issuance costs and discount | 7,197 | — | ||||
Stock-based compensation | 25,062 | 22,162 | ||||
Loss on disposal or impairment of long-lived assets | 671 | 7,087 | ||||
Amortization of premium/discount on investments | 1,545 | 2,631 | ||||
Loss (gain) on equity investment | 8,544 | (21,479 | ) | |||
Foreign exchange loss (gain) on equity investment | 526 | (672 | ) | |||
Deferred income taxes | (1,969 | ) | (11,801 | ) | ||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | (38,104 | ) | (4,203 | ) | ||
Inventories | (16,782 | ) | 11,339 | |||
Prepaid expenses and other assets | 3,054 | 5,014 | ||||
Accounts payable, trade | (9,195 | ) | 17,925 | |||
Accrued salaries and wages and other liabilities | 79,893 | 9,295 | ||||
Net cash provided by operating activities | 126,266 | 105,812 | ||||
Cash flows from investing activities: | ||||||
Purchases of property and equipment | (73,305 | ) | (85,222 | ) | ||
Purchases of patent and licensing rights | (5,461 | ) | (4,932 | ) | ||
Proceeds from sale of property and equipment | 234 | 380 | ||||
Purchases of short-term investments | (210,669 | ) | (158,327 | ) | ||
Proceeds from maturities of short-term investments | 83,754 | 138,435 | ||||
Proceeds from sale of short-term investments | 26,692 | 11,938 | ||||
Net cash used in investing activities | (178,755 | ) | (97,728 | ) | ||
Cash flows from financing activities: | ||||||
Proceeds from issuing shares to non-controlling interest | — | 4,900 | ||||
Payment of acquisition-related contingent consideration | — | (1,850 | ) | |||
Proceeds from long-term debt borrowings | 95,000 | 160,000 | ||||
Payments on long-term debt borrowings | (387,000 | ) | (181,000 | ) | ||
Proceeds from convertible notes | 575,000 | — | ||||
Payments of debt issuance costs | (12,938 | ) | — | |||
Net proceeds from issuance of common stock | 19,672 | 46,550 | ||||
Net cash provided by financing activities | 289,734 | 28,600 | ||||
Effects of foreign exchange changes on cash and cash equivalents | (136 | ) | 407 | |||
Net increase in cash and cash equivalents | 237,109 | 37,091 | ||||
Cash and cash equivalents: | ||||||
Beginning of period | 118,924 | 132,597 | ||||
End of period | $356,033 | $169,688 | ||||
Supplemental disclosure of cash flow information: | ||||||
Significant non-cash transactions: | ||||||
Accrued property and equipment | $16,348 | $19,039 | ||||
UNAUDITED FINANCIAL RESULTS BY OPERATING SEGMENT
(in thousands, except percentages)
The following table reflects the results of the Company's reportable segments as reviewed by the Company's Chief Executive Officer, its Chief Operating Decision Maker or CODM, for the three and six months ended
Three Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
Change | ||||||||||
Wolfspeed revenue | $135,331 | $70,572 | $64,759 | 92 | % | |||||||
Percent of revenue | 32.8 | % | 19.2 | % | ||||||||
LED Products revenue | 145,172 | 152,682 | (7,510 | ) | (5 | )% | ||||||
Percent of revenue | 35.1 | % | 41.5 | % | ||||||||
Lighting Products revenue | 132,533 | 144,616 | (12,083 | ) | (8 | )% | ||||||
Percent of revenue | 32.1 | % | 39.3 | % | ||||||||
Total revenue | $413,036 | $367,870 | $45,166 | 12 | % | |||||||
Six Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
Change | ||||||||||
Wolfspeed revenue | $262,706 | $136,726 | $125,980 | 92 | % | |||||||
Percent of revenue | 32.0 | % | 18.8 | % | ||||||||
LED Products revenue | 291,974 | 297,202 | (5,228 | ) | (2 | )% | ||||||
Percent of revenue | 35.6 | % | 40.8 | % | ||||||||
Lighting Products revenue | 266,623 | 294,340 | (27,717 | ) | (9 | )% | ||||||
Percent of revenue | 32.5 | % | 40.4 | % | ||||||||
Total revenue | $821,303 | $728,268 | $93,035 | 13 | % | |||||||
Three Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
Change | ||||||||||
Wolfspeed gross profit | $64,681 | $34,133 | $30,548 | 89 | % | |||||||
Wolfspeed gross margin | 47.8 | % | 48.4 | % | ||||||||
LED Products gross profit | 43,522 | 38,606 | 4,916 | 13 | % | |||||||
LED Products gross margin | 30.0 | % | 25.3 | % | ||||||||
Lighting Products gross profit | 34,069 | 22,964 | 11,105 | 48 | % | |||||||
Lighting Products gross margin | 25.7 | % | 15.9 | % | ||||||||
Unallocated costs | (7,028 | ) | (3,100 | ) | (3,928 | ) | (127 | )% | ||||
COGS acquisition related costs | (14 | ) | — | (14 | ) | (100 | )% | |||||
Consolidated gross profit | $135,230 | $92,603 | $42,627 | 46 | % | |||||||
Consolidated gross margin | 32.7 | % | 25.2 | % | ||||||||
Six Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
Change | ||||||||||
Wolfspeed gross profit | $125,096 | $66,531 | $58,565 | 88 | % | |||||||
Wolfspeed gross margin | 47.6 | % | 48.7 | % | ||||||||
LED Products gross profit | 84,805 | 77,416 | 7,389 | 10 | % | |||||||
LED Products gross margin | 29.0 | % | 26.0 | % | ||||||||
Lighting Products gross profit | 65,127 | 54,847 | 10,280 | 19 | % | |||||||
Lighting Products gross margin | 24.4 | % | 18.6 | % | ||||||||
Unallocated costs | (10,404 | ) | (5,859 | ) | (4,545 | ) | (78 | )% | ||||
COGS acquisition related costs | (1,226 | ) | — | (1,226 | ) | (100 | )% | |||||
Consolidated gross profit | $263,398 | $192,935 | $70,463 | 37 | % | |||||||
Consolidated gross margin | 32.1 | % | 26.5 | % | ||||||||
Reportable Segments Description
The Company's Wolfspeed segment's products consists of silicon carbide (SiC) and gallium nitride (GaN) materials, and power devices and RF devices based on silicon (Si) and wide bandgap semiconductor materials. The Company's LED Products segment's products include LED chips and LED components. The Company's Lighting Products segment's products consist of LED lighting systems and lamps.
Financial Results by Reportable Segment
The Company's CODM reviews gross profit as the lowest and only level of segment profit. As such, all items below gross profit in the consolidated statements of loss must be included to reconcile the consolidated gross profit presented in the preceding table to the Company's consolidated loss before taxes.
The Company allocates direct costs and indirect costs to each segment's cost of revenue. The allocation methodology is based on a reasonable measure of utilization considering the specific facts and circumstances of the costs being allocated.
Certain costs are not allocated when evaluating segment performance. These unallocated costs consist primarily of manufacturing employees' stock-based compensation, expenses for profit sharing and quarterly or annual incentive plans, and matching contributions under the Company's 401(k) Plan.
The cost of goods sold (COGS) acquisition related cost adjustment includes
Non-GAAP Measures of Financial Performance
To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, Cree uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross margin, non-GAAP operating income, non-GAAP non-operating income, net, non-GAAP net income, non-GAAP diluted earnings per share and free cash flow.
Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release. In this press release, Cree also presents its target for non-GAAP expenses, which are expenses less expenses in the various categories described below. Both our GAAP targets and non-GAAP targets do not include any estimated changes in the fair value of our Lextar investment.
Non-GAAP measures presented in this press release are not in accordance with or an alternative to measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cree's results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Cree's results of operations in conjunction with the corresponding GAAP measures.
Cree believes that these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance shareholder value. In addition, because Cree has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company's financial reporting.
For its internal budgeting process, and as discussed further below, Cree's management uses financial statements that do not include the items listed below and the income tax effects associated with the foregoing. Cree's management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results.
Cree excludes the following items from one or more of its non-GAAP measures when applicable:
Stock-based compensation expense. This expense consists of expenses for stock options, restricted stock, performance stock awards and employee stock purchases through its ESPP. Cree excludes stock-based compensation expenses from its non-GAAP measures because they are non-cash expenses that Cree does not believe are reflective of ongoing operating results.
Costs related to the
Amortization or impairment of acquisition-related intangibles. Cree incurs amortization or impairment of acquisition-related intangibles in connection with acquisitions. Cree excludes these items because they arise from Cree's prior acquisitions and have no direct correlation to the ongoing operating results of Cree's business.
Lighting Products segment restructuring charges or gains. In
Severance pay associated with termination of executive personnel. The Company incurred costs in fiscal 2018 and fiscal 2019 in conjunction with the termination of certain executive personnel. Cree excludes these items because they have no direct correlation to the ongoing operating results of Cree's business.
Changes in the fair value of our Lextar investment. The Company's common stock ownership investment in
Accretion on convertible notes. In
Income tax effects of the foregoing non-GAAP items. This amount is used to present each of the amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income. Non-GAAP net income is presented using a non-GAAP tax rate. The Company’s non-GAAP tax rate represents a recalculation of the GAAP tax rate reflecting the exclusion of the non-GAAP items.
Cree expects to incur many of these same expenses, including income taxes associated with these expenses, in future periods. In addition to the non-GAAP measures discussed above, Cree also uses free cash flow as a measure of operating performance and liquidity. Free cash flow represents operating cash flows less net purchases of property and equipment and patent and licensing rights. Cree considers free cash flow to be an operating performance and a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment, a portion of which can then be used to, among other things, invest in Cree's business, make strategic acquisitions, strengthen the balance sheet and repurchase stock. A limitation of the utility of free cash flow as a measure of operating performance and liquidity is that it does not represent the residual cash flow available to the company for discretionary expenditures, as it excludes certain mandatory expenditures such as debt service.
CREE, INC. Unaudited Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts and percentages)
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Non-GAAP Gross Margin |
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Three Months Ended | Six Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
December 30, 2018 |
December 24, 2017 |
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GAAP gross profit | $135,230 | $92,603 | $263,398 | $192,935 | |||||||||
GAAP gross margin percentage | 32.7 | % | 25.2 | % | 32.1 | % | 26.5 | % | |||||
Adjustment: | |||||||||||||
Stock-based compensation expense | 2,117 | 1,898 | 3,989 | 3,673 | |||||||||
Costs related to the RF Power acquisition | 14 | — | 1,226 | — | |||||||||
Total adjustments to GAAP gross profit | $2,131 | $1,898 | $5,215 | $3,673 | |||||||||
Non-GAAP gross profit | $137,361 | $94,501 | $268,613 | $196,608 | |||||||||
Non-GAAP gross margin percentage | 33.3 | % | 25.7 | % | 32.7 | % | 27.0 | % | |||||
Non-GAAP Operating Income | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
December 30, 2018 |
December 24, 2017 |
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GAAP operating income (loss) | $7,406 | ($26,303 | ) | $7,931 | ($40,411 | ) | |||||||
GAAP operating income (loss) percentage | 1.8 | % | (7.2 | )% | 1.0 | % | (5.5 | )% | |||||
Adjustments: | |||||||||||||
Stock-based compensation expense: | |||||||||||||
Cost of revenue, net | 2,117 | 1,898 | 3,989 | 3,673 | |||||||||
Research and development | 2,629 | 1,999 | 4,762 | 4,456 | |||||||||
Sales, general and administrative | 8,264 | 8,129 | 16,311 | 14,031 | |||||||||
Total stock-based compensation expense | 13,010 | 12,026 | 25,062 | 22,160 | |||||||||
Amortization or impairment of acquisition-related intangibles | 6,345 | 6,792 | 14,840 | 13,584 | |||||||||
Costs associated with Lighting business restructuring | (497 | ) | — | 3,989 | — | ||||||||
Costs related to the RF Power acquisition | 199 | — | 1,833 | — | |||||||||
Executive Severance | — | 4,880 | — | 4,880 | |||||||||
Total adjustments to GAAP operating loss | 19,057 | 23,698 | 45,724 | 40,624 | |||||||||
Non-GAAP operating income (loss) | $26,463 | ($2,605 | ) | $53,655 | $213 | ||||||||
Non-GAAP operating income percentage | 6.4 | % | (0.7 | )% | 6.5 | % | — | % | |||||
Non-GAAP Non-Operating Income, net | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
December 30, 2018 |
December 24, 2017 |
December 30, 2018 |
December 24, 2017 |
||||||||||
GAAP non-operating (expense) income, net | ($5,464 | ) | $26,729 | ($14,968 | ) | $25,662 | |||||||
Adjustment: | |||||||||||||
Net changes in the fair value of the Lextar investment | 1,809 | (25,219 | ) | 9,083 | (22,151 | ) | |||||||
Accretion on convertible notes | 5,411 | — | 7,197 | — | |||||||||
Non-GAAP non-operating income, net | $1,756 | $1,510 | $1,312 | $3,511 | |||||||||
Non-GAAP Net Income (Loss) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
December 30, 2018 |
December 24, 2017 |
December 30, 2018 |
December 24, 2017 |
|||||||||
GAAP net (loss) income | ($2,450 | ) | $13,721 | ($13,517 | ) | ($6,136 | ) | |||||
Adjustments: | ||||||||||||
Stock-based compensation expense | 13,010 | 12,026 | 25,062 | 22,160 | ||||||||
Amortization or impairment of acquisition-related intangibles | 6,345 | 6,792 | 14,840 | 13,584 | ||||||||
Costs associated with Lighting business restructuring | (497 | ) | — | 3,989 | — | |||||||
Costs related to the RF Power acquisition | 199 | — | 1,833 | — | ||||||||
Executive Severance | — | 4,880 | — | 4,880 | ||||||||
Net changes in the fair value of the Lextar investment | 1,809 | (25,219 | ) | 9,083 | (22,151 | ) | ||||||
Accretion of convertible notes | 5,411 | — | 7,197 | — | ||||||||
Total adjustments to GAAP net loss before provision for income taxes | 26,277 | (1,521 | ) | 62,004 | 18,473 | |||||||
Income tax effect | (656 | ) | (12,864 | ) | (3,317 | ) | (8,890 | ) | ||||
Non-GAAP net income (loss) | $23,171 | ($664 | ) | $45,170 | $3,447 | |||||||
Non-GAAP earnings (loss) per share | ||||||||||||
Non-GAAP diluted earnings (loss) per share | $0.23 | ($0.01 | ) | $0.44 | $0.03 | |||||||
Shares used in non-GAAP diluted earnings (loss) per share calculation | ||||||||||||
Non-GAAP shares used | 102,871 | 100,763 | 102,396 | 98,499 | ||||||||
Free Cash Flow | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
December 30, 2018 |
December 24, 2017 |
December 30, 2018 |
December 24, 2017 |
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Cash flows from operations | $92,274 | $51,689 | $126,266 | $105,812 | ||||||||
Less: PP&E spending | (36,716 | ) | (48,772 | ) | (73,305 | ) | (85,222 | ) | ||||
Less: Patents spending | (2,308 | ) | (2,456 | ) | (5,461 | ) | (4,932 | ) | ||||
Total free cash flow | $53,250 | $461 | $47,500 | $15,658 | ||||||||
CREE, INC. Business Outlook Unaudited GAAP to Non-GAAP Reconciliation (in millions) |
||
Three Months Ended | ||
March 31, 2019 | ||
GAAP net loss outlook range | ($5) to ($13) | |
Adjustments: | ||
Stock-based compensation expense | 14 | |
Amortization or impairment of acquired intangibles | 6 | |
Accretion on convertible notes | 6 | |
Executive severance | 1 | |
Total adjustments to GAAP net loss before provision for income taxes | 27 | |
Income tax effect | 2 | |
Non-GAAP net income outlook range | $13 to $19 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190130005776/en/
Source:
Raiford Garrabrant
Cree, Inc.
Director, Investor Relations
Phone: 919-407-7895
investorrelations@cree.com