San Diego Community College District Selects Cree LED Lighting
Aug 13 15
San Diego Community College District (SDCCD) was searching for energy efficient LED lighting for its campus, it chose Cree LED lighting to achieve a superior light experience with integrated control capabilities while saving money on energy and maintenance. Using Cree's high-performing LED lighting with SmartCast® Technology, SDCCD upgraded its administrative offices with intelligent light while demonstrating a strong return on investment, consuming up to 75% less energy and generating over $80,000 of rebates for instant savings. As part of the upgrade to the administrative offices, SDCCD installed Cree CR Series troffers with SmartCast Technology, delivering exceptional lighting performance and essential lighting control without the complex design, installation and set-up of traditional lighting control systems. SDCCD was able to finance the upgrades using Proposition 39 funding, a state program that makes up to $550 million available annually to pay for energy projects that demonstrate efficiency and a strong investment return for eligible education agencies.
Cree, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended June 28, 2015; Provides Earnings Guidance for the First Quarter Ending September 27, 2015 and Capital Expenditure Guidance for the Fiscal Year 2016
Aug 11 15
Cree, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended June 28, 2015. For the quarter, the company reported revenue of $382 million. This represents a 12% decrease compared to revenue of $436 million reported for the fourth quarter of fiscal 2014. GAAP net loss was $88 million, or $0.83 per diluted share, compared to GAAP net income of $30 million, or $0.24 per diluted share, for the fourth quarter of fiscal 2014. On a non-GAAP basis, net loss was $21 million, or $0.19 per diluted share, compared to non-GAAP net income for the fourth quarter of fiscal 2014 of $51 million, or $0.42 per diluted share. Operating loss was $95.67 million compared to operating income of $31.72 million a year ago. Loss from operations before income taxes was $109.83 million compared to income from operations before income of $35.64 million a year ago. Cash flow from operations was $87.56 million compared to $91.14 million a year ago. Non-GAAP operating loss was $28.17 million compared to non-GAAP operating income of $57.33 million a year ago. The revenue was decreased 7% sequentially compared to last year same period, as solid growth in commercial lighting was offset by lower LED revenue related primarily to the restructuring and lower consumer bulb sales. Capital expenditures were $53 million, including $5 million related to patents, which resulted in free cash flow of $35 million.
For the year, the company reported revenue of $1.63 billion, which represents a 1% decrease compared to revenue of $1.65 billion for fiscal 2014. GAAP net loss was $64 million, or $0.57 per diluted share, compared to $124 million of net income, or $1.01 per diluted share, for fiscal 2014. On a non-GAAP basis, net income was $72 million, or $0.64 per diluted share, compared to $203 million, or $1.65 per diluted share, for fiscal 2014. Operating loss was $72.51 million compared to operating income of $134.28 million a year ago. Loss from operations before income taxes was $82.90 million compared to income from operations before income of $147.57 million a year ago. Cash flow from operations was $181.25 million compared to $319.31 million a year ago. Non-GAAP operating income was $67.13 million compared to non-GAAP operating income of $227.95 million a year ago. Non-GAAP net income was declined compared to last year same period, as profit growth in Lighting and Power and RF was not enough to offset the significant decline in LED profits and the related restructuring costs. Revenue was similar to fiscal 2014, as growth in Lighting mostly offset the decline in LED. Capital expenditures were $226 million. Free cash flow was a negative $44 million.
The company provided earnings guidance for the first quarter ending September 27, 2015. For its first quarter, the company targets revenue in a range of $410 million to $430 million, with GAAP gross margin targeted to be 31.3% plus or minus and non-GAAP gross margin targeted to be 32.0% plus or minus. The GAAP gross margin targets include stock-based compensation expense of approximately $3 million, while its non-GAAP targets do not. The tax rate is targeted at 25.0% for the first quarter of fiscal 2016. GAAP net loss is targeted at $16 million to $22 million, or a loss of $0.16 to $0.21 per diluted share, due to the additional restructuring costs and the estimated fair value loss based on its Lextar investment current stock price. Non-GAAP net income is targeted in a range of $19 million to $24 million, or $0.18 to $0.23 per diluted share. Targeted non-GAAP earnings exclude $0.39 per diluted share of expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles, net changes associated with its Lextar investment, and charges associated with the LED business restructuring. The company targets incremental gross margin improvement in all of its segments along with some benefit from a recent patent license agreement. These first quarter targets are based on a number of factors that could vary, including overall demand, product mix, factory execution and the competitive environment. GAAP net interest income and others is targeted to be approximately $1 million. GAAP net interest income and others is targeted to be a loss due to the significant decline in Lextar's stock price quarter to date.
For the fiscal year 2016, the company is targeting property, plant and equipment spending to be lower than fiscal 2015 at $150 million, plus or minus, which will primarily occur in the first half of the fiscal year to complete certain existing infrastructure projects and provide Lighting and Power and RF incremental capacity. Overall, the company currently target fiscal 2016 free cash flow of approximately $85 million. Fiscal 2016 tax rate is higher than fourth quarter as the company targets a higher percentage of U.S. earnings for fiscal 2016 due primarily to a higher percentage of lighting sales year-over-year. The first quarter and fiscal 2016 tax rates will fluctuate based on overall earnings, tax jurisdictions in which the earned income is actually earned, tax credits and other tax benefits that may or may not become available to Cree in future periods.
Cree, Inc. and Epistar Corporation Signs Patent Cross-License Agreement
Aug 4 15
Cree, Inc. and Epistar Corporation announced that it have signed a worldwide patent cross-license agreement for light emitting diode chips to further advance the growth of the LED lighting and LED bulb markets. Cree and Epistar both hold broad and substantial LED chip patent portfolios that are important for making blue LEDs, the foundation of white LEDs found in most lighting products manufactured worldwide. Under the terms of the agreement, each party receives a license to the other’s nitride LED chip patents and is granted certain rights to non-nitride LED chip patents. Over the term of the agreement, Cree will receive a licensing fee and royalty payments from Epistar.