Research Desk Line-up: Ichor Post Earnings Coverage

LONDON, UL / ACCESSWIRE / September 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Cree, Inc. (NASDAQ: CREE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CREE, following the Company's release of its fourth quarter and fiscal 2017 financial results on August 22, 2017. The maker of energy-efficient lighting missed earnings expectations. The Company also provided the outlook for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Semiconductor Equipment & Materials industry. Pro-TD has currently selected Ichor Holdings, Ltd (NASDAQ: ICHR) for due-diligence and potential coverage as the Company announced on August 10, 2017 its financial results for Q2 2017, which ended on June 30, 2017, and also provided guidance for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Ichor when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CREE; also brushing on ICHR. With the links below you can directly download the report of your stock of interest-free of charge at:

http://protraderdaily.com/optin/?symbol=CREE
http://protraderdaily.com/optin/?symbol=ICHR

Earnings Reviewed

Cree announced revenue of $359 million for its fourth quarter of fiscal 2017, ended June 25, 2017. This represented an 8% decrease, compared to revenue of $388 million reported for Q4 FY16. The Company's revenue number had surpassed analysts' expectations of $350.3 million.

For fiscal year 2017, Cree reported revenue of $1.5 billion which represented a 9% decrease, compared to revenue of $1.6 billion for fiscal 2016.

Cree's GAAP net loss was $6 million, or $0.06 per diluted share, for Q4 FY17 compared to GAAP net loss of $11 million, or $0.11 per diluted share, for Q4 FY16. On a non-GAAP basis, the Company's net income was $4 million, or $0.04 per diluted share, for the reported quarter compared to non-GAAP net income of $19 million, or $0.19 per diluted share, for the year earlier corresponding quarter. The Company's earnings fell short of Wall Street's expectations of $0.05 per share.

For FY17, Cree's GAAP net loss was $98 million, or $1.00 per diluted share, compared to net loss of $22 million, or $0.21 per diluted share, for FY16. On a non-GAAP basis, the Company's net income was $50 million, or $0.50 per diluted share, for the reported period compared to $88 million, or $0.86 per diluted share, for the year ago same period.

Cree's Segment Results

During Q4 FY17, Lighting Products' revenue totaled $154.66 million, in line with the Company's targets. The segment's gross profit increased 4% sequentially to $37 million for a 23.8% gross margin and 80 basis points sequential increase. The gross profit and margin increase was primarily due to better factory utilization and lower warranty cost.

For Q4 FY17, LED Products' revenue totaled $143.45 million, compared to $143.28 million in Q4 FY16. The segment's gross profit increased 15% on a q-o-q basis to $37 million for a 25.9% gross margin; a 120 basis point sequential increase.

The Company's Wolfspeed's revenue grew 30% to $60.83 million, compared to $46.31 million in Q4 FY16. The Company's gross profit was up 5% on a q-o-q basis at $27 million for a 45.5% gross margin; a 150 basis point sequential decrease.

Cash Matters

Cree ended FY17 with $466 million in cash and investments, net of line of credit borrowings, a $27 million increase from Q3 FY17. At year-end, the Company had $145 million outstanding on its line of credit. During Q4 FY17, Cree's cash from operations was $53 million and capital expenditures were $34 million, including patents, which resulted in free cash flow of $19 million. For FY17, Cree generated $216 million of cash from operations and spent $99 million for capital expenditures, which yielded free cash flow of $117 million.

During FY17, Cree spent $104 million to repurchase 4.4 million of Cree's shares with no repurchases in the reported quarter.

Business Outlook

For its Q1 fiscal 2018 ending September 24, 2017, Cree is forecasting revenue in a range of $353 million to $367 million. The Company's GAAP net loss is targeted to be in the band of $20 million to $25 million, or $0.20 to $0.25 per diluted share, and non-GAAP net income is expected to be in the range of $2 million to $6 million, or $0.02 to $0.06 per diluted share.

Stock Performance

On Friday, September 8, 2017, the stock closed the trading session at $23.85, declining 2.57% from its previous closing price of $24.48. A total volume of 782.55 thousand shares have exchanged hands. Cree's stock price advanced 1.49% in the last one month. The stock currently has a market cap of $2.33 billion.

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SOURCE: Pro-Trader Daily