LED factory Cree delayed Wolfspeed listing IPO

LED CREE (CREE) plans to spin off Wolfspeed postponed. Chief executive Chuck Swoboda at 19 local time, said the spin off Wolfspeed may not be completed in the first half of 2016.

CREE previously announced that it will be a high profit power (Power) and radio frequency (RF) business group split into an independent company, named Wolfspeed and a public offering is expected to be led by board member Frank Plastina. But now the plan seems to be delayed.

Chief financial officer Mike McDevitt said that due to the delay of public offering of IPO, from CREE's earnings can be seen as much as $2 million ($13 million 158 thousand and 400) has been hit, to make Wolfspeed listed.

In the last quarter earnings, power and RF business group accounted for as much as 6% of the overall turnover, revenue of $27 million 500 thousand.

Perhaps for CREE, the company has completed the restructuring of its core LED business, but also means that before the restructuring of the company in the United States (Durham) Durham stronghold, has significantly reduced the overall operating costs of Cree.

CREE currently has enough cash on hand and may be able to acquire other companies in 2016.

However, in 2015, CREE's share price. A year ago, the stock price of about $32.34, but in June 2015 when the news of the reorganization of the LED business group, the stock fell to a new low of three years, but recently rebounded, but did not respond to the level of the time.

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