This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cree's CEO Discusses F4Q12 Results - Earnings Call Transcript

We finished the year strong in fiscal Q4 with record revenue of $307 million and non-GAAP net income of $29 million, or $0.25 per diluted share. Revenue was slightly higher than the midpoint of our target range as LEDs, lighting and power and RF delivered solid growth in Q4. Non-GAAP earnings per share were also on the high-end of our target range for the quarter, primarily due to continued improvement in gross margins at a lower tax rate than we had forecast.

The revenue trends in Q4 were as follows: lighting sales increased more than $14 million, or 16% from Q3 as we regained momentum with our agents and saw the initial benefits of our new product launches. LED sales increased $4 million from Q3, which was driven by growth in LED components. Power and RF sales increased almost $4 million from Q3, driven by growth in both product lines.

Non-GAAP gross margin increased 70 basis points to 36.3% in Q4, which was on the high side of our target for the quarter. The overall improvement in margin was driven by a combination of factory cost reductions, lower cost new products and slightly higher factory utilization. While the LED market remained very competitive, pricing declines were in line with our targets for the quarter. We continued to closely manage inventory across our factories, while working to respond to short lead time expectations in both the LED and lighting markets and support a significant number of new product launches.

Overall, we reduced inventory in Q4 by $8 million to 85 days. Cash and investments increased to $745 million due to solid execution, reduced capital spending, and higher profitability. Free cash flow was $47 million in Q4, and we remain in a good capacity position to support future increased demand in our LED product line. Overall, our strong balance sheet gives us the ability to continue to invest in growing our business and the market for LED lighting.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $241.80 0.00%
YHOO $36.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs