North Carolina
|
0-21154
|
56-1572719
|
(State or other jurisdiction of
incorporation)
|
(Commission File
Number)
|
(I.R.S. Employer
Identification Number)
|
4600 Silicon Drive
|
|
Durham, North Carolina
|
27703
|
(Address of principal executive offices)
|
(Zip Code)
|
Item 2.02
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statements and Exhibits
|
Exhibit No.
|
Description of Exhibit
|
||
99.1
|
Press release dated August 9, 2011
|
CREE, INC.
|
|||
By:
|
/s/ John T. Kurtzweil | ||
John T. Kurtzweil
|
|||
Executive Vice President - Finance,
Chief Financial Officer and Treasurer
|
Exhibit No.
|
Description of Exhibit
|
||
99.1
|
Press release dated August 9, 2011
|
For Immediate Release
|
Press Release
|
Contact:
|
Raiford Garrabrant
|
Cree, Inc.
|
|
Director, Investor Relations
|
|
Ph: 919-287-7895
|
|
Fax: 919-407-5615
|
|
Email: investorrelations@cree.com
|
Fourth Quarter
(in thousands, except per
share amounts and percentages)
|
||||||
2011
(unaudited)
|
2010
(unaudited)
|
Change
|
||||
Net revenue
|
$243,027
|
$264,599
|
($21,572)
|
(8%)
|
||
GAAP
|
||||||
Gross Margin
|
38.1%
|
49.5%
|
|
|
||
Operating Margin | 8.3% | 25.9% | ||||
Net Income
|
$19,808
|
$52,848
|
($33,040)
|
(63%)
|
||
Earnings per diluted share
|
$ 0.18
|
$ 0.48
|
($ 0.30)
|
(63%)
|
||
Non-GAAP
|
||||||
Gross Margin
|
38.8%
|
49.9%
|
|
|
||
Operating Margin | 13.5% | 29.6% | ||||
Net Income
|
$30,555
|
$60,120
|
($29,565)
|
(49%)
|
||
Earnings per diluted share
|
$ 0.28
|
$ 0.55
|
($ 0.27)
|
(49%)
|
»
|
Cash and investments ended the quarter at $1,085.8 million, which was an increase of $12.7 million from Q3 of fiscal 2011.
|
»
|
Accounts receivable (net) decreased $7.4 million from Q3 of fiscal 2011 to $118.5 million, with days sales outstanding of 44, a decrease of 8 days from Q3 of fiscal 2011.
|
»
|
Inventory increased $6.9 million from Q3 of fiscal 2011 to $176.5 million and represents 106 days of inventory, a decrease of 13 days from Q3 of fiscal 2011.
|
»
|
Revolutionized commercial lighting with the release of the Cree CR family of LED troffers which deliver shorter payback, better light quality and better efficacy than comparable fluorescents.
|
»
|
Achieved another industry-best efficacy record of 231 lumens per watt for a white high-power LED in R&D.
|
»
|
Unveiled a concept LED light bulb that exceeds the DOE’s 21st Century Lamp L PrizeSM requirements by delivering more than 1,300 lumens at 152 lumens per watt using Cree TrueWhite® Technology.
|
»
|
Launched patent licensing program for remote phosphor applications.
|
CREE, INC.
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenue, net
|
$ | 243,027 | $ | 264,599 | $ | 987,615 | $ | 867,287 | ||||||||
Cost of revenue, net
|
150,324 | 133,546 | 551,842 | 456,180 | ||||||||||||
Gross profit
|
92,703 | 131,053 | 435,773 | 411,107 | ||||||||||||
Gross margin percentage
|
38.1 | % | 49.5 | % | 44.1 | % | 47.4 | % | ||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
30,054 | 21,542 | 115,035 | 81,407 | ||||||||||||
Sales, general and administrative
|
39,133 | 37,493 | 139,304 | 115,601 | ||||||||||||
Amortization of acquisition related intangibles
|
2,670 | 3,045 | 10,776 | 12,180 | ||||||||||||
Loss on disposal or impairment of long-lived assets
|
646 | 452 | 1,952 | 4,141 | ||||||||||||
Total operating expenses
|
72,503 | 62,532 | 267,067 | 213,329 | ||||||||||||
Operating income
|
20,200 | 68,521 | 168,706 | 197,778 | ||||||||||||
Operating income percentage
|
8.3 | % | 25.9 | % | 17.1 | % | 22.8 | % | ||||||||
Non-operating income:
|
||||||||||||||||
Interest and other non-operating income, net
|
3,057 | 1,822 | 9,521 | 7,694 | ||||||||||||
Income from operations before income taxes
|
23,257 | 70,343 | 178,227 | 205,472 | ||||||||||||
Income tax expense
|
3,449 | 17,495 | 31,727 | 53,182 | ||||||||||||
Net income
|
$ | 19,808 | $ | 52,848 | $ | 146,500 | $ | 152,290 | ||||||||
Earnings per share:
|
||||||||||||||||
Diluted net income per share
|
$ | 0.18 | $ | 0.48 | $ | 1.33 | $ | 1.45 | ||||||||
Shares used in diluted per share calculation
|
109,990 | 109,558 | 110,035 | 104,698 |
CREE, INC.
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||
(in thousands)
|
|||||||
June 26, 2011 | June 27, 2010 | ||||||
(Unaudited) | |||||||
Assets:
|
|
||||||
Current assets:
|
|||||||
Cash, cash equivalents and short term investments
|
$ | 1,085,797 | $ | 1,066,405 | |||
Accounts receivable, net
|
118,469 | 117,535 | |||||
Inventories
|
176,482 | 112,241 | |||||
Income taxes receivable
|
6,796 | - | |||||
Deferred income taxes
|
17,857 | 18,823 | |||||
Prepaid expenses and other current assets
|
51,494 | 40,159 | |||||
Total current assets
|
1,456,895 | 1,355,163 | |||||
Property and equipment, net
|
555,929 | 419,726 | |||||
Intangible assets, net
|
102,860 | 106,109 | |||||
Goodwill
|
326,178 | 313,019 | |||||
Other assets
|
4,860 | 5,159 | |||||
Total assets
|
$ | 2,446,722 | $ | 2,199,176 | |||
Liabilities and Shareholders' Equity:
|
|||||||
Current liabilities:
|
|||||||
Accounts payable, trade
|
$ | 76,593 | $ | 63,826 | |||
Accrued salaries and wages
|
18,491 | 26,247 | |||||
Income taxes payable
|
15,493 | 14,375 | |||||
Other current liabilities
|
29,739 | 15,643 | |||||
Total current liabilities
|
140,316 | 120,091 | |||||
Long-term liabilities:
|
|||||||
Deferred income taxes
|
21,902 | 39,398 | |||||
Other long-term liabilities
|
22,940 | 11,639 | |||||
Total long-term liabilities
|
44,842 | 51,037 | |||||
Shareholders' Equity:
|
|||||||
Common stock
|
136 | 135 | |||||
Additional paid-in-capital
|
1,593,530 | 1,507,435 | |||||
Accumulated other comprehensive income, net of taxes
|
13,091 | 12,171 | |||||
Retained earnings
|
654,807 | 508,307 | |||||
Total shareholders' equity
|
2,261,564 | 2,028,048 | |||||
Total liabilities and shareholders' equity
|
$ | 2,446,722 | $ | 2,199,176 |
CREE, INC.
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Year ended
|
|||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | |||||||||||||
GAAP gross profit
|
$ | 92,703 | $ | 131,053 | $ | 435,773 | $ | 411,107 | ||||||||
GAAP gross margin percentage
|
38.1 | % | 49.5 | % | 44.1 | % | 47.4 | % | ||||||||
Adjustment:
|
||||||||||||||||
Stock-based compensation expense
|
1,530 | 1,067 | 5,454 | 3,091 | ||||||||||||
Non-GAAP gross profit
|
$ | 94,233 | $ | 132,120 | $ | 441,227 | $ | 414,198 | ||||||||
Non-GAAP gross margin percentage
|
38.8 | % | 49.9 | % | 44.7 | % | 47.8 | % | ||||||||
Three Months Ended
|
Year ended
|
|||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | |||||||||||||
GAAP operating income
|
$ | 20,200 | $ | 68,521 | $ | 168,706 | $ | 197,778 | ||||||||
GAAP operating income percentage
|
8.3 | % | 25.9 | % | 17.1 | % | 22.8 | % | ||||||||
Adjustments:
|
||||||||||||||||
Stock-based compensation expense
|
9,947 | 6,635 | 38,240 | 24,067 | ||||||||||||
Amortization of acquisition-related intangible assets
|
2,670 | 3,045 | 10,776 | 12,180 | ||||||||||||
Total adjustments to GAAP operating income
|
12,617 | 9,680 | 49,016 | 36,247 | ||||||||||||
Non-GAAP operating income
|
32,817 | 78,201 | 217,722 | 234,025 | ||||||||||||
Non-GAAP operating income percentage
|
13.5 | % | 29.6 | % | 22.0 | % | 27.0 | % | ||||||||
Three Months Ended
|
Year ended
|
|||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | |||||||||||||
GAAP net income
|
$ | 19,808 | $ | 52,848 | $ | 146,500 | $ | 152,290 | ||||||||
Adjustments:
|
||||||||||||||||
Stock-based compensation expense
|
9,947 | 6,635 | 38,240 | 24,067 | ||||||||||||
Amortization of acquisition-related intangible assets
|
2,670 | 3,045 | 10,776 | 12,180 | ||||||||||||
Total adjustments to GAAP income before provision
|
||||||||||||||||
for income taxes
|
12,617 | 9,680 | 49,016 | 36,247 | ||||||||||||
Income tax effect
|
(1,871 | ) | (2,408 | ) | (8,726 | ) | (9,382 | ) | ||||||||
Non-GAAP net income
|
30,554 | 60,120 | 186,790 | 179,155 | ||||||||||||
Earnings per share:
|
||||||||||||||||
GAAP diluted net income per share
|
$ | 0.18 | $ | 0.48 | $ | 1.33 | $ | 1.45 | ||||||||
Non-GAAP diluted net income per share
|
$ | 0.28 | $ | 0.55 | $ | 1.70 | $ | 1.71 | ||||||||
Shares used in diluted net income per share calculation:
|
||||||||||||||||
GAAP shares used
|
109,990 | 109,558 | 110,035 | 104,698 | ||||||||||||
Non-GAAP shares used
|
109,990 | 109,558 | 110,035 | 104,698 | ||||||||||||
Three Months Ended
|
Year ended
|
|||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | |||||||||||||
Free Cash Flows
|
||||||||||||||||
Cash flow from operations
|
$ | 64,458 | $ | 94,938 | $ | 251,380 | $ | 250,569 | ||||||||
Less: PP&E CapEx spending
|
47,852 | 40,786 | 237,085 | 168,624 | ||||||||||||
Total Free Cash Flows
|
$ | 16,606 | $ | 54,152 | $ | 14,295 | $ | 81,945 | ||||||||
CREE, INC.
|
||||||||||||||||
Additional Financial Information
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Year ended
|
|||||||||||||||
June 26, 2011 | June 27, 2010 | June 26, 2011 | June 27, 2010 | |||||||||||||
Stock-Based Compensation Expense
|
||||||||||||||||
Cost of sales
|
$ | 1,530 | $ | 1,067 | $ | 5,454 | $ | 3,091 | ||||||||
Research and development
|
2,132 | 1,452 | 8,388 | 5,040 | ||||||||||||
Sales, general and administrative
|
6,285 | 4,116 | 24,398 | 15,936 | ||||||||||||
Total stock-based compensation in operating expense
|
8,417 | 5,568 | 32,786 | 20,976 | ||||||||||||
Total Stock-Based Compensation Expense
|
$ | 9,947 | $ | 6,635 | $ | 38,240 | $ | 24,067 | ||||||||
June 26, 2011 | June 27, 2010 | |||||||||||||||
Cash, Cash Equivalents and Investments
|
||||||||||||||||
Cash and cash equivalents
|
$ | 390,598 | $ | 397,431 | ||||||||||||
Short term investments
|
695,199 | 668,974 | ||||||||||||||
Total Cash, Cash Equivalents and Investments
|
$ | 1,085,797 | $ | 1,066,405 |