A long interview with the CEO of Cree (Lowe)....from the end of June.
Let’s talk briefly on the financial results. The last three financial years Cree lost revenue from 1.6 billion dollars to 1.4 billion, and generated a net loss of nearly 100 million in the financial year 2017. And if I sum up the first three quarter results of the financial year 2018 and the guidance for Q4 the annual revenue will be some 1.4 to 1.5 billion. What are you saying to the Board of Directors and to your shareholders in this respect?
We have been very clear with our shareholders, with our Board and with our employees: The focus of the turnaround is driving the growth of the Wolfspeed business. So Wolfspeed will have a higher percentage of the total business. Additionally Wolfspeed has a higher gross profit and a higher bottom-line profit, and this in turn will help us to increase profitability. Eventually the company revenue in 2022 will be roughly 2.4 billion dollars and the operating profit will be roughly 20 percent, a significant increase in profitability.
So far our shareholders are excited about this. We have said to them that by 2022 the Wolfspeed business will be some 850 million dollars, lighting some 700 million, and some 800 million with LED. And our customers are excited about this, because we are investing and extending our capacity in silicon carbide.