Joy or sorrow? CREE 2015 fiscal year results released

CREE Inc. (Nasdaq: CREE) announced that as of June 28, 2015, the company's fiscal 2015 fourth quarter revenue of $382 million, compared with 2014 in the fourth quarter of fiscal revenue of $436 million, down 12%, compared with the third quarter of fiscal year 2015, down 7%. 2015 fiscal year fourth quarter GAAP (GAAP) net loss of $88 million (or $0.83 per diluted share gains and losses), 2014 in the fourth quarter of fiscal year (GAAP) GAAP net income of $30 million (or $0.24 per diluted share). According to the non GAAP (Non-GAAP) calculation, the net loss in the fourth quarter of fiscal year 2015 was $21 million (or $0.19 per diluted share gains and losses), 2014 in the fourth quarter of fiscal year non GAAP (Non-GAAP) net income of $51 million (or $0.42 per diluted share). Cree Inc. announced the LED Department reorganization in June 24, 2015, the corresponding cost $84 million, including the LED revenue of $27 million, LED $11 million $46 million reduction in inventory, production capacity and cost management. Revenues and inventories are included in the results of general accounting standards (GAAP) and non GAAP (Non-GAAP) results. Factory capacity and management costs are included in the U.S. GAAP (GAAP) results.

Cree Inc. announced fiscal 2015 total revenue of $1 billion 630 million, compared with $2014 in fiscal year total revenue, down by 1%. The fiscal year 2015 GAAP (GAAP) net loss of $64 million (or $0.57 per diluted share profit), fiscal year 2014 GAAP (GAAP) net income of $124 million (or $1.01 per diluted share). According to the non GAAP (Non-GAAP) calculation, net income for fiscal year 2015 was $72 million (or $0.64 per diluted share), fiscal year 2014 net income of $203 million (or $1.65 per diluted share).

Cree Inc. chairman and chief executive officer Chuck Swoboda said: our lighting and power / RF business in fiscal year 2015 has made good progress, but also faces the challenges of the LED industry. In the fourth quarter, we take the development of LED business restructuring and business lighting business, will provide support and drive for the steady growth of revenue and profit growth for fiscal year 2016. "

2015 fiscal year fourth quarter financial indicators: (in addition to the amount and percentage per share, other units are $1000)

In the first quarter of fiscal year 2016 (as of September 27, 2015), $410 million to $430 million revenue target to achieve Cree Inc. plan, GAAP (GAAP) margin targets set in 31.3%+/-, non GAAP gross profit (Non-GAAP) target set at 32% + / -. The U.S. general accounting standards (GAAP) gross profit target includes a stock compensation expense of approximately $3 million, while the non GAAP (Non-GAAP) target does not include. U.S. general accounting standards (GAAP) operating expenses target of approximately $142 million, non GAAP (Non-GAAP) operating expenses target of approximately $107 million. 2016 fiscal first quarter tax rate is expected at $25%. Due to restructuring costs and based on the current stock price is expected to Luanda fair value losses, GAAP net loss (GAAP) target of $16 million to $22 million, or $0.16 per diluted share profit to $0.21. Non US GAAP (Non-GAAP) net income target of $19 million to $24 million, or diluted earnings per share of $0.18 to $0.23. GAAP (GAAP) and non GAAP (Non-GAAP) net income targets are based on the estimated 103 million diluted weighted average shares. Non GAAP (Non-GAAP) target income does not include the acquisition of intangible assets amortization costs and stock compensation expense ($0.39 per diluted share), acquisition related intangible asset amortization or impairment of investment, net change, Ronda LED division restructuring charges.

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