-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OHON18rNx3EmkmoO1IM1I4vxX+dqu3l6aznc8g0ZW7u6ORChwaMyhwbEqhCRNS8V hj8tmz5MxJ96lINgLE9rIg== 0000895419-00-000002.txt : 20000104 0000895419-00-000002.hdr.sgml : 20000104 ACCESSION NUMBER: 0000895419-00-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000103 ITEM INFORMATION: FILED AS OF DATE: 20000103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREE INC CENTRAL INDEX KEY: 0000895419 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 561572719 STATE OF INCORPORATION: NC FISCAL YEAR END: 0627 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-21154 FILM NUMBER: 500387 BUSINESS ADDRESS: STREET 1: 4600 SILICON DR CITY: DURHAM STATE: NC ZIP: 27703 BUSINESS PHONE: 9193615709 MAIL ADDRESS: STREET 1: 4600 SILICON DR STREET 2: STE 176 CITY: DURHAM STATE: NC ZIP: 27703 FORMER COMPANY: FORMER CONFORMED NAME: CREE RESEARCH INC /NC/ DATE OF NAME CHANGE: 19940224 8-K 1 CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 3, 2000 CREE, INC. (Exact name of registrant as specified in its charter) North Carolina 34-21154 56-1572719 (State or other (Commission File No.) I.R.S. Employer jurisdiction Identification Number of incorporation) 4600 Silicon Drive, Durham, North Carolina 27703 (Address of principal executive offices) (919) 313-5300 (Registrant's telephone number, including area code) CREE RESEARCH, INC. (Former name or former address, if changed since last report) Item 5. Other Events. On January 3, 2000, Cree, Inc. (the "Company") issued a press release regarding its financial results for the period ended December 26, 1999. A copy of the press release is attached hereto as Exhibit 99.01 and incorporated by reference herein. Separately, the Company announced that its name changed from "Cree Research, Inc." to "Cree, Inc." effective January 1, 2000. Item 7. (c) Exhibits Exhibit No. Description of Exhibit ----------- ---------------------- 99.01 Press release dated January 3, 2000. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CREE, INC. By: /s/ Cynthia B. Merrell ---------------------------------------- Dated: January 3, 2000 Cynthia B. Merrell Chief Financial Officer EXHIBIT INDEX Exhibit No. Description of Exhibit ----------- ---------------------- 99.01 Press release dated January 3, 2000 EX-99.01 2 PRESS RELEASE FOR IMMEDIATE RELEASE NEWS RELEASE Contact: Fran Barsky Investor Relations Manager Cree, Inc. (T) 919-313-5397 (F) 919-313-5452 CREE REPORTS RECORD SECOND QUARTER RESULTS Earnings Per Share Rises 80 Percent Gross Margin Increases to 53 Percent Durham, NC, January 3, 2000 - Cree, Inc. (Nasdaq: CREE), reported today record second quarter fiscal year 2000 revenue of $23,930,000, a 19 percent increase, sequentially, and a 70 percent increase over the $14,038,000 reported in the year ago period. Earnings per share rose 80 percent to $0.18, per diluted share, over the $0.10, per diluted share, reported in the comparable period in the prior year (as adjusted for the company's 2-for-1 stock split in July 1999). Net income increased 103 percent to $5,784,000 compared to $2,851,000 in the year ago period. Product revenue grew 73 percent on a year-over-year basis, and 21 percent, sequentially. The high brightness light emitting diode (LED) devices accounted for 71 percent of LED sales during the second fiscal quarter. Gross margins increased to 53 percent from the 47 percent reported for the first quarter of fiscal year 2000. For the six-month period, the company reported record revenue of $43,977,000 compared to $26,317,000, an increase of 67 percent over the comparable period in the prior year. Net income rose 100 percent to $10,421,000, or $0.33 per diluted share, and compares with net income of $5,217,000, or $0.19 per diluted share, for the corresponding period. Product revenue increased 72 percent for the six-month period. "We continue to achieve strong sales and earnings growth that reflect the strength and vitality of our business," said Neal Hunter, Chairman and Chief Executive Officer. "Of particular note is the improvement we've experienced in our gross margin, and the level of market acceptance for our high brightness LEDs, as evidenced by the 60 percent sequential increase in sales of our high brightness LED product." -- more -- The company today also announced a proposed offering of 2.6 million shares of common stock. Second quarter results are being reported earlier than usual to coincide with the proposed offering. North Carolina-based Cree, Inc. is the world leader in developing and manufacturing semiconductor materials and electronic devices made from silicon carbide. The company uses proprietary technology to make enabling compound semiconductors such as blue and green LEDs, SiC crystals used in the production of unique gemstones and SiC wafers that are sold for device production and research. Cree has new product initiatives based on its expertise in SiC, including radio frequency and microwave transistors for use in wireless infrastructure applications and radar, blue laser diodes for optical storage applications and high power devices for power conditioning and switching. For more information on Cree, visit http://www.cree.com. 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 due to a number of factors, such as the risk our customers may fail to honor contractual purchase commitments; the risk we may be unable to increase capacity quickly enough to meet delivery obligations; the risk that demand for our products may be less than we expect; the risk of price reductions or other actions by competitors that may impair sales; uncertainty whether we can continue to meet our margin goals; the risk of manufacturing delays or increased costs due to variability in the complex processes used to manufacture our products; the risk posed by concentration of our business among a few customers; uncertainty whether our intellectual property rights will provide adequate protection and the risk of intellectual property claims asserted against us by others; 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 27, 1999 and our registration statement on Form S-3 filed today. -- Tables Follow -- FINANCIAL STATEMENT HIGHLIGHTS (in thousands, except per share data) Three Months Ended Six Months Ended 12/26/99 12/27/98 12/26/99 12/27/98 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- ----------- Product Revenue $ 22,136 $ 12,805 $ 40,392 $ 23,525 Contract Revenue 1,794 1,233 3,585 2,792 Total Revenue 23,930 14,038 43,977 26,317 Cost of Product Sales 10,075 6,377 19,572 11,792 Cost of Contract Sales 1,122 1,045 2,258 2,252 Total Cost of Sales 11,197 7,422 21,830 14,044 Gross Profit 12,733 6,616 22,147 12,273 Operating Expenses: Research & Development 1,911 1,121 2,843 1,927 Sales, General & Administrative 2,639 1,450 4,565 2,668 Other (8) 298 92 567 Income from Operations 8,191 3,747 14,647 7,111 Net Interest Income 573 20 1,142 135 Income Before Income Taxes 8,764 3,767 15,789 7,246 Income Taxes 2,980 916 5,368 2,029 Net Income $ 5,784 $ 2,851 $10,421 $ 5,217 Net Income Per Share (Diluted) $0.18 $0.10 * $0.33 $0.19 * Weighted Average Shares of Common Stock Outstanding (Diluted) 31,594 27,668* 31,404 27,082* Balance Sheet Highlights 12/26/99 6/27/99 -------- ------- Current Assets $ 67,710 $ 69,767 Total Assets 160,912 144,218 Current Liabilities 14,050 9,545 Long Term Debt - - Shareholders' Equity $142,182 $130,022 * Reflects the impact of a two-for-one split of common stock effective July 26, 1999. -----END PRIVACY-ENHANCED MESSAGE-----