-----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, Iai2L7gWRXSMB4A2VgJgEK0VuQWo+Cmdivab+8ZfGpdG/L4EK84tZjInHj9AY/SE eJvctaTDg7WPA4ifmOZijw== 0000895419-03-000016.txt : 20030729 0000895419-03-000016.hdr.sgml : 20030729 20030729160851 ACCESSION NUMBER: 0000895419-03-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030729 ITEM INFORMATION: FILED AS OF DATE: 20030729 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: 1934 Act SEC FILE NUMBER: 000-21154 FILM NUMBER: 03808849 BUSINESS ADDRESS: STREET 1: 4600 SILICON DR CITY: DURHAM STATE: NC ZIP: 27703 BUSINESS PHONE: 9193135300 MAIL ADDRESS: STREET 1: 4600 SILICON DR CITY: DURHAM STATE: NC ZIP: 27703-8475 FORMER COMPANY: FORMER CONFORMED NAME: CREE RESEARCH INC /NC/ DATE OF NAME CHANGE: 19940224 8-K 1 f8k_072903.txt CURRENT REPORT ON FORM 8-K UNITED STATES 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): July 29, 2003 CREE, INC. (Exact name of registrant as specified in its charter) North Carolina 000-21154 56-1572719 (State or other (Commission File Number) (I.R.S. Employer jurisdiction Identification No.) of incorporation) 4600 Silicon Drive, Durham, North Carolina 27703 (Address of principal executive offices) (919) 313-5300 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Item 12. Disclosure of Results of Operations and Financial Condition On July 29, 2003, Cree, Inc. (the "Company"), issued a press release announcing results for the period ended June 29, 2003. A copy of the Company's press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference. The information in this Current Report on Form 8-K shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Furthermore, the information in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended. 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: July 29, 2003 Cynthia B. Merrell Chief Financial Officer EXHIBIT INDEX Exhibit No. Description of Exhibit - ----------- ---------------------- 99.01 Press release, July 29, 2003 EX-99.1 3 f8k_072903exh.txt PRESS RELEASE, JULY 29, 2003 EXHIBIT 99.1 FOR IMMEDIATE RELEASE NEWS RELEASE Contact: Fran Barsky Investor Relations Manager Cree, Inc. (T) 919-313-5397 (F) 919-313-5615 Fran_Barsky@Cree.com CREE REPORTS RECORD REVENUE FOR FOURTH QUARTER AND FISCAL YEAR 2003 Company Reports Record Net Income For Fiscal Year Fourth Quarter Revenue Grew 69% Over Prior Year Period Durham, NC, July 29, 2003 - Cree, Inc. (Nasdaq: CREE) today reported record revenue for fiscal year 2003 of $229,822,000, an increase of 48 percent, compared to revenue of $155,434,000 for fiscal year 2002. Product revenue increased 49 percent to $202,962,000 over the $136,230,000 reported in the prior year. Net income rose to $34,901,000, or $0.46 per diluted share, compared to a net loss of $101,723,000, determined in accordance with GAAP, or a loss of $1.40 per diluted share, reported in the year ago period. For the fourth quarter of fiscal 2003, the company reported record revenue of $64,061,000, a 69 percent increase over the $37,800,000 reported for the prior year period. Net income was $11,391,000, or $0.15 per diluted share, compared to the loss of $22,521,000, or a loss of $0.31 per diluted share, reported in the comparable period for the prior year. Chuck Swoboda, President and Chief Executive Officer of Cree stated, "We have delivered strong revenue and earnings growth, both for the fourth quarter and the year, as a result of our investment in R&D and solid execution across the company. We will continue to focus on creating new products that enable our customers to win in the market." Cree, Inc. will host a conference call at 5:00 p.m. ET today to review the highlights of the fourth quarter and fiscal 2003 results. 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 August 14, 2003. Supplemental financial information is available under "Q4 '03 Financial Metrics" in the "Investor Info" section of Cree's web site at http://www.cree.com/about/share.htm. 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, both known and unknown, 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 our pending securities and other litigation, such as the considerable management time and attention required and substantial expenses incurred regardless of its outcome and the potential impact of an adverse result of the lawsuits filed against us and certain named executives and directors. In addition, our board of directors has appointed a special committee of the board to investigate allegations made in one of the lawsuits against us, and the SEC has requested that we provide information in response to an informal inquiry. The outcome of the internal investigation or the SEC inquiry could adversely affect our operations and financial statements, including the results announced today. Furthermore, we are subject to risks associated with the production ramp-up for our new products such as our XBright(R) LED chips and our LDMOS 8 RF transistor product family, including risks that we will be unable to achieve necessary improvements to these products as well as 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 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; risks that our investments in third parties will generate losses; 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 30, 2002 and subsequent reports filed with the Commission. Cree, the Cree logo and XBright are registered trademarks of Cree, Inc. -- Tables Follow -- CREE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Ended Twelve Months Ended 06/29/2003 06/30/2002 06/29/2003 06/30/2002 ---------- ---------- ---------- ---------- Product revenue $ 57,813 $ 32,212 $202,962 $136,230 Contract revenue 6,248 5,588 26,860 19,204 ---------- ---------- ---------- ---------- Total revenue 64,061 37,800 229,822 155,434 Cost of product sales 30,063 17,993 109,726 78,249 Cost of contract sales 5,103 4,105 20,926 13,827 ---------- ---------- ---------- ---------- Total cost of sales 35,166 22,098 130,652 92,076 Gross profit 28,895 15,702 99,170 63,358 Operating expenses: Research and development 8,834 7,845 31,203 28,026 Sales, general and administrative 5,333 7,770 26,326 25,618 Amortization of purchased intangibles - - - 6,765 Other expense 77 120 1,969 97,223 ---------- ---------- ---------- ---------- Income (loss) from operations 14,651 (33) 39,672 (94,274) Other non operating (income) expense (488) 30,052 (3,376) 41,848 Net interest income 254 1,212 4,116 5,708 ---------- ---------- ---------- ---------- Income (loss) before income taxes 15,393 (28,873) 47,164 (130,414) Income taxes (benefit) 4,002 (6,352) 12,263 (28,691) ---------- ---------- ---------- ---------- Net income (loss) $ 11,391 $(22,521) $ 34,901 $(101,723) ========== ========== ========== ========== Net income (loss) per share, diluted $ 0.15 $ (0.31) $ 0.46 $ (1.40) ========== ========== ========== ========== Weighted average shares of common stock outstanding, basic 73,719 72,683 73,196 72,718 Weighted average shares of common stock outstanding, diluted 76,194 72,683 75,303 72,718
CREE, INC. OPERATING SEGMENT INFORMATION (in thousands)
Three Months Ended Twelve Months Ended 06/29/2003 06/30/2002 06/29/2003 06/30/2002 ---------- ---------- ---------- ---------- Revenue: Cree* $ 63,361 $ 33,950 $ 227,025 $ 130,639 Cree Microwave 700 3,850 2,797 24,795 ---------- ---------- ---------- ---------- Total revenue $ 64,061 $ 37,800 $ 229,822 $ 155,434 ========= ========= ========== ========== Net income (loss) before income taxes: Cree* $ 18,831 $ (28,119) $ 59,050 $ (41,030) Cree Microwave (3,438) (754) (11,886) (89,384) ---------- ---------- ---------- ---------- Total net income (loss) before income taxes $ 15,393 $ (28,873) $ 47,164 $(130,414) ========== ========== ========== ==========
* Includes interest income and other segment operating results CREE, INC. CONSOLIDATED BALANCE SHEETS (in thousands) Balance Sheet 06/29/2003 06/30/2002 ---------- ---------- Assets: Current assets: Cash & equivalents & short term investments $ 140,037 $ 106,140 Marketable securities - 6,008 Accounts receivable, net 43,901 34,592 Inventory 17,674 17,966 Current portion of deferred taxes 2,968 3,322 Other current assets & prepaids 4,775 5,877 ---------- ---------- Total current assets 209,355 173,905 Property, plant & equipment, net 251,346 211,685 Long-term investments held to maturity 58,794 64,225 Long term portion deferred income taxes 20,934 27,365 Deposits 236 5,471 Patents, net 7,146 4,251 Other assets 15,883 17,293 ---------- ---------- Total assets $ 563,694 $ 504,195 ========== ========== Liabilities & Shareholders' Equity: Current liabilities: Accounts payable trade $ 14,916 $ 13,075 Accrued salaries & other expenses 13,375 8,979 ---------- ---------- Total current liabilities 28,291 22,054 Long term liabilities: Other long term liabilites 31 37 ---------- ---------- Total long term liabilities 31 37 Shareholders' Equity: Common stock 92 90 Additional paid in capital 526,317 508,432 Deferred compensation (218) (696) Retained earnings (accumulated deficit) 9,181 (25,722) ---------- ---------- Total shareholders' equity 535,372 482,104 ---------- ---------- Total liabilities & shareholders' equity $ 563,694 $ 504,195 ========== ========== -----END PRIVACY-ENHANCED MESSAGE-----